Porsche: Creating the Plot to Takeover Volkswagen?

Porsche is known for producing small but immenselyformer CEO of Volkswagen and now hold the chair
powerful engines. The same can be said about theof the upper supervisory board. And recently, in the
company---small but powerful. Porsche is a Germanmost cunning display of power and influence, Piech and
automaker renowned for its lines of sports car. NewsWiedeking have conspired to oust Bernd
has it that the German sports car maker is gettingPischetsrieder who is the former boss of BMW and
closer to its goal which is to control Europe’sVW CEO. He was replaced by Martin Winterkorn who
largest automaker, the Volkswagen Group. It should beis a protégé of Piech.
noted that Porsche is one of the largest shareholdersPiech has also previously worked at Porsche where
of Volkswagen with a total of 27.4% and is planning tohe was responsible for the launching of the 917 racer.
further increase its stakes if not for the VolkswagenAfterwards he went to Audi and started the Quattro
Law.revolution. When finally became the CEO of VW he
The Volkswagen Law limits the voting rights offoster quality turnaround which helps VW and Audi to
shareholders in the company to 20% regardless ofobtain a place in the premium car segment. He also
how large their owned shares are. Another provisionintroduced a platform strategy to control costs.
on the VW law also gives the right to the State ofThere is a strong partnership between Porsche and
Lower Saxony to appoint directors regardless of theVolkswagen not only because of family but also of
fact that they are not the largest shareholder of theinterest. Porsche wants to increase its stakes in
company. The VW Law is nothing but unfair toVolkswagen to protect its investment and also to
Porsche. This is also the very reason why Porschemake sure that its ongoing cooperative efforts with
would like the VW Law to be abolished.Europe’s largest automaker will not be jeopardized.
The Volkswagen Law was ratified in 1960 during theAt present, the German sports car maker is sharing
time of privatization following the postwar. During thatproduction facilities with Volkswagen. Europe’s
time Volkswagen was rescued by the allied andlargest is also the supplier of quality parts to Porsche
German authorities. The VW Law was created tolike Volkswagen pressure plate and others that are
protect the company from any form of takeover.used to build cars.
But currently the European Court of Justice has begunSome of the vehicles produced by Porsche in
to criticize the VW Law stating that the law hinderspartnership with Volkswagen are Cayenne and
the flow of free capital which increases the possibilityTouareg SUVs. The upcoming Panamera sports
for it being cancelled. Furthermore it is also expectedsedan will have its body built at the VW’s Hanover
that if ever the law is repealed the State of Lowerplant and will use VW Audi electronic bus systems
Saxony might sell some or its entire 20.8% stakes inplus other parts such as safety electronics,
Volkswagen and the probable buyer is none otherinfotainment, security and climate detecting gadgets.
than Porsche.But according to some reports the interest of Porsche
Wedelin Weideking, Porsche boss has expressed histo Volkswagen goes beyond pure business interest -
desire to increase the company’s stake insome say that Wiedeking thinks that he can do a
Volkswagen to 8.6 billion Euros or $11.2bn. But whymuch better job than any of the bosses in VW. The
does Porsche has such care for Volkswagen? Evenousting of Pischetsrieder is seen by many as a means
before, Porsche has already have had a big influenceof slowly taking control of Volkswagen. It is not going
at Volkswagen brought by the fact that part ofto be surprising if one day Porsche will really take over
Volkswagen takes its root from Ferdinand Piech, whoVolkswagen.
is a member of the Porsche family. Piech was also the