In 2011, Volkswagen acquired Porsche. Porsche was once considered a division of Volkswagen AG. In that sense, Volkswagen AG is the business that owns Porsche.
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Porsche
Porsche is a name that is closely associated with fast sports automobiles. The Volkswagen Group owns the German company, which has its headquarters in Stuttgart.
Ferdinand Porsche established Porsche in 1931, originally working on other people’s cars like the Volkswagen Beetle. The 356, which shared many design cues with the original Beetle, including its rear-mounted air-cooled four-cylinder engine, was the first Porsche vehicle built under its own brand following World War II. The rear-mounted air-cooled 911, which was created as a roomier, more powerful, and more comfortable replacement for the 356, debuted in 1963 and over the course of eight generations has grown to become one of the most recognizable sports cars in the entire world.
The Porsche and Piech families’ voting-share ownership has made the corporate structure somewhat of a soap opera over the years, which was exacerbated worse when Porsche and Volkswagen both attempted to acquire each other in the early 2000s. There were intricate arrangements regarding who owned what at various corporate levels, but in the end, Porsche AG was owned and run by Volkswagen AG in 2012. A resolution was reached to consolidate their production activities.
Porsche’s lineup of vehicles also includes the Boxster, Cayman, and Panamera performance sedan in addition to the legendary 911. With the 2002 release of the Cayenne and the 2014 debut of the more compact Macan, the brand entered the SUV market. With the Taycan’s introduction last year, Porsche has also entered the market for high-performance electric automobiles.
Group
The Group consists of ten brands from five different European nations: Audi, Lamborghini, Bentley, Porsche, and Ducati. Volkswagen, Volkswagen Commercial Vehicles, A KODA, SEAT, and CUPRA are also included. The Volkswagen Group also has a large number of additional brands and business divisions, including financial services. Volkswagen Financial Services includes leasing, leasing for customers and dealers, banking, insurance, and fleet management services.
The Volkswagen Group is laying the groundwork for the biggest reform process in its history with its aNEW AUTO – Mobility for Generations to Comea Group strategy and future program: the realignment of one of the best automakers to become a leading provider of sustainable mobility on a global scale. To do so, the Group will change its core automotive business, which will include, among other things, the introduction of another 30 or more fully electric vehicles by 2025 and the expansion of battery technology and autonomous driving as new key businesses.
The wealthy Porsche and Piech family views its 53% ownership of Volkswagen as a key investment.
Despite market turbulence brought on by Russia’s war against Ukraine, VW intends to list the Porsche sports-car division.
After VW’s Porsche sports-car division is listed on the stock market, the wealthy Porsche and Piech families intend to maintain their controlling ownership of the Volkswagen Group.
Through their family investment company, Porsche Automobil Holding SE, the Porsche and Piech family owns a 53 percent stake in the Volkswagen Group.
According to Bloomberg Intelligence, Porsche SE intends to acquire a 25 percent blocking position in the anticipated Porsche IPO, which may fetch up to 90 billion euros ($99.1 billion).
According to Chief Financial Officer Johannes Lattwein on Tuesday, Porsche SE has a solid financial position and ample room to raise outside funding.
On a conference call with reporters, Lattwein stated that there are “no plans to lower the share in Volkswagen at this time.”
The IPO, the VW Group’s greatest strategic move in years, was being worked on by teams that were “very engaged,” he said.
Despite market instability brought on by Russia’s conflict against Ukraine, VW is still making plans to list the Porsche sports car division, one of VW’s major sources of profits.
The action is a part of VW’s aim to increase its market valuation and finance the largest transition in the industry to electric automobiles. It’s impossible to exclude out negative effects from the Ukrainian conflict on the IPO, according to Lattwein.
CEO Hans Dieter Poetsch, who is also the chairman of VW’s supervisory board, stated on the call that Porsche SE has “an great future ahead.”
“Cash flow is anticipated to increase even further, and the company can be expected to have both an attractive payout policy and an investment policy that is focused on the future.”
According to the agreement, the supply contracts between VW and Porsche would remain in effect, Poetsch added.
The Porsche and Piech families would be able to recover direct control over the sports car brand in what was formerly their family business under the present parameters of the IPO, which are still being negotiated.
The family would receive a 25 percent plus one share blocking minority holding under the proposed arrangement.
Lattwein said the Porsche and Piech families’ direct ownership of the brand would be financed in part by a special dividend VW had proposed.
An iffy connection will conclude with a flotation.
A LONG WAIT IS OFTEN INVOLVED IN BUYING A NEW Porsche. Some purchasers now face additional delays as a result of a fire that broke out last week mid-Atlantic on a ship carrying 4,000 automobiles, including Porsches, from the stable of brands controlled by Volkswagen, as if limited production and distant dealers weren’t enough of a bottleneck.
Porsche the firm is similar to Porsche automobiles. After Porsche’s bold bid to acquire the much larger German firm in 2008, VW joined with the legendary sports car manufacturer, and talk of allowing investors to purchase a portion of the latter has been circulating nearly continuously ever since. Due to a VW rescue, Porsche’s near-bankruptcy was averted as a result of the mishap. As a result of the incident, Porsche became a fully owned subsidiary of VW in 2012. Another was that the holding company run by the aristocratic Piech and Porsche families, who are decedents of the founders of the sports car manufacturer, became VW’s largest shareholder.
Now more than ever, a parting of the ways appears imminent. Volkswagen and the holding company for the families claimed to be in “advanced discussions” regarding a Porsche initial public offering (IPO) on February 22nd.
Herbert Diess, the CEO of VW, could hardly wait for the spin-off to occur. He has been working to organize VW’s cumbersome lineup of ten different brands. He could do without the trouble of dealing with flashy Porsche, which has always thought of itself as superior than the competition. For instance, Porsche insisted on creating its own platform to support electric cars rather than sharing one with the other brands in the group to save money.
Ferrari is not Porsche. Its operating margin of over 15% is far lower than the 25% or so of the Italian company. But it performs far better than the rest of VW. Even though the group produced only 277,000 of the 11 million vehicles it produced in 2019 (before the pandemic and the accompanying chip bottleneck), it contributed 10% of group revenues and 25% of group operating profit. The Taycan, a battery-powered vehicle, demonstrates that it has an effective electrification plan that most other sports-car manufacturers do not. Porsche, according to banker Philippe Houchois of Jefferies, is worth between 60 and 90 billion euros. That amounts to more than EUR 109 billion, or half of VW’s current market capitalization.
The Piech and Porsche families, too? According to some estimations, if they hadn’t attempted the failed coup in 2008, their members would today be twice as wealthy. Additionally, in order to purchase Porsche stock, their holding company will need to obtain cash, maybe by selling some of their VW stock. However, as Mr. Houchois notes, they would at least reclaim a more direct share in the company that carries the family name. They may have been waiting for it, after all.
The headline for this piece was “Reverse gear” and it was located in the Business section of the print edition.
Use VW components in Porsche?
Among these synergies is the provision of Porsche components to sibling companies. Other brands may use the Panamera platform for conceptual or under development vehicles, according to Macht.
Macht responded that the 911 platform “might be made available to other VW brands” when asked if it was also on the table. But Porsche won’t employ any other VW Group engines save the V6 in the Cayenne. Macht stated that “engine development is a basic value for Porsche.”
Porsche is now focusing on weathering the global recession after its failed effort to acquire VW. The company aimed for annual sales of 150,000 cars prior to the credit crunch. However, sales this year are down 24% to little over 75,000. With its three core model families—the Cayenne, Panamera, and 911/Boxster—Porsche will make an effort to achieve its initial aim, but it is also considering additional range expansions.
“Any brand-new model would need to be upscale, athletic, and have a strong financial case. Porsche must be the most expensive, top-quality, and capable of providing the best driving experience in any segment “explained Macht.
The Panamera’s 1800kg kerb weight is low for its market segment, making it an ideal candidate for efficiency improvements. There will be a six-cylinder Panamera available next year, and eventually there will be a hybrid and a diesel Panamera as well.
Porsche has also considered building an electric vehicle. According to Macht, “it would have to have the same maneuverability, performance, acceleration, and range as a conventional Porsche.”
“The current state of technology is incompatible with Porsche’s needs. At least two years will pass before the technology is up to par.”
Volkswagen produces Porsche engines, right?
Because Ferdinand Porsche created the original Volkswagen Beetle, the business has always maintained a tight link with the Volkswagen (VW) marque and eventually the Volkswagen Group (which also owns Audi AG).
The VW-Porsche 914 and 914-6, each with a Porsche engine and a Volkswagen engine, were created in collaboration by the two companies in 1969. The Porsche 912E (US only) and Porsche 924, which incorporated several Audi components and were produced at Audi’s Neckarsulm facility, formerly owned by NSU, were the products of more collaboration in 1976. There were also Porsche 944s produced, albeit with significantly less Volkswagen parts. The 2002-released Cayenne shares a chassis with the Audi Q7 and Volkswagen Touareg, both of which are produced at the Volkswagen Group plant in Bratislava, Slovakia.
Which VW was a Porsche?
The Porsche 914, also known as the VW-Porsche 914, is a mid-engined sports car that Volkswagen and Porsche jointly developed, produced, and marketed from 1969 to 1976.
Which Volkswagen was a Porsche?
Volkswagen and Porsche jointly developed, produced, and sold the Porsche 914, also known as the VW-Porsche 914, from 1969 until 1976.