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Porsche rejects reports of new family rifts over VW merger

Luxury carmaker Porsche has strenuously denied reports that talks it is holding with Volkswagen over a merger have been scrapped.

Yesterday several news agencies reported that VW had called off talks less than two weeks after the Porsche and Piech families, which together control both businesses, agreed to create an integrated car manufacturing group.

"War has erupted again between Volkswagen and Porsche," Ferdinand Dudenhoeffer, director of the Center for Automotive Research at the University of Duisburg-Essen, told Bloomberg. "[Ferdinand] Piech is behind that."

However, Porsche have issued a statement saying that the negotiations, which began last week, will continue to be held "in a normal manner". It said only the meeting scheduled for Monday 18 May was cancelled and that follow-up meetings are scheduled.

The merger, which is intended help Porsche reduce the €9 billion debt burden it built up in trying to take over VW, was supposed to heal the family rift that had seen Porsche supervisory board chairman Wolfgang Porsche pitted against relation Ferdinand Piech, chairman of VW.

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