Owned! Porsche Taking Charge of VW

[NOS2006]

Porsche today announced it will increase its stake in Volkswagen from 31 percent to over 50 percent, making it the majority owner of Volkswagen. Wendelin Wiedeking, CEO of Porsche, said the goal is not to merge the companies, but instead to create "one of the strongest and most innovative automobile alliances in the world."

Over the last few years, Porsche has slowly increased its stake in Volkswagen, and increased cooperation at the same time. Porsche's investment of an additional $15 billion will bring its share to over 50 percent, dwarfing the 20 percent stake held by the German state of Lower Saxony.

Porsche already has full approval from its supervisory board to make the move, meaning the only remaining hurdle is regulator approval. "The reviews by the regulatory authorities are expected to take several months. As soon as the requisite clearances have been obtained, Porsche SE can acquire the majority of the shares in Volkswagen," the company said in a statement.

Please see http://www.leftlanenews.com/porsche-to-tak...rity-stake.html

[SuperSport623]

oooooh merger of equals?!?!

[Croc]

In this case, I think it will be a positive merger. The two companies do not directly compete in any segments, and they have produced successful synergies in the past. Unfortunately, both companies seem to have abysmal reliability with many of their models. Here's hoping a merger/takeover can fix that issue.

[The O.C.]

In this case, I think it will be a positive merger. The two companies do not directly compete in any segments, and they have produced successful synergies in the past. Unfortunately, both companies seem to have abysmal reliability with many of their models. Here's hoping a merger/takeover can fix that issue.

My buddy that works for Audi has said that the scuttlebut in Auburn Hills is that not everyone is thinking this is going to be a positive move.

For example......what happens to vehicles like the R8 and Gallardo? Prime competitors for Porsche. Also, does Cayenne now get viewed with more importance over the Toureg and Q7...?

[FUTURE_OF_GM]

AWESOME!!!

I mean, after all, a Porsche is basically a highly overrated and more expensive VW anyway. makes perfect sense!!!

[Cory Wolfe]

AWESOME!!!

I mean, after all, a Porsche is basically a highly overrated and more expensive VW anyway. makes perfect sense!!!

Right.

[FUTURE_OF_GM]

Right.

Just like the Wendy's ad:

"That's right!"

(I'm in a funny mood tonight)

Edited March 4, 2008 by FUTURE_OF_GM

[Guest aatbloke]

oooooh merger of equals?!?!

It isn't a merger, it's a takeover. In a merger, the two merging companies are legally dissolved and the shares transferred at a pre-agreed amount for new shares of a certain value in the new merged company.

In a takeover, one existing company buys enough shareholding in another so that according to company law and the company's Articles, there becomes a controlling interest in terms of voting rights and the legal classification of the controlled company becoming a subsidiary.

[Guest aatbloke]

In this case, I think it will be a positive merger. The two companies do not directly compete in any segments, and they have produced successful synergies in the past. Unfortunately, both companies seem to have abysmal reliability with many of their models. Here's hoping a merger/takeover can fix that issue.

It isn't a merger.

As for reliability, unfortunately VW's problems centred mainly around Golf V, Beetle and Bora/Jetta V, especially those models built in Mexico as opposed to Germany and South Africa. Unfortunately mud sticks, but thankfully here in Europe VW's reputation for reliability has largely faired well. In 2007, VW Group marques all did very well in the UK JD Powers survey, Skoda coming in joint second place.

Edited March 4, 2008 by aatbloke

[siegen]

I mean, after all, a Porsche is basically a highly overrated and more expensive VW anyway.

Well considering most VW's have engines in the front and most Porsche's have engines in the rear, if you drive a Porsche backwards it is similar to a VW. I see where you're going with this....

[Guest aatbloke]

Well considering most VW's have engines in the front and most Porsche's have engines in the rear, if you drive a Porsche backwards it is similar to a VW. I see where you're going with this....

The poster was referring to the fact that the Porsche 356 used many parts from VW including the Beetle, the format of which it essentially copied. The Type 901, which became the 911, was a development of the 356. Many Porsches are often regarded as fast VWs with purists.

[MyerShift]

The poster was referring to the fact that the Porsche 356 used many parts from VW including the Beetle, the format of which it essentially copied. The Type 901, which became the 911, was a development of the 356. Many Porsches are often regarded as fast VWs with purists.

IF it were up to the purists, and Porsche were only producing "real" Porsches (air cooled, rear engined, yadda yadda) then the company would have been extinct long ago.

[Guest aatbloke]

IF it were up to the purists, and Porsche were only producing "real" Porsches (air cooled, rear engined, yadda yadda) then the company would have been extinct long ago.

I quite agree.

[FAPTurbo]

IF it were up to the purists, and Porsche were only producing "real" Porsches (air cooled, rear engined, yadda yadda) then the company would have been extinct long ago.

That sounds strangely familiar, and I don't know why...

[Blake Noble]

That sounds strangely familiar, and I don't know why...

Yes. I am having a hard time placing which automaker or brand has had the same thing said about it as well ...