Porsche describes Volkswagen’s ‘ultimatum’ as “extortion”
The two German auto companies, Porsche, maker of sports cars and luxury S.U.V.’s, and Volkswagen, the largest European carmaker were already at loggers head with each other, but Volkswagen’s alleged move of setting a deadline for Porsche to agree to a merger plan has added fuel to the fire.
It is informed that tensions emerged again after Der Spiegel magazine claimed that Volkswagen had asked Porsche to pay back a €700m (£596m) loan if Porsche did not agree to a merger plan.
Volkswagen’s recent move of demanding €700m (£596m) loan back has been described by Porsche bosses as "extortion".
Wolfgang Porsche, Porsche's chairman, and Uwe Huck, deputy on the Stuttgart-based company's supervisory board, has declared that they would not accept “extortion". They said that they would not give in to any blackmail or pressure.
Speaking on the topic, Porsche bosses said, "Ultimatums do not belong in the 21st century."
On the other hand, Volkswagen denied publicly that it had set Porsche an ultimatum for agreeing on a merger deal.
Volkswagen’s new deal offered Porsche that Porsche and Piëch families, rival branches of the same family, would together hold 40% of the merged company. Lower Saxony would go further with its 20 % share, whereas Qatar would take 15%.