Volkswagon buys 49.9% of Porsche

Kevin Butler · **Posted:** Thu Oct 22, 2009 6:10 pm

I saw on one of the manufacturing emails I get at work that VW bought 49.9 % of Porsche.

Whom do you think will be the winner/loser on this? Will you still be able to buy a true Porsche in the future?

RobLupella · **Posted:** Thu Oct 22, 2009 9:43 pm

Porsche actually tried to swallow VW a few years ago but has failed so VW bought them back. They have been related forever so I don't think anything will change. I guess that we will know that the true Porsche is no longer when they make a 911 4 door.... :twisted:

Richard Casto · **Posted:** Thu Oct 22, 2009 9:52 pm

Kevin, did you just exit a cave somewhere!? The VW Porsche merger has been high drama for many months. The story is too big and complex to discuss in a single post.

My take on this is that since the Porsche purchase of VW failed (and now VW is absorbing Porsche) the down side is that VW will most likely not get the good things that Porsche CEO Wendelin Wiedeking would have changed such as improvements to the VW design/construction process that would have resulted in higher quality and more profitable cars. Wiedeking effectively saved Porsche from bankruptcy or buy out in the early 1990's.

The potential good is that there actually may be the potential for Porsche to go back to its roots and focus on performance cars and racing (no more SUVs and Sedans). With Wiedeking being forced out by Ferdinand Piech (who effectively controls VW), Piech may relive his glory days when he was at Porsche (he is grandson of Ferdinand Porsche) and in charge of the racing department that was responsible for the Porsche 917. Piech was forced out of Porsche when his grandfather felt he didn’t want the company torn apart by the family fighting over control. Piech appears to have gotten the last laugh.

Time will tell what happens with this.

Kevin Butler · **Posted:** Thu Oct 22, 2009 10:52 pm

Richard Casto wrote:

Kevin, did you just exit a cave somewhere!?

How did you know?

Donnie Barnes · **Posted:** Fri Oct 23, 2009 12:43 am

Rumors leaking out abound that Piech REALLY doesn't like the direction Porsche took with the Cayenne and the Panamera and those could likely be scuttled after their normal production life thanks to the VW takeover.

And yes, the VW takeover was made possible by the failed Porsche takeover of VW. Ironically, the "failure" wasn't of Porsche's doing, it was more the economy bursting as it was in process (and the loans that Porsche had called in that they were using to finance the thing). Poof, bubble bursts and the parent becomes slightly more solvent and that was all it took. Child squashed.

But as Richard said, it's probably going to be better for the Porsche brand in the long run anyway. Should get more back to roots.

--Donnie

Chuck Branscomb · **Posted:** Fri Oct 23, 2009 7:00 am

Donnie Barnes wrote:

Ironically, the "failure" wasn't of Porsche's doing, it was more the economy bursting as it was in process (and the loans that Porsche had called in that they were using to finance the thing). Poof, bubble bursts and the parent becomes slightly more solvent and that was all it took. Child squashed.

This was one of the fastest and most severe short squeezes in history last fall. In the space of a couple of days, VW stock went from ~200€ to ~1000€, and since it is a component of the German DAX index, the repercussions on the index relative to the rest of the world's markets was incredible. A perfect black swan marble drawn out of the bag once again producing a huge outlier return (if on the right side and liquidated into the move) or loss (if on wrong side and not using stops).

For a short period of time (as in one day), the market capitalization of VW was substantially greater than Exxon Mobile making it the largest stock in the world at the time. :shock:

Marty Howard · **Posted:** Fri Oct 23, 2009 9:31 am

One of the things that made this interesting is it was as much of a family fued as a business conflict.

Richard Casto · **Posted:** Fri Oct 23, 2009 10:18 am

Related topic…

On the National Geographic Channel they have a series named “Ultimate Factories”. It’s a pretty cool show. Yesterday they had an episode about the 911 production line. I caught it when surfing channels, so I missed the first ½. If anyone is interested, set your DVR as I think it is going to be on again this Sunday at 11 AM.

It was interesting to see how their just in time parts system works including automated parts delivery via robots. Overall this is the newer production system that helped Porsche survive near death in the early 1990’s. It is said that many of the changes Porsche made to their own production process scared VW workers and the opposition by the VW workers is just one of many things that torpedoed the takeover of VW by Porsche. Hopefully Porsche will have a positive effect on the rest of the VW auto group.

Graham Jagger · **Joined:** Fri Aug 29, 2003 12:53 am **Posts:** 1718

Richard Casto wrote:

Related topic…

On the National Geographic Channel they have a series named “Ultimate Factories”. It’s a pretty cool show. Yesterday they had an episode about the 911 production line. I caught it when surfing channels, so I missed the first ½. If anyone is interested, set your DVR as I think it is going to be on again this Sunday at 11 AM.

I watched the whole show. They have some interesting things they do. It's cool watching some of the robotics stuff. The cars are ok too. Mainly the GT3.

Did you know those cars are made of metal? Hmmm... I thought all the good sports cars were made of fiberglass or carbon fiber... :lol4:

Vincent Keene · **Posted:** Fri Oct 23, 2009 3:52 pm

Richard Casto wrote:

On the National Geographic Channel they have a series named “Ultimate Factories”. It’s a pretty cool show.

I watched a series of them and it was very interesting. The development of the C6 Z06 was the best. The one going through the BMW Z3 factory in SC was pretty neat too. In particular the pains they go through to insure a flawless paint finish was amazing.

clinehall · **Posted:** Mon Oct 26, 2009 8:51 pm

Vincent Keene wrote:

Richard Casto wrote:

On the National Geographic Channel they have a series named “Ultimate Factories”. It’s a pretty cool show.

I watched a series of them and it was very interesting. The development of the C6 Z06 was the best. The one going through the BMW Z3 factory in SC was pretty neat too. In particular the pains they go through to insure a flawless paint finish was amazing.

Who hacked Vk's computer and said something nice about BMW?

steve remchak · **Posted:** Mon Oct 26, 2009 9:04 pm

clinehall wrote:

Vincent Keene wrote:

Richard Casto wrote:

On the National Geographic Channel they have a series named “Ultimate Factories”. It’s a pretty cool show.

I watched a series of them and it was very interesting. The development of the C6 Z06 was the best. The one going through the BMW Z3 factory in SC was pretty neat too. In particular the pains they go through to insure a flawless paint finish was amazing.

Who hacked Vk's computer and said something nice about BMW?

only a matter of time............

but they no longer make the Z4 in Spartanburg so maybe he still has an out.

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Volkswagon buys 49.9% of Porsche

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