STUTTGART - Porsche AG has promised its workers far-reaching job guarantees ahead of a planned merger with Volkswagen AG.
The Stuttgart sports car maker will not change the current pay and conditions agreements, according to an internal letter to employees, which Automobilwoche has obtained.
"There also will not be any other measures with an adverse effect on your working relation on the part of the new Porsche AG," the letter says.
The letter mentions new details on Porsche's projected affiliation with VW.
It says Porsche AG will become an intermediate holding company. The holding company will transfer Porsche's operating unit into an entity known as the Porsche Fifth Asset Administration.
VW plans to buy a 49.9 percent stake in Porsche by the end of the year, as a first step towards a full merger with the sports car maker by 2011.