Porsche streamlines business, ready for VW acquisition
Sports car manufacturer prepares for shareholding in Volkswagen increased beyond 30 per centIn as much as an extraordinary general meeting can actually be extraordinary, the June 26 meeting concerned with the future of Porsche was just that.
The sports car manufacturer remains committed to acquiring a controlling interest in Volkswagen and has put in place a couple of far-reaching administrative changes.
Despite the company being in a stable financial position, the hierarchical structure has been revised and workers will have an equal say in the future running of the company.
Formerly named Dr. Ing. h.c. F. Porsche AG, the company will now be known as Porsche Automobil Holding SE. In effect, Porsche AG becomes a wholly owned operational subsidiary of Porsche Automobil Holding SE.
Unlike Porsche AG, Porsche Automobil Holding SE will be able to operate as one business unit in all member states of the European Union.
The car-building concern is now a separate company acting under the administration of the new holding company.
This presages other subsidiaries coming under the wing of Porsche Automobil Holding SE. Read into that what you will.
Current shareholders in Porsche AG will be shareholders in Porsche Automobil Holding SE, but the new holding company won't be an official corporate entity until the submission of Porsche's 2006/07 annual report to the trade register.
Porsche Automobil Holding SE will also be directed by a 12-member board composed in equal parts of management and employees. That may sound a bit socialist for a builder of high end sports cars for the rich and famous, but Porsche has sought this consensus on the basis that historically, the workforce has played its part in the company's current good standing.
With Porsche enjoying improved revenue for the first ten months of this financial year, the change of company structure looks like a matter of form only.
Despite Cayenne production being interrupted from November 2006 -- while the production line was converted to produce the new model -- sales for the reporting period from August 1 2006 to May 31 2007 were about the same as for the full twelve months of the previous year.
Much of the pro rata improvement can be attributed to the success of the 911 Turbo and the new Cayenne (more here).
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