VW take over Porsche! For the love of…
Takeovers in the auto industry are nothing new. Automakers want more money and they achieve this by increasing their portfolios, starting sub-brands, sharing parts, squeezing their suppliers and applying other tactical ploys to shave costs. Another trick, one which carmakers have been quite keen on these days, is to add more segments to their lineups: 2-door coupes, 4-door coupes, 4-door coupe convertibles, 2-door SUV convertibles, and the list goes on and on. Or they could simply purchase another existing brand.
And that’s what has happened here. It is important to note that VW’s takeover hasn’t come short of drama. Porsche actually tried to buy VW in 2009, but failed in acquiring a required stake of 75%. During this time, the Stuttgart brand also managed to dig a hole for itself, accumulating massive debts of over 10 billion euros. The Porsche brand image also took a hit, when due to the failed attempt, investors sued the company accusing Porsche of misleading them in the process.
Fast forward to 2012 and it’s a very different story. The buyer has now been bought out. According to VW, “the deal is likely to reduce costs and boost VW’s earnings as it seeks to become the world’s biggest carmaker.” I can’t tell you how that statement irks me. Will VW’s purchase ruin the Porsche brand?
Porsche fans from all over the world have been somewhat split on this deal. Some feel it won’t affect the company, nor its lineup. Others think that it’s only a matter of time before VW begins meddling in Porsche’s business. Me personally, I’m with the latter group. There will be a point where VW will influence decisions coming out of Stuttgart.
On a forum, which I am a member of, I wrote the following:
The reality is that it’s all about money at the end of the day. The purity and passion of a brand usually dies with its founders. Porsche is a business. VW is a business. Lotus tried to become a business (let’s see where that goes). As businesses, they will pursue any opportunity that inovlves making more money for themselves and their respective shareholders. And with products such as the Cayenne and Panamera raking in the big bucks, why would they stop expanding their portfolio? Unfortunately, the auto industry doesn’t build cars for purists anymore. Sure, you have your little mom-and-pop operations but how far can they really go? For purists, they reserve their most expensive products: the GT3RS 4.0, the Carrera GT, etc. What they’re basically saying is: You want purity? You want passion? Pay an arm and a leg for it! It’s the sad truth, but at least, it’s the truth.
As always, your input is appreciated. Will or won’t this deal hurt Porsche?Automotive, Rants comment below, or link to this permanent URL from your own site.