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Volkswagen to take Larger 49.9% Porsche stake for $5.8 billion

An initial agreement between Porsche and Volkswagen allowed for the latter to buy a 42% stake in the former. Now it seems VW's fortunes have improved somewhat and it will instead go for a 49.9% interest. This gives it a much better position should it decide to acquire a full 100% in the sports car maker after the proposed merger of 2011. The transaction is worth €3.9 billion (US$5.8 billion).

Currently the two are cooperating in building certain vehicles. For instance the Cayenne and Touareg SUVs come off the same factory line while Porsche uses VW Group engines like the 3.6-litre V6. VW is also supplying bodies for both the Panamera and Cayenne. Even more synergies will be unlocked as executives try to push greater sales volumes for the once-niche brand. VW CEO Martin Winterkorn says Porsche could sell as many as 150,000 vehicles annually by 2013, effectively doubling its 2008 volumes.

Volkswagen is already Europe's biggest carmaker and is currently nipping at GM's heels for the title of world's second largest. The merger or full buyout will see it controlling potentially-competing prestige brands like Lamborghini, Bentley, Bugatti and of course Porsche.

 

Source: Autonews

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Comments (16)

 MutantSushi MutantSushi
The Swedes are right, this whole deal is a scam to protect the interests of the families behind Porsche & VW. (The owners, not the families of workers) The topic centers around why VW is buying a minority interest in Porsche holding company as a whole as well as Porsche's dealership company, rather than just the Porsche car company. Of course the VW union is complicit in this as well, and going along with it (paying more than is necessary for non-core assets) will only increase the pressure on VW to reduce terms/positions for it's own workers. But the hookers are paid for, so no worries...
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October 22, 2009 12:56 am
 Steven_B Steven_B
I agree, the fact that VW has formed a group doesn't mean the niche brands were turned into mass manufacturers.
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October 21, 2009 6:16 pm
 VWinsider VWinsider
Why does everyone think that when VW take ownership of Porsche that they will turn it into a mass produced product???? Lambo,Bently,Bugatti arent!!
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October 21, 2009 2:43 pm
 VWinsider VWinsider
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October 21, 2009 2:41 pm
 hunkeers87 hunkeers87
Let me get this straighter.... Audi is togetger with VW, but VW not owns Audi... Lambo and Seat is Audi property..... But thats not realy mathers, becouse this VW group(VW, Audi, Seat, Skoda, Lambo, Porsche, Bentley, Bugatti and Scania) is bigest and strongest company on planet EARTH and they covers every car category and class and some clases even more times... And when I hear about VW changing name for AutoUnion than I start thinking, who realy is behaind this all.....?????
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October 21, 2009 1:38 pm
 tom43 tom43
Within the next 5 years VW will become the No. 1 world-wide. After the take-over of suzuki they will get the indian car market and know-how in the production of the low-end cars...
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October 21, 2009 1:25 pm
 Michael Michael
Audi is very well now under VW umbrella. They are narrowing the gap from BMW and MB and aiming to becoming no. 1 premium automaker. You don't like the Golf, you can have Leon, you don't like Jetta you may have Octavia, you don't like Polo, Ibiza and Fabia are available etc. As somebody says before, it's a win-win situation for VW, prooved by the increase of their global market share.
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October 21, 2009 8:54 am
 autoficianado autoficianado
...I would rather have it ending up with Porsche owning VW and not becoming a mass producer of cars....which may devalue the brand...I would like to see Wendelin Wiedeking become CEO of Mercedes Benz which is currently being managed by Daimler CEO Dieter Zetsche
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October 21, 2009 4:13 am
 catchmyshadow catchmyshadow
VW has made Skoda very, very profitable. the only brand that still has some trouble getting profitable is seat. If someone picks a Skoda or a Seat over a VW then the profit directly goes into the hands of VW as well, simple as that. win-win situtaion for VW and no real competition. by the way, Porsche is just the beginning. VW is planning to take over suzuki, M.A.N. and probably Ducati as well.
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October 21, 2009 3:37 am
 nederina nederina
Let me get this straight.. VW - ? Porsche - Maserati, Jaguar rival Audi - BMW, Mercedes-Benz rival Bentley - Rolls-Royce, Maybach rival Lamborghini - Ferrari rival Bugatti - no rivals Skoda - ? Seat - ? It seems logical to have Porsche in its stables but shame about Skoda and especially Seat where it is competing directly with VW which it is based on at the first place.
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October 21, 2009 2:06 am