Until today NAIAS had been pretty quiet. That is of course until the October issue of the NAIAS Newsletter had been released revealing a whole bunch of concepts and production debuts we can expect to see come January.
Ruling that a German law designed to protect Volkswagen from takeover bids illegally blocks trade within the European Union, the European Court of Justice threw out the controversial "Volkswagen Law". The law had prevented anyone person or organization from owning more than 20% of VW's voting rights, while guaranteeing that the government of the state of Lower Saxony, as well as the German national government, gets one seat apiece on Volkswagen's supervisory board.
Now Porsche, already a 31 per-cent owner of Volkswagen, is in a prime position to take over VW. Porsche chief Wendelin Wiedeking has made it no secret that he believes owning the majority of VW would be greatly beneficial to all involved, in terms of development, production, and distribution.
Wiedeking is widely credited as being the man behind Porsche's advances on VW.
In order for a takeover worthwhile to Porsche, Volkswagen, Europe's largest automaker, will have to become more streamlined. Job cuts are a possibility, in the interest of crafting VW into a more efficient company.
However, Porsche has shown great success as a sport and luxury car maker while keeping employment numbers high and workers happy. Porsche workers are considered to have very good pay and benefits. Porsche will decide on its next move at a board meeting in mid-November.
“We welcome the decision of the E.U. court,” a spokesman for Porsche said. “This brings us to a position, as Volkswagen’s largest shareholder, to fully exercise our voting rights.”
Porsche has raised €8.6 billion to move on VW if the law is repealed. Already Porsche spent €5 billion in acquiring 31% of Volkswagen. That investment is now valued at over €16 billion.
Volkswagen, the world's fourth largest automaker, employs over 300,000 people. The company is the owner, or part owner, of Audi, Bentley, Lamborghini, Bugatti, Seat, and Skoda.