Filed under: Porsche, Volkswagen, Earnings/Financials
Porsche backing off from taking majority stake in VW this year
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.]
Reader Comments (Page 1 of 1)
happy_penguin 4:14PM (11/26/2008)
Too bad. Volkswagen has some really cool cars but someone needs to save VW from their atrocious quality.
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happy_penguin 11:46AM (11/27/2008)
I knew the low ranks were going to come. Fanboys! You people don't even bother to check the facts, you just react. The fact is, Volkswagen is #7 in the JD Power Vehicle Dependability Study.
FROM THE BOTTOM!
happy_penguin 11:49AM (11/27/2008)
Oops. I lied. They're #5 for 2008. But they were #6 in 2007.
happy_penguin 11:50AM (11/27/2008)
Or the other way around. No matter.
Brent 4:24PM (11/26/2008)
Can someone please explain why Porsche wants to buy VW?
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happy_penguin 4:34PM (11/26/2008)
Historical ties?
Vega 5:05PM (11/26/2008)
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.
zamafir 7:32PM (11/26/2008)
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.
fixitfixitstop 4:58PM (11/26/2008)
Ban Comic Sans, please!
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happy_penguin 6:46PM (11/26/2008)
You would prefer the pic sans comic sans?
MySchizoBuddy 11:36PM (11/26/2008)
Ferdinand Porsche made the first beetle for volkswagon as Porsche being the consultant company.
His son Ferry Porsche made the first Porsche (365) based on the beattle
Ferdinand Pich (grandson of Ferdinand Porsche) is the chairman of VW. With 12.8 per cent of the Porsche voting shares, he also remains the second largest individual shareholder of Porsche AG after his cousin, F. A. Porsche, (13.6 per cent)
So yes there is LOT of history between these two companies
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happy_penguin 11:44AM (11/27/2008)
You forgot about the Volkswagen... uh, I mean *Porsche* 914.