German auto company Volkswagen (VW) this week bought a 49.9 per cent stake in Porsche AG, for 3.9 billion euros ($5.8 billion). It will complete the acquisition 2011. The move is expected to increase the annual operating profit of the Volkswagen Group by approximately 700 million euros. VW said in a statement that there was a compelling strategic, industrial and financial logic behind the merger of the two companies. While VW will be able to strengthen its position in the luxury segment by taking over Porsche, Porsche too will see significant additional growth. The statement also said that Porsche is the most profitable auto maker in the world with a 10.3 per cent return on sales.
Other car brands under the VW Group include Audi, Bentley and Skoda.
Meanwhile, VW India is planning to hire 1,300 more workers at its plant in Chakan, near Pune. The plant currently has 1,200 employees. It will start producing the VW Polo this week.