In a bid to speed along integration with Porsche Automobil Holding SE, Volkswagen announced on Tuesday that it will purchase a 49.9 percent stake in the German sports car maker. The move will cost Volkswagen $5.8 billion.
VW was originally slated to take a 42 percent interest in Porsche, but upped that investment level to 49.9 percent due to better than expected progress on some VW-Porsche joint projects. That 42 percent stake was expected to cost VW $4.9 billion.
With the investment now in place, VW hopes to complete its merger with Porsche by the end of 2010. VW currently supplies parts for about a third of all Porsche’s vehicle offerings, according to Automotive News.
The news comes as a complete reversal for Porsche as the company was planning a 51 percent takeover of VW up until just a few months ago. Porsche failed to raise the necessary capital to complete the takeover, resulting in a 10 billion euro debt and the firing of the company’s CEO and CFO.
10/20, 5:05 PM
posted by:
A4
Make ‘em say uhhhhhhhhh, nana nana
10/20, 5:28 PM
posted by:
elantra_touring
The other half is owned by the Chinese….
HAHAHAHA
10/20, 5:59 PM
posted by:
cab396
Patriarc Porsche, Ferdinand…..by the way, is he still amongst us? If not, he must be rolling over and over and over, 6′ under, or in a shrine!
At least part of this relationship is still German. I suspect, in time, that the Chinese part of this relationship will disappear. Remember the golf cource(s) in Carmel (USA) that the Japanese bought for a small fortune….later to resale for a song!!! I know times have changed, but you can see this coming down the road.
10/20, 6:31 PM
posted by:
scratchy
cab396 , VW is still owned by the Porsche families , there is no need for Ferdinand to be angry, if anything he would be happy because his companies are under one roof. also , what’s with the Chinese ? they don’t own anything in VW or Porsche.
10/20, 6:33 PM
posted by:
JakeK66
Next gen 914 and 928 are on the way!!!
So Porsche is sending out these USB drives for people interested in the new Panamera… So what do I do on the sign up for “more info”? I say I own a Audi S8 and am looking at a Maserati Quatroporte for my next car and am looking to spend around $100k… I figure that way I’ll raise some flags for some cool free stuff.
10/20, 6:39 PM
posted by:
scratchy
the numbers are wrong , LLN . Porsche planned a full takeover of VW, they owned 74.4% of VW but it wasn’t enough to take control of the company because of the VW law.
10/20, 7:20 PM
posted by:
A4
Well now Porsche doesn’t own sh!t, sooo yeah!
10/20, 7:49 PM
posted by:
Genesis101
^^ your first comment made me laugh lol!
10/20, 9:29 PM
posted by:
idrinorbarsaku
scratchy,
Where the hell have you been? Hibernation mode? Porsches takeover of VW FAILED MISERABLY!!!
——————————————-
VW has $5.8B to spend!?!?!? DAMN!!!! I wish ford or gm had that kind of money!
10/20, 9:50 PM
posted by:
85ZingoGTR
Porsche and VW have been designed partners for virtually 60 years. Maybe even more. So it really wont hurt either Porsche or VW as long as they don’t go their seperate ways. Now here’s my other question. Why is their a picture of the Auto Union logo when the article is about VW and Porsche? lol
10/20, 10:29 PM
posted by:
johnnycanuck
I’m willing to bet that when the Beetle was first introduced to North America 5.8 billion was the gross national product of more than half the countries in Europe.
10/21, 2:15 AM
posted by:
leftwingagenda
idrino…
http://www.leftlanenews.com/vw-planning-to-raise-more-than-14b-through-new-share-offering.html
there is your answer
10/21, 8:38 AM
posted by:
idrinorbarsaku
Yeah, I remember reading that, but I wish we could manage such a thing over here…I guess FORD kind did that, right?
10/21, 11:30 AM
posted by:
DenverGuy217
The Corporate Finance folks at VW and Porsche have some of the most confusing jobs these days. All this back and forth, takeover, bid etc stories of the past year are confusing
10/21, 3:43 PM
posted by:
hfry
They already own porsche. haha
10/22, 12:27 AM
posted by:
Bankruptcy2009
Um forming these Huge AutoUnions is not the THING to do. I think GM and Ford proved this theory of collecting alot of brands was better. The Problem is if you don’t know how to manage yourself then how the hell can you manage your aquisitions????
10/22, 3:25 AM
posted by:
gritsandeggs
How ironic that VW owns Bentley and controlling share of Porsche.
10/22, 9:39 AM
posted by:
scratchy
idrinorbarsaku , i was saying that 51% is not enough to own VW because of the VW law.
10/22, 9:42 AM
posted by:
scratchy
Bankruptcy2009 ,VW’s strategy is different than GM’s strategy. that’s why VW does well and GM went down.