It looks like Porsche and VW may come together under the Auto Union banner.It looks like Volkswagen and Porsche are getting close to an agreement on a way forward, and it now looks likely that the new union will resurrect the Auto Union name, first used when Audi, Horch, DKW and Wanderer joined forces in the depths of the Great Depression in the 1930s. Somehow apposite then that VW and Porsche are considering using the Auto Union name for their own coming together, in the depths of what could be argued is as great a recession as the Great Depression.
Of course, all these shenanigans have come about because of Porsche’s desire to gobble up VW. The plan looked great, and Porsche grabbed a big chunk of VW stock. But it did it with borrowed money and has come severely unstuck as the recession bites and revenues tumble. Porsche has already had to be bailed out with a loan from VW in recent months as it ran out of cash, and the wrangling over the future has rumbled on for ever.
But the resignation of Porsche boss Wendelin Wiedekin last months has paved the way for a rapprochement between the two companies, and it would now appear that VW will buy Porsche by taking a 49% stake, whilst Porsche continues to operate as an independent entity under the auspices of the new group – which is where the ‘Auto Union’ bit comes in. Probably more about face-saving for Porsche. But if it works, it works.
