Volkswagen Merger Essay

1222 Words 5 Pages
Porsche and VW: An Old Family
Raina Sacro
California State University, Stanislaus

Abstract
This assignment depicts the strategic merge between Porsche and Volkswagen and the factors that caused these two different car companies to come together. One of the main reasons why these companies merged was because of Porsche’s engineering expertise which was highly valued by other auto manufacturers in the industry ( Henderson, Reavis, 2009, p. 9). Another reason was because Volkswagen had “more fuel efficient technologies” and was one of the biggest auto manufacturers in the industry ( Henderson, Reavis, 2009, p. 9). There were some doubts when the companies merged because of the Daimler and Chrysler merger, which was not successful because of both of the companies’ different cultures. Porsche and Volkswagen proved those skeptics wrong and is currently doing great financially and is in a stronger position because of Volkswagen. The continuation of this paper will dive into more in depth about the strategy of Porsche and its history, the factors that caused the
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According to their financial analysis of 2011, “the total assets of the Porsche AG group stood at 21,568 million euro” (Ing, 52). Comparing that information with the most current estimate of total assets of 32,235 million euro in 2016, Porsche has a better financial status now than it did five years prior (Porsche AG Group, 2017). In terms of reputation and sales, Porsche is in a stronger position because of the merge between it and Volkswagen. Ever since the merge, Porsche has been able to produce more vehicles and earn more profits. For example, only 312 Macan vehicles were made in 2013, but in 2016, 19,177 Macan vehicles were produced (Porsche AG Group, 2017). In conclusion, Porsche’s merger with Volkswagen was a smart decision because it helped the company stay afloat in a dynamic

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