Before it became public knowledge that the Big Three automakers were on the verge of collapse, one of the biggest stories in the industry was Porsche’s plan to take a majority stake in Volkswagen. However, the same economic conditions that have sent the Detroit automakers down a slippery slope are also affecting Porsche, forcing the German automaker to revises its plan to take a majority stake in VW this year.
According to Porsche CEO Wendelin Wiedeking, Porsche will no longer be bumping its stake in VW from 42.6 percent to 75 percent this year. Wiedeking cited lower than expected sales and “economically ridiculous” prices of VW’s shares for the change of course.
Like all automakers’, Porsche sales have fallen sharply this year, particularly in the U.S. – Porsche’s largest market. Porsche has already started a cost cutting initiative to help offset slumping sales, according to Automotive News.
Despite the setback, Porsche still plans to take a majority stake in VW during 2009.
