GERMANY will strive to keep in place the so-called "Volkswagen Law" allowing the state of Lower Saxony a blocking minority of Europe's largest car maker Volkswagen AG, Chancellor Angela Merkel said yesterday.

Speaking to Volkswagen workers at the company's Wolfsburg headquarters, Merkel said the government was "deeply convinced" the 50-year-old law does not affect the company's competitiveness and said Berlin would fight to keep it in place, despite European Union attempts to overturn it.

Brussels is not alone in its opposition to the law.

Stuttgart-based Porsche SE has been buying up stakes of Volkswagen for several years and intends to buy more than 50 percent of the company.

Just last week, Porsche said it held more than 35 percent of Volkswagen voting rights, giving the luxury car maker effective control of VW.