As Volkswagen and Porsche unveil
the first details of an agreement which would create the world’s
largest automotive group by market value, there are still many
questions over the future structure of the two companies’ leasing
businesses.
The two German carmakers met in August
to discuss the overall terms of an unexpectedly “overturned”
merger, and agreed that they will form an integrated group by the
end of 2011 – with 10 brands, including Porsche, under the
leadership of VW.
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No mention was made about what will
happen to the brands’ financial services businesses, although it is
understood that Porsche’s leasing businesses would most likely
become an integral part of VW Financial Services.
Earlier this year, Porsche, the
manufacturer, had managed to acquire roughly 51 percent of VW, and
secured options on a further 20 percent; although the enormous
amount of debt amassed in the process eventually backfired on the
sports car maker, and now it is VW which is preparing a takeover of
Porsche.
The agreement reached last month
specifies that Porsche’s independence in the integrated group would
be safeguarded, however, as is the case today with Audi and other
group brands, which have retained their independent structures.
A couple of weeks before the
extraordinary meeting, German newspaper Wirtschafts Woche
reported that Porsche’s financial difficulties had pressed it into
considering allowing Volkswagen Bank – a division of VW Financial
Services – to take over the running of Porsche’s leasing business.
VW has thus far declined to comment.
In the first half of 2009, the VW
Financial Services division recorded an operating profit of €321
million, compared with €523 million last year.
In the same period, 1.6 million new
finance, leasing and insurance contracts were signed, 23 percent
more than in the first half of 2008.
Currently, VW group’s financing
business for new and used vehicles – including the commercial
vehicle division – is run by Volkswagen Bank, with separate
branches for Volkswagen Bank, Audi Bank, Seat Bank, Skoda Bank and
AutoEuropa Bank. A similar structure for its leasing and insurance
businesses is also currently in place.
However, until the details surrounding
the implementation of the new automotive group are announced –
expected later this month – the future of Porsche and VW’s
financial services businesses remains uncertain.
Antonio Fabrizio
