Volkswagen chief Martin Winterkorn said that group remains “totally committed” to indebted Porsche SE, even though sizeable obstacles to a merger deal remain. 

He told the group’s annual press conference in Wolfsburg: “Volkswagen remains totally committed to the Comprehensive Agreement and to the merger with Porsche.

“However, the tax and legal hurdles still to be overcome on the way are not insubstantial.”

Winterkorn, who also serves as CEO of Porsche SE, added that preparations for the holding company’s planned EUR5bn (US$6.9 bn) capital increase in the first half of this year were “fully on schedule”.

He said VW had already developed concrete projects for over 60% of the joint EUR700m (US$971.1m) in annual planned synergies with Porsche SE’s 50.1% owned operating unit, Porsche sports cars.