Porsche has set the car industry a light with plans to buy a controlling stake in VW.
This will give Porsche, the prestigious car maker access to diesel engines and more sourced components - Volkswagen are currently supplying around a third of Porsche parts and Porsche components.
The move coincides with Volkswagen buying a controlling stake in Swedish truck maker Scania which in turn now gives Porsche a very huge control over the European car industry.
But Porsche claims that Porsche are not planning to merge with Volkswagen.
The firm's chief executive Wendelin Wiedeking said: "Porsche aim is to create one of the strongest and most innovative automobile alliances in the world, which is able to measure up to the increased international competition."