So Porsche has extended its controlling stake in Volkswagen. Today Stuttgart confirmed it now holds 35.14 percent of the voting rights in the huge sprawling Volkswagen group – up from 31 percent. The minnow continues to swallow the whale; it’s just enjoying its fish banquet at a very leisurely pace.
Why is this story significant? Well, VW is now a mere subsidiary of Porsche under German law. And that in turn means that Porsche has to table a bid for Audi. The automotive landscape is again being redrawn before our very eyes…
Porsche buying VW: what it means
Sports car maker Porsche plans to increase its stakeholding in VW even further. Back in March, CAR reported how Porsche planned to buy more than half of VW’s stock and this deal has huge implications for Europe’s biggest car making concern.
We already hear of boardroom spats between Porsche execs and VW top brass. Stuttgart’s golden boy chief exec Wendelin Wiedeking and chairman Wolfgang Porsche are at loggerheads with VW chairman Ferdinand Piech, as they map out the future of the new combined Porsche-VW behemoth.
Porsche and Wiedeking vs Piech: clash of the titans
This is a fascinating battle being played out in the business pages of the world’s media. It’s made all the more interesting by the dynastic element to the story – Piech might be chairman of VW, but he’s also a Porsche family shareholder. And cousin of Dr Wolfgang Porsche. This battle runs across car badges and into the very bloodline of Europe’s most cherished brands.
But much as equity and executive shuffles intrigue me, I’m even more fascinated by what these mean to the product. And in a world where the Volkswagen empire now produces everything from the Bugatti Veyron, the Audi R8 and the Lamborghini Murcielago, you can see why Porsche might be throwing its weight around.
I predict more ructions ahead…
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