Porsche: Creating the Plot to Takeover Volkswagen?

Porsche is known for producing small butthe Porsche family. Piech was also the former
immensely powerful engines. The same can beCEO of Volkswagen and now hold the chair of
said about the company---small but powerful.the upper supervisory board. And recently, in the
Porsche is a German automaker renowned for itsmost cunning display of power and influence, Piech
lines of sports car. News has it that the Germanand Wiedeking have conspired to oust Bernd
sports car maker is getting closer to its goalPischetsrieder who is the former boss of BMW
which is to control Europe's largest automaker,and VW CEO. He was replaced by Martin
the Volkswagen Group. It should be noted thatWinterkorn who is a protégé of Piech.
Porsche is one of the largest shareholders of
Volkswagen with a total of 27.4% and is planningPiech has also previously worked at Porsche
to further increase its stakes if not for thewhere he was responsible for the launching of the
Volkswagen Law.917 racer. Afterwards he went to Audi and
The Volkswagen Law limits the voting rights ofstarted the Quattro revolution. When finally
shareholders in the company to 20% regardlessbecame the CEO of VW he foster quality
of how large their owned shares are. Anotherturnaround which helps VW and Audi to obtain a
provision on the VW law also gives the right toplace in the premium car segment. He also
the State of Lower Saxony to appoint directorsintroduced a platform strategy to control costs.
regardless of the fact that they are not theThere is a strong partnership between Porsche
largest shareholder of the company. The VW Lawand Volkswagen not only because of family but
is nothing but unfair to Porsche. This is also thealso of interest. Porsche wants to increase its
very reason why Porsche would like the VW Lawstakes in Volkswagen to protect its investment
to be abolished.and also to make sure that its ongoing
The Volkswagen Law was ratified in 1960 duringcooperative efforts with Europe's largest
the time of privatization following the postwar.automaker will not be jeopardized. At present, the
During that time Volkswagen was rescued by theGerman sports car maker is sharing production
allied and German authorities. The VW Law wasfacilities with Volkswagen. Europe's largest is also
created to protect the company from any formthe supplier of quality parts to Porsche like
of takeover.Volkswagen pressure plate and others that are
But currently the European Court of Justice hasused to build cars.
begun to criticize the VW Law stating that theSome of the vehicles produced by Porsche in
law hinders the flow of free capital whichpartnership with Volkswagen are Cayenne and
increases the possibility for it being cancelled.Touareg SUVs. The upcoming Panamera sports
Furthermore it is also expected that if ever thesedan will have its body built at the VW's Hanover
law is repealed the State of Lower Saxony mightplant and will use VW Audi electronic bus systems
sell some or its entire 20.8% stakes inplus other parts such as safety electronics,
Volkswagen and the probable buyer is none otherinfotainment, security and climate detecting
than Porsche.gadgets.
Wedelin Weideking, Porsche boss has expressedBut according to some reports the interest of
his desire to increase the company's stake inPorsche to Volkswagen goes beyond pure
Volkswagen to 8.6 billion Euros or $11.2bn. Butbusiness interest - some say that Wiedeking
why does Porsche has such care forthinks that he can do a much better job than any
Volkswagen? Even before, Porsche has alreadyof the bosses in VW. The ousting of
have had a big influence at Volkswagen broughtPischetsrieder is seen by many as a means of
by the fact that part of Volkswagen takes itsslowly taking control of Volkswagen.
root from Ferdinand Piech, who is a member of