VW Wins Porsche: But Can Porsche's New Boss Prevent VW From Expanding the lineup?
09.26.2009 MotorTrend: VW Wins Porsche: But Can Porsche's New Boss Prevent VW From Expanding the lineup?
After 61 years, the air-cooled rear engines, the VW-built 914, the Audi-built 924, and the Cayenne-Touareg, Ferdinand Porsche's little sports car company is "merging" with the automaker built from the ashes of his People's Car design, Volkswagen AG. As Daimler did with Chrysler, this merger places VW firmly in control, though Porsche will remain headquartered in Stuttgart. Under former chief Wendelin Wiedeking, holding company Porsche SE bought 51 percent of VW.
VW's second-largest shareholder, the state of Lower Saxony, owns 20 percent. That stock is like the Ford family's in Ford Motor, in that it prevented Porsche from gaining control even as it held majority shares. A Qatar emirate-controlled investment fund, which had been buying up interest in Porsche, now owns 17 percent of VW. Porsche ran up a debt of about 10-billion euro ($12.8 billion) in its four-year bid to gain control of VW. When much of that debt came due, VW turned the tables and took over Porsche. It's a victory for VW chairman Ferdinand Piëch, grandson of founder Ferdinand Porsche and cousin to Porsche chairman Wolfgang.

















