Porsche to buy Audi, Lamborghini, Bugatti and Bentley?
December 31st, 1969
Porsche has moved to become the largest shareholder of the German giant Volkswagen group, and is now tipped to be attempting to spin-off the Audi brand from the consortium so that the sports carmaker may acquire the luxury brand's shares by itself. Porsche is understandably being very tight-lipped about the issue, but many analysts have acknowledged the potential that could be gained from such a reorganization.
If the merger occurred, Porsche together with Audi would be able to sell more than a million cars annually, with a higher yield than either Mercedes or BMW. This would leave Volkswagen Group consisting only of VW, Skoda and Seat, which would still maintain an annual output of four million cars but with much lower margins. It would also enable Audi to make the final push to unseat BMW and Mercedes as the premier German carmaker, reports the Handelsblatt newspaper.
The proposal of a restructure is not as far-fetched as it seems. The first steps towards the move have already occurred, with VW Group’s new head, Martin Winterkorn, planning to create a separate group for its premium brands Audi, Bentley, Lamborghini and Bugatti, similar in style to Ford’s Premium Auto Group. VW, Skoda and Seat will remain as its mass market division. Furthermore, Porsche is expected to request a capital increase at the next general meeting in preparation of the possible Audi spin-off.
Porsche has moved to become the largest shareholder of the German giant Volkswagen group, and is now tipped to be attempting to spin-off the Audi brand from the consortium so that the sports carmaker may acquire the luxury brand's shares by itself. Porsche is understandably being very tight-lipped about the issue, but many analysts have acknowledged the potential that could be gained from such a reorganization.
If the merger occurred, Porsche together with Audi would be able to sell more than a million cars annually, with a higher yield than either Mercedes or BMW. This would leave Volkswagen Group consisting only of VW, Skoda and Seat, which would still maintain an annual output of four million cars but with much lower margins. It would also enable Audi to make the final push to unseat BMW and Mercedes as the premier German carmaker, reports the Handelsblatt newspaper.
The proposal of a restructure is not as far-fetched as it seems. The first steps towards the move have already occurred, with VW Group’s new head, Martin Winterkorn, planning to create a separate group for its premium brands Audi, Bentley, Lamborghini and Bugatti, similar in style to Ford’s Premium Auto Group. VW, Skoda and Seat will remain as its mass market division. Furthermore, Porsche is expected to request a capital increase at the next general meeting in preparation of the possible Audi spin-off.
If the merger occurred, Porsche together with Audi would be able to sell more than a million cars annually, with a higher yield than either Mercedes or BMW. This would leave Volkswagen Group consisting only of VW, Skoda and Seat, which would still maintain an annual output of four million cars but with much lower margins. It would also enable Audi to make the final push to unseat BMW and Mercedes as the premier German carmaker, reports the Handelsblatt newspaper.
The proposal of a restructure is not as far-fetched as it seems. The first steps towards the move have already occurred, with VW Group’s new head, Martin Winterkorn, planning to create a separate group for its premium brands Audi, Bentley, Lamborghini and Bugatti, similar in style to Ford’s Premium Auto Group. VW, Skoda and Seat will remain as its mass market division. Furthermore, Porsche is expected to request a capital increase at the next general meeting in preparation of the possible Audi spin-off.
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Comments (1 total)
Meet the top commenters on the LeaderboardBy Gunnar #1, Posted: 11/28/2006
In some parts Audi has already succeeded at the aim - their cars are much more highly regarded in the UK than Bimmers or Benzes.
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