Porsche and VW Resume Merger Talks

Volkswagen's love/hate relationship with Porsche is once again firmly in the love department thanks to the resumption of merger negotiations.

As we reported a few days ago, merger talks broke down when VW declared Porsche lacked a legitimate plan for integrating the two companies. Apparently there was a change of heart and both companies issued identical press releases stating they "...will advance efforts toward this goal (the merger) in a constructive way and in mutual agreement with all the parties concerned."

Despite this minor victory, the merger still faces several hurdles including Porsche's massive 9 billion euro ($12.27 billion USD) debt and an angry Volkswagen labor union which wants detailed plans for the post-merger strategy.

Both companies are hoping to get everything wrapped up by early June, but in the meantime Porsche is attempting to refinance its debt and sooth anxious Volkswagen shareholders.