Porsche not planning to break up VW

[PanterroR]

With the eradication last week of the unfair ‘VW Law,’ which prohibited any entity from holding more than 20% of the voting rights in VW, no matter how much stock they held, the road is now paved for Porsche to increase its holding from the current 31% to a percentage that would give it almost full control of one of the world’s biggest carmakers. There are fears that if Porsche does get control of VW Group it will attempt to break up the factions into separate companies and possibly sell-off some of the low performers.

One company many fear could be dropped is Bugatti, which Porsche CEO Wendeling Wiedeking hinted at in his earlier comment of “no time for toys.” Bugatti is far from being profitable and there are no plans for the development of new models.

A spokesman for Porsche has told Reuters that such claims are “absolute rubbish,” and that the original rumors were the “thinking of hedge funds, not of Porsche.”

VW’s unions are also wary of Porsche taking control. Porsche is only a fraction of the size of VW but with more control it would get an equal number of representatives, if not more, on VW’s board. The issue has caused a rift between VW’s Works Council and Porsche management.
Both parties will be meeting this week to settle their differences.


Source: Motor Authority » Porsche not planning to break up VW