Volkswagen announced today that it is officially 49.9 percent owner of Porsche AG. VW paid a whopping $5.75 billion for its stake in the sports car maker. In its pursuit to take over the automotive world, VW adds another feather in its cap.
As the world's most profitable automaker, Porsche will do more than just add to the expanding lineup of vehicles offered by VW. Combining the automakers is expected to raise long-term profits by upwards of $1 billion each year. "The combination of the two companies follows a compelling strategic, industrial and financial logic," VW said in a statement.
VW plans to have the two companies working as one by the end of 2011. It will have a stronghold on the premium market by that time, owning Audi, Bentley, Bugatti, and finally a huge portion of Porsche to round out its portfolio. Who will the German powerhouse capture next? With the recent announcement that VW will take a 20-percent stake in Suzuki, just about anyone is fair game.