Dr. Ing. h.c. F. Porsche AG, Stuttgart, announced yesterday that it would seek to acquire a share of approximately 20 per cent in the stock capital of Volkswagen AG, Wolfsburg; thereby giving Porsche AG voting entitlements.

The decision by Porsche to seek a 20 per cent stake is to secure business relations between the two German companies. Volkswagen is an important development partner for Porsche and responsible for supply of parts for approximately 30 per cent of Porsche’s sales volume.

“In making this investment we seek to secure our business relations with Volkswagen and make a significant contribution to our own long-term future plans," says Porsche’s President and CEO, Dr Wendelin Wiedeking.

Porsche is in a position to finance the acquisition of the planned share in Volkswagen through its own, existing liquidity. After careful examination of this business case, Porsche is confident that the investment will prove profitable for both parties.

The Supervisory Board has authorised Porsche’s Board of Management to implement the plan. Porsche is in contact with the Board of Management of Volkswagen in order to scrutinise and verify the options available in accordance with appropriate resolutions already taken at Volkswagen’s General Meeting. The assumed share will not under any circumstances reach the threshold at which Porsche would be required to submit a public bid for the takeover of Volkswagen.

The planned acquisition is to prevent a hostile takeover of Volkswagen by investors not committed to Volkswagen’s long-term interests. Otherwise, the anticipated decision of the European Court of Justice to abolish the VW Act (by no later than mid 2007) would leave the company open to such an unwanted takeover.

“We wish in this way to ensure the independence of the Volkswagen Group in our own interest. This avenue we are pursuing is an essential prerequisite for the stable development of the Volkswagen Group and, accordingly, for continuing our cooperation in the interest of both companies,” says Dr. Wiedeking.

Porsche Scores Record Sales In Germany
22nd September, 2005
Porsche posted another record for new registrations in Germany in the last financial year 2004/05. Overall, a total of 16,926 Porsche vehicles were registered ..... more

New Mid-Engined Porsche Coupe
19th September, 2005
Cayman S – the name of Porsche’s new Sports Coupé - is based on the Boxster model. Its Australian release is just months away ..... more

Porsche Plans Hybrid Drive For Cayenne
13th September, 2005
Porsche plans to launch a fourth version of the Cayenne Sports Utility Vehicle by the end of the decade ..... more

Porsche Announces Carrera 4 Prices
14th August, 2005
Porsche Cars Australia Pty Ltd (PCA) has confirmed pricing for the all-wheel drive versions of the 911 that go on sale in November 2005 ..... more

A Porsche .... but not as you know it!
4th August, 2005
Joining the 5,500 examples of Porsches finest sportscars at Brands Hatch for the UK's annual Porsche Festival (28th-29th August) will be a handful of tractors ..... more

New Porsche Panamera Is Due In 2009
28th July, 2005
The fourth model series built by the Stuttgart car maker following the 911, the Boxster and the Cayenne will be called the "Panamera", a name derived from the legendary Carrera Panamericana long-distance race ..... more

Porsche Prepares For Its Future
11th July, 2005
Dr. Ing. h.c. F. Porsche AG, Stuttgart, is preparing for the next period in its future with the imminent securing of a long-term agreement for Porsche locations at Zuffenhausen and Ludwigsburg, along with Weissach ..... more

Porsche's Open-Air Duo With All-Wheel-Drive
5th July, 2005
Dr. Ing. h.c. F. Porsche AG, Stuttgart, presents a new generation of open 911 versions with all-wheel drive. The market launch of the new 911 Carrera 4 and 911 Carrera 4S Cabriolets in Europe takes place on 22nd October, 2005 ..... more