Press Release Volkswagen(VAG) ends it buying ("Assimalation") spree - report

[Human]

CEO says 12 brands is enough... for now

Volkswagen has been gobbling up automakers for years, but it looks like the company's massive expansion has been halted.
Speaking with Handelsblatt, Volkswagen CEO Martin Winterkorn revealed the company isn't planning to buy anymore automakers as he noted "We have enough to do at the moment in taking our twelve brands to where we want to be."
Winterkorn also said he wants the company to grow in Southeast Asia, but dismissed rumors that Volkswagen was considering buying Proton. However, the executive commented "That I find Alfa Romeo an interesting brand is not a secret, but we are currently busy enough with our brands."
For the time being, Volkswagen will focus on integrating some of their newer purchases (Porsche, Ducati, Scania and Man) into the company's portfolio.

http://www.worldcarfans.com/112083147772/volkswagen-ends-it-buying-spree---report

VIA:

VW will stop buying brands to focus on integration, CEO says

BERLIN (Bloomberg) -- Volkswagen Group CEO Martin Winterkorn said he's not planning additional purchases as Europe's largest carmaker focuses on integrating Porsche, Ducati motorbikes and heavy-truck maker MAN.
"We have enough to do at the moment in taking our twelve brands to where we want to be," Winterkorn said in an interview with German newspaper Handelsblatt. VW confirmed his comments.
Volkswagen earlier this month completed the 4.49 billion-euro ($5.62 billion) purchase of the remaining 50.1 percent of Porsche that it didn't own. The deal added the 12th brand to VW's portfolio after buying Ducati in Italy in July and raising its stake in Munich-based MAN to 75 percent in June.
VW is not currently interested in bidding for Malaysian carmaker Proton, Winterkorn said today. "We need to grow in Southeast Asia," he said. "But that does not mean that we will buy Malaysia's Proton, like some are speculating."
Winterkorn said he still finds Fiat's Alfa Romeo an attractive brand. At the Paris auto show two years ago Ferdinand Piech, head of VW's supervisory board, said he wanted to acquire Alfa Romeo.
"That I find Alfa Romeo an interesting brand is not a secret," Winterkorn said. "But we are currently busy enough with our brands."
Porsche, which is already using parts and technology from the VW group, still needs to adapt its working processes to deepen cooperation with VW's other brands, said Michael Punzet, analyst at DZ Bank in Frankfurt.
VW may seek a domination agreement to gain greater control at MAN and needs to plan the cooperation with Scania, which VW also controls, he said.
"If VW gets offered Alfa Romeo or Proton for a cheap price, they would not decline," Punzet said. "But at the moment I guess they are really focusing on integrating Porsche and consolidating the truckmakers MAN and Scania."
Marchionne comments 'nonsense'
In response to accusations from Sergio Marchionne, his counterpart at Fiat, that VW was waging a price war in Europe, Winterkorn told Handelsblatt that the comments were nonsense.

"Success comes to whoever builds the right cars at the right time at the right place," he said, adding that VW itself is locked into "brutal global competition."

Read more:http://www.autonews.com/article/20120831/COPY01/308319866#ixzz25COUhfiO

 

[martinbo]

Thanks Naas for that article. I guess that puts paid to Alfa Romeo - once among the most fabled of automotive marques - being assimilated into VAG; good thing or bad thing?

 

[Deckhook]

I'm in two minds whether it would have been a good thing, no doubt they would have saved Alfa for being a company living on past glories but at the same time the thought of it sharing platforms with the Golf and A4 would lose the uniqueness that the brand desires.

 

[Levi68]

Alfa Romeo would only be good in the hands of VAG, if they placed it between Audi and Porsche with a small range of sporty RWD cars. In the hands if FIAT, Alfa Romeo would only be good if it was the italian premium, an affordable and daily "Ferrari and Maserati in One". Unfortunately I think nothing will work, but at least under FIAT, Alfa Romeo stays "free", what would not be the case if it belonged to VAG.

 

[Giannis]

Reading that VW doesn't want any other brands feels like watching Scrooge McDuck saying that he doesn't want any more money...

 

[EnI]

Reading that VW doesn't want any other brands feels like watching Scrooge McDuck saying that he doesn't want any more money...

Exactly.

 

[MarcinM]

I think that eventually the indebted FIAT will be forced to sell Alfa to VW

 

[Hofmeister]

I think that eventually the indebted FIAT will be forced to sell Alfa to VW

Hopefully not, Ferrari is more profitable than ever, Maserati are set to launch the new Quattroporte in a few months, and their 5er rival a couple of years thereafter, Fiat are busy adding more models to their range like the Viaggio ( small saloon aimed at developing markets, should be a cashcow ) and 500L, Chrysler are posting stronger than ever growth and sales and Alfa are set to launch their new 4C in the next 1/2 years (a glowing halo model ) and the Giulietta and MiTo are selling relatively well. All looks fine fine for the Fiat group in the next ten years. I would be devastated if Alfa became another VAG clone.

 

[K-A]

I thought Ferdinand Piech was CEO? So I take it that he's Chairman or something, then?

I still don't know how I feel about VAG owning Porsche now. I mean, it always felt like Porsche was under the VAG umbrella anyway, and being owned by VAG could go two ways: 1- VAG's enormous income from lower segment brands could be enough to fund their "mass market" desires, allowing Porsche to shine on as a focused and pristine brand of top notch cars (well, at least a few top notch cars). Or 2- VAG's enormous ego and "make enough money to rule the world at all costs" mentality has them short-term thinking the Porsche brand into diluting itself into what would inevitably be a once-storied brand focused on exclusivity, high profits, and core sports cars, now a plethora of "hey, look, you get this generic car with a Porsche badge", ultimately killing all cachet and individuality of "Porsche".

I hope it's #1.

 

[MarcinM]

Hopefully not, Ferrari is more profitable than ever, Maserati are set to launch the new Quattroporte in a few months, and their 5er rival a couple of years thereafter, Fiat are busy adding more models to their range like the Viaggio ( small saloon aimed at developing markets, should be a cashcow ) and 500L, Chrysler are posting stronger than ever growth and sales and Alfa are set to launch their new 4C in the next 1/2 years (a glowing halo model ) and the Giulietta and MiTo are selling relatively well. All looks fine fine for the Fiat group in the next ten years. I would be devastated if Alfa became another VAG clone.

Observe FIAT's stock market value performance in the last 5 years versus these of VW's, also FIAT is considerably more indebted.

 

[MarcinM]

We must not forget that whereas Porsche is now VW owned. VW in turn is majority owned by Porsche/Piech family.

 

[Deckhook]

We must not forget that whereas Porsche is now VW owned. VW in turn is majority owned by Porsche/Piech family.

Yeah a family that always seems to be at loggerheads with each other.

Regarding Alfa, I don't think anyone could deny that VW would make it much more successful than what Fiat has done but would this success come at the expense of individuality because I question whether there's enough adjustability in this latest VW platform to give Alfa it's own identity and feel?

 

[Giannis]

Alfa. Needs. RWD.

VW doesn't have smaller RWD platforms. Chrysler sort of has.

 

[Deckhook]

Alfa. Needs. RWD.

VW doesn't have smaller RWD platforms. Chrysler sort of has.

Agreed and that's my problem with Alfa coming under VW rule. Turning it profitable at the expense of losing its identity would be awful IMO.

 

[MarcinM]

Alfa has been FWD for decades now, unless it is purchased by Daimler of BMW (unlikely) there is no chance of it becoming RWD at least when it concerns smaller platforms.

We must remember that smaller vehicles of any manufacturer are unlikely to swith to RWD because of packaging and safety issues, even BMW will now follow Daimler and swith over to FWD for smaller cars.

Whereas from Panamera sized platform and up, VW has RWD capability.

 

[Levi68]

Alfa has been FWD for decades now, unless it is purchased by Daimler of BMW (unlikely) there is no chance of it becoming RWD at least when it concerns smaller platforms.

We must remember that smaller vehicles of any manufacturer are unlikely to swith to RWD because of packaging and safety issues, even BMW will now follow Daimler and swith over to FWD for smaller cars.

Whereas from Panamera sized platform and up, VW has RWD capability.

Anything car with longitudinally front mounted engine, thus A4 and up, has RWD capability. Don't forget the Panamera is to get a smaller brother in 2014, that will be both offered as RWD and AWD. Like the Cayenne smaller brother, the Macan, that is based on the Audi Q5, the "Pajun" is to be based on the next generation Audi A4. Now the question is if VAG, if they own Alfa, will market Alfa against BMW, and make Audi more of a Mercedes rival and keep Porsche top exclusive sportcar brand. But seeing how Porsche is expanding down to reach BMW instead of focussing on Ferrari, unless Lamborghini is for that, I don't see VAG hurting Audi with Alfa.

I don't understand why Ferrari/Maserati/Alfa can't work together, and need Chrysler. The F12 is not based on a Viper, so why should a Quattroporte be based on a 300C or an Alfa on a Fiat.

 

[Gianclaudio]

Hopefully not, Ferrari is more profitable than ever, Maserati are set to launch the new Quattroporte in a few months, and their 5er rival a couple of years thereafter, Fiat are busy adding more models to their range like the Viaggio ( small saloon aimed at developing markets, should be a cashcow ) and 500L, Chrysler are posting stronger than ever growth and sales and Alfa are set to launch their new 4C in the next 1/2 years (a glowing halo model ) and the Giulietta and MiTo are selling relatively well. All looks fine fine for the Fiat group in the next ten years. I would be devastated if Alfa became another VAG clone.

I'll suicide (?) if VAG takes over Alfa, but on the other hand, FIAT is going to hell. Just watch the top selling cars thread and their numbers are pitifull. Even Renault and PSA seem to be better positioned.

And what's even worse, Fiat's good sellers are super cheap cars like the 500 and Panda, which makes small profits, and now there are more competitors like the Opel Adam and DS· for the 500 and Up/Citygo/Mii for the Panda......

Regards!