Volkswagon, Porsche and Volkswagon |
Volkswagon has always had a unique relationship with Porsche. Even from the first Volkswagon model the Volkswagon Beetle, used many characteristics from a Porsche model the Porsche 64. Why did this occur? Well, in 1933, Adolf Hitler knew that a compact car was being made for the family and was being planned by Ferdinand Porsche. Hitler then decided to set up a meeting with Mr. Ferdinand Porsche. This small car was to be the famous Volkswagon Beetle. Hitler wanted the car made and therefore Porsche began to make the car which was designed to fit two adults and three children while hitting a max speed of 62 miles per hour.
In 1969, Porsche and Volkswagon collaborated on two automobile projects. These two automobile projects ended up being the VW-Porsche 914 and the later model the VW-Porsche 914-6. There were very few differences between the VW-Porsche 914 and the later model the VW-Porsche 914-6. The main difference between the two cars lay in the engine. The VW-Porsche 914 had a standard four cylinder Volkswagon engine while the VW-Porsche 914-6 used a six cylinder Porsche engine. Another pseudo collaboration project was built specifically for the American market. The cars released were the Porsche 912E and the Porsche 924. The Porsche 924 was sold internationally. These Porsche cars used Audi elements and were even constructed in an Audi factory, the Audi Neckarsulm factory. Other Porsche cars that were built in the Audi Neckarsulm factory was the Porsche 944 but there were not as many similar Volkswagon parts as there were in the other two previously mentioned cars. In the Bratislava Volkswagon factory both the Porsch Cayenne and the Volkswagon Touareg were built there. The Porsche Cayenne which was released in 2002 into the automobile industry has a clone chassis of the Volkswagon Touareg.
Due to the Porsches economic stability and looking to increase size and earn more profits it bought 18.64 shares of Volkswagon in the latter part of 2005. Furthermore, in 2007 it was reported that the stake in Volkswagon had increased to nearly 31%, in which Porsche formally announced that although it did not intend to take Volkswagon over it would neither let another competitor take control of Volkswagon. It is actually impossible for Volkswagon to be taken over since the Germans implemented the Volkswagon Law. The Volkswagon Law protects Volkswagon from being taken over by any company. At most, the company with the most shares would become partners with the company. Therefore, Porsche is the most important automobile partner for Volkswagon. The law also states that a shareholder of Volkswagon cannot use more than 20 percent of Volkswagon's voting rights in any case. Therefore one can own 90% of the Volkswagon shares but it will not be able to exercise more than 20% of the voting rights, protecting Volkswagon's control over itself.
As of late 2007, Porsche has maintained its stakes and is in the efforts of buying Volkswagon. Billions of dollars have been contributed to the Volkswagon business and the Porsche company is looking to maintain its economic security with Volkswagon. |
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