VW Buys Porsche In Historical Deal

Online, July 7, 2012 (Newswire.com) - Volkswagen AG is quickly moving its way into becoming the world's number one car maker by purchasing the remaining half of Porsche today. This monumental acquisition means the end to a protracted takeover skirmish that has caused family feuds and lawsuits from business investors.

The new controversial deal will allow VW to get out of a tax bill of over 1.8 billion euros. The deal also allows VW to expedite Porsche's integration into a multi-faceted brand empire that strives to sell 10 million cars and trucks a year with the hopes of becoming the world's number one auto seller by 2018.

VW executives are more excited than ever and have high hopes that the latest deal will make VW the most powerful and best auto company in the world. Joint projects are already in the works and include Porsche's next model, the Macan, a mid-size SUV poised to be launched in 2014. VW plants currently provide the painted bodies for many Porsche models and will now begin construction of the Porsche Boxter in the new factory in Germany.

Volkswagen is already a major player in emerging markets like Russia, China, and Latin American countries, but will need to establish a bigger presence in the United States win the world title of top car manufacturer. VW is making plans to achieve this with their newly opened $1 billion factory they opened last year in Chattanooga, Tennessee. An Audi plant will be opened in Mexico later for future manufacturing.

After news of Europe's biggest automaker's decision to buy the remaining half of Porsche for $5.9 billion, shares for the company rose significantly. VW closed the day with shares at a 5.1 percent increase, while Porsche's stock fell 1.2 percent.