If the merger occurred, Porsche together with Audi would be able to sell more than a million cars annually, with a higher yield than either Mercedes or BMW. This would leave Volkswagen Group consisting only of VW, Skoda and Seat, which would still maintain an annual output of four million cars but with much lower margins. It would also enable Audi to make the final push to unseat BMW and Mercedes as the premier German carmaker, reports the Handelsblatt newspaper.
The proposal of a restructure is not as far-fetched as it seems. The first steps towards the move have already occurred, with VW Group’s new head, Martin Winterkorn, planning to create a separate group for its premium brands Audi, Bentley, Lamborghini and Bugatti, similar in style to Ford’s Premium Auto Group. VW, Skoda and Seat will remain as its mass market division. Furthermore, Porsche is expected to request a capital increase at the next general meeting in preparation of the possible Audi spin-off.