Porsche and Volkswagen are Officially One

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finished their merger deal at the beginning of July, but they had to wait for the financial quarter to end before they could officially come together. Yesterday, August 1, the third quarter began and that meant the two German powerhouses could finally come together.

“The path is now finally clear for a bright future together. Even closer cooperation will enable us to significantly strengthen Volkswagen and Porsche, and further expand the Group’s product portfolio with fascinating new vehicles”, said Dr. Martin Winterkorn, Chairman of Volkswagen AG. 

The deal does make things rather vague, but Volkswagen still owns Porsche. As part of the deal, the two companies formed a holding company called the Integrated Automotive Group. Technically, IAG holds 100% ownership of Porsche, but Volkswagen owns IAG. The deal allows Porsche to be an arms length away from its new parent company. Unlike, Audi or Lamborghini, which Volkswagen owns directly, decisions about Porsche have to be approved first by the IAG board.

"The unique Porsche brand will continue to develop successfully under Volkswagen’s multiband strategy and proven decentralized management structure. Porsche will retain its own identity and operational independence, just like all of the other Group brands", said Dr. Winterkorn.