Porsche: VW Deal Is on Track
STUTTGART — Porsche Automobil Holding SE said Friday the company's plan to merge with Volkswagen AG still stands despite the remaining obstacles and voiced optimism that the related tax issues can be resolved in the foreseeable future.
"Our clear, common goal is and remains the merger," Chief Executive Martin Winterkorn said at the Stuttgart-based sports-car maker's annual general meeting, according to a prepared statement.
Porsche Chief Financial Officer Hans Dieter Poetsch said he was optimistic that the tax issues related to a possible merger can be clarified in the foreseeable future as German financial authorities have completed a first draft for a required legal notice, reported The Wall Street Journal.
Mr. Poetsch said the company is continuing to prepare for the planned merger. The regional court in Stuttgart has named Duesseldorf-based Roelfs RP AG Wirtschaftspruefungesellschaft as auditor for the merger. Mr. Poetsch added that Porsche plans an extraordinary shareholder meeting mid-December where a decision about the merger should be taken.
In April, Porsche raised around €4.9 billion ($6.96 billion) in a capital increase to bring its debt below €1.5 billion ahead of a planned merger with Volkswagen, Europe's largest auto maker by sales. Porsche initially tried to take over its much-larger peer, but the bold plan backfired when credit markets dried up and the company's debt ballooned.
Both Porsche and Volkswagen, which now are run by the same management team, have repeatedly stated in recent months that the plan to forge a combined company still stood, even if the deal couldn't be completed in 2011 as initially planned.
The prospects of the merger were thrown into doubt earlier this year when Porsche announced that the merger would be less likely if the related legal and tax issues were to drag on longer than expected. Investigations into alleged market manipulation by prosecutors in Germany and a similar lawsuit in the U.S. are ongoing and aren't likely to be finalized by the end of this year.
Volkswagen bought a 49.9 percent stake in Porsche's core-sports-car unit at the end of 2009 and holds options to acquire the remaining 50.1 percent between Nov. 15, 2012, and Jan. 31, 2015. But Porsche's holding company could remain a separate entity until all tax and legal issues are resolved.
More Industry

Ownership Priorities are Shifting
A new survey shows that in the U.S. vehicle quality for generation Z is largely defined by advanced safety features, intuitive technology and premium sound systems.
Read More →
Pump Price Jump Calculated
ISeeCars.com examined fuel costs for different power trains, finding which ones have experienced the biggest hits since the war in Iran commenced.
Read More →
Black Book: Weekly Market Update
Wholesale values fell last week despite the spring season still being in the traditional full-gear mode, analysts said.
Read More →
Arkansas Auto Group Acquires First Indiana Rooftop
Performance Brokerage Services represented both the buyer and seller in the sale of Carver Toyota of Columbus by Carlock Automotive Group.
Read More →
Stellantis to Dive Into U.S. Lending
The multinational maker of Chrysler, Dodge, Jeep, Ram and multiple other brands received conditional approvals for a Utah-based industrial bank.
Read More →
New-Vehicle Prices Rise
With April sales down, higher prices on in-demand large vehicles helped inflate the overall ATP, though increases were under long-term averages, Cox Automotive reported.
Read More →
Black Book: Weekly Market Update
Last week in the wholesale automotive market proved to be a mixed bag, analysts reported.
Read More →
Black Book: Weekly Market Update
Conversion rates were flat last week at 63%, Black Book analysts calculated, as low-mileage and almost-near units outpaced the overall market.
Read More →
EU Auto Association Urges Action
Trade relations between the European Union and the U.S. are at risk, causing the European Automobile Manufacturers Association to push lawmakers to make a decision.
Read More →
Driving into the Super CFC Era
Understanding the risks and benefits of retail accounting and Super CFCs can help you better present options to your dealer partners.
Read More →