Volkswagen Group CEO Martin Winterkorn has admitted that VW Group’s merger with Porsche AG may not be completed next year as planned.
Winterkorn said the merger may be delayed due to lawsuits brought by pension funds and tax issues.
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“We cannot rule out that the proceedings may take a while yet until a final ruling is handed down,” Winterkorn said at a Porsche press conference in Stuttgart.
But he insisted that the merger to create the ‘integrated automotive group’ will happen.
As part of the deal that will see Porsche’s holding group also own shares in VW, Porsche shareholders will be asked to approve a capital increase worth five billion euros in late November.
Porsche faces legal action from US investment funds which accuse the company of having manipulated the stock market in 2008 and hiding its intentions when it attempted to take over VW.
Winterkorn said in a statement that Porsche AG and the Volkswagen group had chosen the right time to join forces: “With its outstanding expertise in the field of sports cars, Porsche will play an important role in the integrated group. Porsche will remain true to itself and its brand values,” stressed Winterkorn. This was guaranteed by the cooperation with the Volkswagen group and with its development and production resources, added Winterkorn.
He also said that joint project teams had launched a whole range of cooperation projects – in areas ranging from development to production, and from procurement to sales – and were now making ‘great progress towards realising the intended synergies’. “Porsche and the Volkswagen Group’s brands are joining forces to become the number 1,” Winterkorn said.
