As Toyota’s reputation begins a slow path to recovery,  Volkswagen continues its quest to topple the ‘Big T’ as the biggest manufacturer in the world.

Volkswagen has began streamlining its products and optimising its lineup to cover the entire market. Rumours circulating the web suggest the German company (which owns Audi, Lamborghini, Skoda, Seat, Bugatti and Porsche) is expected to take a 90 percent stake in Italdesign Giugiaro S.p.A.

Italdesign has been around for over 40 years and currently has 975 workers. The link to Volkswagen goes all the way back to 1974 when the company designed the original Volkswagen Golf.

The 90 percent sale will see the Giugiaro family keep 10 percent, with father and son Giorgetto and Fabrizio expected to remain at work.

Volkswagen’s plan to become the world’s largest manufacturer by 2018 will see the company sell at least 10 million cars annually and will thus require more designers for its array of different brands.

Adapted from CarAdvice

Porsche has finally abandoned plans to acquire a larger share of Volkswagen, of which it already own 51 percent. Instead the two German companies have revealed plans to merge into one integrated company within four weeks.

Currently the VW group and Porsche are managed independently of each other. Under the merger 10 brands will be managed by one management board.

The decision to merge the two companies comes after Porsche’s attempts buy up to 75 percent of VW for a controlling share have been repeatedly blocked.

Volkswagen has welcomed the merger and already representatives from Porsche and VW are in discussions about the form of the new company.

The state of Lower Saxony, where VW is based is also taking part in discussions, as a 20 percent stake holder in VW they have the power to veto strategic decisions.

Under the new company VW’s nine brands: Volkswagen, Volkswagen Commercial Vehicles, Scania, Skoda, Lamborghini, Bentley, Bugatti, Seat and Audi will each maintain a unique sense of identity. Porsche will also maintain its identity.

The new entity will allow Porsche greater access to technology and systems from the Volkswagen catalogue, not that it’s been lacking in that department so far.

Both companies can now get back to their primary business of building great cars.

Adapted from TheMotorReport