Porsche doesn't plan to take over VW... yet
The latest in Porsche-Volkswagen relations is that the sports car maker has contingencies in place to raise its stake in the VW Group, but at this point is not planning an outright takeover.
As you may recall, when Porsche recently increased its ownership in Volkswagen AG, it was bound by German law to make an offer to purchase controlling interest. The offer Porsche submitted to Volkswagen shareholders was purposely low because Porsche didn't want to fully take over Volkswagen.
That law is now on the verge of being repealed, leaving the door open for Porsche to further increase its stake, but that doesn't mean that it will automatically take the opportunity to further entrench the anschluss between the two companies founded by Ferdinand Porsche. If, however, Porsche's position on the Volkswagen board is threatened, it could increase its stake up to 50-percent without any further bureaucracy and legal issues, but for now it plans on staying where it is.
[Source: Reuters]
Reader Comments (Page 1 of 1)
MH 7:26PM (7/30/2007)
Enter Ferdinand Piech uttering the phrase; "Excellent" in a very mr. Burns-kind of way, he then continuous on, laughing all the way to the bank. ;)
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Rambo 9:53PM (7/30/2007)
You are correct sir!
Porsche first offered to buy VW at a low ball bid to share holders (Insult). Now it plans a new way to defraud investors. This is how Porsche has chosen to due business in the last few years. THEY ALSO RIP OFF THIER CUSTOMERS BY CHARGING RIDICULOUS PARTS PRICES! I guess if you want to be Euro-cool they will be more than happy to take your money. The 911 was $50K in 2000 when I worked for Porsche and now it is $80K, what a joke! The hidden maintenance costs are even worse. The truth is that the Impreza, Lancer, Vette and Elise have replaced Porsche as top performers! PORSCHE HAS LOST THIER WAY AND NOW IS SOLEY PROFIT DRIVEN!
Bart 7:35PM (7/30/2007)
Hey, wow, I said this back when you first reported on this fiasco MONTHS LATE.
This is some terrible reporting might I say. It isnt actually news.
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wushu 8:28PM (7/30/2007)
This is bad for us, the car enthusiant buying public. It would mean less competition and higher prices and less model selection. Porsche has already killed of many promising Audi projects that would have given us better sports cars than Porsche, gasp! I wish the EU regulators would step in and force Porsche to divest its stake in Audi.
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Nicole 9:24PM (7/30/2007)
"anschluss" is not the proper German translation for connection in this context. Stay away from the translation programs!!!
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Peter 3:56AM (7/31/2007)
"Anschluß" was Nazi rethoric for the annexation of Austria. So it's used in bad taste here, but I'm sure quite deliberate.
icu812ru469 10:22PM (7/30/2007)
This is good... why would Porsche want VW anyway, it's like Mercedes Benz buying Chrysler... it would be STUPID, not wait, Daimler did buy Chrysler... ooooops.
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Peter 2:41AM (7/31/2007)
> That law is now on the verge of being repealed
No, the law which is probably about to be repealed is a totally different one, the so called "VW law", capping voting rights of VW shareholders to 20%
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Vega 3:59AM (7/31/2007)
You mean projects like the R8, a direct 911 competitor? Let me check... Yes, you're right, definetly killed by Porsche.
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MH 2:36PM (7/31/2007)
Why would Porsche want to take over VW you ask?
The reason is quite simple. It's a matter of the Porsche/Piech family wanting more power, influence and money. Same as a lot of people. Nothing new here.
It seems that to compare the Daimler-Chrysler deal with Porsche-VW wouldn't be a very good idea. These two deals are as different as night and day.
VW and Porsche history's are as parallel as can be.
The VW bug was constructed by dr. Ferdinand Porsche, without whom there wouldn't be a VW company at all.
The first Porsche was constructed by dr. Ferry Porsche, the son of the former, using the same basic technical structure as his fathers famous "Beetle".
The two company's have done a lot of business together trough the years. Quite typically VW has helped with funding, generous loans and production capacity for Porsche projects.
Also, do not forget, there are no national differences and no corporate culture differences between these two company's as was very much the case in the Daimler-Chrysler affair. The lack of these for mentioned differences cannot be underestimated.
And last but not least; Ferdinand Piech, (Ferdinand Porsche's grandson) himself a principal shareholder of Porsche AG, has held VW in an iron grip over the last couple of decades.
First as the CEO and later on as all powerful share man of the executive and supervisory boards. Nothing goes on within VW, or Porsche for that matter, without his says so.
Of course dr. Piech and his family wants full control of VW, this is sure to happen over the next few years, sooner if someone else tries to make a move contrary to the family's plans.
I see no reason why this deal wouldn't or shouldn't happen since it makes perfect business sense for both parties.
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ed 3:48PM (3/11/2008)
Its funny to see the largest German carmaker fall in Austrian hands (Piech/Porsche family).