On Wednesday, August 1st, the tie-up between Porsche and Volkswagen will be made official.
Porsche reported a profit of 1.15 billion euro for the first half of this year, compared to 149 million euro in 2011. The company announced it expects a higher net income for this year of single-digit billions of euro. On August 1st Volkswagen will buy the second half of Porsche, adding the 911 super luxury sports car to its portfolio.
Volkswagen and Porsche firstly agreed to tie-up in August 2009, and in December 2009 VW bought 49.9% in the sports car maker for 3.9 billion euro. But the tie-up plans were dropped in 2011 due to German and US investor lawsuits that accused Porsche of amassing VW shares, causing short-sellers losses of billions.
But the two companies continued cooperating and so VW manufactures the bodies for Panamera coupe and the Cayenne SUV, which are two of Porsche’s best selling cars. The auto makers plan to jointly manufacture the Macan compact SUV, Porsche’s next model, expected in showrooms in 2014.
“Porsche is the most lucrative asset in premium auto making,” said Stefan Bratzel, head of the Center of Automotive Management in Bergisch-Gladbach, Germany. “It’s a great deal for VW with huge potential for both companies.”