OWNERSHIP – PORSCHE The Chance of a Lifetime.

Porsche always had a singular relationship with the Volkswagen (VW) group. In 1969 the two companies were designing together the VW-Porsche 914 and 914-6, sharing engines and other technologies. In 2002 The Cayenne was introduced, sharing its entire chassis with Volkswagen Touareg and Audi Q7 (as VW also owns Audi AG).

In 2005, Porsche took an 18.65% stake in the Volkswagen Group, bonding the two companies and preventing a takeover speculated at the time. From March 2005 to January 2009, Porsche raised its holding in Volkswagen AG up to 50.8% (1). Porsche planned to lift the stake to 75% by the end of 2009, at that level they could completely takeover the European automobile industry (2).

By March 2009, Porsche was aiming for its first ever credit ratings from U.S. rating agencies Standard & Poor’s and Moody’s (3). In its efforts to get a majority holding in Volkswagen, Porsche increased its debt, altered by taxes due on very large profits from VW AG options. By July 2009, Porsche had a debts exceeding 10 billion euros (3). The supervisory board of Porsche finally consent several arrangements whereby the Qatar Investment Authority would inject sufficient capital to recover economical equilibrium, and Porsche would be unified with Volkswagen AG. In July 2010, Porsche appointed Volkswagen executive Matthias Müller to its new CEO position.

Since March 2011, Porsche is 100% owned by Volkswagen AG and is therefore part of the most successful European automobile manufacturer.  By merging the two groups, It complete the historical circle that began with Ferdinand Porsche’s design of the Volkswagen and which formed the basis for the successful evolution of the two Porsche companies in Salzburg and in Stuttgart that today are a considered as a whole. Porsche and Piëch, the two original shareholding families, are significantly present on the on-going development of the automotive group, holding key positions as principal stakeholders in Volkswagen AG and as members of the supervisory board (4).

Documentary exposing the relationship between the two brands : Porsche versus Volkswagen.   (still looking for an English version).

REFERENCES

(1)  “Porsche offers minimum price in required Scania bid”. Bloomberg. 19 January 2009. Retrieved 29 January 2009.

(2)  Cremer, Andreas (26 March 2009). “VW Gains as Porsche Refinancing Boosts Expectations”. Bloomberg News. Retrieved 27 March 2009.

(3)  Arends, Hilde (26 March 2009). “Porsche Seeking Credit Ratings From S&P, Moody’s – Source”. Wall Street Journal. Dow Jones Newswires. Retrieved 28 March 2009

(4)  http://www.porsche-holding.com/fr/histoire/porsche_holding/des_racines_communes_un_avenir_commun

(5)  https://www.youtube.com/watch?v=WWRA1ABlFnw  GERMAN

(6)  https://www.youtube.com/watch?v=H3DCFctxHtg FRENCH

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