PORSCHE is to take a majority stake in Volkswagen Group, Europe's largest carmaker. This is a move up from the 30.9 per cent stake it already has in VW. On Monday, its directors approved a plan to buy a further 20 per cent stake. The move followed VW's decision earlier in the day to acquire more than two-thirds of Swedish heavy vehicles group Scania. Volkswagen already owns Audi, Skoda, Seat, Bentley, Bugatti and Lamborghini. And it has a controlling stake in German heavy vehicle group MAN. Porsche's purchase is expected to be completed by July.

This article was first published in The Straits Times on Mar 8, 2008.