Porsche Takes Out A $46.67 Billion Loan to Take Over VW

I wonder how much a month that is?

I hope Your RICE is better than the stupid comments you say sometimes.

You mean the way Mercedes engineers helped Chrysler?

The difference is, david, that Porsche and VW are two peas in a pod. They were created by the same engineer, Ferdinand Porsche. They were very involved with each other... and have always shared parts, platforms, engines, etc. This will just make the family ties stronger. It will benefit both brands, believe me.

ohhh man!!! the auto industry just got even better. Porsche is setting up itself stand up next to Toyota and GM. Wiedeking was reported saying in December:

“We opened the game. Other players are either striking out against us or joining us in our moves—and now everybody not acquainted with the tactics we had carefully considered in advance is feeling nervous. VW, with all its brands, is the only one with the potential to stand up to Toyota.”

Porsche the legendary sports car maker is now buying out the people's car company Volkswagen. If this deal goes through, Porsche has already paved the path to its own grave.

GermanNut, you're an idiot.

Don't you know that they've always been together? Porsche and VW! They were both started by Ferdinand Porsche!

It's true, the American W. Edwards Deming tought Japan everything they know about quality. In 1960, the Prime Minister of Japan (Nobusuke Kishi), acting on behalf of Emperor Hirohito, awarded Dr. Deming Japan’s Order of the Sacred Treasures, Second Class. The citation on the medal recognizes Deming's contributions to Japan’s industrial rebirth and its worldwide success.

Hey just like Bush.

This might end up being a good thing!

This might as well be a very good thing for VW

http://stocks.us.reuters.com/stocks/overview.asp?WTmodLOC=C2-FindOut-1-FindOutMore

VW stock has doubled within the past year.

BTW, this article says that Porsche must submit a bid but doesnt' actually have to spend the money.

http://today.reuters.com/news/articleinvesting.aspx?view=CN&symbol=VOWG.DE&storyID=2007-03-24T175129Z_01_L24253422_RTRIDST_0_PORSCHE-VOLKSWAGEN-OFFER-UPDATE-2.XML&pageNumber=0&WTModLoc=InvArt-C1-ArticlePage3&sz=13

That's what I read. German law requires them to bid and in order to do that, they must have the means to acquire VW. I doubt it's going to happen. Porsche really just doesn't want anyone else to buy VW. With Germany owning 20% and Porsche owning 31%, they'll have a combined 51% stake in the company.

I think Porsche only has to "attempt" a buy. But from I have read it won't go through.

Where's Bill? He'd gladly talk to you folks about history since he is a history teacher if I recall correctly...

A history teacher who has an S550 AMG? Why couldn't that be me?

This may work out to be a brilliant move by Porsche. I'm sure Porsche's management has considered this but I sure can't figure out how they plan to avoid cannibalism between the marques in the group.

These are just some of the potential problems that the group may have:

911 Turbo vs. Gallardo vs. R8 vs. Conti GT
Cayenne vs. Touareg vs. Q7
Panamera vs. Conti Flying Spur vs. S8
Rumoured Porsche small SUV vs. Tiguan vs. Q5

Does anyone know who they intend to deal with the potential cannibalism problems that may arise?

I feel that the Bentley isn't in contention with the Gallardo, R8 and Turbo. But between those three... I have nothing to say. They're all fabulous cars, and I would own any of them in a second.

Between the SUVs, they were DEVELOPED together, so obviously the three brands found a way around the comparison and the trucks have different "personalities." Different enough to have dissimilar buyers, at least.

Synergies rather than cannibals

how* not who

Hopefully we wont hear anymore about audi being a rebadged VW. Now it is a rebadged porsche. Get that streight BMW lovers(I was reffering to audi bashers)

No what we'll find is that VW Audi quality drifts over to Porsche.

Yeah, no problem ill just put it on my AMEX.

Hey, I tried to get a $50 billion loan LAST week, but they turned ME down!

Porsche is increasing it's stake in VW partly because they know that being independent they don't get the cost benefit of getting a lower price on goods. It's the same as an individual consumer - if you buy in bulk your toiletries you are going to pay less per item. Businesses are the same. Porsche is leveraging that so that it can pay less for the materials it uses to make vehicles - and while keeping it's vehicles premiumly priced - it makes even greater profits....and for them the cycle hopefully continues. If you read the article that was posted about BMW not making as much profit per vehicle as Mercedes and Audi - you would have read the comment by the author that BMW should seek to partner with someone. That article was written for investment purposes - it had nothing to do with BMW's vehicles per se. Being a car enthusiast is one thing - but we all have to keep in mind that this is BUSINESS FIRST - because if the companies don't make money - we don't get the vehicles we love.