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U.S. FTC gives Porsche green light to increase VW stake

U.S. FTC gives Porsche green light to increase VW stake

Viknesh Vijayenthiran June 4th, 2008 Viknesh Vijayenthiran By Viknesh Vijayenthiran Author June 4th, 2008
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December 31st, 1969 Porsche confirmed last week it would increase its stake in Volkswagen Group beyond the 50% mark and thus gain greater control of the company and all its subsidiary brands, and now U.S. antitrust authorities have given their approval for the deal. The Federal Trade Commission placed the deal on a list of approved mergers, allowing Porsche to take a step further in gaining greater control of one of the world’s biggest carmakers. There remains fears that sports car programs from Audi, Bentley and Bugatti that could potentially compete with Porsche’s own sports models could be canceled once the Stuttgart-based carmaker takes control, reports Automotive News. The German government is also fearful that greater control by Porsche could see thousands of VW workers lose their job. In response to Porsche’s takeover announcement, the German government approved a revised version of its 48-year old VW Law, which mandates that any major strategic decisions within VW would still have to be approved by just over 80% of shareholders. This means that decisions made by Porsche, even with a controlling stake, could be blocked by the German state of Lower Saxony, which still holds 20% of VW.
U.S. FTC gives Porsche green light to increase VW stake

U.S. FTC gives Porsche green light to increase VW stake

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Porsche confirmed last week it would increase its stake in Volkswagen Group beyond the 50% mark and thus gain greater control of the company and all its subsidiary brands, and now U.S. antitrust authorities have given their approval for the deal. The Federal Trade Commission placed the deal on a list of approved mergers, allowing Porsche to take a step further in gaining greater control of one of the world’s biggest carmakers.

There remains fears that sports car programs from Audi, Bentley and Bugatti that could potentially compete with Porsche’s own sports models could be canceled once the Stuttgart-based carmaker takes control, reports Automotive News. The German government is also fearful that greater control by Porsche could see thousands of VW workers lose their job.

In response to Porsche’s takeover announcement, the German government approved a revised version of its 48-year old VW Law, which mandates that any major strategic decisions within VW would still have to be approved by just over 80% of shareholders. This means that decisions made by Porsche, even with a controlling stake, could be blocked by the German state of Lower Saxony, which still holds 20% of VW.

Tags: Industry

Posted in: Porsche, Volkswagen, News


Comments (8 total)

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  1. By shortroot #1, Posted: 6/4/2008

    Are Porsche and VW/VAG not German companies? Can somebody explain to me what the hell the American 'Federal Trade Commission' has to do with anything? I am not meaning to sound cocky, I really want to know where they fit in.

  2. By wtf #2, Posted: 6/4/2008

    you took words right out of my mouth
    yea really where and how do they fit in?

  3. By j1v #3, Posted: 6/4/2008

    yea, and Germany is a Federation :)

    Bundesrepublik Deutschland
    Federal Republic of Germany

    http://en.wikipedia.org/wiki/Germany

  4. By j1v #4, Posted: 6/4/2008

    huh ... I just saw the title is " U.S. FTC" ...

  5. By justin #5, Posted: 6/4/2008

    wat is this, why does the US have anything to do with this wars already enough and now cars cmon. Porsche is losing control, US/Germany shouldn't have the right to own one of the worlds first car manufacturers, i hope the CEO of porsche goes kills himself if he dares to take sports cars from Audis tats bs

  6. By William vonSteiner-Lynn #6, Posted: 6/5/2008

    It's the International Fair Trade Policies that would have to approve a potential Microsoft taking over Yahoo or Thiessen-Krupp taking over US Steel.

  7. By Christian #7, Posted: 6/19/2008

    Bye Bye R4, or the soo called boxster killer, porsche will now never allow audi to produce a car that could threaten one of porches models, which kinda sucks seeing as the R8 was killing some porsches in alot of categories

  8. By Tony #8, Posted: 7/11/2008

    To the victor go the spoils. I doubt Audi would hesitate to flex some muscle if they were in the cat-bird seat that Porsche now occupies.

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