Volkswagen AG has said it has taken over Porsche’s automobile trading business, taking another step toward a full merger of the two companies.
Volkswagen has acquired the operating business of Porsche Holding Salzburg (PHS) in accordance with previous announcements for the sum of EUR3.3bn. The registered office and corporate headquarters will remain in Salzburg.
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The already planned acquisition was described by VW as ‘completing the next planned step towards the creation of the integrated automotive group of Volkswagen and Porsche.
“The business performance of Porsche Holding Salzburg is outstanding. It is one of the worlds most efficient and profitable automobile trading companies and will therefore significantly strengthen the Volkswagen Group’s sales activities,” said Dr. Martin Winterkorn, VW Group CEO.
He added that PHS had industry-leading systems and processes and enormous experience in the retail sector. “Where meaningful, we will be transferring this know-how to the Group, thereby further enhancing the performance of our overall sales activities,” Winterkorn commented.
Volkswagen is acquiring all automobile operations of PHS such as the wholesale and retail business, Porsche Informatik, Porsche Bank, Porsche Immobilien and Porsche Versicherung as well as PGA Motors headquartered in Paris.
“Under the Volkswagen Group umbrella, PHS will retain its status as an independent organisational unit and continue with its business model unchanged,” Christian Klingler, Volkswagen Aktiengesellschaft Board member for Sales, said.
“All assets remain intact. That also applies to the automobile trading business relating to all non-Group brands. The controlled growth course of PHS is to continue,” Klingler added.
PHS is described by VW as ‘Europe’s most successful private automobile trading company and has a particularly strong presence in Austria, Western Europe and South Eastern Europe as well as China.’
In the 2010 calendar year, unit sales of 565,000 new and used vehicles generated sales revenue of EUR12.78bn. PHS employs some 20,900 people.
VW already owns 49.9% of Porsche’s core manufacturing unit and plans to acquire the rest.
