Report: Porsche to gain majority share in VW

Posted Sun Sep 2 2007 10:50 AM by Kenneth Hall

Porsche AG is planning to increase its stake in VW to 51% by the beginning of next year according to a new report by “Der Spiegel”, a German weekly magazine. As expected, a spokesman for Porsche said no decision had been made whether to raise the stake above the current 31%. This refers back to a previous announcement by the company’s CFO, Holger Haerter, where he said that Porsche has acquired some options in order to raise its stake in VW if needed.

According to market speculation this would be achieved by buying out the 20% stake owned by the state of Lower Saxony, though Lower Saxony and Porsche both deny any such plans.

A majority share in VW would allow Porsche to reduce both costs and development time so that they can meet the 130g/km C02 emissions standard by 2012. Currently Porsche’s most efficient model, the Cayman, outputs 222g/km of C02 and the Cayenne Turbo SUV a massive 358g/km. Porsche has ruled out a diesel model, but they are working in conjunction with Audi and Bosch to develop a petrol-electric powered V8 for the Cayenne. It is also rumored that a hybrid engine will be available on the upcoming Panamera from launch. Economies of sale would also be increased by sharing more components with the VW group of companies.

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