VW getting serious about Proton. Again.
After many months of deal / no deal, it looks like Volkswagen is ever closer to being a part owner of Malaysian automaker Proton, which, as you know, owns Lotus.According to the Associated Press, VW is looking at conducting a pre-Christmas audit of Proton, a move that would indicate VW is serious about investing in the Malaysian company.
The story goes on to say that from its estimated $545 million investment, VW would get access to Proton's assembly lines as well as Malaysia's free trade agreement with Japan. VW could theoretically use Proton's plants to produce cars to export to Japan tariff-free. Proton would benefit from the deal by getting a much-needed cash injection.
[Source: The Associated Press via The Detroit News]
_opt_thumbnail.jpg)
Reader Comments (Page 1 of 1)
Hamud 7:38PM (12/12/2006)
That sounds good to VW, but I'm not sure if this sounds so good to Proton itself.
Reply
Jeff Banks 6:54PM (12/12/2006)
For some reason I thought Proton was owned by Mitsubish already. I don't remember why though.
Everyone is predicting that Toyota will be the first to succumb to GM'itis, but I think it will be the Volkswagon group. Too much expansion too quickly.
Went to the supercar section of the LA auto show and practically half of the major exhibits there were all part of the VW empire:
Lamborghini, Bentley, Bugatti, and Porsche
Plus there's also
Audi, SEAT, Volkswagen, Škoda and now Proton+lotus?
Still, you have to hand it to them that they still maintain a trendy image for the VW brand itself in America (I mostly credit their marketers), even when most people believe quality has slipped a little (wouldn't know, never owned one)
Reply
cory 7:35PM (12/12/2006)
Porsche isn't owned by Volkswagen.
Reply
The Protector 11:03PM (12/12/2006)
We should have put tariffs on Japanese cars to protect our home empire from the depredations of Toyota, Nissan and Honda!
Reply
J Ray 7:50PM (12/12/2006)
Shareholder structure
Holding in Volkswagen Fuels Porsche Stock Prices
Porsche stock experienced sharp growth, which set in after the successful Annual General Meeting and subsequently experienced a brief final spurt toward the end of the business year. The General Meeting held in Stuttgart at the end of January 2006 not only provided shareholders with detailed figures for the 2004/05 fiscal year, but also presented the strategy behind Porsche’s investment in Volkswagen. Porsche received considerable praise for its objective of strengthening collaboration with Volkswagen in important business areas to the benefit of both companies. A further significant benefit was the appointment of Dr. Wendelin Wiedeking, President of the Porsche Executive Board to the Supervisory Board of Volkswagen AG. This appointment raised the expectations of many analysts and investors that Dr. Wiedeking would in this capacity be able to proactively shape the necessary process of change at Volkswagen. Both these factors sent the Porsche share rate soaring from a good 600 Euro at the beginning of 2006 to over 800 Euro. On Wednesday, April 26, 2006, Porsche shares reached an interim all-time high of 831 Euro.
[+]Development of Porsche Share compared to DAX and CDAX-Automobile
Even Porsche shares were not immune to the general downward trend that set in on the stock exchange worldwide in May. However, after announcing good business figures in the second half of June – which forecast new records in sales, turnover and profits for the full 2005/06 fiscal year – and presenting new model versions, the rate once more reached a level of 750 Euro. In the final days of the review year, the rate for Porsche’s stock rose further to 767 Euro and then, at the beginning of the new 2006/07 fiscal year, it reached more than 800 Euro.
The stock also benefited from Porsche’s close contacts with participants on the financial markets. The company’s development was, for example, explained in detail to institutional investors and analysts at roadshows held at the most important financial centers at home and abroad as well as during intensive discussions at Porsche’s headquarters in Zuffenhausen. These activities resulted repeatedly in a commitment to Porsche stock. Investors and analysts were above all impressed by the sales successes achieved in particular by the new sports cars. They were no less enthusiastic about the prospects arising from reinforced cooperation with Volkswagen. Consequently, the overwhelming majority of financial market experts continued to recommend the purchase of Porsche stock. Some investment banks increased their stock price forecasts for Porsche shares to 900 through 1,000 Euro; one institution went as far as to indicate a target of 911. Other analysts went even further, with the highest target set in this accounting year running
1,100 Euro.
Outstanding Long-term Increase in Value
In the long term, an excellent performance can be expected from
Porsche stock. Looking at the quoted price for the past ten fiscal years, i.e. the quoted price on the last day of each annual period from
July 31, 1996 to July 31, 2006, the price has risen from 43.46 Euro to 767.00 Euro, an increase of 1,665 percent compared with the Dax’s increase of only 228 percent.
The increase in value of a shareholding with Porsche stock over the same ten-year period was equally positive. If a sum of 10,000 Euro had been invested in the sports car manufacturer’s shares on July 31, 1996, it would have increased to 176,484 Euro (including dividends) by
July 31, 2006.
Reply
nardi 8:09PM (12/12/2006)
Does that mean the Lotus Elise/Exige will now be 3500lbs and have cup holders, or scrapped all together due to the fear of law suits.
Reply
SherbornSean 8:21PM (12/12/2006)
Buy that Elise quick, because once VW/Porsche gets hold of Lotus, it'll be a heavy, overpriced luxury car.
Reply
Carlos Mencia is Not Funny 12:19AM (12/13/2006)
Didn't GM sell Lotus to Toyota?
Reply
Simon 7:25PM (12/13/2006)
For heaven's sake, Proton should just sell itself to VW already. It's not as if Proton has any chance once the protectionist tariffs are gone. I think what's really happening behind the scenes is that some Malay guy who's been given charge of Proton will loose out and have to report to the germans and actually do some work rather than just sitting about pretending to be doing something. Yes, I'm Malaysian.
Reply
Peter 8:11AM (12/13/2006)
> Porsche isn't owned by Volkswagen.
Yep, amazingly it's the other way round, Porsche holding 30% of shares.
Reply
Peter 8:18AM (12/13/2006)
> Buy that Elise quick, because once VW/Porsche gets
> hold of Lotus, it'll be a heavy, overpriced luxury car.
That already happened with the introduction of the federal Elise...
Reply
Solar 6:01PM (12/13/2006)
As the owner of a 1979 pound Lotus Elise (not heavy, Peter), I think this would be awful. VW didn't have the courage to put the GX3 that Lotus helped them out with into production and they sure aren't going to have enough to put another project like the Elise into production.
I'd much rather see Peugeot Citroën turn out to be Proton's savior.
Reply