VW purchase stake in BMW's CF partner

[footie]

BMW AG was surprised by Volkswagen AG's acquisition of an 8.2 percent stake in carbon fiber specialist SGL Carbon, which is BMW’s partner. The move indicates a possible conflict between the automakers. At the Geneva Motor Show, BMW CEO Norbert Reithofer told reporters that VW did not inform BMW ahead of the purchase. SGL and BMW had planned an EUR230 million investment for a joint venture to make lightweight carbon fiber car
bodies on an industrial scale as part of its drive to launch an ultra-green BMW electric car for cities like Shanghai.
The venture – first announced in October 2009 - would produce several thousand tons of carbon fiber a year.
Six months later, Mercedes-Benz formed a joint venture with carbon fiber manufacturer Toray of Japan. Such move emphasized the importance of high-tech and lightweight materials to lower carbon emissions and fuel consumption.


Bmw was surprised by Volkswagen's acquisition of 8.2 percent stake in SGL Carbon - 4wheelsnews.com

Does the words 'shit hits the fan' sound appropriate on this occasion.

 

[Deleted member 25]

Suzanna klatten akready holds a major stake in SGL.

 

[EnI]

The finest yet most shameless way of industrial espionage!

Buying a stake in a company that your rival strategically cooperates with, next putting your own man in the company's supervisory board, and then getting all the info from the management on the company's future business - including the ones concerning your rival.

Bravo VAG! Lowest point of VAG's corporate machinations. Piëch & Winterkorn are far from being gentlemen & fair players.

What's next? VAG buying stakes in Peugeot-Citroen SA & Renault SA to get info what BMW & Daimler are up to?

That's just sick!

 

[Padi]

Damn I really hate this VAG! ARGH People should boycott their cars but that's dream thinking.

 

[footie]

Dirty move but that's business and nothing and no one will get in the way of VAG becoming world number one.

 

[SCOTT27]

Winterkorn is Piech's sockpuppet.

He is simply following all Piech's orders. More loss-making Bugatti's , Another new Phaeton (Which according to insiders will be more Bentley-like in image)??? Is that not Bentley's job?
Had the original takeover been successful - Wiedking was all for shuttering some of the vanity which was not making money.

But industry rumours @ geneva point to many manufacturers becoming concerned of the BMWi Initiative , especially how BMW are leaps and bounds ahead of everybody else including VAG which has said to put Piech's nose out of joint , especially that BMW's stock price rose considerably on the announcement.

 

[EnI]

Dirty move but that's business and nothing and no one will get in the way of VAG becoming world number one.

VAG is getting too big & too powerful for its own good. And that's definitely not good for the competition on the long run. Although the car buyers are profiting on the short run due to lower car prices.

VAG - due to its size & economy of scales, generating huge revenues, free cash flow & profits - can lead a price war which the competitors aren't able to fight equally. In the long run that means weaker competition, and some of the rival brands even purchased by VAG (eg, Alfa Romeo etc).

And having such a huge carmaking company isn't good for suppliers either - since they become a victim of too powerful customer who starts to dictate them prices.

Piëch is playing a dangerous game. And I won't be surprised when EU market regulators will either prevent VAG from some acquisition, stake purchasing or even forcing VAG to sell some of its divisions.

It's not a coincidence Piëch is called a Darth Vader of automotive world. The guy is shameless. Look what he did with Porsche (the company)! He made it a division of Volkswagen AG! Porsche a Volkswagen (People's car)? I don't think so.

He is hated very much in the automotive industry, and that makes him even more vindictive. Focus on future VAG moves regarding FIAT & Alfa Romeo. I already feel sorry for Marchionne (Fiat CEO), and for all the guys @ Alfa Romeo. But VdS's dreams will finally come true: he will direct design for Alfa Romeo cars again!

 

[MBFanToDeath]

...And in the next few years they will do the same as General Motors...
they will, destroy and close all that factories which they purchased, send them into bankruptcy and destroy their history. And what is actually VW? Stupid Golf which has become boring as hell.
and btw...Good luck Porsche!

 

[Kowalski]

VAG may very well be on the verge of opening a Pandora's box and become the next General Motors.

 

[footie]

...And in the next few years they will do the same as General Motors...
they will, destroy and close all that factories which they purchased, send them into bankruptcy and destroy their history. And what is actually VW? Stupid Golf which has become boring as hell.
and btw...Good luck Porsche!

And tell me, which companies have they purchased and closed down? By all accounts all of them are doing rather well, in fact they all haven't been better since VW took them over.

And btw this will be the best thing ever for Porsche as those bad old days of the past when Porsche near went to the wall will never return and now they have the purse strings to develop (within reasoning) anything they so desire, plus of course some that VW want as well.

@Scott, the direction BMW are taking with their new i range is exciting, I'm looking forward to all the excellent products they will be bringing in the future.

 

[Giannis]

Bravo VAG! Lowest point of VAG's corporate machinations. Piëch & Winterkorn are far from being gentlemen & fair players.

But did BMW also play a dirty game when they got Rolls Royce out of VAG's mouth?

 

[dalab]

Things were not so, for years, the BMW engines equipped the Rolls Royces and Bentleys, and had for years been offering to buy these brands.

And today, in the same way that VAG does this dirty move, at that time and with its economic power got into the middle of the negotiation - and BMW showed them that not everything is a matter of money but of wisdom in the corporate command, to avoid compulsive bad players as VAG, staying with ROLLS ROYCE, for a minimum amount of money 60 million, against 800 million VAG payment by bentley and one decrepit factory.

Likewise, BMW one brand that I admire about things like that, find a way to get around the situation, not dirty play but with intelligence, at least I hope so.

As long as I am CEO of Chrysler and Fiat, Mr. Piech will never have Alfa Romeo."
Piech should concentrate on fixing Seat, VW's struggling Spainish subsidiary

SERGIO MARCHIONE.-

 

[EnI]

But did BMW also play a dirty game when they got Rolls Royce out of VAG's mouth?

Mind the Rolls acquisition was almost an already finished deal between Vickers & BMW when VAG (under Piech as VAG's CEO!) stepped in, and offered a sum for RR BMW couldn't match. So it was VAG who broke the gentlemen's agreement.

Also mind BMW was already a strategic partner of RR Motors at the time, providing engines, electronics etc for the RR Silver Seraph & Bentley Arnage, and it was logical BMW was the right partner for RR, until Piech stepped in with a pile of money.

Fortunately BMW had an ally in its business partner RR plc, the aero engine maker, which held the rights for RR name & logo, and sold the rights to BMW. Therefore BMW was able to get RR from VAG - although without Bentley brand, and without any established showroom, and without the Crewe factory (incl. skilled labor force there). All they got from VAG were the rights for RR design trademarks (Emily, Greek temple grille), and were forced to built entire factory and dealer network for RR & the new car from scratch.

Piech is used to play dirty! Especially when it comes to BMW.
It's not a secret - after Quandts refused to sell BMW to VAG after Rover fiasco - Piech goal has been to beat (some even say to destroy) BMW, and eventually acquire the brand. Just as a trophy. Fortunately the crazy Piech is already 74 years old, and won't live forever.

 

[Mr. Mercedes]

It's like an automotive world soap opera! It's all so juicy and interesting. lol

 

[Sunny]

Despite Footie's dire prediction of world domination by VAG, I doubt this news means much. A simple google search tells me VW owns an 8.18% of SGL vs BMW heiress Susanne Klatten who owns 22.25 percent of the SGL through her investment company SKion and as far as I could tell that is the single largest shareholder.

 

[EnI]

Yeah, but by purchasing of such a stake in SGL the VAG got a right to instal its own man in the Sgl's supervisory board, and so getting an access to all futute business decissions, incl the ones in the JV company Sgl & BMW established.

Fortunately Klatten's SKion can obtain controlling stake in Sgl shortly if neccessary, so VAG won't be able to block some Sgl's future moves.

But the harm can already be done by Vag obtaining the info on future plans Sgl & BMW have. That's nothing else but industrial espionage!

 

[SCOTT27]

The i3 Megacity vehicle is a ground breaking revolutionary vehicle especially it's technology and bodyshell.
Who does not want to know it's secrets?

I see that there is a high-level board meeting called for Friday morning.
No doubt this is the agenda.

No some are noses are put out of joint because of BMWi. Instead of turning a regular sports car concept into a hybrid , BMW have rebuilt the Concept from the ground up - Who is not going to want to own something that looks great , fullfills it's potential and looks as if it belongs on a film set?

 

[chonkoa]

The finest yet most shameless way of industrial espionage!

Buying a stake in a company that your rival strategically cooperates with, next putting your own man in the company's supervisory board, and then getting all the info from the management on the company's future business - including the ones concerning your rival.

Bravo VAG! Lowest point of VAG's corporate machinations. Piëch & Winterkorn are far from being gentlemen & fair players.

What's next? VAG buying stakes in Peugeot-Citroen SA & Renault SA to get info what BMW & Daimler are up to?

That's just sick!

Welcome back, long time no post.

 

[Mr Robert]

A strike from the evil empire, yet again!

 

[footie]

Despite Footie's dire prediction of world domination by VAG, I doubt this news means much. A simple google search tells me VW owns an 8.18% of SGL vs BMW heiress Susanne Klatten who owns 22.25 percent of the SGL through her investment company SKion and as far as I could tell that is the single largest shareholder.

Still your manner towards everything I post leaves a bad taste in my mouth, I wonder why, maybe a leopard can't change his spots.

@EnI, you appear to be the only person that sees exactly the thinking behind this move and regardless of that stupid statement that BMW own a biggest share means absolutely nothing because the damage is now done and all future secrets know.

P.S.
In this business no one plays it better than Piëch & Winterkorn.