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Porsche to wait until after holidays for VW takeover

11/28/2007, 4:01 PM

By Drew Johnson

The European Court of Justice ruled earlier this year that Germany cannot block the sale of Volkswagen because of what is dubbed as “VW law” — a regulation setup after World War II that protected Volkswagen AG from a hostile foreign takeover. The European Court of Justice found that the Federal Republic of Germany failed to allow the free movement of capital within the European Union. But despite the ruling, Porsche has yet to make a move to acquire VW.

According to Porsche CEO Wendelin Wiedeking, the automaker will wait until after the holidays to make any moves. “Christmas is the holiday of peace; let’s create a little harmony,” Wiedeking said.

But even come January, the acquisition could take some time. “Even now, none of the players involved knows how many moves will still be required and how long it will take until the game is finally over,” Wiedeking added.

The ruling gave Porsche — VW’s largest shareholder — the same voting rights as the German state of Lower Saxony — VW’s second largest shareholder.

Porsche has been interested in acquiring a controlling stake of VW and the new ruling should allow for a takeover. Porsche is interested in access to VW’s smaller vehicles in order to comply with stricter proposed emissions regulations. Earlier this year, Porsche threatened the European Union with legal action over the new regulations, but the purchase of VW will likely quell any threat of a law suit.

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10/23, 10:04 AM

posted by:

autonut

Very interesting: that is what GM and remaining “big” should do to offset 35 mpg CAFE regulation in US. Just buy bunch of small car manufacturers and sell in appropriate ratios to meet the standard. And of course, lower the fuel consumption.

10/23, 10:05 AM

posted by:

Commodore

Porsche is still a German company so what do they have to worry about?

Also, Porsche’s number one reason for doing this is to be able to meet emission regulations? Wow

10/23, 10:14 AM

posted by:

Brendino

This interests me more in the political end. The European Union can boss around nations like that? Fascinating.

10/23, 10:16 AM

posted by:

autonut

The state of Saxony has special class shares that gives it more control over the board and decision making of the company. It is basically the same as class A shares owned by Ford/Firestone clan at FOMOCO. It is illegal in Europe now. I would love to see this rule apply to states as well: lineage should give you economic preference in democratic society.

10/23, 10:17 AM

posted by:

autonut

meant to say “should not give you preference”

10/23, 10:39 AM

posted by:

Rotman

@Brendino

It’s not fascinating, it’s downright scary since a lot of people are against this kind of influence.

10/23, 10:55 AM

posted by:

Brendino

fascinating != good. i’m merely saying that it intrigues me.

and yes, it is scary. i mean, i wish that the US listened to the UN more, but i couldn’t imagine the UN coming in and telling us how to run our businesses. dang.

10/23, 11:23 AM

posted by:

Jazz

Germany could always opt out of the EU. Porsche is not only doing this for the fuel regs but also the sheer ROI. Porsche invested 5 Billion in VW and that investment is now worth 16 Billion. What investment do you know of that returns 220%? As a business person you’d be foolish not to try to duplicate those results.

I agree autonut. Saxony should buy more shares if thery want more control. I say go Porsche go.

It is my opinion that Porsche is the driving force on the cool products coming out of VW now.

Tuareg, A5, R8, Q7 can all be attributed to Porsche
1) Tuareg/Q7 making sure the cost to manufacture Cayennes was lowered
2) Tuareg/Q7 — Gas mileage average could be driven down further by more diesel platforms
3) R8 – continue development on mid-engined designed cars for the eventual successor to the 911 (maybe – not totally sure here but its not that much of a stretch)
4) A5 – come up with an operating chassis and driving dynamic test bed for eventual 928 return.

Enough of my fanboy optimism though.

10/23, 12:16 PM

posted by:

autonut

I am of different opinion on EU politics. I think much more people are interested to join in then opt out of the Union. For the first time Europe will have standard on democracy, free of local interpretation of democracy. Most of East Europe is volunteering to join and Turkey too. Theirs constitution is largely similar to US, so there is nothing to be afraid off.

10/23, 1:12 PM

posted by:

dchown_13

Jazz,
I truly hope 911’s will never become mid engine. At some point porsche will accept that a mid engined model above the 911 (due to the laws of physics) is not a bad idea, but the 911 will lose its character and legend if it is no longer rear engine.
I also doubt that the next 928 will be based on a quattro platform. Porsche will want the front mounted engine as far back as possible and i would be surprised if it was designed to be an awd car.
Time will tell i guess.
I think porsche is mainly doing this so that they can maintain their brand image and not have to give in to fuel efficiency.

10/23, 1:59 PM

posted by:

nowei

Well, to a certain extent, US businesses are already beholden to international regulations under things like NAFTA, CAFTA, and probably something else under the WTO. On the surface, those agreements are basically supposed to do what the EU is doing here, prevent governments from giving unfair advantages to businesses.

Except in this particular case its a little different because it’s not actually the government supporting an independent business, but rather the government using its own powers as a legislative body to exert an increased level of control over a public corporation that it owns. Or at least that’s the way I see it. I can’t say I know too much about German/European politics or economics.

10/23, 2:02 PM

posted by:

nowei

Also, I appreciate the name European Court of Justice, as opposed to a court of law.

Although personally, I think I feel more comfortable under the authority of a court of law.

10/23, 2:36 PM

posted by:

autonut

it US of A which largely responsible for EU. The first time in history Europeans put their **** together after observing how our market, economy, law works to our advantage over their feudal days boundaries and practices.

Since progress is inevitable, I hope that EU will be better Union then our own. They certainly have enough population and intelligence to make it happen. They probably will get their resolve as well. There is nothing new in those laws. I think it is time for US on this side of pond adopt some better practices from Europe. We should learn as well.

10/23, 4:25 PM

posted by:

Jazz

I hear you dchown_13 but the fact that the Cayman S is very close to 911 performance has to make you wonder about the future of the 911. Maybe the 911 will move up in price to make roon for more models of the Cayman. If they do that then a mid-engined Porsche above a 911 would have to start like 150k. Though that would dovetail nicely into (out of?) an R8. I doubt that Porsche would not use an existing A6/A5 chassis. After all they are trying to leverage as many parts as possible from VW.

What will Porsche do with Lambo though?

I think nowei has it right with the NAFTA reference. The US scrambled after it saw what the EU was doing and cobbled together CAFTA.

10/24, 3:13 PM

posted by:

nowei

With regard to Lamborghini, I think the argument could be made that it’s future is the safest of any of the VW group companies. Simply because I don’t see any of the other brands ever making a model that truly overlaps with a Lamborghini, because Lamborghinis have the kind of ostentatious flair that’s more-or-less lacking from all other VW group companies. I mean, even the Veyron is actually pretty reserved when you consider it is (arguably) the most intense car on the planet. I don’t think Porsche will touch the Murcielago or even the Gallardo, but because of its increased level of useability and accessibility (over the Gallardo) I could see the R8 having a relatively short lifespan, if Porsche has anything to say about it.

In fact, if Porsche did acquire Lamborghini by acquiring the VW group it would be a pretty nifty way for them to get out of having to build an improved 911. I mean, it’s pretty common knowledge that the rear-engined design is less than efficient, and I also know that with the 997 they were pretty much at the end of the line for their flat-six engine, as well. So it seems that a rethink is in order, whether it’s in the form of a complete redesign of the 911 (it would be the first in like 40 years) or a model that slots above the 911. If they wanted to do the latter they could do it fairly easily with Lamborghini. Simply end Porsche where Lambo begins. But I dunno… they’d have to swallow their pride and let Porsche take a back seat, which might prove impossible.

Also, at the risk of droning on for way too long, I would like to suggest that BMW has a lot to be worried about if this arrangement goes through. Porsche’s already building a sports sedan, but imagine if they took control over the entire Audi lineup. They could give the world’s biggest sport/luxury car manufacturer a serious run for their money. That being said, I don’t see why BMW can’t rise to the challenge of fighting off Porsche-Audis.

11/28, 4:33 PM

posted by:

RicardoHead

In other words ….

….. “Genießen Sie bitte den Weihnachten, arme VW-Mitarbeiter, aber komm Januar werden wir Euch ficken.”

11/28, 4:38 PM

posted by:

autonut

Thanks God, Poland is safe for now :) !

11/28, 4:39 PM

posted by:

CA36GTP

I guess I’m in the minority here. I’ve had the privilege (or misfortune) of living in both the US and the EU, and the idea of the US adopting ANY EU policies scares the **** outta me.

11/28, 5:05 PM

posted by:

Sharif

If the European Union scares you, then u guys should read about the Amero it is the U.S. version of the Euro. it is the European Unoin but with Mexico and Canada. The U.S. is even contemplating the idea of merging the borders with Central America and Canada to become one Entity. That would mean Canada and Mexico would eventually become part of the U.S. For those of u how don’t understand this the European Union was just the start of the New World Order.

11/28, 5:23 PM

posted by:

brocky

go Porsche

11/28, 5:26 PM

posted by:

jackjimturkey

Sharif: you’ve been reading too much worldner daily. I don’t care about the E.U. one way or the other.

CA36: Where would you rather live?

11/28, 5:36 PM

posted by:

TOZO

Swallow VW up already!

11/28, 6:05 PM

posted by:

RicardoHead

Euro, Amero …… will the new arab currency be the Camelo?

11/28, 6:16 PM

posted by:

C6Racer

“a regulation setup after World War II that protected Volkswagen AG from a hostile foreign takeover”- hahaha!
lmao@Ricardo

11/28, 6:16 PM

posted by:

C6Racer

oops, didn’t mean for that to turn into a link

11/28, 7:56 PM

posted by:

CA36GTP

JJT: Hard to say. The EU is ****ed up, but the US appears to be following in its footsteps. Pretty soon there will be no where to go for people who want basic liberty instead of government getting involved in every ****ing part of your life.

11/28, 10:34 PM

posted by:

johnnycanuck

Sharif you ****ing moron. What the hell are you talking about? The Amero? Canada become part of the US? Excuse me? I am Canadian and trust me, we are no more likely to become part of the US than you are to stick your tiny dick up your own ass. What ****ing twisted cult are you part of? Listen closely ****head, put the bong down and quit jerking off in your mother’s underwear. ‘New world order’- the only order you’ll be taking will be coming out of a clown’s mouth.

11/29, 8:38 AM

posted by:

maximus

there are a lot of rich jagoffs pushing for the North American Union and the ‘Amero’. It’s BS, but they are really pushing for it. I like how the article says, “foreign hostile takeover”!!! What!!!??

11/29, 9:07 AM

posted by:

CA36GTP

I wouldn’t be all that surprised to see a North American Union, though I don’t think it will be anytime soon. Mexico might as well join up since they live off the US anyway. The average American in the growing generation is stupid enough to say “Whoa, free healthcare and legal weed?? Sign us up!”. Half of Canada probably just wants the opportunity to move someplace a little warmer.

People are stupid.

11/29, 9:21 AM

posted by:

Rotman

From a strategic point of view it makes a lot of sense for Porsche. I do hope they won’t mess around with Lamborghini.

11/29, 10:18 AM

posted by:

sharpie

Economically it is happening, the NA Union is called NAFTA! Other than that, I doubt there will be any more integration between the three countries. Their cultures, laws and political systems, as well as conventions are very different.

11/29, 12:38 PM

posted by:

jackjimturkey

CA36: The only benefit would be that american corporations would more efficiently rape mexico’s natural resources. bad idea.

Sharpie: you’re on the ball

11/29, 4:20 PM

posted by:

jackjimturkey

R-Head: How do you make the ß show up?

11/30, 9:57 PM

posted by:

Boxster2.7L

I don’t see how Porsche will benefit from aquiring VW. They are head and shoulders above the rest performance car industry right now. I think adopting VW would cause more headaches, even though much of the Cayenne powerplant and chassis design is sourced from VW.

12/13, 10:40 PM

posted by:

rymert19

Porsche, soon to be swimming in Euro’s, if not drowning…

 
 
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