Porche takes over Volkswagen

Discussion in 'Current Events' started by DavidS, Jan 6, 2009.

  1. DavidS
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    DavidS Anti-Tea Party Member

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    The VW Toureg and the Porsche Chyenne are basically the same vehicle.. different engines, and suspensions, but that's about it. I guess they wanted their partnership to go further. WOW.

    Shares skyrocket as Porsche takes over Volkswagen - Yahoo! News


    FRANKFURT (AFP) – German luxury sportscar maker Porsche has taken over Volkswagen, the biggest European car manufacturer, after purchasing more than 50 percent of VW shares, Porsche said.
    Porsche said in a brief statement late Monday that by buying new VW shares, it "will thus increase its participation to 50.76 percent" of the group's capital, compared with 42 percent before.
    The news sent Volkswagen shares rocketing up 13.48 percent in early afternoon trading on the Frankfurt stock market on Tuesday.
    The takeover by a family-run company run by billionaire shareholders has been a culture shock for Volkswagen, a sprawling national institution seen as a model for cooperation between shareholders and unions.
    Porsche launched its takeover bid in 2005, saying it would turn Volkswagen into a "normal" enterprise and incurring fierce opposition from the unions.
    Porsche had initially planned to acquire more than 50 percent of VW's stock last year but was forced to delay the operation after the value of the shares soared amid frantic stock market speculation.
    At one point, they traded for more than 1,000 euros (1,350 dollars) per share, making VW briefly the biggest company in the world by stock market valuation.
    On Monday, VW shares closed at 254.74 euros, close to the range Porsche had set for itself of between 200-250 euros.
    VW said in August that it had overtaken Ford to become the world's third biggest automaker behind General Motors and Toyota.
    Porsche is now obliged by Swedish law to make an offer for outstanding shares in truckmaker Scania, in which VW is the dominant shareholder.
    But Porsche will offer a minimum price for Scania shares and has no "strategic interest" in the company, the statement said.
    Porsche, which makes the 911 sports car and Cayenne sport utility vehicle, plans to raise its stake in VW to more than 75 percent this year, with which it expects to gain total control over the group.
    Having more than 75 percent would allow it to seal a so-called domination contract giving it full financial control.
    In Germany, a minority investor that owns 25 percent of a company's shares can block strategic decisions, but in the case of VW that level is currently set by law at 20 percent, the amount owned by the state of Lower Saxony, where VW is based.
    Porsche has challenged the so-called VW law and has received support from the European Commission, which has threatened to haul Berlin into European court again after a revised version of the law retained the 20 percent minority blocking threshold.
    Porsche built up its stake in the much bigger VW through the use of stock options that allowed it to catch markets by surprise last year with the size of its holding.
    VW's works committee is wary of the takeover however and of Porsche boss Wendelin Wiedeking, who has crossed swords with trade unions, which are extremely powerful at VW.

    VW posted sales of 109 billion euros in 2007, while Porsche, which employs 11,600 workers, reported sales of seven billion euros in its 2006-2007 fiscal year. The IG Metall trade union fears a Porsche takeover would lead to job cuts at German VW plants, despite assurances from Porsche that it is a long-term investor in the auto giant.
     
  2. editec
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    editec Mr. Forgot-it-All

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    And here I thought VW owned Porsche already.

    Didn't VW used to own it?
     
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  3. del
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    del BANNED

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    the original bug was designed by ferdinand porsche, i thought there was some ownership between the 2 companies prior to this as well. car cos. were buying and selling each other pretty frequently in europe in the '90's.
     
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  4. KissMy
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    KissMy Free Breast Exam

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    VW Cheated on Diesel Emissions; U.S. Orders Big Recall

    Volkswagen to recall nearly a half-million cars, because the automaker illegally installed software in its cars to evade standards for reducing smog.

    VW used software to detect when the car is undergoing its periodic state emissions testing. Only during such tests are the cars’ full emissions control systems turned on. During normal driving situations, the controls are turned off, allowing the cars to spew as much as 40 times as much pollution as allowed under the Clean Air Act, the E.P.A. said.

    “We expected better from Volkswagen,” said Cynthia Giles, the E.P.A.’s assistant administrator for the Office of Enforcement and Compliance. She called the automaker’s actions “a threat to public health.”

    The software was designed to conceal the cars’ emission of the pollutant nitrogen oxide, which contributes to the creation of ozone and smog. The pollutants are linked to a range of health problems, including asthma attacks, other respiratory diseases and premature death.

    Experts in automotive technology said that disengaging the pollution controls on a diesel-fueled car can yield better performance, including increased torque and acceleration.

    “When the pollution controls are functioning on these vehicles, there’s a trade-off between performance and emissions,” said Drew Kodjak, executive director of the International Council on Clean Transportation, a research group. “This is cutting corners.”

    It was Mr. Kodjak’s group, in conducting research on diesel vehicles, that first noticed the discrepancy between Volkswagen’s emissions in testing laboratories and on the road. They brought the issue to the attention of the E.P.A., which conducted further tests on the cars, and ultimately discovered the use of the defeat device software.

    California has issued a separate notice of violation to the company. California, the E.P.A. and the Justice Department are working together on an investigation of the allegations.

    Affected diesel models include the 2009-15 Volkswagen Jetta 2009-15 Beetle, 2009-15 Golf, 2014-15 Passat and 2009-15 Audi A3.

    The Justice Department’s investigation could ultimately result in fines or penalties for the company. Under the terms of the Clean Air Act, the Justice Department could impose fines of as much as $37,500 for each recalled vehicle, for a possible total penalty of as much as $18 billion.

    The notice of violation is part of a broader, more aggressive enforcement effort by federal regulators on the auto industry. Analysts and activists said it was intended to send a message to automakers that they would be harshly treated for compromising federal rules.

    “This is several steps beyond the violations that we’ve seen from other auto companies,” said Tyson Slocum, director of the energy program at Public Citizen, a consumer advocacy group. “They appear to have designed a system with the intention to mislead consumers and the government. If that’s proven true, it’s remarkable and outrageous. It would merit a heck of a lot more than just a recall and a fine. We would see criminal prosecution.”
     
  5. Jarlaxle
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    Jarlaxle Gold Member

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    Did you dredge up this six-year-old thread for any reason?
     
  6. waltky
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    waltky Wise ol' monkey Supporting Member

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    VW finds new boss to steer it out of crisis...

    Volkswagen turns to Porsche boss to steer it out of crisis: source
    Thu Sep 24, 2015 Volkswagen will name Matthias Mueller, the head of its Porsche sports car brand, as its chief executive, a source close to the matter said on Thursday, as the fallout from the U.S. vehicle emissions test rigging scandal broadened.
    See also:

    India to probe Volkswagen scandal for possible irregularities
    Sep 24, 2015: The Indian government has initiated a probe into possible violations by embattled German carmaker Volkswagen and has asked testing agency ARAI to look into the issue.
     
  7. waltky
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    waltky Wise ol' monkey Supporting Member

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    Norway launches investigation into VW...

    Germany: scandal affects VW commercial vehicles
    25 Sept.`15 — The latest developments on the Volkswagen emissions scandal. All times local.
     
  8. sear
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    sear Senior Member

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    Thanks DS.
     
  9. waltky
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    waltky Wise ol' monkey Supporting Member

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    Volkswagen rotating staff to improve oversight...

    Volkswagen to 'rotate staff' to improve oversight
    20 Dec.`15 - German car giant Volkswagen, scrambling to contain a massive pollution test cheating scandal, said Sunday it would begin rotating staff to keep better tabs on its operations.
     
  10. waltky
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    waltky Wise ol' monkey Supporting Member

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    U.S. DoJ goin' after VW now...

    VW sued by US justice department
    4 January 2016 - The US justice department is suing Volkswagen over the emissions scandal that saw the German car giant fit software in millions of cars to cheat emissions tests.
     

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