Volkswagen And Porsche: Let’s Try To Figure Out Who’s Really The Boss
The ownership structure between these two automakers is pretty confusing. ShuterstockNews that is entertaining to read
Subscribe for free to get more stories like this directly to your inboxIf you’re a fan of precision German auto engineering, you’ve probably marveled at the incredible performance of a sleek Porsche 911 coupe. And if you’re looking for a stylish family transporter, perhaps you’ve considered one of Volkswagen’s many SUVs.
But did you know that these two automakers are fundamentally linked? And figuring out where one starts and the other ends can be confusing.
Some historical context
Ferdinand Porsche, who would later create the brand that bears his name, worked for VW and designed the iconic Beetle, which became a mainstay in Germany prior to the outbreak of World War II.
When he started making Porsche models, many of the parts were shared with Volkswagen — and the new brand opted to invest heavily in VW after the war was over. The plan was to buy up a controlling three-quarters stake in the brand, but was only able to acquire just over half.
An unusual arrangement
Porsche’s inability to obtain as much of VW as planned could have derailed the company entirely, but there was an unconventional path forward.
The strategy involved dividing Porsche into two separate entities. One, called Porsche AG, was responsible for creating the vehicles, and the other, Porsche SE, is a corporation created entirely to serve as Porsche AG’s owner.
With that circular structure in place, Porsche SE sold Porsche AG to Volkswagen to repay the debt it racked up trying to buy the VW stock to begin with.
Things only got more complicated when Germany repealed a longstanding law that only an entity with 80% ownership of VW could control the company’s decision. That meant that Porsche SE’s existing share was enough to own VW … and VW was still Porsche AG’s owner.
To put it as simply as possible: Porsche owns Volkswagen and Volkswagen owns Porsche.