Volkswagen will do a “reverse takeover” of Porsche?
It seems that even when/if Porsche succeeds in gaining a dominating 75 percent of Volkswagen, a top industry analyst believes that Porsche will never really have control. Arndt Ellinghorst, an automotive analyst with Credit Suisse in London, doesn’t believe that the tail can wag the dog. "We expect a reverse takeover. In the long term, Porsche will be a brand in the VW group," he told the Automotive News’ Executive Congress earlier this week.
Porsche first bought a 20 percent stake in VW in 2005. Back then, it claimed the action was because Porsche and VW shared enough parts and r&d that Porsche needed to protect itself from VW buying them out as well as to prevent an outside company from buying out VW. This idea seems to be where Ellinghorst is basing his view on the current merger situation. "It is in the interests of the Porsche family that VW takes a dominant role," he said. “Porsche will rely heavily on VW for r&d, production capacity and purchasing.”
So no matter who no matter who is holding the keys to the headquarters, it will likely seem that Volkswagen’s sheer mass will make sure it remains in the driver’s seat.
Source: Automotive News Europe