Did you know that German auto makers Volkswagen and Porsche have family ties that go back to the establishment of VW?
It was Ferdinand Porsche who designed the forerunner of the Volkswagen Beetle close to six decades ago. Now, Wolfgang Porsche, grandson of Ferdinand and owner of Porsche, is now trying to bring the two companies together.
He's going to have a tough time. Wendelin Wiedeking, the CEO of Porsche and the so-called mastermind of the plan to recent takeover VW, was to solidify the partnerships. All of this has opened up tensions between the two companies and within the family. Workers at VW fear Porsche's control it would limit a lot of its power within the company.
Wolfgang is saying that he is trying to bring the two companies together because it is better to keep it within the family rather than to have others take control of VW. And, it is not as if the two companies have not cooperated in the past. They worked together to build SUVs and develop hybrid engines.
The full story can be found at the New York Times. Our take? So it has become a soap opera or a David versus Goliath struggle, with Porsche is Goliath while VW is David. Even though VW is also associated with Audi, in recent years it has challenged its own claim of making the “people’s car” by producing more luxury vehicles (e.g., Phaeton).
So, the march goes on for the final takeover. The family as a whole supports it and, more importantly, investors seem to like it, too. Shares of Volkswagen are up certainly because of its own successes but also perhaps because of the impending takeover by Porsche.
Family dynamics and company politics are not usually a good mix. But the takeover is going to happen, you can rest assured of that. Perhaps when it is all over everyone can make friendly and remember that grandpa Ferdinand would probably want it to be this way.