This is the classic case of overambition gone wrong. David doesn’t upset the odds this time around and gets swallowed up by Goliath instead. The David here is of course Porsche, the small sportscar maker trying to take control of Volkswagen, the giant that has Audi, Lamborghini, Bentley, Bugatti, Skoda and Seat under its stable. We can now officially add Porsche to that list as VW has completed the deal to take a 49.9 percent stake in the Stuttgart based company for €3.9 billion.
VW describes the move as “the next milestone on the way towards the integrated automotive group with Porsche under the leadership of Volkswagen”. A carmaker as prolific as Porsche would look good in any group’s portfolio, and this acquisition will undoubtedly strengthen VW’s position in the premium sector plus provide synergy in costs.
Best of all (for VW, that is), the Group’s annual operating profit is expected to increase by some €700 million in the long term, thanks to Porsche’s ability to sell cars at a big profit. Porsche’s ex CEO Wendelin Wiedeking took over the reins when Porsche was on the verge of bankruptcy, transforming it into the world’s most profitable automaker. But in trying to usurp VW, he took it a step too far.
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too many brands under one roof…
competition is getting lesser. I wonder how many engine makers are there in the world.
Is still start with "P" but not Proton
I hope it wont end up like GM….
Like it or not Porsche and VW have always been linked in one way or another throughout their history. Nothing new and better VW then a foreign company.
like department store having several branded line up. but i think it should be the way since the sales is not good under one individual company that would be too high on the running cost thus end up at the edge of finance. by sharing its running cost together with several branded sport car can keep them continue to produce yet together with others sibling as "family". i think thats the reason VW grow bigger & steadier. Emerge is the word to center the power as 1.
49.9% ……
How is Proton going to go against with the global players? 150,000 cars per year with less than 10% export is not enough to compete with the bigger car corporation. They will soon either close down or taken over. I have to say I really look forward to that.
History repeat again…..
wow, i wonder what parts of Porsche and VW will be shared and make it across the other marque? imagine a Porsche engine in a VDub!
probably later porche can use vw spare part ? :D
Broody said,
December 8, 2009 @ 5:39 pm
'too many brands under one roof…'
There are even more brands in the Volkswagen Group:
SCANIA & MAN, both commercial vehicle manufacturers…
too big ambition can be the end of the road….
i wish that pic was my garage….o la la
test said,
December 8, 2009 @ 7:36 pm
probably later porche can use vw spare part ?
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That's happened already. They shared parts before. Likewise with Audi and Porsche.
FYI the Porsche Cayenne and VW Touareg share the same platform
How is Proton going to go against with the global players? 150,000 cars per year with less than 10% export is not enough to compete with the bigger car corporation. They will soon either close down or taken over. I have to say I really look forward to that.
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who cares about proton….
Porsche only worth less than 8bill Euro? Cheap buy for VW.
Didn't Lamborghini owned by Audi? And Audi is owned by Volkswagen.
Ferruccio said,
December 8, 2009 @ 8:02 pm
That’s happened already. They shared parts before. Likewise with Audi and Porsche.
FYI the Porsche Cayenne and VW Touareg share the same platform
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Audi Q7 shares the same platform with Porsche Cayenne.Perhaps some other parts too.
All VW needs now is an Asian brand. We may see Suzuki coming into VW's fold next year. With that, VW's empire will be complete to take on Toyota.
aksMs said,
December 8, 2009 @ 8:34 pm
Audi Q7 shares the same platform with Porsche Cayenne.Perhaps some other parts too.
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And If I'm not mistaken the Porsche 924 from the 70s ran with an Audi engine. And the merry go round continues. Thus it's not a big shocker that Porsche is among VW brands.
Lets not forget that Ferdinand Porsche created the VW Beetle. Also the families behind VW and Porsche are tied through marriage anyway..
Next…kick toyota's ass
how stupid that proton rejected VW offer last time…
totally dumb move.
i dont understand this, how could porsche willingly sell its stake to WV? even its doing good in business…
First they merge to grow big and when they become too slow and clumsy, they'll demerge. Like the Americans.
hahaha, i love it.
can still remember when porsche wanted to take over VW.
now, it's vw turn to say kiss my ass to porsche. man, love to see the face on wendelin. afterall, he pointed middle finger in a board meeting. wanna see what his next expression is.
wish proton gets absorb into VW too. then perhaps with parts sharing we get to drive better protons which is essentially a porshe/audi/vw (without the taxes) ….drool…..
Please buy Proton. We have too many fools managing and owning the company.
dog said,
December 8, 2009 @ 10:18 pm
i dont understand this, how could porsche willingly sell its stake to WV? even its doing good in business…
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If I recall correctly Porsche was hell bent on trying to buy a significant controlling stake in VW. David trying to buy Goliath. Unfortunately something went wrong in the marketplace(can't remember what exactly) and Porsche was suddenly facing bankruptcy. I think they were heavily leveraged in an attempt to control VW and it backfired.
So the the tables were turned and VaW took control of Porsche instead. It's rightly so, because the Germans always protect their companies from foreign takeovers and Porsche would be vulnerable to foreign ownership if VW didn't reverse the tables.
VW is getting bigger. I think the Germans are once again trying to rule the world. This time through mergers and acquisitions. :)
the BIGGEST winner of this is ofcourse the Piech-Porsche family….. they have influence in both company before….. now these company finally became one….
Piech & Porsche, great show you got here. Now the deal is done, the dust settled and supposed no more boardroom tussle, can you complete the Proton takeover deal. Do it now before the idiot do insider trading again.
scottloeb said,
Piech & Porsche, great show you got here. Now the deal is done, the dust settled and supposed no more boardroom tussle, can you complete the Proton takeover deal. Do it now before the idiot do insider trading again.
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and if by doing so they got lotus too!
I would like to see:
1) Who will be the VM+Porsche distributor in Msia soon :) Will current Porsche (we all know who the political son owns it) sustain or kick out? or Porsche distributor take over all VW distributors :) That will be interesting
2) Proton never means to go overseas. Just take it as a fact. It is mean to earn the Malaysian money only. So just dont compare Proton with other car manufacturer. Period.
what's wrong with that?
He brought the porsche with more affordable prices and many model reach our country earlier than our neighbour.
Dont get jealous…u guys are sore looser
Porche does make lots of profits. Same design that does not change much over the years, of course is cheap. Then again, maybe Porton should try to take over VW and end up like Porche:P
It's amazing how many people do not know the historical and current links between Porsche and VW. There is a book written on this – makes for interesting reading.
Cayenne and Q7 sharing the same platform – if that can shock these people, how about the fact that the Cayenne is built by VW for Porsche! Inside a VW factory.
vee said,
December 9, 2009 @ 5:30 pm
Cayenne and Q7 sharing the same platform – if that can shock these people, how about the fact that the Cayenne is built by VW for Porsche! Inside a VW factory.
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I thought the Cayenne was built in Porsche's Leipzig factory? Btw the Cayenne Turbo and Cayenne S use 4.8L V8 engines developed by Porsche but the entry Cayenne uses a 3.2L V6 sourced from VW I believe.
I don't drive a Beetle despite the humourous remark by my imposter posting as me. Everyone knows Ferruccio only drives a Lamborghini :)
Ferruccio said, December 9, 2009 @ 6:23 pm
I thought the Cayenne was built in Porsche’s Leipzig factory? Btw the Cayenne Turbo and Cayenne S use 4.8L V8 engines developed by Porsche but the entry Cayenne uses a 3.2L V6 sourced from VW I believe.
I don’t drive a Beetle despite the humourous remark by my imposter posting as me. Everyone knows Ferruccio only drives a Lamborghini :)
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Apologies, I meant to say that VW builds the Cayenne body, paints it and ships the entire body over to Leipzig for the assembly.
Yes, the base engine in the Cayenne is from VW and is the same lump in the Touareg.
The reason why VW acquired Porsche on the cheap is because in it's attempt to take over VW, they amass a huge sum (10 billion euros) of debt. All of Porsche's money is in the form of VW's shares which is now worth a fraction of what Porsche paid for it. Porsche takeover would mean higher price of VW shares which in turn is good for Porsche as well.
Agree with Kaiser. At least now we can stop worrying about Porsche trying to pressure VW(Audi) to drop Lamborghini :)
proton could have been related to porsche…