Yes, technically. In 2011, Volkswagen acquired Porsche. Porsche was once considered a division of Volkswagen AG (interestingly, besides being the Porsche parent company, VW also owns Audi, Bugatti, and Lamborghini). In that sense, Volkswagen AG is the business that owns Porsche.
In This Article...
Automotive Group
- International Fleet of the Volkswagen Group the Volkswagen Group Vehicle Air Service
Industrial:
Automobile Industrial Motors
International:
- China’s Volkswagen Group India Volkswagen Group American Volkswagen Group Automotive Group of Australia Canadian Volkswagen Group Malaysian Volkswagen Group Brazilian Volkswagen Ireland Volkswagen Group Italian Volkswagen Group South African Volkswagen Taiwanese Volkswagen Group UK-based Volkswagen Group
Volkswagen AG, also known as the Volkswagen Group internationally and with its headquarters in Wolfsburg, Lower Saxony, Germany, is a multinational automobile manufacturer. The business creates, produces, and sells motorcycles, passenger and commercial vehicles, engines, and turbomachinery in addition to providing related services including financing, leasing, and fleet management. It held the title of largest carmaker in the world in 2016 and continued to hold it in 2017, 2018 and 2019, selling 10.9 million vehicles. For more than 20 years, it has consistently held the greatest market share in Europe. On the 2020 Fortune Global 500 list of the biggest businesses in the world, it came in at number seven.
In addition to selling passenger cars under the Audi, Bentley, Cupra, Lamborghini, Porsche, SEAT, Skoda, and Volkswagen names, the Volkswagen Group also sells motorcycles under the Ducati brand, light commercial vehicles under the Volkswagen Commercial Vehicles name, and heavy commercial vehicles under the names of listed subsidiary Traton (IC Bus, International, MAN, Scania and Volkswagen Caminhoes e Onibus). The Automotive Division and the Financial Services Division are its two main divisions, and as of 2008, it had roughly 342 subsidiary businesses. FAW-Volkswagen and SAIC Volkswagen are two other significant joint ventures for Volkswagen in China. The business operates in about 150 nations and has 100 production sites spread across 27 nations.
In 1937, Volkswagen was established in Berlin and incorporated in Wolfsburg with the goal of producing the car that would come to be known as the Beetle. In the 1950s and 1960s, the company’s production increased significantly. It purchased Auto Union in 1965, which went on to build the first Audi vehicles after World War II. In the 1970s, Volkswagen introduced a new line of front-wheel-drive cars, including the Passat, Polo, and Golf, which went on to become its best-selling model. SEAT became Volkswagen’s first non-German brand when the corporation acquired a controlling interest in it in 1986. Volkswagen also gained ownership of Skoda in 1994, Bentley, Lamborghini, and Bugatti in 1998, Scania in 2008, and Ducati, MAN, and Porsche in 2012. Over the past ten years, the company’s operations in China have expanded significantly, making China its largest market.
Volkswagen Aktiengesellschaft is a publicly traded business with secondary listings on the Luxembourg Stock Exchange and SIX Swiss Exchange in addition to its principal listing on the Frankfurt Stock Exchange, where it is a component of the Euro Stoxx 50 stock market index. Since 1988, it has been traded via American depositary receipts in the US; it is currently traded on the OTC Market. In 2013, Volkswagen ceased trading on the London Stock Exchange. 12.7% of the company’s shares are owned by the Lower Saxony government, giving it legally 20% of the voting rights.
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.
BMW’s two problems
If you believed that the Mini Cooper was initially a symbol of Britain, you should know that BMW, a German luxury automaker, owns and manufactures Mini automobiles. Following a deal with Volkswagen Group, who now have custody of Bentley, BMW is now the parent company of Rolls-Royce Motor Cars, another British luxury car brand that attracts attention everywhere it travels.
In 1917, the engine manufacturer Rapp Motorenwerke changed its name to Bayerische Motoren Werke, and in 1922 it amalgamated with the aircraft manufacturer Bayerische Flugzeug-Werke. It initially began selling aviation engines before extending its manufacture to include motorcycles and cars in the future.
In relation to the Volkswagen group, numerous well-known automobile brands are owned by this German automotive behemoth. Volkswagen currently owns all of Audi, Scania, and Porsche, as well as Skoda Auto, Lamborghini, and Ducati in its entirety. The Volkswagen Group obviously makes great decisions when selecting its auto brands because they can claim to hold some of the best and most recognizable auto brands in the world.
In order to mobilize its populace for the future, the brand needed to have a car for the masses. Only a few of the models were produced before the start of World War II, at which point the factory shifted its focus to producing military vehicles.
Following the war, production of the company’s iconic Beetle began to pick up again, eventually reaching a total of over 21 million. Volkswagen’s corporate headquarters are in Wolfsburg, Germany. These assets are within the corporation’s control:
- Volkswagen
- Bentley
- Audi
- Bugatti
- Porsche
- SEAT
- Lamborghini
- Skoda
- MAN
- Scania
- Ducati
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.
Despite the fact that Porsche only sells 3% of the vehicles produced by the VW Group, it may be worth almost as much as its parent firm.
- The proposed spin-off of Volkswagen’s Porsche division is currently the subject of “advanced discussions.”
- A separate Porsche might be valued nearly as much as VW’s current market capitalization of EUR110 billion.
- VW could continue to be in charge of the hugely successful Porsche and use fresh money from an IPO for EV research and development.
Volkswagen Group confirmed earlier allegations from Manager Magazin and Bloomberg on Tuesday by stating that it is in “advanced conversations” with its major shareholders about an IPO of the Porsche segment.
According to the Wall Street Journal and Bloomberg, analysts predict that the brand’s IPO valuation will fall between EUR90 billion and EUR110 billion ($102 billion and $124.5 billion).
Despite the division selling less than 3% of the total number of vehicles sold by the VW Group, that is nearly equivalent to VW’s current market valuation of around EUR110 billion.
Even while Porsche sells fewer units than VW, the brand’s operating profit margin prior to the pandemic was approximately twice as high, and in 2021, Porsche’s profits made up one-third of VW’s entire earnings.
But analysts aren’t just looking at the company’s electric future; they’re also looking at the improved profitability. one of them.
According to the Journal, VW may raise between EUR23 billion and EUR27.5 billion ($26 billion to $31 billion) in new cash by selling 25% of Porsche in an IPO. With a view to competing with Tesla, Porsche and VW may utilize those money to advance their electrification efforts.
With the exception of the 911, Porsche aims to go completely electric by 2030, with the Taycan and next Macan EV models serving as the company’s main drivers.
But before the purchase can go through, VW must persuade its majority shareholders as well as its board of directors, which is made up of labor union and state government members.
Porsche Automobil Holding, which holds 53% of VW’s equity while VW owns the Porsche name, represents the stockholders in question, the Ferdinand Porsche heirs who created the legendary Beetle.
After Toyota, VW is the second-largest automaker in the world, producing vehicles under the Audi, Lamborghini, Bentley, Porsche, and other names.
VW was Porsche owned?
VW owns Porsche, right? Yes, Porsche’s parent company is Volkswagen Group. In 2011, Volkswagen and Porsche amalgamated. The parent business of numerous other luxury automobile manufacturers, such as Audi, Bentley, Bugatti, and Lamborghini, is the Volkswagen Group.
What percentage of Porsche does VW own?
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.