Porsche takes controlling interest in Volkswagen

[2ndclasscitizen]

It really comes down to voting power and influence. 25.1% gives more voting power than 4 or 5%. That much will most definately give them a seat or two on the board and they'll be able to exert control. Also, in a vote, who are shareholders more likely to side with? Porsche, a large respected manufacturer, with 25.1% or a smaller investment company with say 3 or 4%?

[lightweight]

Originally Posted by 2ndclasscitizen

It really comes down to voting power and influence. 25.1% gives more voting power than 4 or 5%. That much will most definately give them a seat or two on the board and they'll be able to exert control. Also, in a vote, who are shareholders more likely to side with? Porsche, a large respected manufacturer, with 25.1% or a smaller investment company with say 3 or 4%?

That is exactly my point: They have a slightly bigger influence in decision making.

[Duell]

Reports: Porsche to take over 51 percent of VW

09/03/07, 01:33pm, EDT

After months of on-again, off-again rumors, Porsche is finally preparing to announce a 51 percent takeover bid for Volkswagen, two leading German financial publications have reported.

According to Germany's Der Spiegel magazine, Volkswagen is already buy options that will enable it to acquire additional shares at a predetermined price.

It's not known exactly how high Porsche's stake in VW will go, but both reports indicate it will cross the 50 percent threshold. Frankfurter Allgemeine Sonntagszeitung has estimate early 2008 as a timeframe for the move.

The implications of a takeover are not fully known. Previous reports have indicated Porsche has its own agenda for Bugatti, Lamborghini, and Bentley — all of which compete with in one way or another with its own offerings.

will it finaly happen,

[hightower99]

I think most of you are missing one important fact. VW probably still owns a good deal of it's own shares still. So with Porsche owning 25.1% and because Porsche is already running with VW, the rest of the sold shares don't add up to 74.9% (i am guessing somewhere around 40-50%). Which means that technically Porsche could be calling at least some of the shots if not the majority of the big shots already. If it's true that they plan of owning 51% of VW that will give them final call on everything.

I wonder what would happen with Audi and Lamborghini when Porsche gains control of them?

[Wouter Melissen]

Originally Posted by hightower99

I wonder what would happen with Audi and Lamborghini when Porsche gains control of them?

As long as they are profitable, why would Porsche want to do anything with them? They do, in the end, also benefit from those profits.

[hightower99]

Originally Posted by Wouter Melissen

As long as they are profitable, why would Porsche want to do anything with them? They do, in the end, also benefit from those profits.

The benefit of profits made directly from Porsche vehicles is much greater than any benefit through profits on Audis and Lamborghinis...

Technically they could discontinue the Audi and Lamborghini models that are in direct competition with Porsche models thereby gaining market control and the increased benefits that go with that.

[Wouter Melissen]

Originally Posted by hightower99

The benefit of profits made directly from Porsche vehicles is much greater than any benefit through profits on Audis and Lamborghinis...

Technically they could discontinue the Audi and Lamborghini models that are in direct competition with Porsche models thereby gaining market control and the increased benefits that go with that.

There are other alternatives to the Lamborghini and Audi models than the Porsches. I think it is unlikely that Audi/Lamborghini buyers would go for Porsches immediately instead of BMWs or Ferraris.

[Matra et Alpine]

Originally Posted by hightower99

The benefit of profits made directly from Porsche vehicles is much greater than any benefit through profits on Audis and Lamborghinis... .

invalid statement.

A product may produce the same profit for less cost due to it's market positioning or MORE profit for same cost, or more cash flow. All can be beneficial

"marque" may permit the growth of profit faster under one name of a specific vehicle than another. Also, using the "marque" helps position vehicles. look at Lexus and Toyota Fiat, Alfa, Lancia, Ferrari ??

[Ingolstadt]

Originally Posted by hightower99

The benefit of profits made directly from Porsche vehicles is much greater than any benefit through profits on Audis and Lamborghinis...

Technically they could discontinue the Audi and Lamborghini models that are in direct competition with Porsche models thereby gaining market control and the increased benefits that go with that.

They will still sell Audis and Lamborghinis, just that they wanted every such vehicles sold to have 51% of the profit ending up in their pockets rather than going elsewhere. They can't force people to buy Porsches, but they can create more to let people 'choose' between their pockets.

[Ferrer]

Hardly unexpected (if it happens).

Does anyone smell BL there? How many brands would the group have?

[faksta]

A controlling interest is a 51% or more (or, in some ways - 50% +1 share). It means that you have the most impact on the company's business. The main idea of controlling interest is that you have more shares than anyone else can buy in any matter.

[faksta]

Originally Posted by Duell

Reports: Porsche to take over 51 percent of VW



will it finaly happen,

Why for? To make Porsche become even more 'popular' (say, cheap)?

[Ferrer]

Originally Posted by faksta

Why for? To make Porsche become even more 'popular' (say, cheap)?

No, what they want is to make more money.

And the relatively small Porsche customer base doesn't allow them to do so. Therefore the possible VW Group buy.

[faksta]

Originally Posted by Ferrer

No, what they want is to make more money.

And the relatively small Porsche customer base doesn't allow them to do so. Therefore the possible VW Group buy.

Man, of course I understand why do they do this - for money, money and even more money. But their cars will only loose image (not the quality, designs or performance - image) because of all this. They will have VW audiosystems and climate control systems for sure... and Clarkson will call them 'an expensive Golf'. And his words are significant...

[Ferrer]

Originally Posted by faksta

Man, of course I understand why do they do this - for money, money and even more money. But their cars will only loose image (not the quality, designs or performance - image) because of all this. They will have VW audiosystems and climate control systems for sure... and Clarkson will call them 'an expensive Golf'. And his words are significant...

The Maserati GranTurismo has a sat-nav system shared with Peugeot and it seems it hasn't affected them.

And the Porsche Cayenne is a Volkswagen Touareg in drag, yet they sell them like hot cakes.

Arguably this could have an effect in the long term, but I frankly don't think it'll be the case for now, and if they are good managers it might as well never affect them.