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Porsche and Volkswagen


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The Porsche/Volkswagen relationship has always been an interesting one. Both companies were founded by the same man, Ferdinand Porsche, in the 1930’s. While Porsche was a sports car maker, many of their early models like the Type 64 and 356 were made with parts from the venerable VW Beetle. In the early 1970’s the duo teamed up again to bring an affordable mid engine sports car to the masses, the 914 , with the base model using a VW sourced 4 cylinder and the high-performance 914-6 getting a Porsche built flat six. Most recently when the sportscar builder from Stuttgart decided to get into the SUV game with the Cayenne , they shared development and construction costs with the guys over in Wolfsburg allowing the VW Touareg and Audi Q7 to come to market. The two companies have a tradition of working together, well after today the tradition becomes official.

Continued after the jump.

Source: Autoblog
VW-Porsche 914 celebrates its 40th anniversary

Porsche has always had in interest in the German automotive conglomerate, but with no intentions to one day run VW. Back in September of 2005 Porsche owned about 5% of Volkswagen and decided to invest €3 Billion in order to up their interest to 20%. Just ten months later in July of 2006 Porsche was up to 25%. On March 26, 2007, in a further attempt to preserve the German automaker and prevent a hostile takeover from a foreign corporation Porsche increased their ownership to 31% and by October of 2008 were up to 42%. At this point the two automotive giants were working together, sharing technology, but still operated 100% independently of one another. It was as if Porsche would check in from time to time and make sure everything was going o.k. and see what they could get from the relationship, but didn’t impose on the corporate structure of the VW Group. That was until May 6th, when the two companies officially joined forces uniting the 9 existing brands managed by VW and Porsche under a single operation.

Volkswagen Passat CC

The VW Group operates Volkswagen , Audi , Bentley , Bugatti , Lamborghini , SEAT , Scania, Skoda and Volkswagen Commercial Vehicles; which will now be combined with Porsche thanks to Porsche Automobil Holding SE, a separate company owned by members of the Porsche and Piech families. This is just another step in the German sports car maker’s journey to take a controlling interest in Volkswagen. The sports car maker from Stuttgart has already amassed a 51% stake in Volkswagen Volkswagen , but that is still not enough of a majority in Germany to sit at the head of the table. Porsche still intends to raise its stake to 75% when economic conditions allow.

This means that the VW Bluemotion/Porsche New 914 could be happening sooner than you think.



4 comments:

So does it mean that it has something to do with 17 percent stock falls last Wednesday is due to the undecided takeover and result of the merger? Well Porsche really have to think about it carefully.

By the way news says that the agreement to revamp Porsche’s takeover followed a day of discussions among the families who control Porsche Automobil Holding — the Piech and Porsche clans. They had gathered in Austria to discuss how to cut a 9 billion euro debt pile Porsche built to fund its bid for VW. The shape of a new company will be discussed by a VW-Porsche working group and will include Lower Saxony as well as worker representatives. We can wait for the final decision.

News says that the concern to unite ten brand names under one roof was not pushed through and for this reason the deal represents a climbdown because Porsche is abandoning its goal of trying to dominate Volkswagen by building a 75 percent stake. It now owns about 51 percent of VW. Thus this means a merger which remain unclear they had agreed a blueprint to create an "integrated car manufacturing group" within four weeks. Under the new group, "ten brands shall stand below an integrative leading company,"Volkswagen has nine brands — Volkswagen, Lamborghini, Skoda, Bentley, Bugatti, Audi, Scania, Seat and Volkswagen Commercial Vehicles. The Porsche AG sports car business has been a wholly owned unit of Porsche Automobil Holding.

I’m not sure this is an accurate portrayal of what Porsche intends or says in their press release.

If you read the press release that Porsche SE put out closely, it simply says that they have agreed to discuss the possibility of a merger.

If you distill this down and read between the lines, it means that Porsche is most likely giving up their bid to gain a majority share of VW and will create an "integrated" operating company instead.

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