FOLLOWING LAST MONTH’S decision to form an integrated automotive group that combines Volkswagen and Porsche, VW has agreed to take up a 42 percent stake in Porsche.

The shares will cost Volkswagen up to 3.3 billion euros (AU$5.5b). Martin Winterkorn - CEO of Volkswagen - is tipped to run the new corporation.

Winterkorn described the [...]

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THE STAND-OFF BETWEEN Volkswagen and Porsche has come to a close today, with a Supervisory Board meeting between Volkswagen Aktiengesellschaft and Porsche Automobil Holding SE clearing the way for an integrated automotive group combining Volkswagen and Porsche.

With final details of the joint concept to be resolved in the coming weeks, representatives of the Porsche and [...]

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YESTERDAY IT SEEMED that Chrysler’s bid to shack up with a Fiat-led consortium and to commence its Government-ordered reorganisation was in jeopardy, with three Indiana-based pension funds lodging an appeal with the US Supreme Court alleging the Chrysler-Fiat deal was illegal.

As a result the US Supreme Court put a hold on Chrysler’s sale while it [...]

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THE PATH HAS BEEN cleared for Fiat SpA to take the reins at Chrysler after US Bankruptcy Judge Arthur Gonzalez today announced his ruling approving the sale.
“The sale motion is granted in its entirety and entry into and performance under and in respect of the purchase agreement and the sale transaction is approved,” Judge Gonzalez [...]

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First Porsche wanted to acquire a 75 percent stake in Volkswagen, then, after increased opposition frustrated its plans,  it scrapped that idea and instead pursued a merger between the two companies.

Now that scheme is in the bin too, with Volkswagen stating that Porsche is not ready to merge with the automaking giant.

Under the proposed merger, [...]

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Troubled US carmaker Chrysler announced today that if its merger with Fiat is approved by the US treasury – which would see Fiat take a 35 percent stake in Chrysler – the Italian manufacturer would also assume 35 percent of its debt.

Analysts have said that the move is likely to be Chrysler’s last shot at [...]

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Recent speculation about a collaboration between Chrysler and Fiat has been confirmed. The two companies have announced plans for a global strategic alliance. Under the deal Fiat will receive a 35 percent stake in Chrysler. In return Chrysler will gain access to Fiat’s range of fuel efficient technologies.

The ability to use Fiat’s existing technology should equate [...]

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Italian automaking conglomerate the Fiat Group is reportedly considering a corporate partnership with French counterparts, PSA Peugeot Citroen.

Fiat Group CEO Sergio Marchionne is eager to join forces with PSA, and has said that the company will need to form an alliance with another corporation if it is to survive the current severe economic downturn. Fiat’s profits for [...]

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Both General Motors and Nissan-Renault have been in discussions with Chrysler in recent times as the troubled US manufacturer continues to take on water. The prospect of a GM/Chrysler merger is now looking more likely. Chrysler has stated that no further talks have been scheduled with Nissan-Renault as Chrysler’s owner, Cerberus Capital Management, feels that [...]

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