Porsche AG, commonly known as Porsche, is a German automotive manufacturer specializing in high-performance sports cars, SUVs and sedans. The company was founded in 1931 by Ferdinand Porsche and is currently majority-owned by the Porsche and Piëch families.
The History of Porsche Ownership
Since its founding, Porsche has gone through several changes in its ownership structure:
- 1948 – Porsche family acquires 50% of the company, with Ferry Porsche as Chairman
- 1972 – Ferry Porsche’s nephew Ferdinand Piëch joins the managing board
- 1993 – Porsche SE holding company formed, giving the Porsche and Piëch families 100% of the voting rights
- 2002 – Majority stake acquired by Volkswagen Group, with the Porsche/Piëch families retaining a minority stake
- 2009 – Porsche SE attempts to take over Volkswagen, leading to legal disputes
- 2012 – Settlement reached giving Porsche SE 50.7% of Volkswagen voting rights while Volkswagen retains ownership of the Porsche automotive company
This complex history has led to the current ownership structure where both the Porsche/Piëch families and Volkswagen hold major stakes in the various operating companies that bear the Porsche name.
Current Ownership Structure
As of 2023, here is how Porsche ownership is structured:
- Volkswagen AG owns 100% of Porsche AG – the automaker that produces Porsche sports cars, SUVs, etc.
- Porsche Automobil Holding SE (“Porsche SE”) is the holding company controlled by the Porsche and Piëch families. It owns 53.3% of Volkswagen AG voting shares and 31.4% of total capital.
- Qatar Holding LLC owns 17% of Volkswagen voting shares.
- The state of Lower Saxony owns 20% of Volkswagen voting shares.
- The remaining Volkswagen shares are freely floated stock.
So in summary:
- The Porsche/Piëch families control Porsche SE, which owns a majority of Volkswagen voting shares
- Volkswagen in turn wholly owns the Porsche automotive company
This gives the Porsche/Piëch families effective control over the automaker Porsche through their voting stake in Volkswagen, despite not directly owning the company.
The Porsche and Piëch Families
The Porsche and Piëch families are descended from automotive pioneer Ferdinand Porsche and have maintained close control over the company throughout its history:
- Ferdinand Porsche – Founded the original engineering firm that bore his name in 1931. His son Ferry Porsche founded the automotive company that produced the first Porsche sports car in 1948.
- Ferry Porsche – Took over the family business in the postwar era and established it as an automotive brand. Passed 50% ownership stake to his nephew Ferdinand Piëch in 1972.
- Ferdinand Piëch – Son of Ferry Porsche’s sister. Became Chairman of Volkswagen in 1993 and engineered the takeover of Porsche in 2012. Resigned in 2015 amidst a boardroom dispute.
- Wolfgang Porsche – Son of Ferry Porsche. Current Chairman of Porsche SE and member of the Porsche automotive Supervisory Board.
- Oliver Blume – Current Chairman of the Executive Board of Porsche AG. Rose through the ranks beginning in 1994 after earning an engineering degree.
Several descendants of Ferdinand Porsche still sit on the boards of the various companies and trust funds that control Porsche SE’s voting shares in Volkswagen. The Porsche/Piëch family legacy is an integral part of the Porsche brand’s history and identity.
The Volkswagen Connection
While the Porsche/Piëch families maintain control of Porsche through supermajority voting stakes, the larger Volkswagen Group also holds sway as the 100% owner of Porsche AG and has significant board representation:
- Volkswagen AG owns Porsche AG outright after a complex series of maneuvers over 2008-2012 eventually resulted in Volkswagen control.
- However, Porsche SE (the holding company of the Porsche/Piëch families) in turn owns 53.3% of Volkswagen voting shares as well as over 30% of capital.
- Supervisory Board of Porsche AG has 6 Volkswagen representatives, including the Chairman and labor leader representatives.
- The Exec Board of Porsche AG contains 3 Volkswagen veterans including the CEO Oliver Blume.
- The two companies share resources, technology, production facilities and have close collaboration through their boards.
While complex, Volkswagen and Porsche now have a symbiotic relationship. The Porsche/Piëch families dominate voting control, while Volkswagen provides operating management and advanced technology like electric vehicle platforms. This allows Porsche to benefit from Volkswagen’s vast scale and resources.
Financial Holdings and Stakes
Here is a summary table showing the major shareholdings between Porsche SE, Volkswagen AG, and Porsche AG as of October 2023:
| Company | Major Shareholders | Ownership Stake |
|---|---|---|
| Porsche SE | Porsche/Piëch families | 100% voting rights |
| Volkswagen AG | Porsche SE | 53.3% voting rights |
| Lower Saxony State | 20% voting rights | |
| Qatar Holding LLC | 17% voting rights | |
| Porsche AG | Volkswagen AG | 100% ownership |
This illustrates how Porsche SE maintains control over Volkswagen which fully owns Porsche AG. The Qatar sovereign wealth fund and Lower Saxony state government hold the next largest voting stakes in Volkswagen, but Porsche SE has the controlling interest.
Corporate Leadership
Here are the key executives leading Porsche AG and Porsche SE:
- Oliver Blume – Chairman of the Executive Board, Porsche AG. Also Volkswagen board member.
- Lutz Meschke – Deputy Chairman and Member of the Executive Board, Porsche AG. Responsible for finance and IT.
- Albrecht Reimold – Member of the Executive Board, Porsche AG. Responsible for production.
- Wolfgang Porsche – Chairman of the Supervisory Board, Porsche SE. Member of the Porsche AG board.
- Hans Dieter Pötsch – CEO and Chairman of the Executive Board, Porsche SE. Also Chairman of Volkswagen AG.
The executives of Porsche SE and Porsche AG boards have close overlap. Porsche/Piëch family members like Wolfgang Porsche occupy key governance roles, while Volkswagen veterans lead the automotive operating business.
Porsche AG Executives
The Porsche AG Executive Board is responsible for managing the automotive business operations. Key executives are:
- Oliver Blume – Chairman. With Porsche since 1994.
- Lutz Meschke – Deputy Chairman and CFO. With Porsche since 1990.
- Albrecht Reimold – Production. With Volkswagen since 1978.
The executives bring decades of experience within Porsche and Volkswagen group to provide operational expertise in managing the automaker.
Porsche SE Executives and board
Porsche SE is the holding company that represents the interests of the Porsche/Piëch families and controls Volkswagen voting shares. Its executives and board are made up of family heirs and their representatives.
- Wolfgang Porsche – Chairman. Son of Ferry Porsche.
- Hans Dieter Pötsch – CEO. Former Volkswagen CFO.
- Dr. Hans-Michel Piëch – Vice Chairman. Son of Ferdinand Piëch.
- Dr. Ferdinand Oliver Porsche – Member. Son of Ferry Porsche.
The Porsche SE board reflects multiple generations of the Porsche/Piëch family stewarding their majority control over the Volkswagen Group.
Financial Performance
Porsche AG has delivered very strong financial growth and profitability in recent years as demand for luxury performance vehicles remains robust globally:
- Delivered over 300,000 vehicles in 2021, a new record
- Revenue of 33.1 billion EUR in 2021, up 16% year-over-year
- Operating profit of 5.3 billion EUR in 2021, up 27% vs prior year
- Operating margin of 16.0% in 2021
- Porsche contributes over 25% of Volkswagen Group operating profit
This financial success has provided significant dividends and revenue back to its parent companies. Porsche SE received 784 million EUR in dividends from its Volkswagen ownership stake.
Recent Financial Figures
| Porsche AG | 2020 | 2021 |
|---|---|---|
| Revenue (Bil. EUR) | 28.7 | 33.1 |
| Operating Profit (Bil. EUR) | 4.2 | 5.3 |
| Vehicles Sold | 272K | 302K |
| Operating Margin | 14.6% | 16.0% |
This table shows Porsche AG’s impressive financial growth in 2021. Revenue grew by over 16% year-over-year to 33.1 billion EUR, while operating profit increased by 27%. Margin expanded to 16% as sales reached over 300,000 vehicles sold.
Investment and Expansion Plans
Porsche plans to invest substantially in new technology and production capabilities:
- 15 billion EUR investment in electrification and connectivity through 2025
- Goal for 80% of vehicles sold to be electrified by 2030
- New EV plant being built in Stuttgart region
- Battery cell factory planned with Custom Cells firm
- Digitalization efforts to improve production flow
- Possible additional factories in Malaysia and North America
This huge investment and expansion push will help Porsche maintain product leadership through increased electrification, while boosting production capacity to meet growing global demand.
Electrification Goals
Here are Porsche’s major electrification goals for the next decade which are driving much of the investment:
- 50% electrified vehicles by 2025
- 80% electrified vehicles by 2030
- 50% fully electric vehicles by 2030
Ambitious targets will require new EV platforms, battery technology, and advanced engineering. Volkswagen’s modular platforms will provide the base while Porsche adds its high-performance expertise.
Potential IPO in the Future
There has been recurring speculation that Porsche may hold an initial public offering (IPO) to list shares on the public stock exchange. However, no concrete plans have emerged.
An IPO would allow Porsche to raise funds from public market investors. However, the ownership complexity makes such a move less likely in the near future. The Porsche/Piëch families seem intent on retaining control for now.
Past Attempted IPO
In the past, an attempted IPO failed due to the Global Financial Crisis:
- Porsche SE attempted an IPO in 2008 to raise billions in capital
- The listing was planned for November 2008
- Global markets collapsed during the financial crisis, forcing its cancellation
- Aftermath led to Volkswagen gaining control of Porsche instead in complex deals
This failed IPO attempt shows the challenges of trying to float a portion of the business. Market conditions and the ownership structure pose complications.
Speculation on Future IPO
While the families currently control Porsche, an IPO could offer incremental benefits:
- Raise cash to fund electrification investments without increasing debt
- Crystalize Porsche AG valuation for family trusts
- Increase public profile and brand marketing
However, the families would risk diluting their control and ownership. Any IPO would likely involve selling a small stake only. The complex web of financial interests makes a full spin-off IPO unlikely in the near future.
Conclusion
In summary, Porsche ownership is controlled by the Porsche and Piëch families via three key entities:
- Porsche SE holding company – Owns majority of Volkswagen voting shares
- Volkswagen AG – Owns 100% of the Porsche automotive operating business
- Porsche AG – Producer of Porsche sports cars, SUVs and sedans
This complex structure gives the Porsche/Piëch families ironclad control over Porsche-branded vehicles through their supermajority voting stake in Volkswagen, despite not directly owning Porsche AG.
The two companies maintain close collaboration through joint board membership and resource sharing. Improved scale and technology from Volkswagen is combined with Porsche’s brand heritage and engineering prowess.
Potential for an IPO remains questionable. The families seem intent on retaining control, which would be diluted through any major share sale. While speculation persists, no concrete plans for an IPO have emerged.