Volkswagen AG said that Porsche AG, which VW acquired in 2012, is making nearly as much of a profit contribution to the group as the much larger VW brand,
the
Wall Street Journal
reported.
Porsche sold only 155,000 cars last year, compared with 4.7 million VW cars sold, the
Journal
article said. But Porsche reported a 173% increase in operating profit, to €2.6 billion, while profit at the VW unit fell 21%, to €2.9 billion.
The
Journal
report noted:
The role reversal comes in the wake of a bitter seven-year battle sparked by Porsche’s failed attempt to acquire much larger Volkswagen in a reverse-takeover. It pitted owner cousins Wolfgang Porsche and Ferdinand Piech against each other.
The battle between the two powerful industrial families related to Ferdinand Porsche, inventor of the original Volkswagen, ended in 2012 when VW bought the shares of Porsche it didn’t already own for €4.46 billion, which was valued at about $5.6 billion at the time.
(Source:
Wall Street Journal,
March 14, 2014.)
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