For the last couple of years, Porsche has been acquiring as much Volkswagen stock as possible. More recently Porsche reached the tipping point with a controlling 51% in the Wolfsburg company. Now CNN is reporting that the two German powerhouses have reached an agreement whereby manufacturing operations will be consolidated bringing Volkswagen Group’s nine brands under Porsche’s roof all the while retaining the “independence of the brands.” Hmmm. Hit the jump for more.

On the surface Porsche might look like an ogre, lording it over VW and taking control of the multiple brands it now owns (Lamborghini, Audi, Bentley, Bugatti — just to name a few) simply because it can. However, it may very well be the case that Porsche is taking a desperate gamble on Volkswagen out of financial necessity. Because Porsche is primarily an upscale niche brand catering to the rich, its sales volume is quite low compared to VW. With sales slumping in the sports car market due to our lousy economy, it might just be that Porsche can’t afford to go it alone and is looking to save money and lower production costs by utilizing VW’s considerably larger resources.

Obviously Porsche doesn’t want potential buyers thinking they’re purchasing a re-badged VeeDub, so it makes sense that they’d need to assure the market of this so called “independence of the brands”. Hey, it could be a brilliant move — while the initial debt Porsche incurs by aggressively taking over Volkswagen might seem like insanity in the current climate, maybe it’s really a necessary gamble to keep Porsche alive by merging production and in the end saving a bushel of money — and maybe the company itself in the process.

Bear in mind — this isn’t the first time that Porsche and Volkswagen have collaborated. Historically the two companies share a common past with multiple examples of cooperation. Look no further than the massively underrated “VW-Porsche” 914, a Porsche designed car with a Volkswagen power plant that utilized some parts which were interchangeable with Volkswagens of the period. The scrappy little 914/6 won its class and took 6th overall at the 1970 Le Mans. Incredible right? Also — Happy Anniversary! Although the 914 was offered with a true Porsche flat-6, the mixing of the breeds created image problems that Porsche is clearly trying to avoid repeating. How many mis-informed Type Two owners claim they have a “Porsche powered” Bus? Sorry guys — that ain’t a Porsche engine. And how many Porsche aficionado’s of the period shunned the 914 as not a “true” Porsche?  It tanked the boxer 6 version’s sales, though ironically boosted the 4 cylinder version in the US where it was marketed purely as a Porsche. Hell, Porschephiles even saw the 928 as a phony. Will Porsche be able to avoid the mixed messages and confusing brand distinctions that hurt ‘em 30 years ago? Here’s hoping. [Source: CNN]