By Robert Farago
September 16, 2008
Automotive News [sub] reports that Porsche Holdings has raised its stake in VW from 31 to 35 percent, finally gaining a controlling interest over the MUCH larger German automaker. Porsche CEO Wendelin Wiedeking, already the world’s highest paid car biz exec (now with billions in bonus bucks), quickly moved to quash rumors that VeeDub’s new masters would kick Audi out of the fold to avoid product overlap. (As if.) “We see Audi as an integral part of VW group and have no interest in taking the company out of the group.” And that ain’t the half of it. Literally. “Wiedeking said the sports car [and SUV] maker intends to raise its stake in VW to more than 50 percent at a future date. ‘Today’s step is a further milestone on the way to world domination.’”
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September 16th, 2008 at 11:46 am
They raised the stake to 35%, not 38% (actually, 35.14% according to the WSJ).
September 16th, 2008 at 11:53 am
ChrisHaak :
Right you are. Text amended.
September 16th, 2008 at 12:30 pm
….and why are they doing this? Should I be looking for a flat 6 in future Golf’s?
September 16th, 2008 at 12:42 pm
MikeInCanada: Money, why else?
I don’t see Audi going away anytime soon. If anything, Audi and VW overlap more than Audi and Porsche do.
September 16th, 2008 at 1:26 pm
They’re probably doing this because VW has always been a necessary partner–a company Porsche’s size can’t develop all of the high-tech bits a car needs these days on its own–and this cements the relationship.
Also, some protection against a downturn in the ultra-premium car market. VW’s business is less cyclical than Porsches. They won’t be selling as many Porsches in the NYC area in the coming year or three…
September 16th, 2008 at 1:40 pm
Is it too much to hope that VW/Audi’s quality control is improved with a new overlord?
September 16th, 2008 at 3:01 pm
In a perfect world this would help keep the Porsche marque “pure”. It can provide them with steady cash flow through volume sales of veedubs and audis, a bigger R&D pipeline, and thus it would help eliminate the temptation to go downmarket to attract bigger volume buyers. Sadly Porsche already seems to be losing the plot: the Cayenne was basically a way to sell more Porsches to support 911 production, and the Panamera seems like it’s in a similar vein (hard to tell right now of course - it could be the best 911 ever, just with two extra doors). In my view the four door action only cheapens the brand. Porsche would be better served by helping to develop those types of products for VW/Audi/Bugatti, and then using what they learn to build better sports coupes. But I fear it’s too late for them to turn back now.
September 16th, 2008 at 3:58 pm
Wot we go’n t’do tomorrow night, Wendelin?
The same thing we do every night Stefan, try to take over the World!
September 16th, 2008 at 6:10 pm
There is a good explanation of all this in the FT
http://tinyurl.com/ftporsche (registration is reqd but free)
September 17th, 2008 at 12:42 am
I can’t get Hal’s link to the FT to work. Try this one. I think it’s the same story.
http://www.ft.com/cms/s/0/f0dc645c-8418-11dd-bf00-000077b07658.html