Porsche likely to buy VW this month
10-15-07, 04:15 PM
#1
Super Moderator
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Porsche likely to buy VW this month
Porsche likely to buy VW this month
Posted on Monday 15 October 2007
Volkswagen has a bit of a reputation in the German auto industry as carrying some “bloat”. Workers are paid 20% more than the German average, the company has funded the high-profile but incredibly costly Bugatti Veyron, and remarkably few synergies have been developed with its other automotive divisions such as Audi. Recently appointed VW CEO Martin Winterkorn has been working hard to change some of VW’s ways, but Porsche’s entry as majority shareholder will likely shake things up even more.
An outdated law, known as the “VW Law” has prohibited any entity from holding more than 20% of the voting rights of the Wolfsburg auto maker, no matter how much stock they hold. A decision by the European Court of Justice expected to be issued October 23 will declare that law to be in violation of EU rules. The upshot is that Porsche will be expected to increase its holding of VW stock to 51%, achieving majority ownership and majority voting rights.
Wendelin Wiedeking, Porsche’s CEO, has been turning things around at the premium performance auto maker for the last several years, increasing efficiency and decreasing production and development times. Wiedeking is reportedly looking to use techniques to trim the fat from VW’s corporate bottom line, according to Automotive News. The take-over isn’t without its potential hassles, however. Wiedeking has said that he’ll only allot half the seats on the corporate labor board to VW, despite VW’s 324,000-member labor force dwarfing Porsche’s 12,000 workers. Bernd Osterloh, head of VW’s workers council, said he’d sue Porsche if they went ahead with such a plan.
Posted on Monday 15 October 2007
Volkswagen has a bit of a reputation in the German auto industry as carrying some “bloat”. Workers are paid 20% more than the German average, the company has funded the high-profile but incredibly costly Bugatti Veyron, and remarkably few synergies have been developed with its other automotive divisions such as Audi. Recently appointed VW CEO Martin Winterkorn has been working hard to change some of VW’s ways, but Porsche’s entry as majority shareholder will likely shake things up even more.
An outdated law, known as the “VW Law” has prohibited any entity from holding more than 20% of the voting rights of the Wolfsburg auto maker, no matter how much stock they hold. A decision by the European Court of Justice expected to be issued October 23 will declare that law to be in violation of EU rules. The upshot is that Porsche will be expected to increase its holding of VW stock to 51%, achieving majority ownership and majority voting rights.
Wendelin Wiedeking, Porsche’s CEO, has been turning things around at the premium performance auto maker for the last several years, increasing efficiency and decreasing production and development times. Wiedeking is reportedly looking to use techniques to trim the fat from VW’s corporate bottom line, according to Automotive News. The take-over isn’t without its potential hassles, however. Wiedeking has said that he’ll only allot half the seats on the corporate labor board to VW, despite VW’s 324,000-member labor force dwarfing Porsche’s 12,000 workers. Bernd Osterloh, head of VW’s workers council, said he’d sue Porsche if they went ahead with such a plan.
10-15-07, 04:24 PM
#2
Lexus Fanatic
Didn't think Porsche had the kind of money to buy VW....a much larger firm. Porsche, at least among mainstream auto manufacturers, is one of the smallest ones in the buisness......they are not Toyota or GM by any means. And what is even more strange is that Porsche has always wanted to be independent and not tied down to or allied with any other auto firm, though there are loose ties to VW and Audi. Porsche prides itself on that independence.
10-15-07, 04:27 PM
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10-15-07, 04:28 PM
#5
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10-15-07, 04:32 PM
#6
Hmmm... 
I think Porsche should stay away. They're doing great on their own. It would be one hell of a burden to carry VW.
Porsche is a powerful niche product. It's more difficult to create an "everyday" vehicle that will succeed and surpass Japanese icons...
I think Porsche should stay away. They're doing great on their own. It would be one hell of a burden to carry VW.
Porsche is a powerful niche product. It's more difficult to create an "everyday" vehicle that will succeed and surpass Japanese icons...
10-15-07, 04:34 PM
#7
Moderator
Didn't think Porsche had the kind of money to buy VW....a much larger firm. Porsche, at least among mainstream auto manufacturers, is one of the smallest ones in the buisness......they are not Toyota or GM by any means. And what is even more strange is that Porsche has always wanted to be independent and not tied down to or allied with any other auto firm, though there are loose ties to VW and Audi. Porsche prides itself on that independence.
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10-15-07, 04:45 PM
#10
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10-15-07, 05:00 PM
#11
Economies of scale, put VW switchgear in Porsches, platform sharing, etc. I think we're all familiar with this concept. Every other manufacturer seems to be doing it these days. Even Lamborghini has done it on the Gallardo by sharing its platform with the R8, so why not them. Oh wait, if this happens, it will put Lamborghini under the control of Porsche.
10-15-07, 06:04 PM
#13
Lexus Fanatic
But your point is taken. Most Porsche-o-philes today certainly don't want to go back to the days of the late 1940's and 50's when Porsches were just redone VW products with redone VW Beetle engines. In street form, they were just basically lowered, flattened Beetles with two seats. I'm sure Porsche fans would like more affordable new Porsches (most of their products, today, IMO, are somewhat overpriced for what you get), but not at the expense of that kind of economization.
10-15-07, 06:44 PM
#15
Lexus Fanatic
.