VW, Porsche boards approve merger

British industry publication just-auto.com is reporting that the supervisory boards of Volkswagen AG and Porsche have approved a merger with of Porsche Automobil Holding SE, Porsche’s vehicle manufacturing operation with Volkswagen. The combined companies will operate under VW leadership based in Wolfsburg, Germany. Porsche itself will remain an independent company and keep its headquarters in Stuttgart.

Based on 2008 sales figures, the new company will be the world’s second-largest producer of passenger cars.

Under the merger, Porsche Automobil Holding will still function as an independent automaker in the same fashion as Audi.

In a company statement, Volkswagen said, “this basic concept represents the best possible solution for pooling the strengths of both companies as envisaged”.

The merger still allows the investment of several billion euros by the State of Qatar and VW’s supervisory board said it welcomed the inclusion of the Gulf nation as a “strategic partner.”