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Porsche and VW merger back on the table

Porsche and VW merger back on the table

Alex Kaufmann May 19th, 2009 Alex Kaufmann By Alex Kaufmann Author May 19th, 2009
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December 31st, 1969 Like the Ouroboros, Porsche and Volkswagen have been considering an arrangement that would have heavily indebted Porsche Automobil-owned Volkswagen purchasing Porsche AG. A tentative solution was reached earlier this month that would have seen Porsche and VW combine to put 10 brands under a single corporate structure, and while talks broke down over the weekend due to an ongoing rift between the two companies, executives now appear to have changed course. VW originally announced on Sunday that talks about an integrated company with Porsche scheduled for Monday have been canceled. Come Tuesday, however, Ferdinand Piech, chairman of VW, and Wolfgang Porsche of Porsche expressed their intention in a joint statement, saying the two companies would push forward to achieve their goal “constructively and amicably.” The decision came several hours after Porsche confirmed it was looking for an outside investor to help pay its debts, reports Automotive News. These debts amount to more than €9 billion ($12 billion) and were racked up last year while Porsche was increasing its stake in VW to 51%. To help manage the debts, Porsche announced earlier this month it wanted to form an integrated company with VW so that it could gain access to the German auto giant’s cash reserves. Details of the merger are expected to be finalized by early June.
Though it's backwards to the way Porsche would have had it, the merger will happen

Though it's backwards to the way Porsche would have had it, the merger will happen

Enlarge Photo

Like the Ouroboros, Porsche and Volkswagen have been considering an arrangement that would have heavily indebted Porsche Automobil-owned Volkswagen purchasing Porsche AG. A tentative solution was reached earlier this month that would have seen Porsche and VW combine to put 10 brands under a single corporate structure, and while talks broke down over the weekend due to an ongoing rift between the two companies, executives now appear to have changed course.

VW originally announced on Sunday that talks about an integrated company with Porsche scheduled for Monday have been canceled. Come Tuesday, however, Ferdinand Piech, chairman of VW, and Wolfgang Porsche of Porsche expressed their intention in a joint statement, saying the two companies would push forward to achieve their goal “constructively and amicably.”

The decision came several hours after Porsche confirmed it was looking for an outside investor to help pay its debts, reports Automotive News. These debts amount to more than €9 billion ($12 billion) and were racked up last year while Porsche was increasing its stake in VW to 51%.

To help manage the debts, Porsche announced earlier this month it wanted to form an integrated company with VW so that it could gain access to the German auto giant’s cash reserves.

Details of the merger are expected to be finalized by early June.

Tags: Industry, VW

Posted in: Porsche, Volkswagen, News


Comments (14 total)

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  1. ma_Countach avatar by Countach #1, Posted: 5/5/2009

    Wendelin Wiedeking should be left alone as CEO of Porsche. Anyway, just when I thought the dust have settle, now this!

  2. ma_NC2010 avatar by NC2010 #2, Posted: 5/6/2009

    Wendelin Wiedeking should be left alone as CEO of Porsche.

    As long as they can get him to dance to Herr Piech's music. Now there is the brains of the outfit.

  3. ma_Aiman avatar by Aiman #3, Posted: 5/6/2009

    How about a new Porsche based on R8 platform & next A8 based on Panamera? Too confusing!

  4. ma_gazzed avatar by gazzed #4, Posted: 5/6/2009

    Porsche is terribly intimidated that a lot of cars made under the Volkswagen/Audi umbrella are better so they want to dumb them down by this massive buy-out.
    You can tell by the one car ( 911 ) and clone them into other segments., what a total cheapskate, lazy and no sense to move forward in terms of design.

  5. ma_Michael D avatar by Michael D #5, Posted: 5/7/2009

    The title of this article indicates that with the marriage of Porsche and VAG will result in 10 brands.

    I know of eight, listed below:

    • Volkswagen
    • Seat
    • Skoda
    • Audi
    • Lamborghini
    • Bentley
    • Bugatti
    • Porsche


    What are the remaining two?

  6. ma_Damien Thomas avatar by Damien Thomas #6, Posted: 5/17/2009

    Michael D,

    VW groups its Volkswagen brand into 'Passenger Cars' and 'Commerical Vehicles' - so 2 separate brands. There is also Scania - a truck manufacturer.

  7. ma_NC2010 avatar by NC2010 #7, Posted: 5/18/2009

    "You can tell by the one car ( 911 ) and clone them into other segments., what a total cheapskate, lazy and no sense to move forward in terms of design."

    You sound like someone that does not really understand what the current 911 has become. It has been virtually retooled in the last 5 years and has a totally new engine design almost every other year. Porsche continues to embarrass other big name manufacturers with their engineering content. And the appearance design of the 911 is still one of the best.

  8. ma_axial66 avatar by axial66 #8, Posted: 5/18/2009

    NC2010 there is much truth in the essence of what 'Gazzed' stated. Porsche is intimated by Audi actually. And they realise the superior build quality, and interior (do not get me started on the interior, even VW's SUV Lineup is far more superior to that of Porsche's) workmanship will cannibalise Porsche's sale. Certainly Porsche has it's own customer base, many of whom have bought into the brand, rather than the car itself. However perceptions are changing. The Panamera looks pregnant and clumsy for one, much like the outgoing 7 series. Regardless, Porsche has lived off the technological progress and development of VW & Audi for years.

  9. ma_axial66 avatar by axial66 #9, Posted: 5/18/2009

    NC2010 there is much truth in the essence of what 'Gazzed' stated. Porsche is intimated by Audi actually. And they realise the superior build quality, and interior (do not get me started on the interior, even VW's SUV Lineup is far more superior to that of Porsche's) workmanship will cannibalise Porsche's sale. Certainly Porsche has it's own customer base, many of whom have bought into the brand, rather than the car itself. However perceptions are changing. The Panamera looks pregnant and clumsy for one, much like the outgoing 7 series. Regardless, Porsche has lived off the technological progress and development of VW & Audi for years.

  10. ma_axial66 avatar by axial66 #10, Posted: 5/18/2009

    NC2010 there is much truth in the essence of what 'Gazzed' stated. Porsche is intimated by Audi actually. And they realise the superior build quality, and interior (do not get me started on the interior, even VW's SUV Lineup is far more superior to that of Porsche's) workmanship will cannibalise Porsche's sale. Certainly Porsche has it's own customer base, many of whom have bought into the brand, rather than the car itself. However perceptions are changing. The Panamera looks pregnant and clumsy for one, much like the outgoing 7 series. Regardless, Porsche has lived off the technological progress and development of VW & Audi for years.

  11. ma_axial66 avatar by axial66 #11, Posted: 5/18/2009

    NC2010 there is much truth in the essence of what 'Gazzed' stated. Porsche is intimated by Audi actually. And they realise the superior build quality, and interior (do not get me started on the interior, even VW's SUV Lineup is far more superior to that of Porsche's) workmanship will cannibalise Porsche's sale. Certainly Porsche has it's own customer base, many of whom have bought into the brand, rather than the car itself. However perceptions are changing. The Panamera looks pregnant and clumsy for one, much like the outgoing 7 series. Regardless, Porsche has lived off the technological progress and development of VW & Audi for years.

  12. ma_axial66 avatar by axial66 #12, Posted: 5/18/2009

    My apologies for the multiple posts, it is incomplete, yet something wrong with the site today.

  13. ma_HECTOR avatar by HECTOR #13, Posted: 5/20/2009

    Sorry but I don't understand how anyone can think that the 911 needs to *evolve*. When you have a car that is that good, that is the standard by which other cars in that category are measured, you must continue in that same vein while providing your customers with periodic upgrades.

    I have sat inside a 997 among other variants of the 911 and let me tell you build quality is top notch. I am not Porsche's *customer base* (first of all because I can't afford one) but rather I'm Ferrari man. However, even I have to admit that Porsche's quality is superior to that of Ferrari.

    But this is all missing the point. If you don't *get* the 911 then there's no explanation that will satisfy you.

    Oh and BTW: Cayenne and Panamera... I don't consider those real Porsches but rather abortions of nature that are sullying the brand.

  14. ma_WizardsLore avatar by WizardsLore #14, Posted: 6/1/2009


    Oh and BTW: Cayenne and Panamera... I don't consider those real Porsches but rather abortions of nature that are sullying the brand.

    but those "abortions" are the reason that the brand will stay afloat.
    Trust me i wish that we could have the 911 and a 928 (well jsut for me that is) and thats it...but this isnt a perfect world..and Porsche as a company need to continue to turn a profit. And the only way to do that is to create these other ranges that will appeal to a wider demographic !

    I dont like it either but if it means i can still pine for a 911 Carrera 4S and maybe one day get one then so be it !

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