CNN reports, "Iconic German automakers Volkswagen and Porsche have reached an agreement to merge operations -- the latest move in an industry that has seen whiplash changes in recent weeks." Porsche had been attempting to take over VW aggressively for most of the last year, "building a 51 percent stake in the company with ambitions to raise the stake to 75 percent. But Porsche also built a debt of nearly $12 billion as the world automotive market began to shrink during the financial crisis," and the two have reportedly decided to merge as a solution.

Autoblog reports, "The new carmaking group would have no less than 10 brands under one roof." In America, Porsche sells vehicles only under its own name, while Volkswagen operates the VW, Audi, Bentley, Bugatti and Lamborghini brands.

The two companies share a common history. Edmunds Inside Line notes, "The original Volkswagen Beetle was created in the 1930s for Adolf Hitler by Dr. Ferdinand Porsche, who had founded an engineering consultancy, Dr. Ing. h.c. F. Porsche AG, in Stuttgart in 1930."

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