Volkswagen to Take Over Porsche, Finally.
It seems the VW Group family of car brands is adding one more. Earlier today, Volkswagen AG announced it would be buying the 50.1 percent of Porsche AG that it doesn’t already own, fulling adding Porsche to the stable that includes VW, Audi, Bentley, Bugatti, Lamborghini, Seat, Scania, Skoda and Man. Purchase price: 34,847 Porsche 911 Turbo S’s or $5.6 billion (€4.46 billion) for those people who don’t use cars as a measure of currency.
Is this a good thing for the car world? Volkswagen AG Chairman Prof. Dr. Martin Winterkorn thinks so, saying:
“The unique Porsche brand will now become an integral part of the Volkswagen Group. That is good for Volkswagen, good for Porsche and good for Germany as an industrial location. Combining their operating business will make Volkswagen and Porsche even stronger – both financially and strategically – going forward. We can now cooperate even more closely and jointly leverage new growth opportunities in the high-margin premium segment through targeted investments in pioneering products and technologies. This will benefit our customers, our employees and our shareholders”
Could this mean a Porsche with a Lamborghini V12 mounted way too far out over the rear wheels? Or, a small Bugatti with flat-six? Or, who knows, maybe Porsche will even incorporate some design cues from the Audi R8 into the next 911. Oh, the possibilities.
In case you really like corporate structure diagrams, below are the before and after shots of the company structure, courtesy of VW.
Press Release from Volkswagen AG:
Volkswagen and Porsche create integrated automotive group
- Accelerated integration model permits combination of automotive business with expected effect as from August 1, 2012
- Porsche’s automotive business will be contributed in full to the Volkswagen Group ahead of schedule for around €4.46 billion plus one Volkswagen ordinary share
- Net synergies of approximately €320 million from the accelerated integration will be split 50:50 between the two companies
- CEO Prof. Dr. Martin Winterkorn: “Good for Volkswagen, good for Porsche and good for Germany as an industrial location”