Autoblog

Porsche again staring down another $1.8B in hedge fund lawsuits

Jonathon Ramsey — Wed, 15 May 2013 11:30:00 EST

Filed under: Europe, Government/Legal, Porsche

The sequence of events from 2007 that began with Porsche's secret attempt to take over Volkswagen, and instead lead to Porsche being taken over by VW, continues to instigate lawsuits against the Stuttgart sports car manufacturer. A group of hedge funds that suffered over $1 billion in losses sued the car company in New York. Porsche had publicly stated it wasn't trying to buy VW, the hedge funds in question were shorting VW stock, and when Porsche's actual intentions were revealed, the stock shot up and the hedge funds took a beating.

The case was thrown out over the issue of jurisdiction, then appealed, only to see another suit filed on top of that. After that, most of the hedge funds withdrew their claims in New York and Porsche offered a 90-day window to refile in Germany where it is already fighting a number of other suits over the same issue. The hedge funds accepted the offer, refiling in Stuttgart for $1.8 billion in damages. According to Bloomberg, Porsche hasn't commented on the refiling, but as the same plaintiffs are involved, it's safe to assume that the carmaker still feels the case is "unsubstantiated and without merit." It has fared alright so far even in German courts, with two lesser cases against it thrown out last year.

Porsche again staring down another $1.8B in hedge fund lawsuits originally appeared on Autoblog on Wed, 15 May 2013 11:30:00 EST. Please see our terms for use of feeds.

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Former Porsche CEO Wiedeking indicted over VW takeover bid

George Kennedy — Thu, 20 Dec 2012 14:16:00 EST

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

Do you recall the failed efforts by Porsche to take over Volkswagen? According to a Bloomberg report, former Porsche CEO Wendelin Wiedeking (above) and ex-CFO Holger Haerter have finally been charged with market manipulation over the exercising of options as part of the German sportscar manufacturer's ill-fated attempt to take over the much larger VW. That failed bid eventually resulted in the reverse coming true - VW swallowing Porsche.

The charges leveled by Stuttgart prosecutors come after a three-year investigation centered around allegations that Porsche execs made a concerted effort to increase the company's share in VW to 75 percent in preparation for a hostile takeover. Porsche had previously told its investors on at least five occasions that it had no intention to buy VW.

Portions of the investigation have subsided, according to prosecutors, citing an inability to prove certain improprieties with a "necessary degree of certainty." The number of charges is down to 5 from a previous 14 counts regarding "information-based market manipulation."

For its part, Porsche has been quick to point out that the investigation centers around two men who are no longer with the company - Weideking and Haerter stepped down in July of 2009.

Former Porsche CEO Wiedeking indicted over VW takeover bid originally appeared on Autoblog on Thu, 20 Dec 2012 14:16:00 EST. Please see our terms for use of feeds.

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Porsche finds way around $1.9B tax bill tied to VW deal

Jonathon Ramsey — Wed, 13 Jun 2012 14:31:00 EST

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

After five months of finessing the deal, Volkswagen and Porsche Holding SE have figured out how to sidestep the tax man: VW's €4.5 billion purchase of the remaining 50.1-percent stake in Porsche's sports car unit was going to mean a tax liability of €1.5 billion ($1.9B U.S.) due to the Baden-Württemberg Finance Ministry. Volkswagen was going to be on the hook for that, and the amount threatened to scuttle the deal.

Previously, the two companies planned to create a holding company to control the remaining share until 2014, at which time it could be transferred to VW without paying a tax. Beyond the two-year wait just to close the deal, that plan also meant that VW couldn't fully integrate Porsche into its operations and so be forced to deal with Porsche for two years at an inefficient, arm's-length distance.

Th new plan, still awaiting final approval from the state authorities, is simple. The Porsche Holding SE empire, which isn't small, owns Dr. Ing. h.c. F. Porsche AG, the unit that makes the sports cars. If VW purchases the unit outright from the holding company, the purchase is taxed. Instead, VW plans to give Porsche Holding SE the €4.5 billion purchase price as well as one voting share of VW stock. By 'giving' Porsche Holding a stake in VW, even if it is just one single share, it turns an outright purchase into a corporate restructuring. A tax-free corporate restructuring, specifically. What's German for "Voilà!"?

According to a story in Reuters, Porsche Holding has been given legally binding notice from the state that is will not need to pay any taxes on such a transaction. VW said it's still looking at its options for ingesting the 50.1-percent stake, but it looks like the end of that deal just got a lot closer. Now about that $2.6 billion investor lawsuit...

Porsche finds way around $1.9B tax bill tied to VW deal originally appeared on Autoblog on Wed, 13 Jun 2012 14:31:00 EST. Please see our terms for use of feeds.

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Volkswagen says it could conclude takeover of Porsche this year

Jonathon Ramsey — Wed, 25 Jan 2012 18:01:00 EST

Filed under: Porsche, Volkswagen, Earnings/Financials

It's been a whole three weeks since we checked in with Volkswagen's takeoever of Porsche, and the most recent news wasn't so good: investors filed a $2.6 billion suit against Porsche over the Stuttgart maker's attempt to gobble up VW. Those same investors also filed an arbitration application against Volkswagen. That hasn't stopped a VW executive from saying that its ownership of Porsche could finally be concluded this year, according to a report in Der Spiegel.

VW had earlier predicted the deal would be done last year, then released a statement in September saying that that too many hurdles and unknowns remained concerning investigations and economic ramfications for the deal to get done in 2011. The hurdles centered around previous lawsuits, including one brought by American investors in 2010, and the fact that VW couldn't evaluate Porsche appropriately until they were settled.

However, the latest upbeat report on overcoming the obstructions to getting a deal done this year don't mention those lawsuits. Instead, the resolved issues are a one-billion-euro tax payment that VW can avoid by creating a holding company by 2014 to control the Porsche stake, and VW's agreeing to contractually assure Porsche retains control over its models and where it spends its money. According to that unnamed executive, this opens the door for VW to sponge up the final 50.1 percent of Porsche it doesn't own, for a price of €3.9 billion - about $5.1B USD - but we have no idea how or why the lawsuits aren't mentioned as a factor.

In the meantime, Reuters reports that VW and Porsche are working "at arm's length" even though they have the same CEO and CFO and are busy developing cars together, a fact which is testing CEO Martin Winterkorn's patience. Earlier this month, Winterkorn was quoted as saying he wants to bring the companies closer "without needing to have a lawyer stand next to a Porsche employee every time he screws something into a Volkswagen or vice-versa."

Volkswagen says it could conclude takeover of Porsche this year originally appeared on Autoblog on Wed, 25 Jan 2012 18:01:00 EST. Please see our terms for use of feeds.

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Report: Porsche facing suit over 'stranglehold' on VW shares

Chris Shunk — Wed, 27 Oct 2010 08:00:00 EST

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

Porsche spent billions in an effort to purchase as many Volkswagen shares as possible from 2006 to 2008. But eventually the luxury sports car maker's debt became so overwhelming that it was Volkswagen that ended up in position to snap up it's fellow German automaker. On the surface, that's the end of the story, but Viking Global Investors claims that the tale is a lot more complicated. Business Week reports that the New York-based investment company is suing Porsche for misleading investors to "believe that the VW shares were overvalued, inducing them to enter into short sales of VW shares." The fund lost $390 million in just two days, and short-sellers around the world reportedly lost $38 billion in the same time span.

Nearly $400 million is a lot of money, but it's only one of the short seller suits filed against Porsche. Back in January, several short sellers filed suit with similar claims, as the U.S.-based investors lost over $1 billion on VW short sales.

We aren't at all knowledgeable about the rules of short sales and we don't have any lawyers on the staff, but we can tell you that, at the very least, these lawsuits are likely a big-time hassle for Porsche. And if these suits ultimately bear fruit for the plaintiffs, Porsche could be a very costly problem for a car maker already short on cash.

[Source: Business Week]

Report: Porsche facing suit over 'stranglehold' on VW shares originally appeared on Autoblog on Wed, 27 Oct 2010 08:00:00 EST. Please see our terms for use of feeds.

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Report: Investment funds suing Porsche in U.S. for "short squeeze" fraud over VW

Jonathon Ramsey — Thu, 28 Jan 2010 10:58:00 EST

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

The Porsche-as-hedge-fund escapade isn't fully resolved yet. Of course, the biggest denouement will be when Volkswagen finishes integrating the company early next year, but in the meantime, Porsche is still dealing with investor wrath after its stock market foray. A group of U.S.-based hedge funds is suing the Stuttgart carmaker for losses in excess of a billion dollars, claiming those losses came because Porsche misled them about its intent.

Porsche was coy about its stake in VW, and only disclosed its stock holdings in the company as required by German law. German law doesn't require a company to publicly declare cash-settled stock options as a share in the company. That means Porsche was sitting on shares it controlled that investors didn't know about, and investors read Porsche's statements on its intent as not having any interest in taking over VW. This, even though the company was knocking down doors all over Europe trying to get the VW law repealed...

When the extent of Porsche's holdings were found out, investors expecting VW's stock to drop had to cover their short positions buy buying a much smaller supply of stocks than expected, which drove VW's share price to intergalactic levels. And that's where the massive financial bloodletting happened. Porsche was already investigated and cleared by German authorities, who found that the company didn't break any disclosure laws. Redress in an American court, where the lawsuit was filed, could be just as difficult to come by.

[Source: Automotive News - sub. req'd | Image: Basheertome - C.C. License 2.0]

Report: Investment funds suing Porsche in U.S. for "short squeeze" fraud over VW originally appeared on Autoblog on Thu, 28 Jan 2010 10:58:00 EST. Please see our terms for use of feeds.

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Volkswagen takes 49.9 percent stake in Porsche AG

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

Filed under: Porsche, Volkswagen

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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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