• Nov 26th 2008 at 3:58PM
  • 10
Looks like Porsche won't be feasting on more shares of VW for Thanksgiving. Porsche has apparently decided to postpone its move to buy a majority stake in Volkswagen due to the global economic crisis. CEO Wendelin Wiedeking said he still wants that 75% share of VW, but that it's just too difficult at the moment. It doesn't help that VW shares are trading for "economically ridiculous" prices according to Porsche finance chief Holger Haerter. Porsche shares are trading at 57.261 euros, while VW was up 12.2 percent to 286.0 euros. Porsche told us last week in L.A. that it's vulnerable to the current slump in demand and that they expect 2009 to be a slow year. Controlling Volkswagen's movements and profits could help Porsche stay in the black over the next year, but it would simply be too risky right now.

[Source: Automotive News - Sub. Req.]

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
      • 6 Years Ago
      Ban Comic Sans, please!
        • 6 Years Ago
        You would prefer the pic sans comic sans?
      • 6 Years Ago
      Can someone please explain why Porsche wants to buy VW?

        • 6 Years Ago
        Historical ties?
        • 6 Years Ago
        Vega's right, Porsche loves nothing more then to make money - they're the most profitable car maker on earth. They're already beginning to rely on VW more heavily as demonstrated by the cayenne (both in terms of the platform/truck and even vw's V6 being used in the base model).

        The only problem, and a big reason why Porsche is backing down, is the massive political feud which erupted - VW not keen to allow porsche to direct their operations and pilfer their research and parts bins without check.

        It'll be interesting to see how this tango continues.
        • 6 Years Ago
        Because Porsche production numbers are not big enough to make expensive platform development, safety testing, hybrid technology etc. etc. economically viable. Their preferred partner is Volkswagen, so when Volkswagen was mulling over an R&D cooperation with Mercedes years ago which would have left Porsche stranded, they had to act.

        Also, after complete consolidation of VW they can use smaller VW's low CO2 emissions to offset their sportscars, thus meeting EU fleet requirements.

    Share This Photo X