VW and Porsche to merge

[Dragon]

http://www.cnn.com/2009/WORLD/europe/05/07...erge/index.html

Iconic German automakers Volkswagen and Porsche have reached an agreement to merge operations -- the latest move in an industry that has seen whiplash changes in recent weeks.

Porsche, which recently debuted its luxury sedan Panamera, will merge with Volkswagen.

The two companies have been in talks in recent weeks about merging manufacturing operations. A statement released on the Porsche Web site said the management boards of Porsche and Volkswagen have agreed in principle for the creation of an integrated car manufacturing group.

"In the final structure ten brands shall stand below an integrative leading company alongside each other, whereby the independence of all brands and explicitly also of Porsche shall be ensured," the statement said.

Porsche had been aggressively trying to take over Volkswagen, building a 51 percent stake in the company with ambitions to raise the stake to 75 percent. But Porsche also built a debt of nearly $12 billion as the world automotive market began to shrink during the financial crisis.

The agreement includes undisclosed "capital measures," the Porsche statement said.

The move comes as Chrysler filed for bankruptcy protection and Italian carmaker Fiat has announced ambitions to combine with Chrysler and GM Europe operations to form one of the world's largest car

[the_yellow_dart]

Shows what I know... I thought they were already one company.

[Robert Hall]

Shows what I know... I thought they were already one company.

You aren't alone, I've known people that thought they were also. Both companies have a related origin in Dr. Ferdinand Porsche, and both companies have had close ties over the years, incl the occasional shared platform (like the Touraeg and Cayenne), and in Europe, the 914 was badged as a VW-Porsche.

I remember US market advertising in the '70s for Porsche + Audi, they must have had some joint advertising or US operations then.

10 brands, eh? Seat, Skoda, VW, Audi, Porsche, Lamborghini, Bentley, Bugatti, and truck makers Scania and MAN (which are partially owned by VW Group, I believe).

[balthazar]

10 brands = too many! They could get the job done with 2.

Also- the first porsche 356 used the Beetle's powertrain & suspension for what must've been stunningly EXCITING!!!!!!!!!!!!!!!!!!!!!!!!! performance.

I believe the U.S. ads worded 'porsche + audi' were because the cars were distributed in the same dealerships. VW was in it's own dealerships, no? tho the relationship was there during this time.

[Robert Hall]

10 brands = too many! They could get the job done with 2.

Very little overlap, though, and many of the brands are premium or ultra premium niche brands.

Edited May 7, 2009 by Cubical

[Satty]

Skoda and SEAT have some really cool looking small cars.

[Teh Ricer Civic!]

Well Porsche owned like 75% of VW... that's control over VW. Porsche probably didn't want to either buy out the remaining equity or was doing it for some other financial reason.

[balthazar]

>>"Very little overlap, though, and many of the brands are premium or ultra premium niche brands. "<<

Still lots & lots of portfolio trimming to do there...

-- -- -- -- --

According to the Oracle of Infallible Truth (wiki ), there's some sort of 'Volkswagon law' that prevents any stockholder from having more than a 20% input (BoD??) regardless of the share % owned.

[Robert Hall]

>>"Very little overlap, though, and many of the brands are premium or ultra premium niche brands. "<<

Still lots & lots of portfolio trimming to do there...

No point in doing that if they are profitable. Plus, many of those brands (like Seat and Skoda) are sold in very few markets... it's not like GM; Porsche and VW Group are actually profitable.

[A Horse With No Name]

10 brands = too many! They could get the job done with 2.

Also- the first porsche 356 used the Beetle's powertrain & suspension for what must've been stunningly EXCITING!!!!!!!!!!!!!!!!!!!!!!!!! performance.

I believe the U.S. ads worded 'porsche + audi' were because the cars were distributed in the same dealerships. VW was in it's own dealerships, no? tho the relationship was there during this time.

The 356 is a neat little car, even if it doesn't offer GTO/Z28 type performance...

If I had a ton of time and money I think a VW based 356 kit car would be fun.

Chris

[Robert Hall]

The 356 is a neat little car, even if it doesn't offer GTO/Z28 type performance...

If I had a ton of time and money I think a VW based 356 kit car would be fun.

Chris

The 356 is a fun car...a friend of mine has a 1960 356, a 914, and a '76 930 Turbo. All are fun cars in different ways..so many people forget the original sports cars were not about raw power but handling finesse...

[balthazar]

>>"No point in doing that if they are profitable. Plus, many of those brands (like Seat and Skoda) are sold in very few markets... it's not like GM; Porsche and VW Group are actually profitable."<<

So you disagree (perhaps vehemently?) with those who advocate discontinuing GMC, right ??

Last I heard, porsche wasn't profitable until the cayenne rebadge started production.

But there's still a point left - putting money into the core brand (VW) in order to repair the dismal reliability/longevity and poor ergonomics the recent cars have exhibited- that's far more important than -say- expanding bentley.

[Robert Hall]

>>"No point in doing that if they are profitable. Plus, many of those brands (like Seat and Skoda) are sold in very few markets... it's not like GM; Porsche and VW Group are actually profitable."<<

Last I heard, porsche wasn't profitable until the cayenne rebadge started production.

The Cayenne is not a rebadge, it's platform sharing, same as GM does...you of all people should understand the difference between badge engineering and platform sharing.

[Intrepidation]

It was only a matter of time.

"Merger of Equals" anyone?

[balthazar]

>>"The Cayenne is not a rebadge, it's platform sharing, same as GM does...you of all people should understand the difference between badge engineering and platform sharing. "<<

Oh, I do; I was just relating the example to those who usually get this royally F'd up.

[Robert Hall]

It was only a matter of time.

"Merger of Equals" anyone?

Given their history, and that they are both German, I suspect it will be better for both companies, unlike the DaimlerChrysler disaster..

[Robert Hall]

>>"The Cayenne is not a rebadge, it's platform sharing, same as GM does...you of all people should understand the difference between badge engineering and platform sharing. "<<

Oh, I do; I was just relating the example to those who usually get this royally F'd up.

Ahh....ok. I thought maybe you had slipped up for once..

[Sixty8panther]

Must be a slow news day....