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In the land of mergers and acquisitions, there are takeovers, there are hostile takeovers, and then there are I'm Gonna Git You Sucka No Matter What takeovers. Porsche's increasingly acrimonious battle to swallow VW is becoming that third option, and the brawl might threaten the short term plans of Porsche, VW and Audi. Porsche wants access to Audi engines and electronics, but VW, which owns more than 99-percent of Audi, won't allow it.

Porsche has de facto control of VW, with a 35.1-percent share. The so-called VW Law, which allows the government of Lower Saxony ultimate veto power even though it has only a 20-percent share, has been the broadsword that both VW and Germany have been using to keep Porsche at bay. The law has been struck down at least three times by the EU Commission and a German Court, only to have politicians figure out how to rewrite it without changing the substance of it.

VW's supverisory board recently declared it would need to approve any sharing between Porsche and Audi, and at the moment, Porsche can't overrule that decision. Ferdinand Piech, the head of VW, is in a battle with the Porsche family and Wendelin Wiedeking, the CEO of Porsche, over control, and neither is expected to budge. The risk is that since no one knows how this is all going to play out, a battle of egos and punitive reactions could interrupt development of and platform sharing between – and therefore the profits of – all three manufacturers' future products and technology.

[Source: Automotive News, sub. req'd]

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    • 1 Second Ago
      • 6 Years Ago
      This is going to get ugly....
        • 6 Years Ago
        No joke atleast it hasn't gotten to this level.

        "I'm into... well murders and executions mostly. ...most guys I know who work with mergers and acquisitions really don't like it."
      • 6 Years Ago
      Boycott the evil arrogant Porsche company and their cars.

      1. Just buy Audi cars directly.

      2. Ask Audi to restart the Audi R6 project that Porsche AG killed for fear of real competition --- it's a 6-cylinder version of the Audi R8. It'll be mid-engined, twin-turbo, have Quatto and DSG, the alloy space-frame that Porsche covets, and all the Audi amenities.

      3. Lobby the EU to force Porsche AG to divest its interest in Audi. Monopolies and deliberate stifling of competition are bad for the enthusiast car buying consumer.
      • 6 Years Ago
      I'm guessing Porsche wants to use Audi engines, such as the new supercharged V6 to their V12 diesels, for the Cayenne and Panamera rather than to replace their flat-6 engines in their sports cars.

      Or, the statement "Porsche wants access to Audi engines..." is misleading and they really want a closer look at the Audi R10 TDI.

        • 6 Years Ago
        Porsche already uses VW/Audi engines in the Cayenne. The 3.6L V-6 is the same one found in the Passat with a bit more power. Previously, it was offered with the 3.2L until that was discontinued in most everything. Wasn't it also previously reported that Porsche would use an Audi TDI in the Cayenne as well?

        I'm pretty sure Porsche doesn't need to take over VWAG in order to keep the flow of engines coming.
      • 6 Years Ago
      The people I know that own Porsche's are "Porsche purists." It is only Porsche and Porsche alone, imagine when these owners find out their new cars' engines are AUDIS???!!!! Porsche is risking its core buyers purchasing power. I am so tired of all these whining mega-rich shareholders who are dictating every move this planet does for the sake of profit...what's next Toyota engines in Ferraris???
        • 6 Years Ago
        If it was like that, they collapsed already with the Cayenne.
        • 6 Years Ago

        You wrote: >>>I am so tired of all these whining mega-rich shareholders who are dictating every move this planet does for the sake of profit
        • 6 Years Ago
        @JC. Hmm. the rest of my comment got lopped off.

        Isn't "profit" the mandate of any publicly held company? To create "share holder value" is what I remember their responsibility to be. This means driving revenue and profit.

        As for "purists" I'm probably one of the biggest ones out there. I publish http://porschepurist.com and it's all about the cars, products and lifestyle of Porsche owners. With that said, I still enjoy other brands, drive other cars and see the value in sharing technologies. It will only make each company stronger.

        Let's not forget that if not for Porsche VW wouldn't be the company it is today. More importantly, if not for VW, Porsche as we know it wouldn't exist!!
      • 6 Years Ago
      "In a recent independent test by Porsche, it was revealed that the R8 is 20 seconds slower than the manufacturer claimed figures."

      Porsche trying to eliminate competition?
      • 6 Years Ago
      What's a "supverisory board"?
      • 6 Years Ago
      Porsche is behind on almost everyone... they need a refresh and they are willing to kill for it.
      • 6 Years Ago
      Haha... "You have ten seconds to comply"... "Talk to the hand"..... that made me laugh out loud
        • 6 Years Ago
        Haha, yeah from now on I'm always going to imagine ED-209 sitting on the Porsche board.

        Product manager: "Research indicates that there is customer demand for a Porsche-branded 7-door family vehicle."

      • 6 Years Ago
      they are making it too hard for themselves imho
      • 6 Years Ago
      Porsche with Audi engines? I'd like to see the TT-S engine in the Boxster/Cayman, and let's hope it also works the other way round, since the 911 Turbo's engine is probably my favourite anywhere, and Porsches apparently are magical to drive unlike VW cars which are mostly described as "wooden"
      • 6 Years Ago
      i see big problems for audi if porsche take over
      let porsche use its own engines and audi thier engnes

      porsche only want to get rid of the r8 and tt which are the biggst reveal of the 911, cayman and boxster and even of the new awsome rs6
      • 6 Years Ago
      They sure are working hard at destroying their own livelyhood.
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