Are Porsche and Volkswagen in any way related?

[luxury1]

I have heard mixed things about this. Some say no way and others say yes but distantly. So I defer to you guys, are Porsche and Volkswagen related? If so, how?

[BuffaloBoxster]

Here's something I wrote on another forum:


Porsche AG is an independent company that produces Porsche brand cars.

Volkswagen AG is an independent company that produces cars under several brands, including Volkswagen, Audi, Bentley, Seat, and Lamborghini.

Porsche and Volkswagen have a relationship going back all the way to the beginning. The original Volkswagen Beetle was designed by Dr. Porsche, who later went on to found Porsche AG. The first production Porsche, the 356, was based on Volkswagen mechanicals. Over the years Porsche has continued to source parts from Volkswagen for some models.

Recently, Porsche and VW collaborated on the design of the Porsche Cayenne and VW Toureg SUVs.

VW Chairman Piech is related to the Porsche family, and holds a stake in Porsche AG.

Porsche AG owns a significant stake in Volkswagen AG, about 10% if I recall correctly.

So to recap - Porsche and VW are independent companies that do collaborate on occasion, and Porsche owns a stake in VW, but neither companies are owned subsidiaries of the other company.

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I understand that Porsche's stake in VW is actually more like 20% at the moment.

[luxury1]

That is a great explanation! Thanks!

[Brucelee]

Porsche recently upped their stake in VW and in effect, controls VW via its board presence and voting shares.

Piech has become the spokesperson for the Board and it is clear, he holds the cards, even though on paper, the CEO of VW is in charge.

Quite a turnaround I would say.

[limoncello]

So we could hope for a VW Karman Ghia based on the Cayman S platform, but selling for $20K less?
Oops, sorry, just daydreaming.

[BuffaloBoxster]

The general consensus is that Porsche is protecting its investments in the collaboration with Volkswagen. There were rumors a while back that VW might be ripe for a takeover due to EU regulations. VW had formerly enjoyed some kind of government protection against foreign takeover.

[Brucelee]

I think it is clear that Porsche is the dog, VW is the tail.