Centurion

I thought some of you guys would appretiate this diagram which I ahve had stored on my computer for over a year.

Yannis

Many things have changed since then.

Centurion

Yeah it might be a bit out of date but still, it gives a general idea over how things are run.

Snake Vargas

I've got the same picture on my computer. Very useful.

Though, note that now GM has divested itself of all Subaru shares, and Toyota purchased (I think) maybe, half? of those - so now owns a 10% stake.

I think GM also sold all their Fiat shares. Is that true?

And do MG Rover and Lotus count as 100% owned, but by an external group? Some Chinese company owns MG Rover, IIRC, and Proton owns Lotus, but not sure about by how much.

Centurion

I reckon some more of you have got this picture since it was posted on the GCF forums. I may also add that Porsche owns 10% of VW.

siko

Not 10%... but 18.5%!

Yannis

Porsche has bought additional shares since so it's more than 20% now actually.

siko

20% was originally announced as Porsche goal... but they ended up settling for 18.53%... - ONLY REGISTERED AND ACTIVATED USERS CAN SEE ALL LINKS - CLICK HERE TO REGISTER.

Yannis

You are right. But they have an option of buying additional shares which they might not use cause...

Volkswagen is about to give Porsche and the state of Lower Saxony, its two largest shareholders, the right to veto major corporate decisions, including factory closings.

The supervisory board is expected to ratify on Feb. 24 a proposal from management to retire 41.7 million shares, or 13 percent of the total, raising the stakes of Porsche and Lower Saxony to more than 20 percent each.

Under the company's bylaws, that's enough to block major decisions at annual general meetings, like capital increases or shutting down several plants, said Thomas Mickeleit, a Volkswagen spokesman.

The change comes as the chief executive, Bernd Pischetsrieder, and Wolfgang Bernhard, head of the Volkswagen brand, are trying to stem losses of "several hundred million euros" at the company's six Western German plants.

Last Friday, Pischetsrieder said that as many as 20,000 jobs might have to be eliminated to cut costs.

On Monday, Bernhard told employees in a newsletter that the company has "to look at the possibility" of factory closings to help increase productivity by 30 percent over three years.

German companies typically have rules in their articles of incorporation allowing minority shareholders with at least a 25 percent stake to vote down major decisions at the annual general meeting. Volkswagen's minority-blocking rights kick in at 20 percent because of the so-called Volkswagen law, which prevents anyone from having more than 20 percent of the voting rights, according to the carmaker's articles of incorporation.

The law, which is being challenged by European Union regulators, is designed to prevent the company, once controlled by state and federal governments, from being taken over.

Stephen Pope, head of equity research at Cantor Fitzgerald in London, said giving key shareholders blocking power would not "necessarily" be a problem, as long as they share "the same vision for the future" of the company.

"If we suddenly reach a period of discord between the two parties, then there could be conflicts and unwanted distractions," said Pope, who has a "buy" rating on the stock.

Under the change, Porsche's stake will rise to 21 percent from 18.5 percent, a Porsche spokesman, Anton Hunger, said during an interview by telephone from the carmaker's headquarters in Stuttgart.

Lower Saxony's stake would increase to between 20 percent and 21 percent from 18.1 percent, said Mickeleit, the VW spokesman. Matthias Sickert, a spokesman for Lower Saxony, said he did not know what the exact percentage would be.

Porsche would hold a 25.2 percent stake if it exercises an option it holds to buy additional shares, Hunger said, adding that Porsche has not decided whether to do so.

Such a move might be necessary to preserve Porsche's veto power if the European Union succeeds in overturning the Volkswagen law.

If so, VW's bylaws would have to be rewritten to raise the blocking minority right to the 25 percent that is common to most German companies, Mickeleit said.


Porsche last year spent about E3 billion to become Volkswagen's largest shareholder, surpassing Lower Saxony. Volkswagen is Porsche's largest supplier and the two companies collaborate on building the Cayenne and Touareg sport utility vehicles.

The Volkswagen-brand unit employs 103,000 people in Western Germany. Five of the six plants there are in Lower Saxony, including the largest factory and headquarters.

The 41.7 million shares are held in Volkswagen's treasury, and a vote of the annual general meeting has already approved their retirement, subject only to ratification by the supervisory board. The Porsche chief executive, Wendelin Wiedeking, and Lower Saxony's premier, Christian Wulff, have seats on the board; the family of Ferdinand Piech, the board chairman, controls Porsche.

Volkswagen shares fell 38 cents to E57.89, or $68.90, at the close of trading in Frankfurt.

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siko

Wow!