Volkswagen Postpones Porsche Wedding While Funds Sue

Bertel Schmitt
by Bertel Schmitt

Volkswagen and Porsche will need to live in concubinage for a while longer. They will live and work together, they will be seen at parties such as the upcoming IAA in Frankfurt together, they share beds and platforms, but they won’t be officially married. Volkswagen announced today ”that the planned merger with Porsche SE cannot be implemented within the time frame provided for in the Comprehensive Agreement. Nevertheless, all parties remain committed to the goal of creating an integrated automotive group with Porsche and are convinced that this will take place.”

And why are the nuptials delayed? Says Volkswagen:

“From Volkswagen’s perspective, the continuing legal hurdles mean that it is currently impossible to quantify the economic risks of a merger and therefore to perform the valuation of Porsche SE required to determine the exchange ratio. The main causes of uncertainty are the ongoing proceedings and actions brought against Porsche SE in Germany and the USA for alleged market manipulation.”

There is something else the press release did not mention: 41 banks, funds, sovereign wealth funds and hedge funds have filed suit against Porsche and Volkswagen on Wednesday, reports Wirtschaftswoche. They claim damages in “three digit billion Euro” say the court documents.

Bringing such a big suit costs a lot of money in Germany: Total court costs can be at least 4.5 million Euro ($6.2 million). Loser pays full court costs and the legal costs of the winning party. If you file a suit like this, you better enclose a check of over a million Euro, or the court won’t lift a finger. This rule keeps frivolous lawsuits to a minimum.

Bertel Schmitt
Bertel Schmitt

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=""> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href=""> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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9 of 11 comments
  • Buickman Buickman on Sep 09, 2011

    another Rick Perry appears.

  • Eldard Eldard on Sep 09, 2011

    If only I can win the lottery tomorrow so I can get a new Panamera before they get tainted with VW electro-turd DNA.

    • See 4 previous
    • Eldard Eldard on Sep 10, 2011

      @wmba I don't give a flying turd what gov't whose country the brand came from. Cars from socialist states are usually overpriced. I'll only buy new Korean if I have to. But since I'm not into cattle class, err, mass market cars, I'll only buy used since luxury cars are imposed with 100% excise taxes in my country. That makes the cars I desire priced in Bentley territory and buying new would also mean supporting my corrupt govenment. As Top Gear would say, let somebody else take the hit.

  • Devilsadvocate Devilsadvocate on Sep 09, 2011

    VW already has one very displeased mistress...Suzuki. Maybe Porsche should back out while they can :)

  • Slowtyper Slowtyper on Sep 09, 2011

    I love the photograph Bertel chose for this piece. Whatever happens, Wiedeking has won. :-)