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Porsche acquisition of VW might become “reverse takeover”

11/05/2008, 11:57 AM

By Nick Aziz

To the casual observer, the notion of Porsche acquiring the Volkswagen Group is hard to believe. Of course, those of you who have been following the auto industry for the last few years know that’s exactly what’s about to happen. But when the deal is done, the end result might ultimately be different from what one might expect.

As it turns out, post-acquisition VW probably won’t be a subsidiary of Porsche. Rather, the Porsche division will almost certainly become a brand in the Volkswagen Group, much like Audi, Bentley, or Lamborghini,

Analyst Arndt Ellinghorst told the Automobilwoche Congress in Berlin. “We expect a reverse takeover. In the long term, Porsche will be a brand in the VW group,” he said. “It is in the interests of the Porsche family that VW takes a dominant role,” he said.

Porsche effectively controls 74.1 percent of Volkswagen — thanks to a 42.6 percent controlling stake and 31.5 percent in cash-settled options on ordinary shares.

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11/05, 1:08 PM

posted by:

johnnycanuck

How do you say ‘hide the salami’ in German?

11/05, 1:52 PM

posted by:

JakeK66

Anyone else see a confilct of interest between Porsche and Audi?

11/05, 2:17 PM

posted by:

acura_el2000

^ NO. That’s retarded you’d even think of that

11/05, 2:26 PM

posted by:

A4

i see a conflict of interest between Porsche and the VW group as a whole entity.

11/05, 2:37 PM

posted by:

pzimet

OBAMA BABY, WHOOOOOOOOOOOOOOO!!!!

11/05, 2:47 PM

posted by:

aexcorp

JakeK66,
As far as I know, Audi has never made rear-engine cars, which is Porsche’s bread and butter. They might have the Cayman and the Boxter and the GT, which are mid-engine, but most of the Audi out there are front-engine. Now the Panamera might bring the two a little closer in terms of products, but one model, selling for 120 Gs (so said Leftlane a few days ago) will still leave them in a different tier.

Audi is more known for its tourers and luxury car, with a sporty soul, whereas Porsche is known for being unconditionally sports-oriented, with a luxurious inside still. However, I’d be more concerned about the Lamborgini/Porsche situation, since they’re fighting in a similar segment.

11/05, 3:23 PM

posted by:

howsmydriving

I see a definite conflict between Porsche and Audi: enthusiast cars versus faux-enthusiast cars.

11/05, 3:41 PM

posted by:

Borat

Johny, I believe it sounds like “wiener schtoopen”.

To the censorship dept: this is extremely family friendly translation for a reader’s question

11/05, 3:44 PM

posted by:

johnnycanuck

Borat, I like it. Schnitzel schtoopen also has a nice ring to it.

11/05, 5:45 PM

posted by:

441Zuke

lets spread the ****ing wealth around i am quitting my job and i am going to live off welfare, woo the American dream. I love Jimmy Carter 2.0

11/05, 5:48 PM

posted by:

Madcapp

VW needs to be the lead partner.

11/05, 5:57 PM

posted by:

peacemf

well that whole group makes Sh*t cars anyway!

what?? like porsche makes good cars!!! for heaven’s sake they havent made ANY real changes to their cars in years! just tweaks!

VW is as boring as paint!

audi is the new coc-ky bmw driver group, and the only difference between their ENTIRE model lineup is the name of model ! otherwise they look the same! ask any 60+ aunty and they wouldnt be able to tell the difference between the A4 or A6

although bently is still cool :)

and what about SEAT!!!!!!

11/05, 6:16 PM

posted by:

aexcorp

Porsche follows the “Why fix it if it’s not broken” philosophy, and if you ever drove a 911, you’d know that really, there isn’t much they can do to really improve the lineup that they have.

Their cars are sports cars that can be driven on a daily basis (unless you need 4 seats/a large trunk), that handle well and have some of the best road-feel of any car out there.

Sure, they’re not really in the horse-power race, but the truth is, that race is a non-factor except for people who have a complex in relation to a specific organ. The base 911 gets 0-60 in 4.7 second, more than enough to have plenty of fun and show off whenever needed, and reaches a top speed of 180mph, more than enough to get your license removed 10 times over.

In addition, they’re often the first ones to use new tech in their cars.

Now if you refer to styling, that’s a different story and that’s very subjective, I like the look, some people don’t, my fav remains the 993 for classic value…

11/05, 7:27 PM

posted by:

ckron247

Peacemf you have no idea what you talking about. You say that VW group makes sh*t cars! You understand they make some of the best cars on the market!

Porsche still does and always has made one of the most innovative and high tech sports cars. Making sure that the continually improve speed, handling, and over all aerodynamic design. Just like aexcorp said if it ain’t broke don’t fix it. Which is why even the low end 911 Carrera, can hang with all of the big boys (ferrari, lambo, aston, and yes even bentley). Maybe not in top end speed, but track performance, handling. They have a great product.

You say Audi is the new co*ky bmw driver group. Wow, your a quick one! Thats exactly who they are going after. Thats their direct competitor.
Ask an aunty over 60+ the difference, they probably would be able to tell you the difference between an accord and a camry. Considering thats exacly the market Audi is going after anyways.

Bottom line, VW group makes a great line up car across all of the markets. Doesn’t matter which company your looking at.

11/05, 8:38 PM

posted by:

JakeK66

No conflict, huh? I guess the next generation of rear drive small sports cars being produced by all three (Audi, VW, and Porsche) will not canabalize each other, huh? And the R8 isn’t a competition to the 911 Turbo? When they all start sharing the platforms and switchgear even more than they do now, as with the Toureg triplets then you guys will be able to see it better.

11/05, 8:43 PM

posted by:

JakeK66

@441Zuke…. Hahaha, completely agree – I’ve been saying he’s Jimmy Carter part deux for some time now – I can’t wait for Reagan 2.0 in 4 years… Let’s stop paying our mortgages too because the new guy’s picking up the tab!

11/05, 9:56 PM

posted by:

aexcorp

Umm, as far as I know, Audi’s R8 is in no way direct competition with the 911 turbo. They have quite diverging driving dynamics, engines and style, and probably appeal to different strata of the “rich population”.
As for the next generation of small rear-drive cars, well, Porsche won’t let go of mid-engine, and Audi won’t let go of Quattro, while VW will just do whatever will keep the prices somewhat low.

I can imagine there will be some overlap, but ****, these days, the key to car-making with profit has become simple:
-Platform that can be used in multiple situations
-Engines that can be easily modified based on a similar starting point, or that can fit in different sizes of engine bays.
-Put whatever you want on top of these two things, as long as it doesn’t require much re-design on the first two.

This allows costs to stay low, because you’re mass producing the first two elements with variations, while the third step allows for broad coverage of different markets.

If the VW/Audi/Porsche group does that, they’ll be able to cut costs of production, development, and still come out with products that are very varied. But I personally don’t see it, because Porsche always has and always will use their own chassis out of the aim of obtaining the most perfect car in terms of dynamics.

 
 
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