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Porsche: Creating the Plot to Takeover Volkswagen?

Porsche is known for producing small butPiech, who is a member of the Porsche family.
immensely powerful engines. The same can bePiech was also the former CEO of Volkswagen
said about the company---small but powerful.and now hold the chair of the upper
Porsche is a German automaker renowned forsupervisory board. And recently, in the most
its lines of sports car. News has it that thecunning display of power and influence, Piech
German sports car maker is getting closer toand Wiedeking have conspired to oust Bernd
its goal which is to control Europe's largestPischetsrieder who is the former boss of BMW
automaker, the Volkswagen Group. It should beand VW CEO. He was replaced by Martin
noted that Porsche is one of the largestWinterkorn who is a protégé of Piech.
shareholders of Volkswagen with a total of
27.4% and is planning to further increase itsPiech has also previously worked at Porsche
stakes  if  not  for  the  Volkswagen  Law.where he was responsible for the launching of
the 917 racer. Afterwards he went to Audi and
The Volkswagen Law limits the voting rightsstarted the Quattro revolution. When finally
of shareholders in the company to 20%became the CEO of VW he foster quality
regardless of how large their owned sharesturnaround which helps VW and Audi to obtain
are. Another provision on the VW law alsoa place in the premium car segment. He also
gives the right to the State of Lower Saxonyintroduced a platform strategy to control
to appoint directors regardless of the factcosts.
that they are not the largest shareholder of
the company. The VW Law is nothing but unfairThere is a strong partnership between
to Porsche. This is also the very reason whyPorsche and Volkswagen not only because of
Porsche would like the VW Law to befamily but also of interest. Porsche wants to
abolished.increase its stakes in Volkswagen to protect
its investment and also to make sure that its
The Volkswagen Law was ratified in 1960ongoing cooperative efforts with Europe's
during the time of privatization followinglargest automaker will not be jeopardized. At
the postwar. During that time Volkswagen waspresent, the German sports car maker is
rescued by the allied and German authorities.sharing production facilities with
The VW Law was created to protect the companyVolkswagen. Europe's largest is also the
from  any  form  of  takeover.supplier of quality parts to Porsche like
Volkswagen pressure plate and others that are
But currently the European Court of Justiceused  to  build  cars.
has begun to criticize the VW Law stating
that the law hinders the flow of free capitalSome of the vehicles produced by Porsche in
which increases the possibility for it beingpartnership with Volkswagen are Cayenne and
cancelled. Furthermore it is also expectedTouareg SUVs. The upcoming Panamera sports
that if ever the law is repealed the State ofsedan will have its body built at the VW's
Lower Saxony might sell some or its entireHanover plant and will use VW Audi electronic
20.8% stakes in Volkswagen and the probablebus systems plus other parts such as safety
buyer  is  none  other  than  Porsche.electronics, infotainment, security and
climate  detecting  gadgets.
Wedelin Weideking, Porsche boss has
expressed his desire to increase theBut according to some reports the interest
company's stake in Volkswagen to 8.6 billionof Porsche to Volkswagen goes beyond pure
Euros or $11.2bn. But why does Porsche hasbusiness interest - some say that Wiedeking
such care for Volkswagen? Even before,thinks that he can do a much better job than
Porsche has already have had a big influenceany of the bosses in VW. The ousting of
at Volkswagen brought by the fact that partPischetsrieder is seen by many as a means of
of Volkswagen takes its root from Ferdinandslowly taking control of Volkswagen.



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