Yes, it's true. Wendelin Wiedeking and Holger Haerter both stepped down yesterday and the VW board voted to absorb Porsche today.
Certainly not a bad thing, considering what Ferdinand Piech has to offer as controlling interest with Wolfgang Porsche. Just look at Audi's involvement in motorsport and their advance street machines (R8 & R10). Good things could be on tap for the future.
http://www.autoweek.com/article/20090723/CARNEWS/907239998