Audi Q7 -latest Porsche-VW collaboration
Following reports last week that financiers from Arab countries as well as Kirk Kerkorian were interested in buying up shares in beleaguered Volkswagen, Porsche says it will take a stake of about 20% in VW.
Porsche confirmed the move, AP reports, by noting that VW has become "a significant supplier for about 30% of our sales volume" and "an important partner in development."
Porsche has worked with VW on the design and engineering of the Cayenne/Touareg/Q7 SUVs, and in the future will develop a hybrid powertrain for the trio.
"With this engagement, we want to secure our business relations with VW and also safeguard in the long term a significant part of our future planning," Porsche chief executive Wendelin Wiedeking said in a statement.
The stake would, under current German law, prevent a hostile takeover.
The pricetag for the stake is estimated at $3.6-billion.