After yesterday’s news of the resignation of Porsche’s CEO and CFO, as was expected, plans for Volkswagen to takeover Porsche are now proceeding full steam ahead. The details will be fine-tuned over the coming weeks, but the partnership will surely prove a powerful one.

In a statement the deal has been described as the creation of “an integrated automotive group combining Volkswagen and Porsche”. Not being described as a “takeover” is key to the move, after Porsche initially wanted to buy Volkswagen, only to have significant debts revealed.

In the move, Porsche is set to retain its distinctive brand identity, and the security of workers at both the companies will be a focus. Volkswagen’s management of Audi will be a model for the new deal, and the opportunity for investment from the state of Qatar is likely to be accepted.

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Porsche CEO Wendelin Wiedeking and Chief Financial Officer Holger Haerter have resigned from the company effective immediately. Wiedeking will get a 50 million euro payout and Haerter will receive 12.5 million euros.

Wiedeking has been CEO of Porsche AG since 1992 and is credited with a huge financial turn-around for the company. He was also key, however, in the long-running difficulty to buy out Volkswagen, joining that company’s board in 2006.

Wiedeking’s departure is set to catalyse a merger between Porsche and Volkswagen, and he will be replaced by Michael Macht, currently Board member of Porsche AG in charge of Production and Logistics. Volkswagen is meeting today and is expected to make further announcements on proceedings.

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