The supervisory board of Volkswagen met in Stuttgart today, a symbolic act that documented the occupation of formerly enemy territory. The board of Porsche had pulled an all-nighter before and prepared everything for the surrender: A capital increase was approved, facilitating the entry of another party. A deal with Qatar was sanctioned. The heads of Wiedeking and Härter were presented to the victors on a titanium platter.
After the Volkswagen board meeting was over, VW CEO Winterkorn met the press and stated that the road is clear that leads to a new Volkswagen/Porsche company. Step-by-step, Porsche will be annexed by Volkswagen. As a, well, final solution, the Porsche Automobil Holding will be amalgamated with the Volkswagen AG, Automobilwoche [sub] says.
Winterkorn’s speech writer must be a trekkie: According to Winterkorn, the new company will become a “force field” in the automotive industry. Fears that Porsches could be rebadged as Skodas or Seats were allayed by Winterkorn: Porsche will remain “an independent label.”
The “integrated group of companies” should be ready in 2011. Christian Wulff, Premier of Lower Saxony, owner of 20 percent of Volkswagen’s shares, figures that he keeps his 20 percent in the new company. Qatar will hold around 17 percent. The Porsche clan will keep their 51 percent. Piech and Winterkorn will rule the new empire. Wulff repeated the ambitious goal to dethrone Toyota by 2018. After that, Volkswagen will finally fulfill its founder’s dreams and rule the world.
I still don’t see how VW plans to take down Toyota by 2018. They had better get their quality issues under control by then.
After that, Volkswagen will finally fulfill its founder’s dreams and rule the world.
Shouldn’t they make better cars before assuming the top spot?
sad day for Porsche fans.
I think it’s kind of funny.
Porsche probably thought they were the smartest guys in the world for a while when they used other peoples money to buy VW, and now all those investment bankers they pissed off appear to have gotten their revenge by having the dinner eat the diner.
Don’t worry, superbad; the way things are going, Toyota’s quality will match VW’s by 2018.
Wonder whether it’ll be Hyundai which makes the actually reliable cars in 2018?
Thus, the epic finally ends. Now it’s time to put together the novel, heavily disguised, of course. Since Piech won, painting Wiedeking as the sleazy bad guy can keep you out of trouble. The last line is brilliant. It opens up all kinds of possibilities for the sequel – you don’t just make a movie these days, you start a franchise. You’re going to be rich, Bertel.
So does this mean now they’ll be able to make a glove box door for the Jetta that doesn’t break off in the owner’s hand?
(I’m on my third one right now and one of the hinges on it is already broken)
It seems hard to believe that VW will “rule the world” given their weak USA dealer network and USA presence (including how many of their cars they have no intention of selling here).
Then again, if India and China decides that VW is the car to own, it could happen.
Sneaky Hitler reference! Love it.
I guess the question now is how long until the first FWD Porsche and will it be a rebadged Chrysler minivan?
Bertel, The big question in my mind is, how much richer are the Porsche/Piech clan, now that they own a big chunk of VW? Is the total value of their holdings worth substantially more than before? If so, they should give WW a thank you note along with his severance check.
I hope something good can come of this saga: a retro 914 perhaps?
Wow!
Like sands through the hourglass…
If the Porsche and Piech families increase their net worth and Wiedeking and Härter get their massive platinum parachutes, then in a way everyone is cashing out.
Looking at the world economy this is a much smarter course of action then the chumps throwing money at walking dead car manufacturers.
Very little question that they will be one of the few survivors based on this alone.
@kurtamaxxguy : The USA is a large market but not the most important one.
kurtamaxxguy et al:
I always called (and call) it dumb luck that VW fornicated the canine in the USA. What you don’t have, you can’t lose. Toyota is paying a hefty price for being strong in the USA. For once, VW is strong in the right markets: Germany (on Abwrackprämien-speed), Europe (never went down that far and is coming back), China (VERY strong), Brazil (strong) Volkswagen is #2 worldwide now, don’t forget.
Really, “final solution”. Funny or in bad taste. Can’t quite decide.
“Fears that Porsches could be rebadged as Skodas or Seats were allayed by Winterkorn: Porsche will remain “an independent label.”
No, we’ll keep brand dillution program solely in the VW camp.
Fifty years from now the US will hardly matter as an automotive market. 5% of the world’s population isn’t going to be where the most action is.
VW is doing very well in growth markets where Toyota is struggling. The fact that VW has been in constant stumble and fumble mode in the US has actually been to their benefit of late.
The VW vs. Toyota sales race will be a serious business. VW has lots of problems, but it is one of the most effective platform leveraging companies in the business. Most other companies are trying very hard to catch up with VW’s effective platform strategy.
This merger need not hurt Porsche in any way. Porsche has always borrowed from the VW parts bin, and now they will also be able to do some sharing with Lamborghini, Bentley & Bugatti.
panzerfaust: No, we’ll keep brand dillution program solely in the VW camp.
While VW had had its brand management challenges (see SEAT) it really has been remarkably successful considering it has been juggling eight brands. Bentley and Lamborghini are far more successful than ever before, with still-limited production and no SUVs or vans. Audi’s lineup is broad but well-received, whether it’s A3 or R8. Skoda has gone on to be a strong and respected marque (600K units per year) — and the VW brand itself has backed off from the initial Phaeton follies.
Brand management is inherently difficult, and even more so when combined with a platform strategy — look at GM (enough said), Chrysler (Plymouth), Ford (Mercury, Lincoln, Volvo) and Fiat (Alfa Romeo, Lancia) for some examples of difficulties in creating and managing multiple brands.
So let me get this straight…Porsche “the car company” gets swallowed by VW who is owned 51% by Porsche “the family”.
@th009:
Lambo might not make minivans (yet) but they still make tractors I believe.
I hope some of that “Porsche Technology” makes it into the SEAT. That and the Suzuki are the only attractive hot hatches. Maybe a left over 959 AWD system could makes its way into the SEAT Ibiza!
@Kurt: Your wishes about SEAT came true (kind of) in 1984 already!
The original SEAT Ibiza (the first SEAT not to be a FIAT clone) had a powertrain co-developed with Porsche, with corresponding badging.
http://www.modifiedcars.com/cars/Seat/17030_7840.htm
Yeah, I drove one, and while it was kind of good-looking in an 80s kind of way (it was a Giugiaro design) and the engine wasn’t bad, the rest of the car left much to be desired. (VW bought the company a few years later, and the Ibiza subsequently moved onto the Polo platform.)
Incidentally, Nanjing Automobile still makes a car based on the Ibiza Mk1 design and tooling, called the Soyat …
kurtamaxxguy :
July 23rd, 2009 at 12:06 pm
Then again, if India and China decides that VW is the car to own, it could happen.
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The Chinese are clearly abandoning VW as of right now. VW once has over 50% of market share in China. That share was in constant decline ever since the entry of Honda, GM, Hyundai and Toyota. An exact repeat of what happened in the US 4 decades ago. At this rate, VW will be an inconsequential player in China in 20 years.
As for India, I don’t know much. But common sense tells VW won’t have an easy time competing with Tata and Honda.
And BTW, don’t forget about the US and Japan markets. They are still in the top three (along with China). VW has essentially no presence in these two markets.
@wsn: VW’s 2008 sales in China were 1.024 million units (see http://club.xilu.com/vwworld/msgview-808671-64803.html) and so far in 2009 sales are up 23%. VW market share in China has grown every year since 2005.
But maybe you have some different numbers?
Maybe when this finally happens, someone will bring some sanity to the Porsche line up and kill the Cheyanne.