Volkswagen And Porsche As One
(Thursday 5 July 2012)
The very long-running process of trying to join together Volkswagen and Porsche will at long last be resolved on August 1, if a plan approved by the two boards yesterday goes through.
The present structure sees the two main companies owning 50.1% (Porsche SE) and 49.9% (Volkswagen AG) of the holding company which looks after the car manufacturer, Porsche AG. The new set-up involves Volkswagen becoming the 100% owner of that company, in return for which Porsche SE gets around 4.6 billion euros.
Porsche AG will remain a little apart from the other Volkswagen Group brands, which include Audi, Bentley, Bugatti, Lamborghini, SEAT and Skoda, but since it will now be effectively under the same roof there can be more technical co-operation (of the kind which, for example, led the same basic vehicle to be sold as the Audi Q7, Porsche Cayenne and Volkswagen Touareg) without less fuss and bother about who pays for what.
Professor Dr Martin Winterkorn, Chairman of the Board of Management at Volkswagen AG, describes the plan as "good for Volkswagen, good for Porsche and good for Germany as an industrial location. Combining their operating business will make Volkswagen and Porsche even stronger – both financially and strategically – going forward.
"We can now cooperate even more closely and jointly leverage new growth opportunities in the high-margin premium segment through targeted investments in pioneering products and technologies. This will benefit our customers, our employees and our shareholders."