Auto BHP

Controlled by the Porsche and Piëch families, Porsche Automobil Holding has acquired an additional 4.89 percent of Volkswagen, pushing its stake to more than 35 percent - another step towards assuming de facto control over VW.

‘Our goal continues to be to increase our stake in Volkswagen to more than 50 percent. We look forward to continuing and intensifying our cooperation with the managing board of Volkswagen, which is based on a spirit of mutual trust, and are hoping for a quick resolution of the conflict between the employee representatives of Porsche and VW,’ said Wendelin Wiedeking, CEO, Porsche.

Porsche is currently awaiting the results of European antitrust and regulatory proceedings, before going ahead with acquiring an even bigger stake in VW. The antitrust proceedings are expected to be completed shortly.

The ongoing power struggle between VW and Porsche is also a family feud between cousins Wolfgang Porsche (Chairman, Porsche’s supervisory board) and Ferdinand Piëch (Chairman, VW’s supervisory board). Wolfgang is said to be gunning for Ferdinand and wants him out. How this daytime soap opera-type saga finally plays out will determine the destinies of Germany’s biggest car companies, Porsche, VW and Audi, which is also a part of the VW Group. And in the long run, it’s also likely to affect the Indian operations of the three companies.