Since when is Porsche a peoples car?

About now it seems!

After some years of dreaming big, it appears that Porsche’s ill-fated bid to purchase Volkswagen won’t be happening but a reverse of that just might.

The German paper, Spiegel, was reporting that VW would take over the now laboring Porsche in the good old Texas 2 Step by purchasing 49 percent of the stock now, with the remaining 51 percent at a future date. Latest news is that it will be almost a single purchase foregoing a drawn out double purchase. However all of this changes quicker than a freewheeling Porsche engine at full boost so bear with me. Its the gist that counts.

It all started when Porsche wanted VW and were flying high, bloated with confidence and cash. Cars were selling, customers were happy, races were being won and JD Powers kept on saying that Porsche was a heck of a well built car.

So with that in mind Porsche starts to purchase blocks of VW shares with some interesting loan strategies, all bolstered by Porsche’s strength at the time, when suddenly the world’s economy turned and they were left holding the bag. Oops. Instantly they were in debt to the tune of almost $12 billion dollars.

This obviously created a huge vulnerability with the banks and before you know it, VW comes back with an offer.

Point of all this is that some have their reservations of the purchase, I do not. I will at least give the marriage a chance to show the world what might happen. Recent history has shown that larger companies like VW treat their acquisitions of high end niche car companies with respect and at arms length. They seem to let the smaller company do its thing while lending immeasurable engineering and financial support.

Sadly it appears that Porsche ended up getting stung by the world market. Had they pulled it off how cool would that have been? Regardless I still believe that it will be a good place for Porsche to be a part of.

All I ask VW is this: Can you keep your parts prices down? We often purchase VW parts that are the same as the ones for a Porsche, but at a much reduced rate.

Good luck to both Porsche and VW. The world loves your products.
Later, PC