Porsche VW merger

[svandamme]

Just read it in the Belgian News

http://www.nieuwsblad.be/Article/Detail.aspx?articleid=DMF20090506_076

German Car makers Porsche and Volkswagen, already closely relatted have announced that they will merge into an integrated car making concern.
This was announced when the stock holding families had been having meetings in Austria's Salzburg

The concern will cover 10 brands, And the independance of the brans will remain

A basic plan for the future structure should be on the table within 4 weeks...

[RedBaron]

This is not good...

[Dottore]

Actually it makes all kinds of sense.

Certainly more sense than Porsche owning VW.

[svandamme]

it's accounting really... nothing more nothing less
They have worked together since ages anyway... the 914.. the 924..944...Cayenne...

[Dottore]

Originally Posted by svandamme

it's accounting really... nothing more nothing less

I'd say it's more about egos than accounting. Porsche and Piech egos.

And here a merger probably makes more sense than Porsche owning VW.

[Z-man]

The Automotive world is chaning for certain. I suspect that this move is to protect both companies from being bought by a financial investment firm, like what was done with Cerebus / Chrysler.

It does make sense financially. Now if the family members could just get along....

Edit - found the news in English HERE No new info.

-Z-man.

[Porsche-O-Phile]

Something like this is absolutely necessary. Automakers that don't consolidate will not survive this recession. If Porsche isn't able to come out with a new "entry level" car quickly enough (which is how it survived the recessions of the 1970s and 1980s) they're toast. The market for $60,000+ SUVs for part-time real estate agents and soccer moms is DEAD. The market for $80,000 sports cars for day traders is DEAD, the market for $130,000 boy toys for financial managers is DEAD. Their numbers suck right now - they're in the tank down over 40% y-o-y. They desperately need a "new" version of the 924, 944 or 914 (or all of the above). It would take several years at best for this to happen and even then, there's no guarantee. Getting on board with someone else and trying to survive as part of a collective is VERY sensible right now.

Plus there's always the possibility that it might lead to a Porsche-badged car with say, a Bugatti Veyron engine in it... (I know, I'm dreaming...)

[dd74]

Not to stray OT, but Zoltan - is it true a group of Saudis now have controlling interest of Mercedes-Benz?

[Dottore]

Originally Posted by dd74

Not to stray OT, but Zoltan - is it true a group of Saudis now have controlling interest of Mercedes-Benz?

No, no, no. The Abu Dhabi royal family/investment authority upped their stake in MB recently. But it is still under 10%.

Cold hard cash for MB, which it can put to good use in these recessionary times.

[Z-man]

Originally Posted by Dottore

No, no, no. The Abu Dhabi royal family/investment authority upped their stake in MB recently. But it is still under 10%.

Cold hard cash for MB, which it can put to good use in these recessionary times.

Correct. As far as I am aware....

-Z