Financing Options
The separation of Porsche could offer a new financing option for the group. VW relies heavily on generating enough cash on its own or issuing bonds, because its convoluted shareholder structure limits options to raise new capital as Tesla has done, without diluting the shareholdings of key stakeholders who control about 90 percent. % of VW voting shares.
The two companies share a common history dating back to the late 1930s and were formally linked after a protracted battle for control. Porsche first sought to buy VW just over a decade ago, before the audacious coup fizzled out and the larger automaker turned the tables, taking control of the sports car maker in 2009. One holdover from that acrimonious saga is Porsche Automobil. , which has a voting stake in VW of about 53%.
Porsche is VW’s most iconic brand and is highly profitable, among other brands like Audi, Skoda and Bentley. The creation of the multi-brand structure was the brainchild of Ferdinand Piech, the influential VW CEO and chairman who engineered the Porsche takeover despite opposition from his cousin Wolfgang Porsche. Piech passed away in 2019, at the age of 82.