Volkswagen AG on Sunday said that its merger talks with majority shareholder Porsche SE has been called off indefinitely.
The two German automakers first agreed to hold discussions about a merger last week, but talks apparently stalled over the weekend due to differences in establishing a new management structure of the combined company.
“We want to make it clear that there is currently no atmosphere for constructive talks, and that it’s completely open when talks can continue,” Volkswagen spokeswoman Christine Ritz said in an interview with Bloomberg. “We are under no time pressure at all.”
Porsche, although a much smaller entity, currently owns 51 percent of Volkswagen, the largest automaker in Europe. Volkswagen reportedly is concerned with the amount of debt Porsche must take on to complete the merger.
“We need full transparency of the current situation. It is in the interest of all involved parties, our workforces, all shareholders and our customers, that we don’t endanger the financial stability... of Volkswagen,” Volkswagen CEO Martin Winterkorn wrote in an internal memo to employees, obtained by Dow Jones.
The next round of talks was scheduled to begin today.
The two German automakers first agreed to hold discussions about a merger last week, but talks apparently stalled over the weekend due to differences in establishing a new management structure of the combined company.
“We want to make it clear that there is currently no atmosphere for constructive talks, and that it’s completely open when talks can continue,” Volkswagen spokeswoman Christine Ritz said in an interview with Bloomberg. “We are under no time pressure at all.”
Porsche, although a much smaller entity, currently owns 51 percent of Volkswagen, the largest automaker in Europe. Volkswagen reportedly is concerned with the amount of debt Porsche must take on to complete the merger.
“We need full transparency of the current situation. It is in the interest of all involved parties, our workforces, all shareholders and our customers, that we don’t endanger the financial stability... of Volkswagen,” Volkswagen CEO Martin Winterkorn wrote in an internal memo to employees, obtained by Dow Jones.
The next round of talks was scheduled to begin today.
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