Monica Pascariu

Simina Popua
ACIA 1
Porsche Automobil Holding SE, usually
shortened to Porsche is a German holding
company with investments in
the automotive industry.
Porsche SE is headquartered
in Zuffenhausen, a city district
of Stuttgart, Baden-Wrttemberg and is
owned by the Porsche families.
The company was founded in Stuttgart
as Dr. Ing. h.c. F. Porsche GmbH in 1931
by Ferdinand Porsche (18751951),

his
son-in-law Anton Pich (18941952)

a racecar driver at heart, an engineer by
trade
Son of Ferdinand, began running the
company in 1946
After his fathers death in 1951 and with
his son at his side, he officially took the
wheel


I couldnt find the sports car of my dreams, so I
built it myself.
Other subsidiaries and operating divisions
include Porsche Consulting, Porsche
Engineering, Porsche Design
Group, Mieschke Hofmann und
Partner (81.1%)

and Bertrandt (25%).
Porsche Engineering Group (PEG) has for
many years offered consultancy services to
various other car manufacturers
motor vehicle development work and
consulting
did not build any cars under its own name
One of the first assignments: from the
German government to design a car for
the people, that is a Volkswagen
=> Volkswagen Beetle, one of the most
successful car designs of all times
The first models of what was to become
the 356 were built in a small sawmill
in Gmnd
In 1952, Porsche constructed an assembly
plant (Werk 2); the main road in front of
Werk 1, the oldest Porsche building, is now
known as Porschestrasse.

Porsche's company logo was based on
the coat of arms of the Free People's State
of Wrttembergof former Weimar
Germany, which had Stuttgart as its
capital.
collaborated in 1969 to make the VW-Porsche 914
and 914-6, whereby the 914-6 had a Porsche engine
in 1976 with the Porsche 912 E (USA only) and
the Porsche 924. Porsche 944s were also built
there,

although they used far fewer Volkswagen
components.
In late 2005, Porsche took an 18.65% stake in the
Volkswagen Group, further cementing their
relationship, and preventing a takeover of
Volkswagen Group, which was rumoured at the time.
On 26 March 2007, Porsche took its holding of
Volkswagen AG shares to 30.9%, triggering a
takeover bid under German law.
a press statement: it did not intend to take over
Volkswagen Group (it would set its offer price at the
lowest possible legal value) but intended to move to
avoid a competitor taking a large stake, and to
stop hedge funds dismantling Volkswagen Group,
which was Porsche's most important partner.

The Volkswagen Law (Germany)
On 16 September 2008, Porsche increased its
holdings,

in effect almost taking control of the
company. Porsche dismissed another bid as a mere
formality, since it was Porsche's intention to keep the
corporate structure of the Volkswagen Group.
some tension and anxiety among the Volkswagen
Group workers
On 13 August 2009, Volkswagen AG's Supervisory
Board signed the agreement to create an "integrated
automotive group" with Porsche, led by Volkswagen
AG.
On 5 July 2012, Volkswagen AG announced a deal
with Porsche resulting in VW's full ownership of
Porsche on 1 August 2012. Volkswagen AG paid
Porsche shareholders $5.61 billion for
the remaining 50.1% it did not own.

The Porsche brand will play a key role within the
VW family in various global markets.

Expected: Porsche will contribute to the group
synergy and help other brands improve
innovation, manufacturing and quality by sharing
technology, research and development,
components and platforms
Product line extensions are planned to produce
new Porsche vehicles that will meet emerging
customer demands in various markets.
Production goals: increasing production from
80,000 units to 150,000 units annually within 5
years
VWs distribution network will be leveraged to
introduce the Porsche brand into new markets.
By complying with VWs Strategy 2018, the
Porsche brand would evolve from a focused
approach to a broader brand of car segments.
Porsche would no longer solely focus on its
traditional target customer but would instead
be forced to appeal to multiple consumer
segments

Risk: diluting its brand, alienating its
customer base, destroying its competitive
advantage
Extraordinary General Meeting (EGM) for Porsche AG
shareholders which took place on 26 June 2007
By September 2007, Porsche owned a 35.14% plurality stake
in Volkswagen AG, effectively giving it control over the
company.

Volkswagen Group expected the move, and
welcomed Porsche's investment.
In October 2008, Porsche announced its intent to raise its
stake in Volkswagen AG to 75% during 2009,
on 7 January 2009, Porsche's holding in VW AG was raised to
50.76%.

Porsche SE owned 50.8 percent of Volkswagen
Group as of 5 January 2009, and has said it plans to lift the
stake to 75 percent before the end of 2009, at that level they
could bring VW AG's cash onto Porsche's books.
By March 2009, Porsche SE was aiming for its first ever
credit ratings from U.S. rating agencies Standard & Poors
and Moody's.
In its efforts to acquire a majority holding in Volkswagen AG,
Porsche built up a large debt burden, aggravated by taxes
due on very large paper profits from Volkswagen AG options.
By July 2009, Porsche was faced with debts exceeding
10 billion euros. The supervisory board of Porsche finally
agreed to a number of arrangements whereby the Qatar
Investment Authority would inject a large amount of capital,
and Porsche would be merged with Volkswagen Group.
In July 2012, it was announced that Volkswagen AG was
taking over the Porsche automotive company completely,
which bears the same Porsche SE currently owns 50.73% of
the voting rights in Volkswagen AG.

the Cayenne and Panamera models are
manufactured in Leipzig, Germany, and parts for
the SUV are also assembled in the Volkswagen
Touareg factory in Bratislava, Slovakia.
Boxster and Cayman production was outsourced
to Valmet Automotive in Finland from 1997 to 2011,
and in 2012 production moved to Germany.
In 2008, Porsche reported selling a total of 98,652
cars, 13,524 (13.7%) as domestic German sales,
and 85,128 (86.3%) internationally.
highly successful in recent times, and indeed
claims to have the highest profit per unit sold of
any car company in the world.
Of the 105,162 cars produced in the
2007/8 financial year, 34,303 (32.6%) were
911 models, 22,356 (21.3%) were Boxster
and Cayman cars and 48,497 (46.1%)
were Cayennes. There were three
Panamera and three Carrera GT models
also reported. The production figures of
sports cars was quite similar to the 2001/2
totals when 33,061 Porsche 911 and
21,989 Boxsters were produced.
Porsche competes in a market segment
where relatively few can compete.
Manufacturing a car of any caliber no less
the caliber of Porsche requires sizeable
capital investments. Additionally the
engineering expertise required to design a
car capable of competing with Lamborghini
Ferrari, Aston Martin, Porsche and others
keeps all but the truly intent from entering
the field.
Sports car enthusiasts - few and fickle
Trend conscious buyers - inherent to luxury
and high-end markets
Porsche must constantly innovate
Porsche Doppelkupplung (PDK) allows drivers to
shift between gears without interrupting the flow of
power
Porsche Torque Vectoring (PTV) can sense the
vehicle steering angle and speed, accelerator pedal
position, yaw rate, and vehicle speed to vary the
torque distribution to rear wheels to ensure more
predictable and stable vehicle maneuvers al all speeds


The current Porsche model range includes
sports cars from the Boxster roadster to their
most famous product, the 911.
The Cayman is a coup otherwise similar to
the Boxster.
The Cayenne is Porsche's mid-size
luxury sport utility vehicle (SUV).
A high performance luxury saloon/sedan,
the Panamera, was launched in 2009.

CAYENNE
BMW X6 M
MERCEDES-BENZ ML63 AMG
AUDI Q7
4 different models BMW X6 M is slightly faster
Mercedes-Benz ML63 AMG
is less expensive, but slower
Audi Q7 is the slowest, but
has more interior space and
torque than the Mercedes
CAYENNE
BMW X6 M
MERCEDES-BENZ ML63 AMG
AUDI Q7
PANAMERA
BMW M5
MERCEDES-BENZ S65 AMG
AUDI S8
7 different models
The fastest luxury sedan in
the world
BMW M5 is significantly
slower, offers a standard
gear box
Mercedes-Benz ML63 AMG
offers the smoothest ride,
garners higher rankings on
spaciousness and comfort
Audi S8 the slowest, but
exceptional interior quality
PANAMERA
BMW X6 M
MERCEDES-BENZ ML63 AMG
AUDI Q7
BOXTER
CAYMAN
BMW Z4
MERCEDES-BENZ SLK
MODELS,
AUDI TT
Boxter: 1996
Cayman: 2006, a coup
derived from the second
generation Boxter
convertible; 3 models
2010: the Boxter was rated
the most reliable car,
regardless of model, in the
world
BMW Z4: more luxurious
angle
Mercedes-Benz ZLK
Models: less horsepower,
fewer sport options

BOXTER
CAYMAN
BMW Z4
MERCEDES-BENZ SLK
MODELS,
AUDI TT
Porsche started producing this model in
1964
Continuous development, but the basic
model remained mostly unchanged
Over 20 stock models
No.5 in the 1999 international poll for the
Car of the Century award
Outstanding performance, but extremely
expensive: $250.000 to $400.000
Competitors:

Prestigious: BMW M6, Mercedes-Benz SL-Class,
Audi R8; similar brand prestige, but lack in some
aspects of sport performance

Others: Nissan GT-R, Dodge Viper; excellent
performance figures, lower price tags
Victories - virtually all major events
throughout the world: Can-Am racing
series, Paris-Dakar Rally, Pharaoh Rally,
Rally Monte Carlo, 24 Hours of Le Mans,
World Championship of Makes
the most successful brand in motorsport,
scoring a total of more than 28,000 victories,
including a record 16 constructor wins at
the 24 Hours of Le Mans.
the world's largest race car manufacturer
2006: built 195 race cars for various
international motor sports events
2007, constructed no fewer than 275
dedicated race cars (7 RS Spyder LMP2
prototypes, 37 GT2 spec 911 GT3-RSRs, and
231 911 GT3 Cup vehicles)
2010: launched the Cayenne S Hybrid and
announced the Panamera Hybrid and
launched the Porsche 918 hypercar in 2014,
which also features a hybrid system.
The Panamera Hybrid has been released as
a plug-in hybrid called the Panamera S E-
Hybrid.
Porsche Intelligent Performance has also
released an electric Porsche Boxster called
the Boxster E and a hybrid version of a GT3
called the GT3 R Hybrid.
According to CNBC, even an at-the-time questionable
foray into the SUV market with the Cayenne in 2003,
couldn't damage Porsche credibility.
The Times journalist Andrew Frankel says on one level, it
is the world's best 4x4, on another, it is the cynical
exploitation of a glorious brand that risks long-term
damage to that brands very identity in the pursuit of easy
money with his verdict being "Great car, if only it wasn't a
Porsche".
Despite the controversy faced by critics, the Cayenne
has been a success, generating enough profit for the
company to invest in and upgrade the existing model
range, as well as fund the Panamera project.
When Porsche decided to enter the SUV market,, it
surprised the auto industry by locating its new assembly
plant in Leipzig, Germany.
Many observers : Porsche should locate the plant in either
central or eastern Europe or even perhaps in US.
The critical issue: the primacy of Porsches strategy of
quality craftsmanship, and engineering excellence.
maintaining brand image was much more important to
Porsche that saving on labor costs especially when
assembly cost comprise only a small portion of overall
vehicle cost.
Porsche emphasized design research a technology
development and marketing to maintain its reputation for a
commitment to excellence.
In a May 2006 survey, Porsche was awarded the
title of the most prestigious automobile brand
by Luxury Institute, New York; it questioned more
than 500 households with a gross annual income
of at least $200,000 and a net worth of at least
$720,000.
the 2006, 2009, and 2010 J.D. Power and
Associates award for the highest-ranked
nameplate in its Initial Quality Study (IQS) of
automobile brands
J.D. Power and Associates hailed the Porsche
production plant in Stuttgart as the best car
factory in the world
2007: high oil prices ($100/barrel)
as a sports car manufacturer, it was
fighting the stereotype of a gas-guzzling
automobile segment
Example: 911 Turbo
The National Highway Traffic Safety Administration
and The Environmental Protection Agency
increased the miles per gallon (mpg) requirements
for all cars in the US through an old emissions
policy known as Corporate Average Fuel Economy
(CAFE)
Higher mpg requirement and higher penalty
By 2020, automobile manufacturers and importers
must have an average mpg rating of 39 for cars
and 30 for trucks or pay $35,700 for each
individual car in violation
=>Porsche comment
Strong economic support from Germany
Germany the 3
rd
largest exporter in the
world
Union workers (93%) are protected by
strong laws and wide support
2010: Porsche sold 14% of its volume in
Germany and over 26% of it volume in the
US
China: 15.6% of overall sales (2009-2010)
Risks exist, but China has too much
potential as an exports market to ignore
Typically: transnational strategy (modifying
current models according to the demands
in international regions

Porsche: global strategy same models
for the whole world =>lower risk trade-off,
protects the brand from international
dilution, enables the brand to remain
consistent with regard to costs in its
strategy forged in Germany
expanded internationally exclusively through
exportation
Advantage: less expensive option
Should Porsche diversify and extend its
product line while expanding production?
How could Porsche effectively combat
possible brand dilution?
Should Porsche acknowledge the trade offs
and focus on its pure play products sport
cars?
How would the market react to multiple
sport cars offerings from Audi, Lamborghini
and Porsche?