Porsche raises stake in VW again, makes offer for Audi

Porsche has raised its stake yet again in Volkswagen, going from a bit above 30% ownership in the German giant to a solid 35.14%. The purchase apparently gives Porsche, or rather the company that owns Porsche – Porsche Automobil Holding SE – control over VW. It released a statement today that said, "as a result of this acquisition, Volkswagen... has become a subsidiary of Porsche Automobil Holding SE." Pursuant to German securities law, Porsche also made an offer to purchase Audi at the bare minimum stock price of 487 euros per share. Though Porsche says there are no plans to separate Audi from VW, it's unlikely VW will accept the offer anyway. All of this is but a single step on Porsche's long path to securing more than 50% ownership in VW. In the meantime, VW representatives will now have a seat on Porsche Automobil Holding's employee council and supervisory board. The power struggle between these two companies will undoubtedly continue, with Porsche Chairman Wolfgang Porsche leading the charge for his company while his cousin, Ferdinand Piech, holds court for Volkswagen and the powerful labor unions that are trying to stop this takeover.
[Source: Automotive News, sub. req'd]







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Reader Comments (Page 1 of 2)
Frank 12:45PM (9/16/2008)
Sachsen is gonna throw a fit. sit back and watch the sparks fly ... i hope they lose control, German government has done nothing but mess up the country over the last 15 years.
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Red 12:53PM (9/16/2008)
I read elsewhere VW felt underrepresented on the supervisory board. I actually feel kinda bad for them as odd as that may sound.
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Benfolio 12:50PM (9/16/2008)
WAKA WAKA WAKA WAKA WAKA
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B Montgomery 12:58PM (9/16/2008)
Good bye Audi R8, future R and RS models...
Porsche will have none of that!
Just when Audi had transformed itself into having arguably one the most exciting portfolios in today's car market - with the release of very successful models from the RS4, RS6, new S5, and R series (R8, upcoming R models) it has now met it's demise...
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Phil Perman 1:52PM (9/16/2008)
While I can see danger for the R8, the R/S/RS 4/5/6 will be safe as they don't compete with any of Porsche's current lineup, and even when the Panamera is released, I imagine that'll be positioned well above any of them.
The car I see most at risk from this is the Lambo Gallardo. What with the R8 and various 911 models, Porsche might decide to push Lambo up market, getting rid of the entry level car and concentrate on Murcielago class cars
nagmashot 1:20AM (9/17/2008)
no danger for any perfromance model.. you never hurt the hand that feeds you!
The largest part of the money that Porsche earns comes via their stocks of Volkswagen AG and the giant win Volkswagen AG makes since many years... and inside the Volkswagen AG, Audi is the largest money making mashine... cutting of prestige models from Audi would be for Porsche like throwing away their own money or cutting off their own models.
stevereportdotcom 1:00PM (9/16/2008)
This is a great thing for VW. It definately gives VW a different image as being more "cool." When you buy an Audi, its just a dressed up VW. Now, when you buy an Audi, its dad is the 911 GT3.
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TDi 1:25PM (9/16/2008)
I disagree! Porsche has always been against VW's or audi's plans to built performance cars.
I can see Porsche trying to halt the expansion of Audi's RS and R programs, use their weight saving construction methods and fuel saving tech for themselves while also cutting jobs. Keeping jobs is a must at a time when world markets are slowing.
Furthermore, I doubt the upcoming V10 R8 would consider a 911 GT3 as its father!
Dave Peterson 3:58PM (9/16/2008)
To - Stevereportdotcom: "When you buy an Audi, its just a dressed up VW"
That statement alone makes it clear you have never driven an Audi. For one, the A4/A6/A8 and upcoming Q5 share their own Audi chassis - independent of ANY VW. Second, Audi uses it's own factories which are also independent. No Audi cars are built in Mexico or even the U.S. (for now). I have nothing against VWs (I own one) but lets be real, they re not at Audi's luxury or sport level. You may be able to argue that statement with the A3 or possibly TT, but even the TT uses many upgraded features such as an aluminum body frame (different than steel of VW) among many other obvious changes. Until VW makes an S8, R8, S5, or RS competitior, case closed.
outphase84 12:45AM (9/17/2008)
@Dave Peterson:
That statement shows that you know little about VW/Audi platforms.
Q7 and Touareg share the 7L platform.
A3/TT/Q3 share the same A5 platform as the mk5 golf/jetta/tiguan
Through 2005, the A4 and Passat shared the same B1-B5 platforms, although the Passat has migrated to an enlarged A5 platform.
And the Phaeton shared a similiar platform with the A8...the only difference was that the A8 had an aluminum chassis, versus a steel chassis in the phaeton. However, the bentley continental was the identical chassis to the phaeton.
It should also be noted that VW has intentionally lowered build quality on the mk5 vehicles to artificially create a gap between VW and Audi.
nagmashot 1:54AM (9/17/2008)
@outphase84
better get your facts together befor posting Bulls...
VW Touareg
Type 7L platform
Audi Q7
Type 4L platform
TT A3 Golf Tiguan Q3 Leon Octavia Toledo Touran Caddy
PQ35 platform
Audi A4 since 2000
PL46 B6 platform 2000-2005
PL46 B7 platform 2005-2008
MLB platform 2008 - still in use
Passat since 2000
PL45 B5 platform till 2000
PL45 B5.5 platform (a updated B5 platfrom) 2000-2005
PQ46 platform (PQ46 is an enlarged version of the PQ35 for mid-size vehicles) from 2005 - still in use
The biggest joke is to claim that Pheaton and A8 share a similar platform.. good boy you realy know nothing about cars..
Pheaton
D1 platform shared only with some Bentley models (Continental GT and Continental Flying Spur)
Audi A8
D2 platform till 2003
D3 platform since 2003
The D2 and D3 are Audi space frame chassies and have absolutly nothing to do with the D1 platfrom of the Pheaton
since 2000 the only platfrom shared and that in a highly modified way between VW and Audi is the PQ35 platfrom
since 2000 A4, A5, Q5, R8, A8, A6, S4, RS4, S6, RS6, S8, Q7 are build on platfroms only used by Audi...
rsfourever 1:04PM (9/16/2008)
b montgomery - i'm entirely with you.
i've now resigned myself to porsche taking over vw and audi. i just hope the process takes enough years so that audi can put out a few more super-powerful performance cars before porsche takes control and shuts everything down.
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Richard Warren 1:07PM (9/16/2008)
Seen VW's stock lately?
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Rafael Illan 1:10PM (9/16/2008)
VW, audi and porsche have always colaborated on many componets,this just make its more closer.just look who designed the first VW bettle,it was Dr . ferdinand porsche. porshe cayeenne,VW touareg and q7 share the same chassis.
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tgladden 1:57PM (9/16/2008)
Is the share price listed in the entry of 487 Euro per share accurate? That is a TON of money.
Not sure I agree with what some of you are saying about Porsche putting the kabash on high performance Audi models. Does an RS 4/6 really compete with anything Porsche has in it's stable? I suppose if that horrible looking panamerica comes out that will be it??
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Mike 3:41PM (9/16/2008)
It's lower than today's trading value, but it's no typo: http://uk.finance.yahoo.com/q?s=NSU.DE
And I agree that people are likely hugely overreacting to the future prospects for Audi's high-performance models. Even if they did compete directly with Porsche's products (which they largely don't), they serve a crucial role in placing Audi in the consumer's mind as a credible alternative to BMW or Mercedes. The RS cars give real credibility to Audi's higher volume sport sedans, and for that reason alone I think we can expect them to continue.
ericdj 4:35PM (9/16/2008)
So you missed the whing from Porsche about the use of the R in models, especially they wanted to call a new audi a TT RS. Porsche will not want cars competing with their cars. R8 and the Bugatti will all wave out. Lambo may have issues. VW had no issue with models that were in similar categories, but Porsche will have none of it. They aren't smart enough to embrace them all.
Muzza 12:35AM (9/17/2008)
@ ericdj
That issue about the TT RS was not regarding Audi's building a high performance TT, it was the use of the "RS" letters as a suffix as opposed to a prefix. Had Audi called it the RS TT, it wouldn't have had an issue, but Porsche uses the RS letters as a suffix (ie GT3 RS)
I don't see Porsche wanting to kill any models from Audi or Lamborghini providing that those models make money. Both Audi and Lamborghini are profitable, so Porsche won't have a problem. CEO Wiedeking has said as much in reports
OOMPH! 4:02PM (9/16/2008)
if porsche can make VW AG a lean well organised trimmed machine than im for it..who better to be married to VW than Porsche..just dont f@@@k it up!! VW,be VW again.VW AG must remain pure,must remain german..and run like a well oiled machine
..Das soap opera Auto
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The Doctor 6:55PM (9/16/2008)
I'd go to Porsche if I wanted advice about derivatives trading, not running the largest car company in Europe.