• May 6th 2009 at 4:30PM
  • 24
Automotive News Europe reports today that Porsche and Volkswagen have finally cleared the way for combining their brands under a single operation. The new carmaking group would have no less than 10 brands under one roof, though the "independence of all brands and explicitly also of Porsche shall be ensured." VW will be bring its nine brands to the table, while the Porsche brand itself would be contributed by Porsche Automobil Holding SE, the separate holding company owned by members of the Porsche and Piech families.

Today's news is yet another step in Porsche's long journey to take a true controlling interest in Volkswagen. The German sportscar maker has reportedly already amassed a 51% stake in Volkswagen to date, but that's not enough of a majority in Germany to run the tables. Porsche still intends to raise its stake to 75% when economic conditions allow, but then there's Lower Saxony, Volkswagen's home state that reserves the right to veto any sweeping changes, to deal with. But at least they appear to have gotten this one thing done.

[Source: Automotive News Europe, sub. req'd | Photo by NIGEL TREBLIN/AFP/Getty]

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    • 1 Second Ago
      • 6 Years Ago
      • 6 Years Ago
      VAG-Porsche: multiple brands done right
      GM/Chrysler: multiple brands done wrong

      Enough said
        • 6 Years Ago
        Not even close, because the extra brands don't cost them a thing, yet still they all have their own loyal costumer base.

        Audi's are refined and high tech VW's
        Seat and skoda are lower market VW's, either on the same generation or the previous one. (ideal way to keep making a profit on some older platforms and spread the R&D a little)

        Do you really think that lamborghini fishes in the VW pond? Or that audi and seat are stealing customers from each other? Audi buyers will always be audi buyers. No way that VW can be set against bmw, but Audi can. Etc, etc...

        Seats will sell well in southern europe where they are made (spain, france). Yes, it is a golf or polo with another badge and some different body panels, but they still reach their own audience. You could say they're all golfs, it doesn't matter, it's the same car anyway. So whether they sell a seat or a golf, VW couldn't care less, they make a profit on the same R&D. There's no R&D overhead.

        Even Bentley and Audi or Bentley and lamborghini and Porsche don't compete directly against each other.
        • 6 Years Ago
        "VAG-Porsche: multiple brands done right
        GM/Chrysler: multiple brands done wrong

        Enough said"

        Ah yes, you say it is so, so it must be. Try this:

        VAG-Porsche: GM Circa 1950

        GM gained most of its brands via acquisitions. Just like this. What remains to be seen is if VAG-Porshce can stave off the inevitable "big company disease" that has crumbled GM and is starting to eat away at Toyota...
      • 6 Years Ago
      The VW/Porsche relationship is more fluid than any I've seen, so things like this mean little to me.
      What bothers me most is that a premium brand like Porsche has such piss-poor paint.
      • 6 Years Ago
      GM's head honchos must be scratching their heads right about now. They were planning to emulate VW's market penetration to the tee. Well, this sort of puts a wringer in the old washing machine, doesn't it? And just when GM is trying to shed most of its brands as well!
        • 6 Years Ago
        Wringer? Nope, this writing has been on the wall for half a decade. I'm not sure what part of VAG you're insinuating they'd emulate but i doubt they'll match the success, especially of this new company, the most well placed auto conglomerate in the market. Heck, we read articles here on autoblog about revolutionary new ideas of platform sharing with toyota’s next van, vw’s been on that boat for decades.
        I’ll keep beating the dead horse, platform sharing, not GM styles of brand overlap, is the biggest key to any automakers survival right now.
      • 6 Years Ago
      Well, I knew it was VW, Audi and Porsche.. but I didn't know there were 10!
      Anybody care to fill me in on the other 7? ;)
      • 6 Years Ago
      What is the status of the VW reverse takeover on Porsche because of all their debt? Autoweek had an article on this last week.
      • 6 Years Ago
      VW did try and enter Audi territory by launching the Phaeton. So some cannibalization has existed in VAG Group also.
      • 6 Years Ago
      Ladies and gentleman here we have the new euro GM, guarantee to go down like the real GM. The new company will include features like badge engineering and going down quality.
        • 6 Years Ago
        GM's bailout detractors should note the veto by Lower Saxony. "OH NOES GOVERNMENT MOTORS CAN'T BE COMPETITIVE" seems quite wrong when you have one of the new top automakers of the world partially-owned by it's home state.
        • 6 Years Ago
        That is so not true. It just states again that GM had poor management of its brands too loose the most of them. Just think what was Pontiac and what it became in the hand of GM.
        Even if there are 10 brands under VAG management they still have kept their personality, something that GM ruined for its brand by transforming them in financial companies.
        I am sorry but there is a wide difference between US management style and European one. The first is focused on financial aspects while loosing passion and history, and the later one is focused on history, feel and passion while always thinking about finance
      • 6 Years Ago
      I a major point is not made in the post. Doing this allows Porsche Holdings to rid itself off some of the debt that it has taken on to pay for the VW acquisition. That in turn prevents it from defaulting on any of its debt.

      Basically in a very twisted way Porsche Holdings was taking over VW, but now VW is buying Porsche from Porsche Holdings, so Porsche Holdings can still hold on to VW (I know that probably doesn't make a huge amount of sense, but that's the best I could do!).

      Read more about it
      and here: http://www.spiegel.de/international/business/0,1518,620020,00.html
      • 6 Years Ago

      Nobody mentioned that FIAT/Abarth/Alfa Romeo/Lancia/Maserati/Lamborghini is vying for the #2 slot by gobbling up Chrysler/Jeep/Dodge, Saab/Opel/Vauxhall and now also has its sights on GME and GM in Latin America. Won't be long before they're knocking on the doors of Holden and Daewoo either.
        • 6 Years Ago
        Lamborghini is audi (VAG)

        It's posted all over these comments...
        • 6 Years Ago
        Sorry, I meant to say Ferrari. Duh.
      • 6 Years Ago
      Great photography! It actually works better with the orange peel distorted reflection!
      • 6 Years Ago
      thank god, good news for my beloved AUDI cause Porsche and Wiedeking would have surely limited Audi`s sportscar potential in the future.
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