Porsche buys into Volkswagen

[Aurora40]

Porsche Taking Stake in VW

Two ofGermany's automakers are banding together, financially, to protect the country's largest automaker from a hostile takeover. Following reports last week that financiers from Arab countries as well as Kirk Kerkorian were interested in buying up shares in beleaguered Volkswagen, Porsche says it will take a stake of about 20 percent in VW. Porsche confirmed the move, the AP reports, by noting that VW has become "a significant supplier for about 30 percent of our sales volume" and "an important partner in development." Porsche has worked with VW on the design and engineering of the Cayenne/Touareg/Q7 SUVs, and in the future will develop a hybrid powertrain for the trio. "With this engagement, we want to secure our business relations with VW and also safeguard in the long term a significant part of our future planning," Porsche chief executive Wendelin Wiedeking said in a statement. The stake would, under current German law, prevent a hostile takeover. The pricetag for the stake is estimated at $3.6 billion.

From: www.thecarconnection.com/index.asp?DID=RSS&n=173&sid=173&article=9354

[Letitroll98]

Gee, I thought they were just about the same company already. ;D It is a little surprising Porsche is so cash rich that they can purchase 20% of Gemany's largest carmaker.

[oldsauroraman1]

Does this mean a name change now? Are we talking about "Porkwagon" here?

[95mushroom]

Makes sense, Porsche and VW/Audi have always been related. Though Porsche designed a few cars for other manufactures (i.e. the 500E and 190E for Benz).

Porsche is so cash rich because they'll a private company and can do whatever they want. No board to deal with.