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EU Overturns “VW Law,” Porsche Takeover of VW Expected

October 24, 2007

Almost every news source on the Internet is reporting that a European court has overturned the so-called “Volkswagen Law” that caps a shareholder’s voting rights to 20 percent, regardless of how many shares are owned. The court ruled on Tuesday that the law is illegal and limited “the free movement of capital.”

This paves the way for Porsche to increase their stake in Volkswagen from their current 31 percent to an expected 51 percent, giving them majority control. VW’s workers council has opposed Porsches plans because it will give Porsche, with a smaller number of workers than VW, half the board seats and majority voting rights.

If Porsche gets majority control, it will be interesting to see not only what they do with Volkswagen, but also VW’s brands like Bugatti and Lamborghini, who compete directly with Porsche.

[source: the whole freakin' Internet]

Posted in Company News