VW falls out with Porsche?
The saga continues. Now it seems that VW is giving Porsche the cold shoulder, although we’re not getting enough information to give an informed response. This from the BBC:
German car giant Volkswagen (VW) has said it is suspending merger talks with luxury carmaker Porsche.
VW said that constructive negotiations were not possible at the moment and urged Porsche to reduce its debt.
But Porsche said while a meeting scheduled for Monday had been cancelled, negotiations over the merger would continue.
The two carmakers agreed to merge earlier this month and said all 10 brands would remain independent.
Nine of the brands are owned by VW, and the other is the Porsche sports car brand.
In January, Porsche announced it had increased its stake in VW to more than 50%, and said it planned to lift its stake to 75%.
Porsche took on 9bn euros ($12.2bn; £8bn) of debt to increase its stake in VW, the source of increasing tension between the two companies.
“The negotiations that began last week will continue as planned,” Porsche said on Sunday.
Its supervisory board is due to meet later on Monday.
Comments (0)