| Europe will see the rise of a new automobile | | | | remove a cap on voting rights at VW. |
| empire. The much-anticipated conglomeration will | | | | "Volkswagen has announced that they're taking a |
| be composed of Porsche, Volkswagen, and | | | | majority share of Scania. Next they could upgrade |
| Scania. | | | | their stake in MAN to a majority stake, merge |
| Porsche Automobil Holding SE was given the | | | | the two companies into a Volkswagen |
| green light by its board Monday to acquire | | | | Commercial AG and sell that to Porsche SE. Then |
| majority stake in Volkswagen AG which owns | | | | they could hand back to Porsche ... or to their |
| Audi, Skoda, Seat, Lamborghini, Bentley and | | | | stock owners, a special dividend from the |
| Bugatti brands. VW, meanwhile, said it will take a | | | | revenues of that sale," said Christoph Stuermer, |
| controlling interest in Scania, a Swedish | | | | an auto analyst with Global Insight. |
| truckmaker. This also means Porsche is in a | | | | In a statement, Porsche said the reviews by the |
| position to absorb Scania with MAN AG, a | | | | regulatory authorities are expected to take |
| German truckmaker which Volkswagen holds 29.9 | | | | several months. And when requisite clearances |
| percent, reported the Associated Press. | | | | are finally acquired, Porsche can take majority |
| VW Chief Executive Martin Winterkorn said | | | | stakes in Volkswagen. The statement added that |
| Volkswagen will focus on synergies with Scania | | | | Porsche does not intend to merge the two |
| AB, mainly in purchasing raw materials such as | | | | companies. |
| steel as well as research and development and | | | | "Our aim is to create one of the strongest and |
| electronic components. | | | | most innovative automobile alliances in the world, |
| Analysts in the industry said the deals are aimed | | | | which is able to measure up to the increased |
| at accumulating more wealth. The deals also | | | | international competition," said Porsche Chief |
| strengthen the control held by the grandson of | | | | Executive Wendelin Wiedeking. |
| Porsche founder - Ferdinand Piech. He is the | | | | Were a tie-up happen, VW and Scania would |
| chairman of Volkswagen and MAN supervisory | | | | effortlessly upstage giant rivals such as Volvo AB |
| boards. | | | | and Daimler AG, Europe's largest truckmaker. |
| The maker of Porsche parts has been gradually | | | | "It shows the trust that the people in Porsche AG |
| increasing its stake in Volkswagen for more than | | | | have in Volkswagen," Winterkorn noted at the |
| a year and won a significant victory in 2007 when | | | | Geneva Motor Show. "It means a lot of |
| the European Union's highest court promulgated a | | | | interesting things in the future. |
| decision that the German government had to | | | | |