Porsche and VW Agree to a Merger?
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Thanks for the post. Previous articles mentioned that one of the requirements for a merger, laid down by Piech, was the immediate ouster of Wendelin Weideking, architect of Porsche's resurrection from the dead in the '90's.
I previously thought Porsche had been very clever to acquire enough VW stock to support a takeover (and make a $6-billion profit), but apparently it was debt-financed and they seem to have outsmarted themselves and fallen into the clutches of Mr. Piech.
I don't recall all the details, but I believe that Piech left Porsche in the first place as a very unhappy camper. He is a member of the Porsche family, and obviously a very able and powerful man.
Sounds like big changes are in the offing!
I previously thought Porsche had been very clever to acquire enough VW stock to support a takeover (and make a $6-billion profit), but apparently it was debt-financed and they seem to have outsmarted themselves and fallen into the clutches of Mr. Piech.
I don't recall all the details, but I believe that Piech left Porsche in the first place as a very unhappy camper. He is a member of the Porsche family, and obviously a very able and powerful man.
Sounds like big changes are in the offing!
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Piech is a genius... and very interesting to talk to. I was lucky to have lunch with him about 25 years ago, when he was head of Audi. He sat right next to me at an event, and I grilled him with questions about car design. He was so nice that he referred the questions he could not answer to his design chief - who wrote me a long and detailed letter with the answers....
My understanding is that there had been family internal disagreements about the direction of Porsche, so when Ferry took the company public in the early 70ies, he decided that the management would be professionals, and none of the family members would stay in the day-to-day business.
As a result, Piech moved to Audi, and Ferdinand Alexander eventually started Porsche Design. And so on...
Piech is an engineering genius, and very clever strategist. Eventually, he moved on to run VW, where he added more brands to diversify the product portfolio while covering the full range of automotive technology. He ensured that platforms and components were designed such that they could be combined in more ways than competitors' components, brought the quality up and up and up, and worked WITH the unions and worker's council, rather than against them.
He clearly is one of the best leaders in the automotive industry!
My understanding is that there had been family internal disagreements about the direction of Porsche, so when Ferry took the company public in the early 70ies, he decided that the management would be professionals, and none of the family members would stay in the day-to-day business.
As a result, Piech moved to Audi, and Ferdinand Alexander eventually started Porsche Design. And so on...
Piech is an engineering genius, and very clever strategist. Eventually, he moved on to run VW, where he added more brands to diversify the product portfolio while covering the full range of automotive technology. He ensured that platforms and components were designed such that they could be combined in more ways than competitors' components, brought the quality up and up and up, and worked WITH the unions and worker's council, rather than against them.
He clearly is one of the best leaders in the automotive industry!
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Yea, I too thought Porsche had really pulled a fast one and was in the catbird seat, but alas all they built was a house of cards... Very sad that this whole thing was debt financed. I really thought Porsche had DONE IT, but clearly they had not and now they will be made to PAY DEARLY for this I suspect!
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It is quite unusual that a company makes more profit than sales, but I thought they had everything well secured. It seems this was a case of perpetual optimism, or not knowing when to stop.
Before this all happened, one of their ex-CEOs told me that there is no way the car business alone could support the company's activities, and that traditionally, they made a large chunk of their profits from non-car business, such as contract engineering. It sounds like they shifted from engineering services for third parties to financial services for themselves - only that they were not as experienced in the latter as in the former...![Wink](https://rennlist.com/forums/images/smilies/wink.gif)
However, they still achieved one of the main goals, which is to secure VW from a takeover by a third party, and to get more access to VW technology and manufacturing.
I am curious to see, if this will change the plans to move manufacturing of Boxster and Cayman to Austria. Now they might have the option to move it to a VW facility. Another possibility is to move it to Karman, which (as VW) is in the State of Lower Saxony. The State holds 20% of the VW shares and does not want Karman to lose its auto production arm (which is currently in Bankruptcy proceedings).
The only thing we know is that things won't stop changing anytime soon...
Before this all happened, one of their ex-CEOs told me that there is no way the car business alone could support the company's activities, and that traditionally, they made a large chunk of their profits from non-car business, such as contract engineering. It sounds like they shifted from engineering services for third parties to financial services for themselves - only that they were not as experienced in the latter as in the former...
![Wink](https://rennlist.com/forums/images/smilies/wink.gif)
However, they still achieved one of the main goals, which is to secure VW from a takeover by a third party, and to get more access to VW technology and manufacturing.
I am curious to see, if this will change the plans to move manufacturing of Boxster and Cayman to Austria. Now they might have the option to move it to a VW facility. Another possibility is to move it to Karman, which (as VW) is in the State of Lower Saxony. The State holds 20% of the VW shares and does not want Karman to lose its auto production arm (which is currently in Bankruptcy proceedings).
The only thing we know is that things won't stop changing anytime soon...
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It will certainly be interesting to see what unfolds over the next year.
I'm sure all of the recent news will change many opinions on the need for the Cayenne and Panamera.
I'm sure all of the recent news will change many opinions on the need for the Cayenne and Panamera.
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Panamera VW platform share at Porschwagen.
Be interesting to see how VW redoes that rear end of the 4 door hatchback it it happens.
Be interesting to see how VW redoes that rear end of the 4 door hatchback it it happens.
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A platform is just that, a platform. you can put lots of different bodies on top of it. I doubt Volkswagen would put another hatchback on the Panamera platform, but maybe a sedan that is positioned above the Passat and uses non-Porsche engines.
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Nudge (Turbodiesel luxury 4 door) nudge.
Too bad the VW Phaeton just didn't market well.
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Remember that the Phaeton platform was not just used for that one car. The smaller Bentleys are built on it as well.
The question is now what VW will do in terms of premium platforms / component sets - they have a sporty one from the Panamera, and the super luxurious larger one from the Phaeton.
The latter is said to be heavy overall and front-heavy in particular, but there are rumors a successor is in the works. A Panamera based vehicle would slot between this and the Passat, which I believe will be based on a new platform, using smaller sized engines with various forms of forced induction.
And then there is also the all aluminum A8 - I hear there will be an all new one introduced at the Frankfurt auto show later this year. It's supposed to be totally different from the Panamera, and very sporty as well.
The question is now what VW will do in terms of premium platforms / component sets - they have a sporty one from the Panamera, and the super luxurious larger one from the Phaeton.
The latter is said to be heavy overall and front-heavy in particular, but there are rumors a successor is in the works. A Panamera based vehicle would slot between this and the Passat, which I believe will be based on a new platform, using smaller sized engines with various forms of forced induction.
And then there is also the all aluminum A8 - I hear there will be an all new one introduced at the Frankfurt auto show later this year. It's supposed to be totally different from the Panamera, and very sporty as well.
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I still don't get it.
Why would VW even bother moving upmarket with their offering when they have Audi and Porsche.
VW - Entry level to mid luxury car
Audi - Luxury to Sports car
Porsche - Sports - GT Car
If they use the above they can still use the same platform for several of their cars and avoid competing against themselves. Otherwise they are making the same mistake GM did and we all know how that turned out.
Why would VW even bother moving upmarket with their offering when they have Audi and Porsche.
VW - Entry level to mid luxury car
Audi - Luxury to Sports car
Porsche - Sports - GT Car
If they use the above they can still use the same platform for several of their cars and avoid competing against themselves. Otherwise they are making the same mistake GM did and we all know how that turned out.