Wolfsburg, Germany - The tug-of-war between Porsche and its
bigger rival Volkswagen is about power, huge sums of money and a
possible realignment of the German car industry.
Porsche boss Wendelin Wiedeking is desperately seeking a fresh
injection of cash to stop the debt-ridden sports carmaker from being
taken over by Volkswagen, Europe's biggest auto producer.
The Gulf state of Qatar has expressed an interest in buying into
Porsche. But there are also rumours of talks with Daimler, maker of
Mercedes cars, and even of a merger between VW, Porsche and Daimler.
A decision on Porsche's future is expected in the very near
future. Those involved are keeping mum, but various scenarios are
being played out in the background. One is for Daimler to take a
stake in either Porsche or VW through Porsche options or VW shares.
Porsche owns 51 per cent of VW. By taking a stake in the sports
carmaker, Daimler would be able to gain access to Volkswagen
technology, particularly in the important compact car segment.
Daimler is lagging in this field and would be keen to cooperate in
the development of new models and propulsion systems.
A possible alliance between Daimler and Porsche, both based in the
south-western state of Baden Wuerttemberg, has been welcomed by local
politicians, who believe it would keep jobs in the region at a time
when the German car industry is suffering the effects of the economic
downturn.
In the northern city of Wolfsburg, where VW has its headquarters,
company sources are less than happy at the idea of outside
involvement, fearing this could leave VW 'in tatters.'
VW has weathered the economic slide better than most of its
rivals. It could, however, suffer, if a new major shareholder decides
to siphon off funds for higher dividends instead of investing in new
models, says works council chief Bernd Osterloh.
Industry experts doubt Daimler has enough capital to buy into VW
and Porsche.
A more realistic option is for Porsche to sell a share of its VW
stake to Qatar in order to gain urgently needed funds, says Nord/LB
analyst Frank Schwope.
If Qatar took a stake in Porsche Holding it would be a blow to the
Porsche and Piech family owners because they would lose influence, he
said.
A Daimler involvement could raise problems with competition
authorities, partly because the two firms already dominate the
commercial vehicles market.
Porsche could play its Daimler card to increase pressure on Qatar
to agree to its terms. On the other hand, Daimler could send a signal
to BMW that it has other options open.
Talks on closer cooperation between BMW and Daimler are have
reportedly become bogged down.
VW patriarch Ferdinand Piech wants to see Volkswagen take over
Porsche. The sports carmaker would then become the 10th brand in the
Vw stable, but would remain independent, like Audi.
Piech, with a 13-per-cent stake in Porsche, is reportedly
sceptical of involvement by Qatar. If the Gulf state manages to
obtain a near 30 per cent share in the sports carmaker, it could
signal the end of Piech's dominant position, industry insiders say.
Alone, Piech cannot stop the plans of his archrival Wiedeking but
would need allies, such as his brother, Hans Michael, who also owns a
13-per-cent stake.
In the past the family owners of Porsche have always taken
important decisions together.
The state of Lower Saxony, where Wolfsburg is located, also has a
hand in the future of the carmaker. The state is VW's second biggest
shareholder and has the right to veto important decisions.
Over the weekend, the state's prime minister, Christian Wulff, met
with a delegation from Qatar.
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