Porsche ready to take the wheel at VW

Volkswagen key on a Porsche keychain

TEXT OF STORY

MARK AUSTIN THOMAS: The German sports carmaker Porsche is ready to take control of fellow carmaker Volkswagen. This news follows yesterday's preliminary move by the E.U. Court of Justice to scrap takeover protection for VW. From the European desk, Stephen Beard reports.


STEPHEN BEARD: The second-largest shareholder in VW is backing off from its attempt to block Porsche from taking control of the company. It says it won't stop Porsche from having three key seats on the VW board.

This follows yesterday's preliminary ruling by the European Court of Justice clearing the way for a takeover of VW.

So Porsche, the luxury carmaker, is now poised to take control of a much bigger company. But there could be a problem, says Richard Milne of the Financial Times.

RICHARD MILNE: The question is whether a strategy that's worked for a luxury carmakers is also one that can work for mass carmakers.

Meanwhile in the U.S., Volkswagen is trying to return to its roots as "a people's car." In its latest advertising blitz, the company says it's seeking to correct the American perception that its cars are too expensive.

In London, this is Stephen Beard for Marketplace.

About the author

Stephen Beard is the European bureau chief and provides daily coverage of Europe’s business and economic developments for the entire Marketplace portfolio.

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