tag:blogger.com,1999:blog-4863014635257598503.post7954590496428448619..comments2024-02-27T22:18:53.706-05:00Comments on Zero Hedge: Volkswagen Soap Opera Continues: New Disclosure May Lead to Recoveries for Hedge Funds, Pain for PorscheTyler Durdenhttp://www.blogger.com/profile/00165439451205639523noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4863014635257598503.post-45551203910420286302009-02-16T12:36:00.000-05:002009-02-16T12:36:00.000-05:00I neglected to add, thanks for the post, it's very...I neglected to add, thanks for the post, it's very informative.El Riderhttps://www.blogger.com/profile/16850720184628306378noreply@blogger.comtag:blogger.com,1999:blog-4863014635257598503.post-58722029933347458792009-02-16T12:30:00.000-05:002009-02-16T12:30:00.000-05:00I was shocked that hedge funds were so involved on...I was shocked that hedge funds were so involved on the short side of this trade, on the one hand you had a money making company that had more than financial reasons to control VW along with the state of Lower Saxony and on the other hand you had hedge fund managers who appear to have not been fully aware of the historical ties between the Porsche/Piech families and the two companies.<BR/><BR/>The need for VW to supply the Cayanne (SUV) platform is real and historically the dramatic price change of such supply once cost Porsche dearly when VW dropped their end of the 914 project under a new chairman in the late '60s, making the 914 too costly for Porsche, especially the wonderful 914/6. VW had recently threatened to stop some engine production for the Cayenne, reminding all who chose to listen of that now 40 year old VW/Porsche spat. Additionally the Piech family has a lucrative VW distribution deal through (I believe) their Salzburg Porsche distributorship. Salzburg Porsche recorded the first Porsche Le Mans 24 Hour overall victory by beating none too happy Porsche customers Martini-Rossi and Gulf-Weyer.<BR/><BR/>The family ties are downright incestuous, former VW Chairman Ferdinand Piech was the designer of the Porsche 906, the head of the Porsche racing division during the late '60s and the son of Louise Porsche Piech. Louise, the daughter of Porsche founder Ferdinand and brother of long-time Chairman Ferdinand owned Salzburg Porsche and was critical in keeping the Porsche engineering firm together in the early post war years, as a woman she could bring supplies across the borders of the various Allied zones of occupation.<BR/><BR/>So you had a situation in which a majority of the shares were in the very, very strong hands of the Porsche/Piech families, the Porsche corporation and the state of Lower Saxony. Further those strong hands have likely been in close contact with each other over those shares for years, decades or generations. Further still, public protestations aside, it appeared that Porsche wanted to own VW. Until not so long ago Porsche even received 1 DM for every old Beetle built.<BR/><BR/>Current Chairman Wendelin Wiedeking has been very critical of hedge funds, as have many corporate cheiftans it's just that Wiedelking used the hedge fund managers to achieve his goals. Maybe if some of those European hedge fund managers had traded their cheesy Gallardos and F430 Spiders in for classic Speedsters or Carreras they wouldn't have found themselves up that river.El Riderhttps://www.blogger.com/profile/16850720184628306378noreply@blogger.com