Volkswagen is to pay €3.3bn ($4.7bn) for a 42 per cent stake in Porsche’s main production division, the two German carmakers said on Thursday as they thrashed out more details of a move towards a full integration.

In a move that will amount to a rescue of debt-laden Porsche, VW will also buy the automobile trading business of Porsche Holding Salzburg, Europe’s biggest vehicle dealer that is also owned by the sports car maker’s family owners.