You are on page 1of 14

Porsche Automobil Holding SE, usually

shortened to Porsche (German pronunciation: [ˈpɔʁʃə][3]) or Porsche SE, a Societas Europaea orEuropean Public Company , is a German holding company with investments in the automative industry. Porsche SE is headquartered in Zuffenhausen, a city district of Stuttgart, BadenWürttemberg and was owned by the Piëch and Porsche families, and Qatar Holdings, through the Qatar Investment Authority (10%). Porsche owned 50.73% of the voting rights in Volkswagen AG, and 50.1% of Porsche Zwischen holding GmbH, which owns 100% of Dr. Ing. h.c. F. Porsche AG, the manufacturer of a range of sports
cars and SUVs. On July 2012, it was announced that Volkswagen AG is taking over

Porsche completely. The company was founded as Dr. Ing. h.c. F. Porsche GmbH in 1931 by Ferdinand Porsche,an Austrian engineer born in Maffersdorf, during the time of the AustroHungarian Empire, and Porsche's son-in-law Anton Piëch, an Austrian lawyer. Cooperate Structure Porsche SE is the owner of Dr. Ing. h.c. F. Porsche AG (Porsche AG), and in June 2007 became a holding company for its stake in Porsche Zwischenholding GmbH (50.1%) (which in turn holds 100% of Porsche AG) and Volkswagen AG (50.7%).In August 2009, Porsche SE and Volkswagen AG reached an agreement that the two companies would merge in 2011, to form an "Integrated Automotive Group". During December 2009, Porsche SE lost control of Porsche Zwischenholding GmbH, which as a result is now a joint venture between Porsche SE and Volkswagen AG. As of 5 July 2012, Volkswagen is to acquire the 50.1 per cent in Porsche's capital that it doesn't already hold from holding company Porsche SE for €4.46 billion plus one Volkswagen share. Dr. Ing. h.c. F. Porsche AG (which stands for Doktor Ingenieur honoris causa Ferdinand Porsche Aktiengesellschaft), is responsible for the actual production and manufacture of the Porsche automobile line. The company currently produces Porsche 911, Boxster and Cayman sports cars, the Cayenne sport utility vehicle and the four-door Panamera.

Other subsidiaries and operating divisions include Porsche Consulting, Porsche

goes back to Ferdinand Porsche. Electricity held a particular fascination for him. It was there that he presented a vehicle with four driven wheels: the first four-wheel drive vehicle in automotive history. in Vienna in the year 1893. Zastava Automobiles and others have consulted Porsche Engineering Group for their cars or engines. He did not renew his contract. Studebaker. SEAT. the technically talented and highly motivated Ferdinand Porsche started his job career with Vereinigte Elektrizitätswerke Bela Egger & Co. The Lada Samara was partly developed by Porsche in 1984. He was the third child of his parents Anton and Anna Porsche. After World War I. With his development of the wheel-hub motor Porsche had the international audience at the Paris World Fair stunned in the year 1900. Ferdinand Porsche was 11 years old. and later. For the Austro-Hungarian army Porsche designed trucks and the “Landwehrzug”. where Ferdinand Porsche was born in Maffersdorf on September 3. Porsche Design Group. Shortly before the turn of the century. . 1875. the Volkswagen (VW) marque. He first took over the management of the SteyrWerke and in 1931 Porsche established his own design office in Stuttgart.1%) and Bertrandt (25%). He designed aircraft engines for which he received an honorary doctorate from the Technical University of Vienna. After finishing his apprenticeship in his father’s business. elationship with Volkswagen The company has always had a close relationship with. At the time the automobile was being invented. At the age of 13 he installed electric bells in his parents’ house and provided it with electric light when he was 16. In fact also the first hybrid car in the world . He was in charge of designing the famous sports cars. Ferdinand Porsche started to work for the Lohner Imperial Royal Court Coach Factory in Vienna. Audi. he developed powerful and for the first time aerodynamically shaped limousines. Ferdinand Porsche transferred to Daimler. Subaru. SS and SSK and also developed truck and aircraft engines. the AD “Sascha”. the top event of the time. the Volkswagen Group (which also owns Audi AG). Mercedes. Mieschke Hofmann and Partner (81. In 1923.a vehicle with a drive combining internal combustion/electric components . Ferdinand Porsche. Incidentally this construction principle was used by NASA in their lunar vehicle 70 years later. History The roots of the Porsche history lie in Bohemia. which won the famous Targa Floria right after being launched. Daewoo. which he was also to lead as Managing Director. During his 17 years’ activity for this big Austrian enterprise. which could move both on the road and on rail. Opel. Stuttgart. where he held the position of Technical Director. but returned to Austria. Three years later his son Ferry was born. Porsche Engineering Group also helped HarleyDavidson design the Revolution 60-degree v-twin water-cooled engine and gearbox that is used in their V-Rod motorcycle. initially.Engineering. type S. Porsche Engineering Group (PEG) has for many years offered consultancy services to various other car manufacturers. Ferdinand Porsche built the first two-seater sports car. who got married in the meantime and became father of a daughter (Louise *1904) moved to Wiener Neustadt in 1906 where he joined Austro Daimler. Driving one of them himself he won the “Prinz-Heinrich-Fahrt”.

and to stop hedge funds dismantling Volkswagen Group. in effect taking control of the company. potentially paving the way for a takeover.[29] although they used far fewer Volkswagen components. but this time over Audi. The Cayenne.65% stake in the Volkswagen Group. There has been some tension and anxiety amongst the Volkswagen Group workers. and Renault.1% of the shares. in 1976 with the Porsche 912E (USA only) and the Porsche 924.) However. introduced in 2002. further cementing their relationship.because the first Volkswagen Beetle was designed by Ferdinand Porsche. Combined badging of the European 914 On 26 March 2007. Under the so-called "Volkswagen Law". rejection of demands for payment rises or even personnel cuts.9%. since it is Porsche's intention to keep the corporate structure of the Volkswagen Group. which was rumoured at the time. (The local state government of Lower Saxony owns 20. which used many Audi components. Porsche took an 18. Speculated suitors included DaimlerChrysler AG. and was built at Audi's Neckarsulm factory. shares its entire chassis with Volkswagen Touareg and Audi Q7. triggering a takeover bid under German law. It again triggered a takeover bid. any shareholder in VW AG cannot exercise more than 20% of the firm's voting rights. Porsche 944s were also built there. regardless of their level of stock holding. and the 914 had a Volkswagen engine. any shareholder with more than 20% of the voting rights has veto power over any corporate decision in the annual general meeting – in effect. In late 2005. On 16 September 2008. Porsche then formally announced in a press statement that it did not intend to take over Volkswagen Group (it would set its offer price at the lowest possible legal value) but intended the move to avoid a competitor taking a large stake. whereby the 914-6 had a Porsche engine. the European Court of Justice ruled against the law. and preventing a takeover of Volkswagen Group. Porsche dismissed the bid as a mere formality. with more than 35% of the voting rights. Porsche took its holding of Volkswagen AG shares to 30. The two companies collaborated in 1969 to make the VW-Porsche 914 and 914-6. Porsche's move comes after the European Union moved against a German law that protected Volkswagen AG from takeovers.89%. Porsche increased its holdings by another 4. BMW. which is built at the Volkswagen Group factory in Bratislava. who fear that a Porsche takeover might signify a hardened production efficiency control. which is Porsche's most important partner. Ferdinand .

and a new Dr Ing. Thus the operating activities are separated from holding activities of the company. and it will also see the family shareholders selling the automobile trading business of Porsche Holding Salzburg to Volkswagen AG. Volkswagen AG's Supervisory Board signed the agreement to create an "integrated automotive group" with Porsche. Corporate restructuring Through the Volkswagen AG stake acquisition.1% it did not own. Germany to discuss the change to the company structure. c. h. renamed "Porsche Automobil Holding SE". Wolfgang Porsche. Volkswagen AG paid Porsche shareholders $5. led by Volkswagen AG. Porsche AG operating company being formed in 2007. Porsche reformed the company's structure. c.Piëch and his cousin. Combined badging of the European 914 On 13 August 2009. Porsche has announced a new price structure and six new Porsche Centre.61 billion for the remaining 50. with Dr Ing. . at the Porsche Arena in Stuttgart. On 5 July 2012. F. F. Volkswagen AG announced a deal with Porsche resulting in VW's full ownership of Porsche on 1 August 2012. In the late 2009 VW (which also owns Audi) bought the controlling rights to Porsche. Volkswagen will initially take a 49. The deal was classified as a restructuring rather than a takeover due to the transfer of a single share as part of the deal.New Porsche Centres to be operational by 2013. There was an Extraordinary General Meeting (EGM) for Porsche AG shareholders which took place on 26 June 2007. Porsche AG becoming a holding company. Volkswagen Group’s performance car division. Temporary facilities to accept vehicle orders in the mean time.9 percent stake in Porsche AG by the end of 2009. Porsche to launch six new dealerships. h. also seemed to be on a collision course.

moving Michael Macht to another executive position within Volkswagen AG.14% plurality stake in Volkswagen AG. aggravated by taxes due on very large paper profits from Volkswagen AG options. who is expected to receive a compensation package of 50 million euros. on 19 January. Slovakia. and indeed claims to have the highest profit per unit sold of any car company in the world. Porsche's holding in VW AG was raised to 50. Volkswagen Group expected the move.S. Porsche SE was aiming for its first ever credit ratings from U.76%. and in 2012 production moved to Germany. rating agencies Standard & Poor's and Moody's. By March 2009. to replace Wendelin Wiedeking. they offered the minimum price in that mandatory takeover bid. Production and Sales The headquarters and main factory are located in Zuffenhausen. In July 2010. The company has been highly successful in recent times. Porsche set the stage for obtaining a plurality stake in the Volkswagen AG. Michael Macht was appointed CEO. at that level they could bring VW AG's cash onto Porsche's books. and welcomed Porsche's investment. As Porsche had no strategic interest in the company. Boxster and Cayman production was outsourced to Valmet Automotive in Finland from 1997 to 2011.8 percent of Volkswagen Group as of 5 January 2009. In October 2008. and parts for the SUV are also assembled in the Volkswagen Touareg factory in Bratislava. Porsche announced its intent to raise its stake in Volkswagen AG to 75% during 2009. and has said it plans to lift the stake to 75 percent before the end of 2009. By September. a district in Stuttgart. and on 7 January 2009. By July 2009. The supervisory board of Porsche finally agreed to a number of arrangements whereby the Qatar Investment Authority would inject a large amount of capital. . One day later Porsche sought to allay fears it would attempt to force a merger with Volkswagen Group. Germany. effectively giving it control over the company. Porsche appointed Volkswagen executive Matthias Müller to its new CEO position.On 3 March 2007. Porsche was faced with debts exceeding 10 billion euros. Porsche owned a 35. On 23 July 2009. and Porsche would be merged with Volkswagen Group. but the Cayenne and Panamera models are manufactured in Leipzig. because VW AG already had a controlling position in the Swedish truck-maker. Porsche built up a large debt burden. In its efforts to acquire a majority holding in Volkswagen AG. Porsche's move automatically triggered a bid for Scania AB. Porsche SE owned 50.

844 105.857m €8.859 (  2%) .954 102.162 cars produced in the 2007/8 financial year.273 118.569m €-2.524 ( 24%) % of total 31% 25% 43% 911 (996) 9.497 (46.935 ( 18%) 6.303 (32.061 Porsche 911 and 21.794 97.7%) as domestic German sales.739 89.238 81.524 (13.6%) were 911 models.92b pre-tax profit €829m €933m €1.850 97.3%) were Boxster and Cayman cars and 48.148m €6.123 NA 127.327 ( 123%) 14.670m €2.803 76.867 Production split Of the 105.515 98.The production figures of sports cars was quite similar to the 2001/2 totals when 33.238m €2.531 90.284 81. Figures from 2008/9 onwards were not reported as part of Porsche SE. There were 3 Panamera and 3 Carrera GT models also reported. 34. Porsche reported selling a total of 98.989 Boxsters were produced.234 66.028 (  33%) 33.857m €5. year ending 31 July 2002 31 July 2003 31 July 2004 31 July 2005 31 July 2006 31 July 2007 31 July 2008 31 July 2009 31 July 2010 1 January .3%) internationally. 13. and 85.110m €5. North American sales Annual sales 2003–2005 model 2003 units % of total 33% 21% 45% 2004 units 10.432 ( 38%) 13.368m €7.1%) were Cayennes.050 73.602 101.289 ( 11%) 33.652 75.31 December 2010 12/31/11 revenue €4.Table of profits (in millions of euros) and number of cars produced.227 ( 3%) 3. Sales In 2008.137m €1.583m €6.273m €7.728 ( 42%) 19.356 (21.134 ( 40%) 2005 % of total 31% 11% 57% units 10.559m NA €1.128 (86.379 96.23b €10. 22.162 76.574m €7.661 Boxster Cayenne total 30.79b €9.045m production 55.466m €?m €7.827 88.653 ( 4%) 8.652 cars.793 sales 54.

3%) 25.898 ( 4%) 30% 11% 13% 46% 36.4%) 1.8%) 8.875 (  39.095 (  7%) 36.702 ( 19%) 4.1%) 3.000.850 (  42%) 7.141 (  23%) 35% 14% 20% 31% 13.72% 19.249 ( 17%) 13.94% 44. Porsche was awarded the title of the most prestigious automobile brand by Luxury Institute. Power and Associates award for the highest-ranked nameplate in its Initial Quality Study (IQS) of automobile . New York. it questioned more than 500 households with a gross annual income of at least $200. and 2010 J.904 (  24%) 6.9%) 22.696 (  24.65% 6016 (  5.70% 39.33% 30.324 (  37%) 2.84% 10.6%) 29.343 (  7.72% 19.839 (  17.0%) 35.D.320 (  28.000 and a net worth of at least $720. Porsche was awarded the 2006.247 7. 2009.Annual sales 2006–2008 model units 2006 % of total units 2007 % of total units 2008 % of total 911 (997) Boxster Cayman Cayenne total 12.55%) 20.499 (  9.717 (  24%) Annual sales 2009–2011 model units 2009 % of total units 2010 % of total units 2011 % of total 911 (997) Boxster &Cayma n Panamer a Cayenne total 6.86% 6.023 ( 15%) Reputation In a May 2006 survey.680 (  2%) 27.13%) 12.57% 23.27% 32.879 (  11.735 (  31.0%) 3150 (  9.8%) 3.370 ( 20%) 36% 11% 17% 36% 8.741 (  520.513 (  44%) 12.153 ( 4%) 3.3%) 7.00% 13.00% 5.978 (  55.313 11.982 (  24%) 3.02%) 6.735 (  16.

This allows them to make large profits despite having a relatively low margin in comparison to others. greater profits. While this diminished the "character" of the hand made air cooled cars.045m (2011 Fiscal year) Volkswagen AG 15. this has built brand identity and equity and allowed them to sell their cars for such high prices. . Chairman Martin Winterkorn. Second. it allows great economy of scale. and thus. Germany Worldwide Wolfgang Porsche. Type Industry Founded Founder(s) Headquarters Area served Key people Products Production output Services Revenue Operating income Owner(s) Employees Subsidiaries Societas Europaea. Third.brands. (FWB: PAH3) Automotive 1931 Ferdinand Porsche Stuttgart. they have a low overhead and have advanced to modern production techniques.928. President & CEO Automobiles 127.307 (2012) Porsche Zwischenholding GmbH Porsche AG Porsche-SE.million (2011 Fiscal year) €2. (Xetra: PAH3). engineering services €10. it has been (until the recent moves by VW) a closely held corporation with a specific vision and a brand.793 Automotive financial services. they have a premium product and do not discount Website Why is Porsche such a successful company? First. Baden-Württemberg.

Seat. more reliable. who owns Lamborghini. Every Porsche ever made was a sportscar with a Boxer engine until 2004 when they made the SUV. However . 1. Now Porsche owns more than 40% of VW and they have the controling stock.Ferdinand Porsche" started the company VW and designed the original Beetle. The Cayenne is now the best selling SUV in the world and Porsche's best selling car. options and stock markets. Generation of PORSCHE . they became very sucessful. And VW owns Bently. Porsche's are as fast as Ferrari's and Lamborghini's.which should not make sense. but more practical. In 2008. and Audi. but it happened because of the returns on their investments. Porsche is the only company allowed to buy VW by law. VW is Europe's best selling cars. they will soon become the largest car company in the world and beat GM and Toyota. Porsche's are also very fuel efficient. and more luxurious. Porsche and VW always worked together since they came from the same founder. Skoda. their profit exceeded their sales . The Porsche Boxster S with 295HP gets better gas mileage than slower cars with less or more power like the Nissan 350z and Mazda RX-8 and Ford Mustang V6 and GT. Porsche has been growing because people were making more money so they can afford them. When Porsche made the SUV. He then started another car company known as Porsche and designed the Porsche 356. cheaper.Finally. which was a rear engined car just like the original Beetle. And now that Porsche is buying them. the Cayenne. they have had excellent financial people manipulating the derivatives.

Protoype from Porsche of a Tiger I Panzerjäger Tiger. Porsche Diesel Super The Porsche 912. from the 1960s . after the loss of the contract to the Tiger I Porsche recycled his design into a tank destroyer.

The second-generation Porsche 911. This car raced at Watkins Glen in 1970. was the first to be offered with Porsche's Tiptronic transmission. introduced in 1989. 2010 Porsche 911 (997) GT2 RS . 1952 Porsche 356 K/9-1 Prototype The Martini Racing blue and green "psychedelic" livery on a 1970 917K.

Porsche 911 (991) Porsche Boxster Porsche Cayenne .


Porsche Panamera Porsche sponsors Bundesliga club VfB Stuttgart. . The picture shown is VfB Stuttgart against Borussia Dortmund.