The Book of 911

A merger made in heaven?

The New York Times relayed and interesting story on Wednesday. Much to my surprise, Porsche and VW have agreed to a merger, rather than an outright acquisition of VW’s available shares. The deal is still several weeks away from finalization due to approval from the German state of Lower Saxony, advisory boards, and additional details, (should they be called disputes?) left to be worked out between Porsche’s chairman Wolfgang Porsche, and his cousin and VW chairman Ferdinand Piëch.

Despite speculation that he was on his way out of the company due to his lack of presence in China for the new Porsche Panamera’s unveiling, CEO Wendelin Wiedeking is set to have a more dominant role with in the merged company of 10 brands. Interesting, Porsche is expected to remain largely independent, thus causing pause in understand the nature of this merger. 

Porsche has acquired more than 50% of the company and had hoped to acquire 75% by the end of the year. It is unknown exactly how much is currently owned. Because of this share acquisition, Porsche now owes US$12,000,000,000, and the NYT reports that debt reduction is another topic of conversation between company leaders.

From Porsche:

ATLANTA–(BUSINESS WIRE)– Porsche Cars North America, Inc. (PCNA) 

today announced manufacturer’s suggested retail prices (MSRP) for its new- 

generation mid-engine 2009 Boxster and Cayman models, as well as updated 

pricing on its 2009 911 and Cayenne models. 

The new Boxster and Cayman models go on sale in the U.S. in March of this 

year. 2009 Boxster pricing in the U.S. starts at $46,600 for the base version, 

$56,700 for the Boxster S, $50,300 for the base Cayman and $60,200 for the 

Cayman S. This represents about a 1.8 percent increase from the previous- 

generation Boxster and Cayman lineup for 2008. 

The 2009 Boxster and its fixed-roof sibling, the Cayman, offer new, more 

powerful flat-six engines, which are even more fuel efficient than the powerplants 

they replace. Exterior changes include distinct refinements that subtly update the 

classic sports car design. Both add significant new standard and optional 

features for the 2009 model, including Porsche Communication Management 

with Touchscreen operation, XM Radio, Bluetooth and iPod interface to name a 

few. 

For the first time, the Boxster S and the Cayman S use Porsche’s new Direct 

Fuel Injection (DFI), and all four models can be ordered with the company’s 

innovative 7-speed double-clutch gearbox Porsche-Doppelkupplungsgetriebe 

(PDK). PDK is a state-of-the-art, race-inspired technology that is essentially two 

transmissions in one: it can be driven as a full automatic or it can be shifted 

manually via shifters on the steering wheel or through the shift lever. The result 

is superior performance with improved fuel efficiency. 

The newly developed boxer engines in these models are also more fuel efficient 

and more powerful. The 2.9 liter flat six cylinder develops 255 hp in the Boxster 

and 265 hp in the Cayman. The 3.4 liter power unit in the S versions, which 

benefits from Porsche’s Direct Fuel Injection (DFI), now delivers 310 hp in the 

Boxster S and 320 hp in the Cayman S. 

In addition to 2009 Boxster and Cayman pricing, PCNA announced a mid-model- 

year price increase of less than 1.0 percent for its entire 2009 model lineup. The 

average price increase per model is $900 and includes all 911 sports cars and 

Cayenne SUVs. The new prices take effect on February 3, 2009.

You may recall that last year, part of the Porsche factory that produces the 911 caught fire and delayed some production for a short time. Because not all Porsches are produced in the same factory, most of the Porsche supply chain went unaffected.

 
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Fast forward to 2008, and we see again why companies should always buy transportation of goods insurance. Turns out that early Wednesday morning a train was derailed in Dillenberg, Germany (wherever that is), which cause 20 brand new 911s and who knows how many other cars to be brutally damaged. Porsche lovers hearts are breaking across the world! Still in tight times, maybe Porsche can make more money with train crashes rather than a weak sales market…
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Porsche has been increasing its stake in VW through a complex set of derivatives trades. This in turn has negatively affected hedge funds to the tune of $20billion (£12.6bn). Those hedge funds had been shorting the stock, and now it has bit them in the butt.

Jeremy Warner of The Independent explains.