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Volkswagen to gain a financially embarrassed Porsche

Porsche Panamera production (copyright image)

Porsche's executive management originally wanted Volkswagen at, seemingly, any cost and as a result burdened itself with massive debt in what became a ridiculous attempt to take-over the huge world-wide interests of Volkswagen. Now a financially weakened Porsche has little option but yield to a much 'mightier' Volkswagen. In the playing field of corporate greed, a case study of Porsche's unrelenting grab for Volkswagen over recent years will demonstrate what is both good and bad in the business culture of the 21st Century. Wisdom suggests that it is not unreasonable to expect management to manage, yet at Porsche it seemed a gamble to gain VW became an obsession that became a 'blind obsession' long before it became obvious that the attempt was never going to succeed. Another lesson is that shareholder's funds should never be used for gambling, for even gamblers recognise that for every winner there must be a loser. Editor.

Home > News > Volkswagen

26th July, 2009

The Supervisory Board meetings of Volkswagen Aktiengesellschaft and Porsche Automobil Holding SE which took place in Stuttgart on Thursday cleared the way for an integrated automotive group combining Volkswagen and Porsche. The details of a final joint concept will be worked out over the coming weeks. Representatives of the Porsche and Piëch families (major shareholders), the State of Lower Saxony and the workforce of both companies have however already expressed their great satisfaction with the foundations that have now been laid.

The Chairman of the Supervisory Board of Volkswagen Aktiengesellschaft, Dr. Ferdinand K. Piëch, sees the integrated group clearly on course for success: “Together, Volkswagen and Porsche have all it takes to occupy a leading position in the international automotive industry.” Talking in Stuttgart, Dr. Wolfgang Porsche emphasised that today’s resolutions represented a landmark decision and a milestone achievement for the future, adding: “Porsche will preserve the myth and identity of the Porsche brand in the integrated group. That brings new prospects for growth.”

The labor representatives Bernd Osterloh, Chairman of the Group Works Council of Volkswagen, and Uwe Hück, Chairman of the Group Works Council of Porsche, were extremely positive in their assessment of the perspectives for the integrated group. According to Osterloh: “We are definitely heading in the right direction. Over the coming weeks, we must make sure the employees benefit from the new perspectives, too.” Hück commented: “Porsche will retain its independence in the integrated automotive group. Porsche must remain Porsche.” The Prime Minister of Lower Saxony, Christian Wulff, underlined that the solution represented the best course for both companies: “This solution accommodates the interests of all concerned and safeguards the strength and performance of Germany’s automotive industry.”


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