Porsche shares dropped nearly 16 percent after the company’s announcement to form an integrated car company with Volkswagen, reports the Associated Press.
The integration is the latest consolidation in the global auto industry. Italy’s Fiat SpA is also planning to join bankrupt Chrysler while also looking at GM Europe unite Opel, Saab, and Vauxhall.
Volkswagen works council CEO Bernd Osterloh said that “the road to an integrated company is completely open,” but stopped short of calling it an outright merger.
Under the terms of the proposal, the 10 brands of both companies “shall stand below an integrative leading company alongside each other, whereby the independence of all brands and explicitly also of Porsche shall be ensured,” Porsche said.
Volkswagen’s brands also include Skoda, Seat, and Scania trucks.