Summary
VW and Porsche have it in their own self-interest to find a way to work together. There will be significant challenges ahead to maintain their brand identities. The current management disagreements seem to be more about who will be in control.
Analysis
The current management disagreements seem to be positioning to determine who will eventually run the combined company. Combining the two companies will be a major strategic challenge.
VW and Porsche have it in their own self-interest to find a way to work together. Both need to find a way to reduce the cost to remain competitive in the auto business. Sharing basic R&D, management and other overhead costs is strategically important.
The two brands are starkly different and must be kept in tact for them to succeed in the long run. They had joint dealerships in the US back in the 1970s. That did not work well for either ones' customers. Too expensive for VW owners and not exclusive enough for Porcsche owners.
