September 27, 2005
Porsche buying stake in VW
Wolfsburg, Germany – Porsche AG is preparing to purchase a 20 per cent stake in the Volkswagen Group. With VW’s market capitalization less than the total value of its assets, Porsche is looking to solidify its stake in Volkswagen beyond the partnerships the companies already share, by taking on a direct financial connection. The investment will be worth approximately US$4 billion. Porsche has announced plans to build a hybrid version of its Cayenne SUV using a Volkswagen/Audi hybrid drive system.
In remarks, VW Chairman Dr. Bernd Pischetsrieder welcomed the strategic interest of Porsche AG, stating that a stable shareholder structure is very important for the automotive business with its long-term orientation.