Could Porsche force VW to unload Lamborghini and Bugatti?
Is Volkswagen about to shed some supercars from its stable? It could be the case, if statements by Porsche boss/VW supervisory board member, Wendelin Wiedeking, are taken seriously. When asked about the future Bugatti and Lamborghini within the Volkswagen Group, Wiedeking is quoted as saying "no toys anymore." Cash from the sale of these two exotic makers could help VW work on
But it's not all about the Euros. Not surprisingly, it is reported that Wiedeking isn't too happy Porsche might occupy anything less than the top rung in the corporate hierarchy. Imagine Audi R8, Porsche 911 and Lamborghini Gallardo all in the same family – that might be a little awkward. And with a new Porsche supercar reportedly in the works designed to break the top speed record set by the Bugatti Veyron, it can only get worse. Throw in a Murcielago LP640 successor, and we think the sibling rivalry would turn to bloodshed.
Autocar is speculating that Lamborghini could be sold off, but that Bugatti might turn into little more than a coachbuilder. If the Veyron ends up making Bugatti a one-and-done automaker this go-around, we say job well done but hope there's more to come.
Though Wiedeking is a member of VW's supervisory board and his company does now own 31% of the VW Group, the question remains how much influence Porsche really has over the future of VW. German law in this regard is complicated, and as far as we can tell, beyond a voice on the board, Porsche can't do much at the moment to force the sale of Lamborghini and Bugatti, whether it wants to or not.
[Source: Autocar]
Reader Comments (Page 1 of 2)
car industry expert 4:14PM (6/27/2009)
Bugatti, Porsche and Lamborghini barely compete. porsche is the 'everyday supercar' and sells at Boxter/Cayman levels in the market way down market from Lamborghini whose cheapest product is the Gallardo at 140k. Bugatti sells the Veyron at 1.4m a pot which competes with no other car on the planet.
Plus the Veyron is an engeneering marvell, and the Germans can show their engeneering superiority over, say, the Americans and Japanese. Piech also has too much power over VW to let Bugatti go and the proposed new Royale luxury saloon could be profitable, bring relative size to the economies of scale of Bentley and gain a slice of the Rolls Royce Phantom, Bentley Arnage segment. With Porsche beancounters at the helm this could only be good.
Lamborghini is profitable an established brand and under the stuwardship of Audi they make good quality cars aswell, the brand is hardely a 'toy' and is an intimate part of the Volkswagen Group. They churn out great stuff with the new Estoque bound to be a success in Russia, China and the Middle East.
The Volkswagen group has structured it's brands well and kept them from treading on eachothers toes. Skoda makes budget but versatile cars which sell well in Europe, SEAT sporty and stylish cars for the Medditeranean markets VW fort most of Europe for iconic ubique classy product, Audis are modern and stylish and appeal to executive buyers. Lamborghini is perfectly placed in it's market churning out mad but brilliant cars, Bentley for the relaxed rich and high executive buyer and Bugatti for peerless engeneering masterpieces which bring soul to the whole groupo and to show that the car industry is about soul and emotion.
VW-Porsche will definately prosper and if Piech, Winterkorn, Wiedeking and Harter combine their skils it will be overwhelmingly profitable and with great product.
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Frank 3:51PM (4/12/2007)
If I were Porsche I would make VW dump Lambo. Why compete against yourself?
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Robert Farago 5:01PM (4/12/2007)
Let the bunfight begin!
http://www.thetruthaboutcars.com/?p=3482
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rgseidl 4:36PM (4/12/2007)
Porsche is the single most profitable car maker in the world and probably not all that worried about competition from Audi and Lamborghini right now. The issue has been a source of concern for the state of Lower Saxony, though. Right now, Porsche's representatives on VW AG's board (incl. both Piech and Wiedeking) are required to recuse themselves from discussions about VW AG's plans in the sports car arena, to avoid an overt conflict of interest.
Wiedeking has made it clear in the past that he want VW AG to focus on fixing its core VW brand. This is code for eliminating internal competition with the engineering department at Audi (this is happening now that Winterkorn et al. have moved up) and, for the massive payroll excess in Wolfsburg. Piech's "toys" - Phaeton, Veyron, R8 plus the acquisition of th three premium brands - were all supposed to lift the image of VW and its traditional brands to a higher profit bracket. More of the same would simply continue to mask the fundamental problems in Wolfsburg.
The state of Lower Saxony and the powerful IGM union have long blocked significant progress on the politically sensitive issue of chronic overstaffing. The top EU court is widely expected to overturn the "lex VW" which currently limits all shareholders' voting rights at VW AG to those of the state of Lower Saxony. When that happens, expect Porsche to slowly increase its share beyond the 30.9% it currently holds. Dealing with the unions will be hard, since the German constitution gives them 50% of the seats on the board.
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Don 4:47PM (4/12/2007)
Why not shed Bugatti and Lambo?
Bugatti makes nothing but ugly niche products, and Lambo's offerings don't even approach Ferrari or Porsche's in desirability.
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BVT 5:25PM (4/12/2007)
Bugatti is pointless, but there is enough space within the exotic market for both Porsche and Lamborghini.
What the vast VW empire needs to do is reign in Audi's sprawling product line. Audi is starting to resemble Mercedes in its desire to have a product for every infintesimal niche of the premium car market. At some point this will bite them hard. And Audi's coupes are more direct competitors for Porsche than Lambo's boy toys.
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Lee Gibson 5:25PM (4/12/2007)
What market segments do Porsche and Lamborghini share? It's not like people cross-shop a Murcielago and a 911. They're radically different cars with totally different appeal.
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MikeW 5:27PM (4/12/2007)
Spinoff/merger time, but what to call it?
Bugorghini or Lambatti.
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Yago Bal 5:34PM (4/12/2007)
That's your opinion, don.
Even so, just look at the price tags, will you? none of the three (bugatti, lambo and porsche) compete with each other on the market.
Porsche are great bean counters and money makers (just look at the cayenne) and they may make even more money with VAG, but there's more to the automotive world than money! They will ruin the that magic "something else" that those brands have, attracts costumers, and amazes enthusiasts.
Besides: both Bugatti and Lambo are quite profitable. Lambo in the obvious way. Bugatti in the marketing beneficts it brought to the group (it did a much better job than all the payed publicity in magazines or tv) and the amazing technology that was developed and can migrate to other brands of the group.
A small manufacturer like Porsche can have a short eye, focusing on the next day, but a big group can and should think about the long run.
Basically: Porsche wants to be the top of the sports cars, but it obviously isn't... so: let's just ruin bugatti, then lambo, and then buy ferrari and kill it. :)
It's not really like that, but it's deeply stupid what they are trying to do with VAG.
But, in the end, this "news" is months old (sometimes I can't understand autoblog) and the Bugatti was a brainchild of Piech, so I don't see why he would change his mind.
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dani 5:46PM (4/12/2007)
They should produce a new car. The "Lamporschetti".
A car with an air cooled 16 cylinder boxer engine that tops at 300mph (electronically limited of course) everyday-usable.
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Aetius 5:51PM (4/12/2007)
"Lambo's offerings don't even approach Ferrari or Porsche's in desirability."
Go stand in line at a club on a Saturday night and watch the reactions the dozens of Porsches running about get and then the reaction the sole Gallardo gets.
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Peter 6:02PM (4/12/2007)
Bull.
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tim Hurban 6:03PM (4/12/2007)
Don,
you are a retard...
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The Doctor 6:41PM (4/12/2007)
Axel Mees criticises the Phaeton and nine days later is fired. Bernt Pischetsrieder ends the sale of the Phaeton in America and one month later he's fired. Strange how people who directly or indirectly criticise Dr Piech's work just seem to... disappear.
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HotRodzNKustoms 8:09PM (4/12/2007)
Selling Lamborghini and Bugatti, also known as the toys, would cut excess fat, put cash in their pockets, and reduce any risks if a recession were to hit, and now you guys are already calling eachother retards...
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jj 8:22PM (4/12/2007)
Bugatti's useless. Kill it.
Their goal in life is to be a sinkhole of resources and potentially regain maybe 5-10% of what was spent on R&D in sales.
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KJC 8:34PM (4/12/2007)
14. I agree, now that Porsche's health is tied in with VW they need to make sure both companies remain healthy.
Don't forget how much capitol, time, and personnel it took to bring Lambo, Bugatti, and Bently up to super car levels. Plus, how much it is going to keep them at a high level. I don't think the VW group could sell enough cars to keep these three relics of the past going for 10 years.
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Nick 10:07PM (4/12/2007)
Bentley's a cash cow.
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Matt 10:51PM (4/12/2007)
Lambos are great and loved to see them scooped up and stay alive. Bugatti has always been and should always be a tp player in the niche market. Both are fanatastic companies with a too much history behind them. don't want to see either go.
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Fernan Franco 12:25PM (4/13/2007)
as long as they dont sell bentley, perfect combination of performance and looks
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