The German state of Lower Saxony, however, VW's second-biggest shareholder with around 20% of voting rights, said it plans to keep its stake. This means that decisions made by Porsche, even with a controlling stake, could be blocked by the state.
Original: Porsche has released a statement announcing plans to increase its stake in Volkswagen Group to more than 50% by the end of the year. Porsche’s current shareholding remains at 31% but an increase beyond 50% would effectively give it control of the German giant.
The statement said the goal is also for Porsche and Volkswagen to continue on the path of growth under the holding company Porsche Automobil Holding but to also retain their independence. "Porsche will also remain Porsche in the future. And Volkswagen will also remain Volkswagen. That is the success formula," Porsche CEO Wendelin Wiedeking said in the statement.
There remains fears that sports car programs from Audi, Bentley and Bugatti that could potentially compete with Porsche’s sports cars could be canceled once the Stuttgart-based carmaker takes control, reports Automotive News.
The announcement comes less than a week after Germany approved a revised version of its 48-year old VW Law, which mandates that any major strategic decisions within VW would still have to be approved by just over 80% of shareholders. This means that decisions made by Porsche, even with a controlling stake, could be blocked by the German state of Lower Saxony, which still holds 20% of VW.