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BDizzleFizzle President


Joined: 27 Jan 2003 Posts: 11438 Location: New England
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Posted: Tue Oct 23, 2007 1:55 pm Post subject: "VW Law" overturned - Porsche takeover likely |
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| LLN wrote: | European court overturns "VW law," Porsche takeover of VW likely
The European Court of Justice ruled today that Germany cannot block the sale of Volkswagen because of what is dubbed as "VW law" — a regulation setup after World War II that protected Volkswagen AG from a hostile foreign takeover. The European Court of Justice found that the Federal Republic of Germany failed to allow the free movement of capital within the European Union.
The ruling gives Porsche — VW's largest shareholder — the same voting rights as the German state of Lower Saxony — VW's second largest shareholder.
Porsche has been interested in acquiring a controlling stake of VW and the new ruling should allow for a takeover. Porsche is interested in access to VW's smaller vehicles in order to comply with stricter proposed emissions regulations. Earlier this year, Porsche threatened the European Union with legal action over the new regulations, but the purchase of VW will likely quell any threat of a law suit. |
Original article _________________
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b5crazy B5one
Joined: 27 Aug 2006 Posts: 197 Location: Central NY
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Posted: Tue Oct 23, 2007 4:03 pm Post subject: |
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One can only hope that this will turn out to be good news.
I wonder if Skoda, Seat, or both will get the boot? _________________ 2004 W8 Variant 6MT |
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BDizzleFizzle President


Joined: 27 Jan 2003 Posts: 11438 Location: New England
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Posted: Tue Oct 23, 2007 5:26 pm Post subject: |
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No reason for them to get the boot _________________
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Mike E. Vice President

Joined: 03 Jan 2004 Posts: 7416 Location: New England
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Posted: Tue Oct 23, 2007 6:19 pm Post subject: |
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I don't think Skoda or Seat will have any issues since the majority of their lineups will help Porsche accomplish what they want VW for. I'm more interested to see what this will mean for Audi (specifically the R8 ), and Lamborghini. _________________
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4meezy B5four

Joined: 12 May 2004 Posts: 2656 Location: pittsburgh pa
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Posted: Tue Oct 23, 2007 6:31 pm Post subject: |
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| and bugatti |
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emerican_dub B5four

Joined: 23 Aug 2007 Posts: 2728 Location: New England
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Posted: Tue Oct 23, 2007 8:52 pm Post subject: |
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so if im understanding this correctly if porsche wins they will remove the Volkswagen name and put theirs in the spot correct? so does this mean that we will be seeing more expensive volkswagen prices? or just a new line up of cars?
i couldnt imagine that they would take out the line up already since the Jetta and Golf ( including the variations of Jetta and Golf ) are the two most popular cars sold by volkswagen, correct? _________________
wtf???
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BDizzleFizzle President


Joined: 27 Jan 2003 Posts: 11438 Location: New England
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Posted: Wed Oct 24, 2007 12:29 am Post subject: |
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B, no, that's not what's going on. This isn't about rebranding VWs as Porsches. It's about corporate ownership. Pricing isn't as simple as who owns the company.
The question will be about strategy, mainly, since Ferdinand Pietsch, the former CEO and Chairman and Psycho at VW who made them go up market and nearly killed the company is the lead owner at Porsche (his grandfather was Ferdinand Porsche, so his family basically controls Porsche). Many believe this move by Porsche is merely a way for Pietsch to regain control at VW. Martin Winterkorn, who was put in as VWs CEO recently (from the head spot at Audi) is seen as a Pietsch ally or even puppet.
I wouldn't expect any real changes to winning parts of VW. The question, as some point out, is what will happen to VW's models and strategies that overlap with Porsche, like the R8, Bugatti, Lambo and, as Porsche goes more mainstream with models like the Panamera, Bently.
Overall, I don't see this as a good thing whatsoever. It may not be a bad thing, but certainly not a good thing. _________________
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Stefan B5three

Joined: 28 Nov 2004 Posts: 1016 Location: Three Rivers Quebec, Canada
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Posted: Wed Oct 24, 2007 1:34 am Post subject: |
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We only have to look at Ford, GM and Dodge to find out what happens when too many cooks surround the broth. _________________ 2000 V6 in Satin Silver
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