Porsche And Volkswagen Merge

[pioneer]

Carmaker Porsche says it has agreed a merger with fellow German manufacturer Volkswagen (VW) after weeks of talks between the two firms' management.

The luxury carmaker said in a statement that it wanted to see the "creation of an integrated car manufacturing group".

VW hailed the decision of the Porsche and Piech families, owners of Porsche group, to create the merger.

It means a Porsche takeover of VW will not happen. The format of the new group will be decided in the next four weeks.

Talks will now take place between the two carmakers, VW's home state of Lower Saxony, and employee representatives.

The state's president Christian Wulff said in a statement: "We are ready for discussions, which must be carried out quickly." - BBC