VW could one day take on Toyota, Porsche boss says

By Werner Scheib Dec 6, 2006, 16:18 GMT

Stuttgart, Germany - Porsche boss Wendelin Wiedeking said Wednesday that he expects Volkswagen to be in a position to take on Japan's Toyota in the not too distant future.

The sports-car maker already holds a 27.4 per cent stake in VW and has invested more than 4 billion euros (5.3 billion dollars) in Europe's biggest automaker, which is currently undergoing a restructuring process.

The Porsche boss is looking for a return on his investment and his remarks at a press conference in Stuttgart indicated just what he has in mind.

'If anyone can challenge Toyota, then it is Volkswagen,' he said, adding that he believed the German carmaker would be in a position to do this in the long term.

It is an ambitious goal to take on a company with a gigantic market presence and profits that is aiming to be the world's biggest auto manufacturer.

'Porsche has confidence in Volkswagen's potential,' said Wiedeking, whose investment in Volkswagen has put the development partnership of the two companies on a solid basis.

The Porsche boss did not spell out his expectations, but it is no secret that Volkswagen has to improve efficiency and increase its profitability.

'Just as a chess player will not divulge his moves in advance, so we won't make public the ideas that we have,' he said. 'As in chess, we don't know what moves are rivals are planning,' he said in the direction of other investors who might be considering a stake in VW.

It was clear that Wiedeking enjoyed fuelling speculation about his company's motives in buying into Volkswagen. But he ruled out merging the profitable VW subsidiary Audi with Porsche.

'Porsche will remain purely a manufacturer of sports-cars that bear the name Porsche,' he said. In its role as VW's biggest shareholder it would in any case benefit from Audi's success through the profits that would go to his company.

Wiedeking also poured cold water on speculation that Porsche might take a controlling interest in VW. HIs company had the approval of its board to increase its stake to 29.9 per cent, he said.

If Porsche raised this to 30 per cent it would have to make an offer to all VW shareholders, something which Porsche did not want to do.

'We regard ourselves as a long-term investor and a strategic industrial partner,' the Porsche boss said.