Volkswagen Takes 49.9 Percent Stake in Porsche AG

Further Milestone Reached on the Way Toward the Integrated Automotive Group With Porsche

Wolfsburg, Germany -- December 7, 2009 -- Volkswagen Aktiengesellschaft has today taken a 49.9 percent stake in Porsche AG. The next important step on the way towards the integrated automotive group with Porsche has therefore been completed, as announced, before the end of the year. The price for the stake is €3.9 billion and is based on the enterprise value for Porsche AG calculated under a careful due diligence and valuation procedure.

Following the Comprehensive Agreement concluded in August, the implementation agreements signed in November and the Volkswagen Extraordinary General Meeting held last week, the stake in Porsche AG represents the next milestone on the way towards the integrated automotive group with Porsche under the leadership of Volkswagen. The acquisition of the trading business of Porsche Holding Salzburg is planned for 2011. The creation of the integrated automotive group is then to conclude with the merger of Volkswagen AG and Porsche SE during the course of the same year.



The combination of the two companies follows a compelling strategic, industrial and financial logic. For the Volkswagen Group, Porsche ideally complements the brand portfolio. The Stuttgart-based car maker will allow Volkswagen to further expand its position in the premium business, which offers particularly strong earnings. In turn, as an independent brand under the roof of the Volkswagen Group, Porsche will have the potential for significant additional growth.

The transaction will have a sustained positive effect on the earnings situation of the Volkswagen Group. With a return on sales of 10.3 percent, Porsche AG is the world’s most profitable automobile manufacturer. Volkswagen will in future participate in this business success through its stake. In addition, the planned integration of Porsche in the Volkswagen Group and the associated closer cooperation will realize significant synergies on both the income and the cost side. As a result, the annual operating profit of the Volkswagen Group is expected to increase by some €700 million in the long term.

Source: Volkswagen

Further signs of gradual recovery in the South African vehicle market

2nd December 2009

During November 2009 a total of 22 929 new passenger cars were sold in South Africa. Total new passenger car sales in November decreased by -6.7 percent when compared to October 2009, but were 4.6 percent up on November 2008.

This is the first time since January 2007 that the monthly total new car market has been larger that the corresponding month of the previous year. The January to November 2009 new passenger car market recorded sales of -22.5 percent below the same period for 2008.

“New passenger car sales in November continued the more positive trend of the past number of months. However, the car rental industry purchases in November were largely responsible for this growth. Sales recorded in the consumer retail segment remain muted. The new passenger car sales cycle does, however, appear to have bottomed out and is currently beginning to reflect some slow growth,” said Mike Glendinning, Director of Sales and Marketing at VW of SA.

“From a VW of SA perspective, the new 6th generation Golf, with sales consistently over 500 units per month, vindicates its SA Car of the Year finalist status,” continued Glendinning.

“The Audi Brand sold 812 units into the premium segment last month, thereby recording its second most successful month in 2009,” said Glendinning.

“The export of the all New Polo to Right Hand Drive markets around the world is now gaining momentum, with 6 927 units exported in November. We look forward to bringing New Polo to the South African market early in 2010,” said Glendinning.

Returning to the state of the market in South Africa, Glendinning remains cautiously optimistic.

Source: Volkswagen