Autoblog

Volkswagen takes 49.9 percent stake in Porsche AG

Jonathon Ramsey — Tue, 08 Dec 2009 09:32:00 EST

Cue Ennio Morricone and the symphonic accompaniment to the endgame: VW has officially taken a 49.9% stake in Porsche. VW paid €3.9 billion ($5.75B U.S.) for its cut, "based on the enterprise value for Porsche AG calculated under a careful due diligence and valuation procedure." That's a few shades more than the €3.3 billion amount VW was saying it would pay a few months ago.

In acquiring Porsche, VW not only gains a premium brand that is still among the most profitable in the business, but VW expects its operating profit to jump by €700 million ($1.03B U.S.) over time due to cost-saving synergies. The purchase won't be finalized until 2011, though, when VW will incorporate Porsche Holding Salzburg, Europe's largest car dealer which also happens to be owned by Porsche.

You can read VW's press release - which has an air of something from Napoleon's PR department after the Battle of Austerlitz - after the jump.

[Source: Volkswagen]

Continue reading Volkswagen takes 49.9 percent stake in Porsche AG

Volkswagen takes 49.9 percent stake in Porsche AG originally appeared on Autoblog on Tue, 08 Dec 2009 09:32:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

REPORT: Porsche to share platforms with VW, possibly 911

John Neff — Fri, 23 Oct 2009 14:29:00 EST

Filed under: Europe, Porsche, Volkswagen

2010 Porsche 911 Turbo - Click above for high-res image gallery

Can you image a VW-badged Panamera? What about a 911-based product from Wolfsburg? It could happen according to Porsche CEO Michael Macht. Autocar reports that Macht says, "Porsche needs to become a strong pillar of VW," and part of that means sharing platforms and components. The two companies have been on a rocky collision course towards merging for years, and now that the deal is all but done, the business of identifying synergies between the two companies is on.

Porsche apparently is not worried about diluting its brand image by sharing platforms with VW, even if that includes the iconic 911. What they won't be sharing, however, is engines. Macht made it clear that "Engine development is a core value for Porsche." At the moment, the only Porsche model with an engine that wasn't developed in-house is the V6-powered Cayenne.

Putting aside your feelings about whether or not Porsche sharing its platforms with VW is a good idea, what are some positive results that can be imagined? A Panamera-based Phaeton? A 911-based Audi speedster? A Boxster-based production version of the VW Concept BlueSport?

Gallery: 2010 Porsche 911 Turbo

[Source: Autocar]

REPORT: Porsche to share platforms with VW, possibly 911 originally appeared on Autoblog on Fri, 23 Oct 2009 14:29:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

VW-Porsche cross-pollination as Winterkorn, Pötsch join Porsche board

Sam Abuelsamid — Thu, 13 Aug 2009 18:59:00 EST

Filed under: Hirings/Firings/Layoffs, Porsche, Volkswagen

The assimilation of Porsche into the Volkswagen Group continued today as two top executives from Wolfsburg have taken up similar positions at the parent company of the sports car maker. Volkswagen CEO Dr. Martin Winterkorn will become CEO of Porsche Automobil Holding SE on September 15. He will be joined on the Porsche SE board of management by Hans Dieter Pötsch, who will serve as chief financial officer. Porsche SE is the holding company owned by the Porsche and Piech families that controls Porsche AG, the automaker.

Conversely, Michael Macht, who recently replaced Wendelin Wiedeking as CEO of Porsche AG, will be appointed to a senior management position at Volkswagen where he will represent the interests of Porsche. Macht will also retain his role at Porsche AG. Hit the jump for the official press release.

[Source: Porsche]

Continue reading VW-Porsche cross-pollination as Winterkorn, Pötsch join Porsche board

VW-Porsche cross-pollination as Winterkorn, Pötsch join Porsche board originally appeared on Autoblog on Thu, 13 Aug 2009 18:59:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Officially Official: Porsche CEO and CFO quit, leave the building

Jonathon Ramsey — Thu, 23 Jul 2009 09:26:00 EST

Filed under: Europe, Hirings/Firings/Layoffs, Porsche

It was really just 35 words that announced the ends of two careers at Porsche: "In the last weeks Wiedeking and Härter have come to the conclusion, that the further strategic development of Porsche SE and Porsche AG is better off, if they are not on board as acting persons." And so, effective immediately, they aren't. The man who ~~would be~~ was king, Wendelin Wiedeking, and his majordomo CFO Holge Härter, have retired from Porsche with immediate effect.

The move was said to clear the way for Porsche to merge with VW and provide some relief for Porsche's balance sheet. After the same meeting that decided Wiedeking's fate, Porsche announced that it planned to increase its capital by €5 billion (about $7.1B U.S.). That's a big chunk of change, but it's only about a third of the company's debt load, and officials didn't say whether that figure would come from banks, Qatar, or some other investor. Wiedeking's position will be filled for now by supervisory board member and former head of production Michael Macht.

For severance, Wiedeking will get half of the package recently mentioned, a still-healthy sum of €50M ($71M U.S.). He has already pledged half of that money to a charity that will assist in job creation in Germany. Härter will receive €12.5M ($17.8M). Wiedeking, of course, hasn't said anything about where he might go from here, but at only 56 and with his story, we have a feeling we'll see him in the saddle again before long.

[Source: The New York Times]

Officially Official: Porsche CEO and CFO quit, leave the building originally appeared on Autoblog on Thu, 23 Jul 2009 09:26:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Did you think the VW-Porsche deal was done? Nein.

Jonathon Ramsey — Tue, 21 Jul 2009 10:59:00 EST

Filed under: Europe, Porsche, Volkswagen, Earnings/Financials

When Volkswagen and Porsche sat down at dinner to discuss which one was going to eat the other one, they forgot to invite the German tax man. After VW came to terms with Porsche to take a 49.9% stake in the Stuttgart sports car maker for €8 billion (around $11.4 billion U.S.), the parties discovered there would be a €3 billion ($4.26B) tax bill on top of that.

Adding €3B just to conclude the deal, the way it's currently structured, makes it untenable for both parties. Qatar is still in the picture, but until it's decided who would pay the tax and what they would get in return, some sources are saying the whole thing could evaporate. And if that happened, that could force Porsche to turn to one of several unsavory chapters titled "BK" in the commercial code. Neither VW nor Porsche has yet commented on the tax issue. Thanks for the tip, John!

[Source: News.com.au]

Did you think the VW-Porsche deal was done? Nein. originally appeared on Autoblog on Tue, 21 Jul 2009 10:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

REPORT: Porsche denies word that CEO Wiedeking will hand over the keys amidst deal talk

Jonathon Ramsey — Thu, 16 Jul 2009 14:29:00 EST

Filed under: Porsche, Volkswagen

This executive cycle isn't uncommon, especially in Germany: CEO displays great leadership over time, then decides to do something daring, then gets caught in a series of unfortunate events, then gets a tarnished reputation, then departs the formerly high-flying company (see also: "Schrempp" and "Pischetsrieder"). Porsche CEO Wendelin Wiedeking is hoping to avoid that last phase, and his company has been fighting back rumors that his departure is imminent.

With Porsche swimming in debt, Volkswagen allegedly making extortionate claims, and Porsche considering selling 49% of its car business to Wolfsburg, several German business papers are reporting that Wiedeking is eying the exit. Automotive News reports that a writer at the Financial Times Deutschland went so far as to report that the CEO had hired attorneys to advise him. The scenarios presented in case of an exit suggest that an interim CEO will take over until a successor is named.

The head of Porsche's labor union, though, said that the reports aren't true, and Wiedeking "is doing his job and will continue to do his job." What's more, he said that the Porsche and Piech families have not agreed to join the companies, that no decision will be made without discussions with Porsche's supervisory board, and that the 49% share that VW might take in Porsche is worth double the amount being offered. As with so many family sagas, this one is a long way from being over.

[Source: Automotive News, sub req'd | Image: Alexander Hassenstein/Getty]

REPORT: Porsche denies word that CEO Wiedeking will hand over the keys amidst deal talk originally appeared on Autoblog on Thu, 16 Jul 2009 14:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

REPORT: German union leader calls on Porsche CEO to end ego trip, merge with VW

Jonathon Ramsey — Fri, 10 Jul 2009 18:29:00 EST

Filed under: Europe, Porsche, Volkswagen, Earnings/Financials

Volkswagen labor union chief Bernd Osterloh has called out Porsche's CEO for holding up a merger between the two German automakers: "Together, one could do a whole lot of more things if [Wendelin] Wiedeking would end his ego trip." Osterloh believes Wiedeking is standing in the way of a tie-up with VW, and his repeated thrusts and parries are only making things difficult for both companies.

Osterloh further accused the Porsche head of being "part of the problem and not part of the solution," claiming that he has "absolutely no more trust in the current board of Porsche." Although Porsche and VW may benefit from coming closer together, it is also clear that Porsche needs VW more than the other way around. Should the two bickering automakers eventually manage to come to terms, however, the powerful union leader has one last barb to throw: "Wiedeking isn't running our company, and he never will."

[Source: Bloomberg | Image: David Hecker/Getty]

REPORT: German union leader calls on Porsche CEO to end ego trip, merge with VW originally appeared on Autoblog on Fri, 10 Jul 2009 18:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Porsche considering selling 49% of sports car business to VW?

Sam Abuelsamid — Fri, 10 Jul 2009 13:29:00 EST

Filed under: Porsche, Volkswagen, Earnings/Financials

Porsche has clearly gotten itself in way too deep in its attempt to take over control of Volkswagen, and now it's scrambling to find a way to relieve some of its crushing debt load. In addition to the possible €5 billion investment (nearly $7 billion USD) from Qatar, Reuters is reporting that Porsche's board is going to consider selling part of its car business to Volkswagen. VW AG has proposed a full merger, a plan that Porsche is resisting. Instead, it could sell them a 49% stake in Porsche AG, the car business.

Ironically, this whole ordeal began as Porsche tried to ensure that it retained access to Volkswagen systems and future components so that it could stay independent. Now, Porsche looks to be trying to avoid being subsumed into the company once pegged as its savior. Supervisory board Chairman Wolfgang Porsche has called a special meeting of the board for July 23 to discuss the company's options.

[Source: Reuters | Image: Nigel Treblin/Getty]

Porsche considering selling 49% of sports car business to VW? originally appeared on Autoblog on Fri, 10 Jul 2009 13:29:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

REPORT: VW leans on Porsche, Porsche responds, "We will not accept extortion."

Jonathon Ramsey — Mon, 29 Jun 2009 09:27:00 EST

Filed under: Porsche, Volkswagen, Earnings/Financials

Porsche maintains it still has its mojo, but Volkswagen is treating the company like Porsche's got lunch money and VW is hungry. VW -- which Porsche effectively owns -- loaned Porsche €700 million ($983.8 million) earlier this year, with Porsche due to pay it back in September. As collateral for the loan Porsche used its wholesale distribution arm Porsche Holding GmbH.

The way things are going for Porsche, it might not be able to make that September repayment. So VW and the state of Lower Saxony made an offer: Porsche has until the end of June to accept an offer by VW to pay €3 to €4 billion ($4.2 billion to $5.6 billion) for a 49% Porsche's car business. If Porsche doesn't accept, then VW will "insist" Porsche repay the full amount of the loan in September. If Porsche can't come up with the coin VW could walk away with Porsche Holding GmbH.

Porsche, plucky as ever, didn't want to hear about any of that, saying "Ultimatums do not belong in the 21st century.... We hope very much in the interest of the common goals that the authors of the ultimatum regain their calm..." The crew at VW quickly issued a response, with one spokesperson simply saying, "There is no ultimatum."

Porsche has plenty of time to sort things out, and its investment talks with Qatar, which would greatly help its debt situation, are said to "have entered the final stretch." Thanks for the tip, C. Halen

[Source: Reuters, Automotive News - Sub. Req.]

REPORT: VW leans on Porsche, Porsche responds, "We will not accept extortion." originally appeared on Autoblog on Mon, 29 Jun 2009 09:27:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

REPORT: VW cancels merger talks with Porsche

Damon Lavrinc — Mon, 18 May 2009 08:27:00 EST

Filed under: Europe, Government/Legal, Porsche, Volkswagen

According both automakers, the Porsche-Volkswagen merger has been stalled after VW's management determined Porsche "is lacking several fundamental conditions for the discussions." According to a VW spokesperson, the rift stems from Porsche's inability to demonstrate how the two companies would be integrated, but neither automaker has elaborated on why the talks have stopped. Informed speculation suggests that between management changes, structural considerations and Porsche's $12 billion in debt, VW is becoming weary of the merger. Although negotiations were supposed to continue today, according to sources inside VW, it's unclear when discussions will resume.

[Source: Reuters | Image Source: Nigel Treblin/Getty]

REPORT: VW cancels merger talks with Porsche originally appeared on Autoblog on Mon, 18 May 2009 08:27:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Porsche and VW uniting 10 brands under one roof

John Neff — Wed, 06 May 2009 16:30:00 EST

Filed under: Porsche, Volkswagen

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]

Porsche and VW uniting 10 brands under one roof originally appeared on Autoblog on Wed, 06 May 2009 16:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Porsche denies rumored plans to sell itself to Volkswagen and swap CEOs

Noah Joseph — Thu, 23 Apr 2009 14:24:00 EST

Filed under: Porsche, Volkswagen, Earnings/Financials, Rumormill

Here at Autoblog reports regularly cross our desks suggesting all sorts of contorted deals supposedly being brokered between automakers. This one's in bed with that one, that one's selling the other but retaining a minority interest, another one's starting a joint venture with yet another while buying part of its competitor. And we try to make sense of it all, if not for your sake then for our own sanity's, but some are just way over the top. Like this latest report that suggests that, in essence, Porsche could sell itself to Volkswagen.

Wait, what? Didn't Porsche just buy Volkswagen? Well yeah, for the most part. The parent company Porsche Automobil Holding SE holds majority interest in the Volkswagen group, and is planning on buying more. But in order to do so, the rumors suggest, the holding company would have to sell its auto manufacturing unit (Porsche AG) to Volkswagen, and then, we're supposed to understand, turn around a buy another quarter of VW's shares with the cash generated. (With us so far?) The put would undoubtedly drive Volkswagen's shares up, generating more cash for VW and more debt for a hungry Porsche.

Of course both German carmakers are dismissing the reports as "nonesense", just like they have about another rumor that suggests Porsche is planning on replacing its CEO Wendelin Wiedeking with Volkswagen chief-exec Martin Winterkorn. Those rumors were fueled by Wiedeking's conspicuous absense at the Panamera launch in Shanghai, where Winterkorn was in attendance, but similarly denied by both automakers as mere conjecture. Though the CEO swap rumor is slightly more believable, these latest turns of the rumor mill still make about as much sense as a convertible amphibious submarine...but then again, we've seen that, too.

[Sources: Reuters, The Wall Street Journal and Automotive News Europe - subs. req'd]

Porsche denies rumored plans to sell itself to Volkswagen and swap CEOs originally appeared on Autoblog on Thu, 23 Apr 2009 14:24:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Porsche raises stake in VW again, makes offer for Audi

John Neff — Tue, 16 Sep 2008 12:32:00 EST

Filed under: Europe, Porsche, Volkswagen

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]

Porsche raises stake in VW again, makes offer for Audi originally appeared on Autoblog on Tue, 16 Sep 2008 12:32:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

REPORT: Porsche considering 914 revival

Noah Joseph — Thu, 11 Sep 2008 10:31:00 EST

Filed under: Convertible, Performance, Porsche, Volkswagen

Click above for a hi-res gallery of the Porsche 914

Once every 40 years or so, when the stars are aligned just right, there arises the cosmic possibility for Volkswagen and Porsche to collaborate on a small sportscar. The stars in question seem to be Porsche chairman Dr. Ferdinand Piech, a spirit of ~~takeover~~ cooperation between the two German automakers, and the input of third-party contractor Karmann. It was Dr. Piech, the same man who has been driving Porsche's takeover of the Volkswagen group, who had ushered the original Porsche 914 into reality. But when Volkswagen launches its latest concept at the LA Auto Show this November, it hopes the little Elise fighter will garner enough attention to put the project into production as soon as 2011 with versions for both VW and Porsche.

The original Porsche 914 was based largely on borrowed Volkswagen mechanicals. Karmann was also heavily involved in the 914 project, and could be tapped once again to build the new sportscar for both Volkswagen and Porsche, with the project potentially spawning an Audi R4, as well. Although some sources suggest the Porsche version could adopt the 2.7-liter flat six from the base Boxster, with Zuffenhausen admittedly considering the possibility of going back to four-cylinder engines, anything's possible. Sources point out, however, that the four-cylinder version of the 914 was the top selling model. While you consider the idea of a budget Porsche, check out the high-resolution images of original 914 images in the gallery below.

Gallery: Porsche 914

[Source: Motor Trend via PistonHeads]

REPORT: Porsche considering 914 revival originally appeared on Autoblog on Thu, 11 Sep 2008 10:31:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

EU grants Porsche permission to purchase VW

Jeremy Korzeniewski — Thu, 24 Jul 2008 10:28:00 EST

Filed under: Europe, Government/Legal, Porsche, Volkswagen, Earnings/Financials

Porsche is one step closer to its goal of purchasing Volkswagen. Back in April of last year, the German automaker passed the 30-percent mark, forcing it to make an outright offer for The Volkswagen Group in its entirety, which it did. Not too many VW shareholders sold their stake to Porsche, as the bid was for the bare minimum amount allowed by law. Still, the legal requirement had been met, allowing Porsche to continue gobbling up the automaker according to its own timetable. Earlier this year, the VeeDub board approved a request by Porsche to obtain 51-percent of the company for some $15.73 billion, which would give it a majority stake. Before the house that Ferdinand built could complete its acquisition, the European Commission required it to make one last purchase, which took place in June of this year. Finally, the EU has granted its permission for the buyout.

This story is likely far from over, as the German State of Lower Saxony still claims a 20-percent stake in Volkswagen, which gives it certain rights to block decisions made by VW's new parents. Still, it seems that its only a matter of time before VW and Porsche are united under a different Ferdinand... Piech that is, grandson to Mr. Porsche himself.

[Source: Reuters]

EU grants Porsche permission to purchase VW originally appeared on Autoblog on Thu, 24 Jul 2008 10:28:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

State gov't holds on as Porsche aims to strip its power

Noah Joseph — Thu, 10 Apr 2008 07:58:00 EST

Filed under: Government/Legal, Porsche, Volkswagen, Earnings/Financials

Porsche is embarking on a collision course with the government of Lower Saxony. The German state in which Wolfsburg, where VW is based, holds a 20.1% interest in the Volkswagen Group. But Porsche, which currently holds 31% of the company and is aiming to acquire majority interest, is on a campaign to reduce the influence of the state government on the auto giant's governance.

While most decisions at most companies require a 50% plus one majority, or possible a two-thirds majority for major issues, Volkswagen's regulations stipulate that "significant decisions" need to be approved by an overwhelming 80% +1 in order to pass, essentially giving the state government a veto over any major decisions to be undertaken by the company's shareholders. While a ruling handed down by the European Court of Justice mandated that certain laws put in place to protect Volkswagen from a hostile take-over were illegal, the governor of Lower Saxony insists that its 20% +1 blocking power was perfectly legal and that his government would oppose Porsche's proposal to amend the regulations.

[Source: Detroit News]

State gov't holds on as Porsche aims to strip its power originally appeared on Autoblog on Thu, 10 Apr 2008 07:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Porsche may avoid CAFE penalty by buddying up with VW

Damon Lavrinc — Tue, 25 Mar 2008 14:32:00 EST

Filed under: Government/Legal, Porsche, Volkswagen

Porsche's forthcoming majority stake in Volkswagen has the potential to remove a CAFE-sized thorn from the automaker's side. After a failed bid in Congress to create an exemption for itself from the recently revised fuel economy standards, Porsche needed a way to increase its CAFE rating in the U.S. This might be achieved by combining Porsche and VW's emissions and fuel-economy numbers into one lump sum, thus preserving the automaker's performance heritage.

While this certainly isn't anything new - Ford does it with Mazda, despite a minority stake in the automaker, and Chrysler has done it in the past when it was part owner of Mitsubishi - Volkswagen's average in 2007 was 28.6 mpg, just over the U.S. mandated 27.5 mpg. If Porsche gets thrown into that average, it's obvious that number is going to sink, quickly. However, Volkswagen's plan for the future involves new smaller, fuel-sipping vehicles, like the up! and more diesel-powered vehicles that might bring the number back up, but maybe not enough to meet the 2020 standards of 35 mpg. Porsche execs deny that this was a deciding factor in the buyout, but considering that the gentlemen from Stuttgart have cut a few checks to the feds over the years ($5 million in 2001), we're sure the idea wasn't lost on them while making their bid.

[Source: Autoweek]

Porsche may avoid CAFE penalty by buddying up with VW originally appeared on Autoblog on Tue, 25 Mar 2008 14:32:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Porsche ups ownership in VW to 51%

Michael Harley — Mon, 03 Mar 2008 13:57:00 EST

Filed under: Trends, Europe, Plants/Manufacturing, Porsche, Volkswagen

The supervisory board of Volkswagen Group just gave approval for Porsche AG to take a majority stake in the people's automaker. Porsche currently owns 31% of Volkswagen, and this move will ultimately increase that share to 51%. The increase in ownership is estimated to cost Porsche upwards of $20 billion, although the financial deets have not yet been released. Porsche is saying that owning a majority stake in VW will not result in the two companies combining, creating a German mega-automaker of biblical proportions. Don't expect things to change overnight for either company, as transactions like these generally take months to complete, if not years.

This move wasn't unexpected, either. Porsche has slowly been increasing its interest in VW over the past several years as we reported in June 2006, April 2007 and again in June 2007. Recent announcements that Porsche may use Volkswagen diesel powerplants in its Cayenne SUV now seem even more likely, and exchanges of technology, components and production capacity between the two are likely to increase.

[Source: Detroit News]

Porsche ups ownership in VW to 51% originally appeared on Autoblog on Mon, 03 Mar 2008 13:57:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments