Zuffenhausen Buys Wolfsburg: Porsche and VW, So Happy Together?

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Jalopnik
We just received a flash message from Jalopnik tipster Brian, who we think spends his mornings in front of the Reuters wire just waiting for auto-related news to come in. But this one's an industry whopper as the wire company is now reporting it's official -- Porsche has given the go-ahead for an increase of their stake in Volkswagen to more than 50%. But fear not lovers of the Knights of Teuton, Porsche has no desire to merge the two companies. Nope, all they want to do is ride the automaker for the people off into the sunset where the two can make sweet, sweet German love. Full and anticlimactic Reuters report after the jump.

UPDATE: It's official -- Porsche has agreed to increase their equity stake to more than 50%, thus effectively buying VW.

PORSCHE SAYS HAS GIVEN THE GO-AHEAD FOR AN INCREASE OF THE STAKE IN VOLKSWAGEN AG TO MORE THAN 50 PER CENT

PORSCHE SAYS REVIEWS BY THE REGULATORY AUTHORITIES ARE EXPECTED TO TAKE SEVERAL MONTHS

PORSCHE SAYS AS SOON AS THE REQUISITE CLEARANCES HAVE BEEN OBTAINED, PORSCHE SE CAN ACQUIRE THE MAJORITY OF THE SHARES IN VOLKSWAGEN

PORSCHE SAYS IT IS NOT PLANNED TO MERGE THE TWO COMPANIES

Yep. Nothing to really be worried about, and one hopes that VW can steal some of Porsche's development expertise for their new models. We'll see what comes of it, but I don't see how anyone can really be all that upset about it.
 
The majority shareholder is going to be one rather rich gentleman.

That's all i have to say about that

[/gump]
 
Hopefully both parties can make good from the deal. It looks like VAG (Porsche?) will be one giant company. Maybe we will see that #1 automaker title by 2010.
 
They're going to have to work outrageously hard to get to that spot any time soon. The General barely managed to squeak by Toyota for 2007, God only knows what will happen for 2008. VW/Porsche has a long, long way to go before they can top those two.
 
Good question, both have been mentioned. Which is it Brad?
 
But wasn't this deal been made just to secure the safety of VW so no foreign car maker can buy it?
 
Hostile takeover more like. Porsche will have influence over all of VAG.
 
and is there a problem with that? Perhaps they'll axe that sorry excuse for a Scirocco, and a few more redundant models...

((How about a boxxer-mill, rear-engine New Beetle? Eh? Eh? ;3 Sell a Porsche version, replace the Boxster, call it Ghia or something.))
 
Is this the Volkswagen brand or Volkswagen Auto Group?

I think it might be both in a way. I'd say it probably is just the brand, although controlling the brand will give control over VAG. I don't think we will see Porsche running Lamborghini, but maybe we'll see some influence that far down the chain. They might be more of a presence over Audi and SEAT ect, if they decide to mess with VW at all.

So by buying the marque that has control of VAG, I think they are purchasing both.

But wasn't this deal been made just to secure the safety of VW so no foreign car maker can buy it?

Wouldn't VW have to approve such a deal first? I don't think they would be so keen on being bought by a foreign company.

((How about a boxxer-mill, rear-engine New Beetle? Eh? Eh?))

Up!? Eh? Eh?
 
Good question, both have been mentioned. Which is it Brad?

My understanding is that it is the entire VAG, a 51% controlling share of it. However, it is important to note that the brands are not merging. So, basically, it will be like the relationship that GM had with Subaru or whatever for quite some time... They'll have influence over how things are done, what products are made, and whatnot, but I don't think we'll see stuff like "Lambo and Bugatti have to go" or whatever.

Keep in mind that VW also owns somewhere between 20-30% of Porsche (maybe more?), so its a mutual relationship.
 
Well this should be great. I mean VW and Porsche did have a long relationship in the Automotive history. I mean, the VW Beetle was co-develop with Porsche, and some of the design cues from the Beetle did manage to influence the 911. But yeah, I really would like to see what the merge is gonna bring out.....

((How about a boxxer-mill, rear-engine New Beetle? Eh? Eh? ;3 Sell a Porsche version, replace the Boxster, call it Ghia or something.))
Yeah, bring on the Beetle!!!! :D
The current FF Beetle sucks!!!! :yuck:
 
If they re-body the Up! as a Beetle in the US, you may get your wish...
 
the Up!'s too small, and sounds like it should be painted Armour Yellow with a gray roof, red striping, and big blue wings on the nose, surrounding a shield logo...

and I want a 4-cyl, too.
 
Gah, I can see it now: The Porsche 911 is going to order a hit on the R8. But only after it says a Hail Mary before catching a fish with its nephew, Rabbit.
 
There may be more to it than just design sharing and things:

Autoblog
Porsche's forthcoming majority stake in Volkswagen has the potential to remove a CAFE-sized thorn from the automaker's side. After a failed bid in Congress to create an exemption for itself from the recently revised fuel economy standards, Porsche needed a way to increase its CAFE rating in the U.S. This might be achieved by combining Porsche and VW's emissions and fuel-economy numbers into one lump sum, thus preserving the automaker's performance heritage.

While this certainly isn't anything new – Ford does it with Mazda, despite a minority stake in the automaker, and Chrysler has done it in the past when it was part owner of Mitsubishi – Volkswagen's average in 2007 was 28.6 mpg, just over the U.S. mandated 27.5 mpg. If Porsche gets thrown into that average, it's obvious that number is going to sink, quickly. However, Volkswagen's plan for the future involves new smaller, fuel-sipping vehicles, like the up! and more diesel-powered vehicles that might bring the number back up, but maybe not enough to meet the 2020 standards of 35 mpg. Porsche execs deny that this was a deciding factor in the buyout, but considering that the gentlemen from Stuttgart have cut a few checks to the feds over the years ($5 million in 2001), we're sure the idea wasn't lost on them while making their bid.

That's pretty tricky. I'm sure it wasn't the sole deciding factor, but it probably was pretty important. Buying those extra shares probably would have cost them more than paying up to the US government in the long run anyway.
 
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