VOLKSWAGEN AG has said it would delay a merger with Porsche Automobil Holding SE beyond 2011 because of legal issues and examine other ways of creating an integrated auto group.

Porsche and Volkswagen agreed in 2009 to seal a merger deal by the end of 2011, but signaled in February the merger faced delays because of investor lawsuits and a criminal investigation of Porsche’s former chief executive and its finance head.