In a surprising move, German sports car maker Porsche has just taken over the largest European car manufacturer, Volkswagen. After purchasing more than 50 percent of VW’s shares, Porsche is now in the driver’s seat of a massive conglomeration controlled by its shareholders and unions.
This
isn’t the first time that Porsche has attempted to overtake Volkswagen.
In 2005 the automaker made a failed attempt to acquire more than 50
percent of VW due to unstable market speculation, which had sent VW
shares as high as $1,350 per share. With such growth, VW claimed in
August to have overtaken Ford to become the third largest automaker in
the world, behind GM and Toyota.
Reports claim that Porsche intends to increase its stake to 75
percent this year, gaining complete control of the auto group. At
dealers such as Volkswagen Saint Louis, the relationship between VW and Porsche has already been apparent. Vehicles such as the VW Touareg
and Porsche Cayenne already share many components with each other. VW
and Porsche have much to benefit from each other strategically observes
Mercedes Benz Pittsburgh dealers.
Trade
unions are powerful at VW, and reports also indicate that Porsche
control may upset the balance currently established. While Porsche
claims to be a long-term investor, job cuts at VW plants could
ultimately result. At the retail end, Dartmouth Volkswagen
expects plenty of long-term changes and exciting new products, perhaps
further blending components and design across the likes of Porsche,
Volkswagen, and Audi.
Joe Kent is a writer for TK Carsites, an automotive website design and marketing firm in Orange, CA, that specializes in working with car dealers nationwide.
