Porsche to form new holding company to rival Toyota

Porsche shareholders approved plans recently for the creation of a new holding company that would combine Volkswagen and truck manufacturers MAN and Scania to form a global powerhouse to rival industry leader Toyota. Porsche under the guidance of CEO Wendelin Wiedeking will be in charge of the new entity because of its controlling stake in VW, and when combined revenues would top those of GM and Ford but won’t surpass Toyota.

MAN is already in talks with Scania and VW Commercial Vehicles over a proposed merger, so it’s not difficult to see the groups join with the carmaking divisions. Wiedeking still sees significant improvement for VW, commenting that the car giant is still not in the same league as Toyota and GM, telling Automotive News reporters that “its cost structures aren't right yet.”

Porsche’s 31% stake in VW means that Wiedeking will direct the new holding company, and is reported to be currently in talks with VW boss Martin Winterkorn over the development of more joint-projects including hybrid technology and electrical systems.