Porsche buys 20% of VW
Discussion
www.marketwatch.com/news/story.asp?guid=%7BDC54B096%2DE73A%2D4B68%2D9A1F%2DE1E23E072B2A%7D&siteid=mktw&dist=
Written by my good friend at CBS
Written by my good friend at CBS
Porsche has just announced that they’re buying a 20% stake in VW at a cost of about 3 billion €, to protect the group from potential take over bids - the EU is shortly going to force VW to do away with their existing anti-acquisition strategy. Porsche will thus become the primary shareholder in VAG, followed by Lower Saxony.
Porsche investors are peed off at this move as they feel that it will divert funds from Porsche’s own development plans such as the Panamera for 2009, hence the stock is taking a 10% hit today. Porsche are justifying the move through improved security of their current partnership with VW, such as the assembly of Cayennes (30% of Porsches sales) at the Touareg production facility and their joint hybrid motor project.
Anyway, I expect that we will see increased collaboration in the years to come following this move. It wouldn’t surprise me to see the top range sporty models of VAG cars breathed on lightly by porker engineering so they can then have nice, halo-effect “Porsche engineering” stickers on them.
Porsche investors are peed off at this move as they feel that it will divert funds from Porsche’s own development plans such as the Panamera for 2009, hence the stock is taking a 10% hit today. Porsche are justifying the move through improved security of their current partnership with VW, such as the assembly of Cayennes (30% of Porsches sales) at the Touareg production facility and their joint hybrid motor project.
Anyway, I expect that we will see increased collaboration in the years to come following this move. It wouldn’t surprise me to see the top range sporty models of VAG cars breathed on lightly by porker engineering so they can then have nice, halo-effect “Porsche engineering” stickers on them.
gunner said:
very worrying...only a matter of time before they start sharing platforms/parts bins etc.Porsche have spent EU3.3bn,they're gonna want their money's worth I'm afraid.
Anyone with a 924/944/968/Cayenne will confirm that this has been happening for 30 years...
Its a great strategy for securing the long term future of Porsche. There will be an awful lot of consolidation in the car industry over the next 30 years. Like it or not, we will all be driving "green" "sports" cars in the not too distant future. Porsche could never sustain the development of such technology on their own, so they need VW to help them do it. Evolve or die....
Well, if the 924/944 had VAG parts, it stands to reason that 968's had them too - maybe in an evolved form. Lots of relays etc. have VAG stamps on them. I think parts of the front suspension on 968's were VAG parts too. There will be plenty more - don't be fooled by the 968 "80% new" thing over the 944 - statistics can be made to say anything!
basil brush said:
It wouldn’t surprise me to see the top range sporty models of VAG cars breathed on lightly by porker engineering so they can then have nice, halo-effect “Porsche engineering” stickers on them.
Like the original Seat Ibiza?
Wasn't the only porsche 'design' a certain angle of the intake manifold?
It still makes me laugh when I remember people saying "It's got a porsche engine"
David,
I'd be really surprised if you can find more than the odd relay and electrical component that started life on a VW. Front suspension is 100% Porsche, only on early 924's it was VW Beetle(!).
Interesting to see the 'German Project' at work, its a shame we didn't have a 'British Project' when MG Rover was in trouble. Perhaps Tesco could have bailed them out....
Charles
I'd be really surprised if you can find more than the odd relay and electrical component that started life on a VW. Front suspension is 100% Porsche, only on early 924's it was VW Beetle(!).
Interesting to see the 'German Project' at work, its a shame we didn't have a 'British Project' when MG Rover was in trouble. Perhaps Tesco could have bailed them out....
Charles
Well the brokers have made the most of it and will be drinking champagne tonight no doubt. When the news broke, Deutsche Bank passed their recommendation from 'buy' to 'sell', let the shares lose 10.4% yesterday, then strangely changed their opinion from 'sell' to 'hold' today and watched the share climb back up 8.3%!
Nice little earner over 2 days for those with balls of steel (or cynically, for those who knew that DB were going to favourably re-rate the share the next day!).
Nice little earner over 2 days for those with balls of steel (or cynically, for those who knew that DB were going to favourably re-rate the share the next day!).
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