European auto major Volkswagen is all set to overtake Japan’s Toyota Motor Corporation as the world’s largest automaker. It will acquire German sports car company Porsche, as per an endorsement by both the companies last week. Earlier in the year, Porsche had made an attempt to acquire VW, which finally backfired. The acquisition will take place in two phases. VW will acquire 49.9 per cent of Porsche by the end of 2009, and will complete the acquisition by 2011. Porsche, which will become the tenth company under VW, will continue to operate independently.

In the first nine months of 2009, VW and Porsche together sold 4.4 million cars, while Toyota sold 4 million. Ford and Mazda sold 3.7 million units collectively, and General Motors sold 3.6 million.