On 26 March 2007, Porsche took its holding of Volkswagen Group shares to 30.9%, triggering a takeover bid under German Law. Porsche then formally announced in a press statement that it did not intend to take over Volkswagen Group (it would set its offer price at the lowest possible legal value), but intended the move to avoid a competitor taking a large stake, or to stop hedge funds dismantling VWAG, which is Porsche’s most important partner. Porsche’s move comes after the European Union moved against a German Law that protected VWAG from takeovers. Under the so-called “Volkswagen Law”, any shareholder with more than 20% of the voting rights has veto power over any corporate decision in the annual general meeting – in effect, any shareholder in VWAG cannot exercise more than 20% of the firm’s voting rights, regardless of their level of stock holding. (The local state government of Lower Saxony owns 20.1% of the shares.) However, the European Court of Justice ruled against the law, potentially paving the way for a takeover.

On 16 September 2008, Porsche increased its shares by another 4.89%, in effect taking control of the company, with more than 35% of the voting rights. It again triggered a takeover bid, but this time over Audi. Porsche dismissed the bid as a mere formality, since it is Porsche’s intention to keep the corporate structure of the Volkswagen Group.

There has been some tension and anxiety amongst the Volkswagen Group workers, who fear that a Porsche takeover might signify a hardened production efficiency control, rejection of demands for payment rises or even personnel cuts. Ferdinand Piëch and his cousin, Wolfgang Porsche, also seemed to be on a collision course.

On 13 August, Volkswagen Aktiengesellschaft’s Supervisory Board signed the agreement to create an ‘integrated automotive group’ with Porsche led by Volkswagen AG. Volkswagen will initially take a 49.9 percent stake in Porsche AG by the end of 2009, and it will also see the family shareholders selling the automobile trading business of Porsche Holding Salzburg to Volkswagen AG.

The company has always had a close relationship with initially the Volkswagen (VW) marque, and later, the Volkswagen Group (VWAG) (which also owns AUDI AG), because the first Volkswagen Beetle was designed by Ferdinand Porsche. (Initial production of the first Beetle was made with cooperation and by Daimler-Benz AG). The two companies collaborated in 1969 to make the VW-Porsche 914 and 914-6, whereby the 914-6 had a Porsche engine, and the 914 had a Volkswagen engine, in 1976 with the Porsche 912E (USA only) and the Porsche 924, which used many Audi components, and was built at Audi’s Neckarsulm factory. Most Porsche 944s also were built there, although they used far fewer Volkswagen components. The Cayenne, introduced in 2002, shares its entire chassis with Volkswagen Touareg and Audi Q7, which is built at the VWAG factory in Bratislava. In late 2005, Porsche took an 18.65% stake in the Volkswagen Group, further cementing their relationship, and preventing a takeover of Volkswagen Group, which was rumoured at the time. Speculated suitors included DaimlerChrysler AG, BMW, and Renault.