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Porsche has secured control of VW with a controlling stake of 35 per cent
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17 September 2008

Porsche has finally secured control of Volkswagen by pushing its share ownership above 35 per cent. This buys sufficient votes on the board to dictate the major management decisions at the Skoda-to-Bugatti group.

"Today's step is a further milestone in our goal to increase our stake in Volkswagen to 50 per cent," says Porsche CEO Wendelin Wiedeking.

But whether this step is sufficient to halt the infighting that has engulfed the two sides, still remains to be seen.

Porsche scion Ferdinand Piech (pictured) is said to be trying to oust Wiedeking over differences in future strategy, while Wolfgang Porsche is said to be doing the same to Piech.

The Volkswagen works council, a powerful body representing workers, is also resisting Porsche's takeover amid worries that heavy job cuts feature in Porsche's long-term vision for VW.

An interesting legal twist is that VW employees will now sit on Porsche's works council and supervisory board, which has a powerful veto on strategy. Further heated board meetings seem pretty much assured thanks to this development.

With all the internal strife raging, it's not surprising that Porsche's statement on its 35 per cent shareholding refers optimistically to "looking forward to continuing and intensifying our co-operation with the management board of VW".

Differences over future strategy have previously spilled out in public. Porsche, for example, believes there is too much product overlap in the Audi, Seat and VW ranges.

And there are concerns in the up-market echelons of the VW Group of Audi, Bentley and Bugatti that Porsche wants to eradicate competition to its models and force technical solutions from its R&D labs.

Julian Rendell


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sierra 18 September 2008

Re: Porsche secures VW control

This is beginning to be a re-run of the "Rover" story; takes you back to the Jaguar v. Triumph v. Rover days. Hopefully the outcome will be different, but what are the chances of the Chinese picking over the bones in 10 years time?

pitfield 18 September 2008

Re: Porsche secures VW control

The R8 is the ideal way of making a faster Boxster without it competing within the Porsche range, as long as people are buying a VAG/Porsche product and the brands aren't suffering. I think the competition will only advance things in technology and will leave them at the very top of the market.

jagwar 17 September 2008

Re: Porsche secures VW control

I agree with you on finding some kind of middle ground. But I think the world is big enough for cars like the R8 and 911. A bit of internal competition is good, it will keep standards high and will ultimately benefit customers. And if Porsche wants to avoid competition maybe it should rethink its next car the Panamera? Or at least the price of it.

However I am beginning to wonder what benefit to the VAG-Porsche Group SEAT has.

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