# Porsche plans to buy 20% stake in Volkswagen **URL:** \ **Category:** NYSpeed Automotive\ **Created:** [September 25, 2005, 2:31pm UTC](https://forums.speedlife.net/t/porsche-plans-to-buy-20-stake-in-volkswagen/2702 "2005-09-25T14:31:09Z")\ **Posts on this page:** 19\ **Page:** 1
**Author:** ![RedGoober4Life](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/redgoober4life/32/7610_2.png) [@RedGoober4Life](https://forums.speedlife.net/u/RedGoober4Life)\ **Post date:** [September 25, 2005, 2:31pm UTC](https://forums.speedlife.net/t/porsche-plans-to-buy-20-stake-in-volkswagen/2702/1 "2005-09-25T14:31:09Z")
_Luxury sports car maker Porsche AG said Sunday it plans to acquire a stake of about 20 percent in Volkswagen AG, a move aimed at strengthening ties between the automakers and preventing a future hostile takeover of Volkswagen._ Porsche said Volkswagen had become “a significant supplier for about 30 percent of our sales volume,” as well as “an important partner in development.” The two companies worked together to develop Porsche’s Cayenne sport utility vehicle and Volkswagen’s Touareg. They recently announced that they, along with Audi AG, were forming an alliance to develop hybrid engines. “With this engagement, we want to secure our business relations with VW and also safeguard in the long term a significant part of our future planning,” Porsche chief executive Wendelin Wiedeking said in a statement. Stuttgart-based Porsche said it hoped the investment would enable it to head off any future hostile takeover of Volkswagen by investors “who do not have the long-term interests of VW as their aim.” That scenario could arise if the European Court of Justice rules against a German law that effectively protects the company, Europe’s largest automaker, from such a takeover. “Our planned investment is the strategic answer to this risk,” Wiedeking said. Porsche said it was in contact with Volkswagen’s management. “This ‘German solution’ that we are seeking is a significant precondition for the stable development of Volkswagen AG” and for the two companies’ future cooperation, he said. Porsche said it was in contact with Volkswagen’s management and did not plan to take over the company. Volkswagen welcomed Porsche’s move, which it said supported its “independent business policy.” “A stable shareholder structure is very important” in the long term, it said. The European Commission took Germany to court last year over the VW law. It has long argued that the decades-old law goes against the grain of the 25-nation bloc’s single market principles, although German politicians claim it helps ensure stability at the company. The Commission objects to provisions of the 1960 law privatizing Volkswagen that cap a shareholder’s voting rights at 20 percent, regardless of the number of shares held, and requires a majority of 80 percent for “important decisions.” The state of Lower Saxony, where VW’s Wolfsburg headquarters is situated, is currently the biggest shareholder, with a stake of 18.2 percent. A 20 percent stake would currently cost Porsche more than $3.6 billion. Porsche said it could finance the purchase with “available liquidity,” but did not elaborate. Porsche said its investment would not reach the 30 percent threshold that, under German law, would require it to make a public takeover offer for Volkswagen. Volkswagen shares rose late last week amid rumors that a large investor was building up a stake in the company. On Friday, they closed up 3.4 percent at $62.49. Germany’s biggest industrial union, IG Metall, welcomed Porsche’s move to protect Volkswagen. “This is good for the company and good for Germany as an industrial location,” union spokesman Georgios Arwanitidis told the daily Frankfurter Rundschau. [http://news.yahoo.com/s/ap/20050925/ap\_on\_bi\_ge/germany\_porsche\_volkswagen](http://news.yahoo.com/s/ap/20050925/ap_on_bi_ge/germany_porsche_volkswagen) ---
**Author:** ![Rx3](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/rx3/32/7194_2.png) [@Rx3](https://forums.speedlife.net/u/Rx3)\ **Post date:** [September 27, 2005, 1:40pm UTC](https://forums.speedlife.net/t/porsche-plans-to-buy-20-stake-in-volkswagen/2702/2 "2005-09-27T13:40:19Z")
Don’t they already own a part of VW? Along with Audi? ---
**Author:** ![RedGoober4Life](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/redgoober4life/32/7610_2.png) [@RedGoober4Life](https://forums.speedlife.net/u/RedGoober4Life)\ **Post date:** [September 28, 2005, 7:33am UTC](https://forums.speedlife.net/t/porsche-plans-to-buy-20-stake-in-volkswagen/2702/3 "2005-09-28T07:33:14Z")
Well what a quickie that was… [http://news.yahoo.com/s/nm/20050926/bs\_nm/autos\_porsche\_volkswagen\_dc](http://news.yahoo.com/s/nm/20050926/bs_nm/autos_porsche_volkswagen_dc) And as for if they already own some shares in the company, yes. However, this would have given them more control, of course. So why not just buy more than 20% of the shares? In the 1960s when VW was privatized, the law is that no single party can control more than 20% of VW, even if they own more than 20% of their shares. This also provides a need for 80% support for major decisions to happen. It’s not very fair, and the EU doesn’t particularly like it much. I wouldn’t be surprised if you see something in the next few years regarding its demise. ---
**Author:** ![boardjnky4](https://avatars.discourse-cdn.com/v4/letter/b/96bed5/32.png) [@boardjnky4](https://forums.speedlife.net/u/boardjnky4)\ **Post date:** [September 28, 2005, 7:44am UTC](https://forums.speedlife.net/t/porsche-plans-to-buy-20-stake-in-volkswagen/2702/4 "2005-09-28T07:44:24Z")
sounds cool, been seeing big things from vw these days, theyre doing well for themselves and will hopefully continue on the rise ---
**Author:** ![Blue\_Eyed\_Devil](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/blue_eyed_devil/32/7292_2.png) [@Blue\_Eyed\_Devil](https://forums.speedlife.net/u/Blue_Eyed_Devil)\ **Post date:** [September 28, 2005, 8:15am UTC](https://forums.speedlife.net/t/porsche-plans-to-buy-20-stake-in-volkswagen/2702/5 "2005-09-28T08:15:52Z")
FYI; Dr. Porsche designed the first Beetle for VW.(the largest selling car in history) Porsche has an incredible history and is really an amazing company. They are the ONLY independent production car company in the world. Other cars may be faster now but no other car company has the soul of Porsche. I hope they never sell-out to another car company. ---
**Author:** ![Daddie](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/daddie/32/7621_2.png) [@Daddie](https://forums.speedlife.net/u/Daddie)\ **Post date:** [September 28, 2005, 8:41am UTC](https://forums.speedlife.net/t/porsche-plans-to-buy-20-stake-in-volkswagen/2702/6 "2005-09-28T08:41:19Z")
> [@AWDrifter](#): > > FYI; Dr. Porsche designed the first Beetle for VW.(the largest selling car in history) > > Porsche has an incredible history and is really an amazing company. > They are the ONLY independent production car company in the world. > Other cars may be faster now but no other car company has the soul of Porsche. > I hope they never sell-out to another car company. :word: ---
**Author:** ![RedGoober4Life](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/redgoober4life/32/7610_2.png) [@RedGoober4Life](https://forums.speedlife.net/u/RedGoober4Life)\ **Post date:** [September 28, 2005, 11:45am UTC](https://forums.speedlife.net/t/porsche-plans-to-buy-20-stake-in-volkswagen/2702/7 "2005-09-28T11:45:03Z")
Sigh, above all they need to be profitable. You just don’t do that with one car. Thus the “other two.” But they’re nice cars. I think having Porsche with maybe one or two rebadged cars here or there is better than not having Porsche at all. ---
**Author:** ![Blue\_Eyed\_Devil](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/blue_eyed_devil/32/7292_2.png) [@Blue\_Eyed\_Devil](https://forums.speedlife.net/u/Blue_Eyed_Devil)\ **Post date:** [September 29, 2005, 6:04am UTC](https://forums.speedlife.net/t/porsche-plans-to-buy-20-stake-in-volkswagen/2702/8 "2005-09-29T06:04:45Z")
Porsche is VERY profitable right now though. ---
**Author:** ![RedGoober4Life](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/redgoober4life/32/7610_2.png) [@RedGoober4Life](https://forums.speedlife.net/u/RedGoober4Life)\ **Post date:** [September 29, 2005, 6:13am UTC](https://forums.speedlife.net/t/porsche-plans-to-buy-20-stake-in-volkswagen/2702/9 "2005-09-29T06:13:37Z")
The 90s aren’t very far away. 😉 ---
**Author:** ![TrueBlue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/trueblue/32/7245_2.png) [@TrueBlue](https://forums.speedlife.net/u/TrueBlue)\ **Post date:** [September 29, 2005, 6:23am UTC](https://forums.speedlife.net/t/porsche-plans-to-buy-20-stake-in-volkswagen/2702/10 "2005-09-29T06:23:19Z")
> [@RedGoober4Life](#): > > Thus the “other three.” fixed. :tup: soon to be four IINM. ---
**Author:** ![RedGoober4Life](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/redgoober4life/32/7610_2.png) [@RedGoober4Life](https://forums.speedlife.net/u/RedGoober4Life)\ **Post date:** [September 30, 2005, 8:05pm UTC](https://forums.speedlife.net/t/porsche-plans-to-buy-20-stake-in-volkswagen/2702/11 "2005-09-30T20:05:49Z")
**_DaimlerChrysler rumored to want a piece of Volkswagen_** _Hot on the heels of Porsche’s plan to acquire a 20 percent stake in Volkswagen comes a rumor that surfaced in Germany today that DaimlerChrysler is also looking at a 20 percent piece of VW. Apparently, VW had approached DaimlerChrysler in the past, discussing various options, including a share swap between the two carmakers._ _DaimlerChrysler sources deny that there are any such plans in the works, and it is easy to imagine that Porsche’s announcement could have pre-empted any similar plans by DaimlerChrysler._ ``` We’ll have to wait and see on this one. ``` [http://www.autoblog.com/entry/1234000313061265/](http://www.autoblog.com/entry/1234000313061265/) Oh dear please no. ---
**Author:** ![Rx3](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/rx3/32/7194_2.png) [@Rx3](https://forums.speedlife.net/u/Rx3)\ **Post date:** [September 30, 2005, 8:56pm UTC](https://forums.speedlife.net/t/porsche-plans-to-buy-20-stake-in-volkswagen/2702/12 "2005-09-30T20:56:30Z")
How many people can fit into one bed? 😕 ---
**Author:** ![halas](https://avatars.discourse-cdn.com/v4/letter/h/898d66/32.png) [@halas](https://forums.speedlife.net/u/halas)\ **Post date:** [September 30, 2005, 9:16pm UTC](https://forums.speedlife.net/t/porsche-plans-to-buy-20-stake-in-volkswagen/2702/13 "2005-09-30T21:16:35Z")
> [@boardjnky4](#): > > sounds cool, been seeing big things from vw these days, theyre doing well for themselves and will hopefully continue on the rise Had to giggle at this comment after reading this view: ![http://www.autoextremist.com/arrowdown.gif](http://www.autoextremist.com/arrowdown.gif) ![http://www.autoextremist.com/arrowdown.gif](http://www.autoextremist.com/arrowdown.gif) ![http://www.autoextremist.com/arrowdown.gif](http://www.autoextremist.com/arrowdown.gif) _Porsche. Porsche’s decision to increase its share of Volkswagen from 5 percent to 20 percent last weekend – to the tune of $3.6 billion – has left Porsche stockholders dismayed and financial analysts dumbfounded, according to various media reports. Porsche, after all, is the German automaker that bills itself as “the most profitable car company in the world” and has repeatedly gone on record as saying that generating huge amounts of cash flow and keeping a rainy day war chest overflowing with cash was the only way it could protect its autonomy as one of the world’s last independent auto makers. This decision flies in the face of every public statement the company has made over the last five years. **And to invest in Volkswagen - the German company whose fortunes have plummeted faster than a Hollywood starlet wannabe whose reality show just got cancelled? The car company reeling in the marketplace and losing money hand over fist? As Chris Rock might say - that ain’t right.** But there’s much more to this story, to say the least. This is about protecting a cozy way of doing business that has been part of German corporate culture for years and years – and it’s about historical family entanglements that have dominated these two companies since they were formed. Ferdinand Porsche designed the original Beetle in the late '30s and went on to found the famous sports car company bearing his name. His grandson, Ferdinand Piech, who early on was a gifted engineer for Porsche but who later was the architect of VW’s disastrous foray into the upper echelons of the market, is now chairman of VW’s powerful supervisory board. Needless to say, he has a vested interest in both companies. Which might have a little something to do with Porsche’s public explanation about the investment, referring to its decision as a “German solution” to protect from VW from a hostile takeover. A porsche spokesman was quoted as saying, “We are a German company and we have a certain responsibility for Germany and German industry.” Analysts insist this is yet another attempt by a German company to prevent the movement to make German corporations more responsive to its shareholders from taking hold, something the analysts have been screaming about for years. And they’re exactly right. What it comes down to is this: It’s a German corporate thing, and if you’re not part of the insider action, you wouldn’t understand._ I tend to agree with the above statement. What has VW done latley that is cool besides a R32? ---
**Author:** ![Joe](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/joe/32/7219_2.png) [@Joe](https://forums.speedlife.net/u/Joe)\ **Post date:** [October 1, 2005, 12:38pm UTC](https://forums.speedlife.net/t/porsche-plans-to-buy-20-stake-in-volkswagen/2702/14 "2005-10-01T12:38:54Z")
redesigned new beetle y0!! ---
**Author:** ![16vCorvette](https://avatars.discourse-cdn.com/v4/letter/1/b487fb/32.png) [@16vCorvette](https://forums.speedlife.net/u/16vCorvette)\ **Post date:** [October 2, 2005, 8:51am UTC](https://forums.speedlife.net/t/porsche-plans-to-buy-20-stake-in-volkswagen/2702/15 "2005-10-02T08:51:16Z")
Have you driven anything from VW lately or even looked at their new Jetta and Passat? They aren’t the fastest cars (gasp) but they do offer a lot of luxury and quality that hasn’t been offered in their price range. ---
**Author:** ![Bigairskier1580](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/bigairskier1580/32/7612_2.png) [@Bigairskier1580](https://forums.speedlife.net/u/Bigairskier1580)\ **Post date:** [October 2, 2005, 9:20am UTC](https://forums.speedlife.net/t/porsche-plans-to-buy-20-stake-in-volkswagen/2702/16 "2005-10-02T09:20:13Z")
> [@16vCorvette](#): > > Have you driven anything from VW lately or even looked at their new Jetta and Passat? They aren’t the fastest cars (gasp) but they do offer a lot of luxury and quality that hasn’t been offered in their price range. The biggest issue that pops up though, is there are some questionable reliability issues that have popped up due to the price of the car. Ont he other hand, we have 2 Jettas in my family. 2003 TDI and 2.sl0w. Both are amazing cars for the money. Yes, the 2.sl0w is slow as hell, but it is very nice as a daily driver. ---
**Author:** ![boardjnky4](https://avatars.discourse-cdn.com/v4/letter/b/96bed5/32.png) [@boardjnky4](https://forums.speedlife.net/u/boardjnky4)\ **Post date:** [October 2, 2005, 9:46am UTC](https://forums.speedlife.net/t/porsche-plans-to-buy-20-stake-in-volkswagen/2702/17 "2005-10-02T09:46:40Z")
> I tend to agree with the above statement. What has VW done latley that is cool besides a R32? Dont really think theyve done anything particularly “cool”(well besides r32 which u mentioned], i mean the taureg turbo deisel is cool but not on a level most would agree with. I just think that theyre cars have sky rocketed in luxury and well i was gonna say reliablility but that might not be the most accurate statement. All in all they are nice cars, moreover the perfect economy car ---
**Author:** ![16vCorvette](https://avatars.discourse-cdn.com/v4/letter/1/b487fb/32.png) [@16vCorvette](https://forums.speedlife.net/u/16vCorvette)\ **Post date:** [October 2, 2005, 10:15am UTC](https://forums.speedlife.net/t/porsche-plans-to-buy-20-stake-in-volkswagen/2702/18 "2005-10-02T10:15:23Z")
> [@Bigairskier1580](#): > > The biggest issue that pops up though, is there are some questionable reliability issues that have popped up due to the price of the car. > > Ont he other hand, we have 2 Jettas in my family. 2003 TDI and 2.sl0w. Both are amazing cars for the money. Yes, the 2.sl0w is slow as hell, but it is very nice as a daily driver. Yeah the 1.8T had the coil pack issue but I’m talking about the new A5 and B6 platforms. The base engine that you will see in all of the Jettas driving around soon is a 2.5L NA 5 cylinder. Not bad when the car starts at 17.5k. Plus every automaker is going through some sort of slump right now. BTW, I have a new 2006 Jetta 🙂 ---
**Author:** ![JCuz](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/jcuz/32/7338_2.png) [@JCuz](https://forums.speedlife.net/u/JCuz)\ **Post date:** [October 3, 2005, 6:38pm UTC](https://forums.speedlife.net/t/porsche-plans-to-buy-20-stake-in-volkswagen/2702/19 "2005-10-03T18:38:39Z")
I think i just got a boner