Volkswagen Buys Porsche After Porsche Bought Volkswagen
And the deals, they keep on coming. Bloomberg reports that the Porsche and Piech families “plan to sell their main car assets to Volkswagen AG under a plan that would tighten Porsche SE’s grip on Europe’s biggest automaker.” Hold it right there: Haven’t they just BOUGHT Volkswagen? Are we confused yet? This is how it works:
Yesterday, Automobilwoche [sub] reported that Porsche is looking for a large investor with deep pockets. The sugar daddy is supposed to “solve the financial problems surrounding the takeover of Volkswagen. The Porsche/Piech families can’t do it alone.” Reports in Germany are talking about potential Saudi-Arabian investors, the preferred partners of makers of high end gear.
But now, there is a better plan: Porsche, the family, sells Porsche, the car company to Volkswagen, which the family already rules. In return, they get VW shares they want and cash they need. “As part of the transaction, Porsche SE will issue new shares, a portion of which may be sold to external investors,” Bloomberg says.
Of course, the official party line is different. It’s the dreaded S word: Synergy. “We’re both capable of forming the center of strength in international carmaking,” Winterkorn said at VW’s annual shareholders’ meeting in Hamburg. “This alliance has enormous potential in technological and economic terms.” Winterkorn is obviously vying for a job as a stand-up comedian. In the first half of the 2008/2009 fiscal, Porsche sold just 34,266 units worldwide. Volkswagen made more than 6 million. They could crank out the worldwide Porsche production over a long week-end.
What’s more, a lot of the Porsche production is already intermeshed with VW. Volkswagen and Porsche already work together to build sport-utility vehicles and Porsche has tapped VW to assemble its Panamera four-person sedan. The companies also cooperate on SUVs such as Touareg, Cayenne and Audi’s Q7. No, Siree, synergies have nothing to do with it. If Porsche can’t swallow Volkswagen, then a Volkswagen owned by Porsche will swallow Porsche. It’s that simple. Even if it sounds confusing.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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- Ajla Maybe drag radials? 🤔
- FreedMike Apparently this car, which doesn't comply to U.S. regs, is in Nogales, Mexico. What could possibly go wrong with this transaction?
- El scotto Under NAFTA II or the USMCA basically the US and Canada do all the designing, planning, and high tech work and high skilled work. Mexico does all the medium-skilled work.Your favorite vehicle that has an Assembled in Mexico label may actually cross the border several times. High tech stuff is installed in the US, medium tech stuff gets done in Mexico, then the vehicle goes back across the border for more high tech stuff the back to Mexico for some nuts n bolts stuff.All of the vehicle manufacturers pass parts and vehicles between factories and countries. It's thought out, it's planned, it's coordinated and they all do it.Northern Mexico consists of a few big towns controlled by a few families. Those families already have deals with Texan and American companies that can truck their products back and forth over the border. The Chinese are the last to show up at the party. They're getting the worst land, the worst factories, and the worst employees. All the good stuff and people have been taken care of in the above paragraph.Lastly, the Chinese will have to make their parts in Mexico or the US or Canada. If not, they have to pay tariffs. High tariffs. It's all for one and one for all under the USMCA.Now evil El Scotto is thinking of the fusion of Chinese and Mexican cuisine and some darn good beer.
- FreedMike I care SO deeply!
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