Filed under: Hirings/Firings/Layoffs, Porsche, Volkswagen

After several snags, fits, stops and starts, and even a temporary fear by executives the deal might not get done, German automaker Volkswagen is all set to close the deal to acquire Porsche.

On one hand, the deal may sound incongruous to the average consumer and car buyer. VW, which literally translates to "the people's car," buying one of the most prestigious and exclusive brands in the world. But, in reality, the managements and ownership of the two companies have been entwined for decades since the end of World War Two.

Perhaps one of the most ironic twists in the deal that will finally bring Porsche under the Volkswagen AG umbrella, is that it comes after the much smaller Porsche had tried in 2008 and 2009 to acquire the much larger Volkswagen. Porsche's former CEO, Wendelin Wiedeking, considered almost the Lee Iacocca of the European auto industry, tried to engineer the deal through a complex and shady web of financial maneuvers and investments that came completely unglued and almost bankrupted Porsche.

The failure of the deal completely ruined what had been an 18-year, storied career for Wiedeking.

Indeed, after Porsche attempted the hostile takeover of VW, it was Volkswagen that came to Porsche's rescue. The deal has been delayed while the companies and the lawyers have been trying to sort out who will be on the hook for a number of shareholder lawsuits should they get decided in the favor of the plaintiffs.

The deal that is being solidified today, which will result in VW's full ownership of Porsche on August 1, was actually begun in 2009.Continue reading Volkswagen finally, really, taking over Porsche
Volkswagen finally, really, taking over Porsche originally appeared on Autoblog on Thu, 05 Jul 2012 17:16:00 EST. Please see our terms for use of feeds.
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