Does Porsche Own Volkswagen?

The relationship between Porsche and Volkswagen is one of the most fascinating and complex stories in the automotive industry. These two German giants share deep historical roots and are intricately linked today, leading many to wonder who actually owns whom. The answer isn't as straightforward as you might think.

Quick Answers:

• Does Porsche own Volkswagen? – No, not directly. The Volkswagen Group (Volkswagen AG) owns Porsche AG (the sports car manufacturer). However...
• Who controls the Volkswagen Group? – Porsche Automobil Holding SE (Porsche SE), a separate holding company controlled by the Porsche and Piëch families, holds the majority of voting shares in the Volkswagen Group.
• So, is it a reverse situation? – In a way. While VW Group operates the Porsche car brand, the Porsche-Piëch families, through Porsche SE, have significant control over the entire VW Group's strategic direction.
• Are they separate companies? – Porsche AG (the car maker) is a subsidiary brand within the Volkswagen Group. Porsche SE is an independent holding company that is Volkswagen Group's largest shareholder.
• Why is it so complicated? – This structure resulted from an ambitious, failed takeover attempt by Porsche of VW in the late 2000s, which ended with VW acquiring Porsche AG instead.

The Tangled History: A Tale of Two Families

The connection begins with Ferdinand Porsche, who designed the original Volkswagen Beetle before founding his own sports car company. For decades, the companies collaborated, with Porsche relying on VW parts and engineering expertise. The families remained intertwined, particularly through Ferdinand Piëch (Ferdinand Porsche's grandson), who eventually became CEO and Chairman of the Volkswagen Group.

The Audacious Takeover Bid That Backfired

In the mid-2000s, under CEO Wendelin Wiedeking, the much smaller Porsche embarked on a daring plan to take over the massive Volkswagen Group. Using complex financial derivatives (stock options), Porsche secretly built up a huge stake. By October 2008, Porsche revealed it controlled roughly 74% of VW's voting shares (directly and via options), aiming for full control. This triggered market chaos and squeezed short-sellers, briefly making VW the world's most valuable company.

However, the 2008 global financial crisis hit, credit markets froze, and Porsche found itself struggling under the massive debt incurred to fund the takeover attempt. The hunter became the hunted.

The Reverse Takeover: VW Steps In

Unable to sustain its debt and complete the takeover, Porsche was forced into negotiations with Volkswagen. In a reversal of fortune, Volkswagen agreed to acquire a stake in Porsche AG (the operating car company) in 2009, eventually completing a full integration by August 2012. Porsche AG became another brand under the Volkswagen Group umbrella, alongside Audi, Bentley, Lamborghini, Skoda, SEAT, and Volkswagen itself.

The Structure Today: Porsche SE's Dominance

Crucially, as part of the complex deal that saved Porsche, the Porsche and Piëch families consolidated their power through Porsche Automobil Holding SE. This holding company, separate from the car-making Porsche AG, became the dominant shareholder in the enlarged Volkswagen Group.

So, today:

1. Volkswagen AG (The Group) owns Dr. Ing. h.c. F. Porsche AG (The Car Company).
2. Porsche Automobil Holding SE (The Family Holding Company) owns a majority of the voting rights in Volkswagen AG.

This means while Volkswagen owns the factories, engineers, and brand rights of Porsche sports cars, the Porsche-Piëch families, via Porsche SE, have the ultimate say in the major decisions affecting the entire Volkswagen Group, including Porsche AG itself.

Final Verdict

No, Porsche (the car company) does not own Volkswagen. Instead, Porsche AG is owned by the Volkswagen Group. However, the controlling interest in the Volkswagen Group is held by Porsche SE, the investment vehicle of the founding Porsche-Piëch families. It's a unique structure born from ambition, financial crisis, and deep family ties, ensuring that while VW operates Porsche, the Porsche family legacy retains ultimate control over the larger entity.