Porsche gobbles up more of VW while takeover is delayed
A procedural glitch, as opposed to Berlin-based intrigue, has postponed Porsche's plan to take over Volkswagen. The EU Commission requires a company to have a controlling interest in a company, or at least an agreement for such, before it will consider a company's application for regulatory approval. To straighten things out, Porsche has raised its stake in VW from 30.6 percent to 35.5 percent, which effectively grants it control of the much larger carmaker.
There's still that issue of the Volkswagen Law and Lower Saxony's refusal to give up the fight for its minority-majority stake. Lower Saxony, the state that is home to VW and 150,000 workers who don't want to lose their jobs, just bought another 500,000 shares in VW to maintain its position.
The EU Commission, however, has already said that Lower Saxony cannot use the VW Law to maintain control. That makes Porsche the fox outside the henhouse, waiting on the inevitable moment when EU officers will come and unlock the doors. Even better for the sports car maker, because Porsche hedged the purchase of its VW stake with cash-settled derivatives, it is assumed to have only spent a "a fraction" of the published price for controlling interest.
[Source: Automotive News, sub req'd]
Reader Comments (Page 1 of 1)
Avinash machado 9:59AM (6/20/2008)
Well so Lamborghini and Bugatti are safe for the time being.
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rsfourever 10:56AM (6/20/2008)
my sentiment exactly. I'm afraid of what Porsche will do to Lamborghini, Bugatti, and even Audi's sports-division (R8, TT-RS, speculated R4, etc.) if they take over VW. It would be stupid to stop producing all those cars, but it wouldnt be a surprise at Stuttgart, where the 911 is king and everything and everyone else must be inferior to it (including the Cayman which, if properly set up, could ruin any 911 car simply because of better weight distribution)
NT 1:53PM (6/20/2008)
Gawddamnit Porsche!
$2 says the R8 will be the first to have its wings clipped. If that happens it's guaranteed the value of that car is gonna be the same as two 599GT Fiorianos. In 2 weeks.
If the V10 makes it out of the factory that's gonna be an Enzo-like classic...No doubt some idiot would find it appropriate to blast down some highway in Cali and shear the R8 in half.
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Shiftright 2:10PM (6/20/2008)
I don't understand how a small company like Porsche can buy into a much larger industrial giant like VW. Can someone please explain?
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Carl 2:40PM (6/20/2008)
Shiftright,
Over the past 15 years Porsche has been making money hand over fist (enough to buy a controlling stake in VW) for a number of reasons:
1) The remaking of the company using efficient Japanese manufacturing techniques.
http://query.nytimes.com/gst/fullpage.html?res=9E06E5DC1E39F933A15752C0A960958260&sec=&spon=&pagewanted=all
2) Porsche Engineering Services.
Porsche does lots of profitable engineering work for many rival auto manufacturers.
http://www.porsche.com/usa/aboutporsche/servicesubsidiaries/
3) Huge profit margin on all the desirable cars Porsche sells.
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innoc3nt 1:42AM (6/21/2008)
Simply incredible how such a low volume manufacturer can be looking at ownership of a much larger parent company. Such a solid business.
rubbish.ending 12:49PM (6/22/2008)
Sorry, it's the test only.
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rubbish.ending 1:05PM (6/22/2008)
Ok, now.
Why do you think that Porsche will kill R8 and Lambo after the takeover thing?
They've proven their incredible money policy (hey, they have got now enough money to buy VW, that's... i cannot put this through my mind, really), so we should be more worried of taking control over whole Europe in 15-20 years.
Back to my point - they won't kill those other sports cars, it would be stupid. Instead, i'm guessing they will copy the best technicalities over from lambo's and R8 to make the 911 even more ultimate.
OR
They're planning in making a Behemoth like
Lamborsche r811, and it'll somehow melt together 911, R8 and yellow bull's styling, and it'll be mid-AND-rear engined, with V12-and-V8 finished with boxster-6 engine to end with collossal VB-26 engine producing 2100 hp, 12 wheels and 5 turbochargers. ^^
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