Filed under: Euro, Government/Legal, Plants/Manufacturing,
Porsche,
Volkswagen, Roewe
In a move that may undermine Germany's protection of Lower Saxony and its close ties to
Volkswagen, the European Commission plans to review the case of
Volkswagen Law in the European Union's top court. As you may recall,
Porsche has been trying to take majority control of rival
Volkswagen. However, the so-called "
Volkswagen Law" has protected
Volkswagen from takeover by allowing the state of Lower Saxony (where thousands of
Volkswagen jobs are at stake) to retain just enough stock in the company to prevent
Porsche from capturing a majority vote. While the upcoming ruling may not only alter the ownership of
Volkswagen, it also demonstrates the escalating authority that the European Commission has over once sovereign countries.
[Source: Automotive News Europe, subs. req'd] Permalink |
