It's official: Volkswagen takes control of Porsche

As predicted earlier this week, Volkswagen AG has bought iconic German sportscar manufacturer Porsche. The VW board issued a brief statement last night saying the two companies had reached an agreement for a "joint concept".

All parties were quick to maintain that Porsche would retain its own identity despite now forming one part of VW's 10 brand concern. The Porsche board also agreed to finalizing a deal with Qatar based investors to further improve its financial situation.

Ferdinand Piëch (pictured with yellow tie), Chairman of the Supervisory Board of Volkswagen AG, was understandably delighted with the deal, having seen off Porsche's attempts to try and take control of VW earlier this year.

"Together, Volkswagen and Porsche have all it takes to occupy a leading position in the international automotive industry," Piëch said.

As reported in our previous story the deal is expected to allow Porsche to clear the majority of its debts. Although the finer details will be worked out over the coming weeks the statement claimed representatives from the Porsche and Piëch families were both pleased with the deal, along with the State of Lower Saxony that has a 20 per cent stake in VW.

Despite nine months of wheeling and dealing between the two brands, and the families ties that complicated the story, Wolfgang Porsche did his best to put a positive spin on the situation.

"Porsche will preserve the myth and identity of the Porsche brand in the integrated group," Porsche said. "That brings new prospects for growth."

However, Porsche CEO Wendelin Wiedeking (pictured with Porsche) and CFO Holge Harter were the first casualties, stepping down immediately. As expected Michael Macht (pictured with blue suit), Porsche board member and former head of production, will take on the CEO role with immediate effect.

Wiedeking will reportedly receive a golden handshake to the tune of €50million ($87million) for his troubles, while Harter will pocket €12.5million ($22million). Wiedeking has vowed to donate a large sum of his severance package to worthy causes as well as continuing his relationship with Porsche.

"Personal reasons, and also my responsibility towards society, have led to my decision to donate a material amount of money for social purposes," Wiedeking said in a statement.

"As a sign of my outstanding relationships with long term members of staff and companions, I aim to establish a charitable organisation in Stuttgart-Zuffenhausen, where the headquarters of Porsche AG is located. With the support of the Porsche union representatives, the trust shall be equipped with liquid funds of 25 million Euros with the aim of ensuring socially fair development at all Porsche sites."

His departure marks the end of an era for Porsche. Since taking the reigns as CEO in 1992 he has overseen the brands re-emergence with the launch of the Boxster, Cayenne, Cayman and most recently Panamera.

Read the latest Carsales Network news and reviews on your mobile, iPhone or PDA at www.carsales.mobi.