Porsche Automobil Holding SE, usually

shortened to Porsche (German pronunciation: [p][3]) or Porsche SE, a Societas Europaea orEuropean Public Company , is a German holding company with investments in the automative industry. Porsche SE is headquartered in Zuffenhausen, a city district of Stuttgart, BadenWrttemberg and was owned by the Pich and Porsche families, and Qatar Holdings, through the Qatar Investment Authority (10%). Porsche owned 50.73% of the voting rights in Volkswagen AG, and 50.1% of Porsche Zwischen holding GmbH, which owns 100% of Dr. Ing. h.c. F. Porsche AG, the manufacturer of a range of sports
cars and SUVs. On July 2012, it was announced that Volkswagen AG is taking over

Porsche completely. The company was founded as Dr. Ing. h.c. F. Porsche GmbH in 1931 by Ferdinand Porsche,an Austrian engineer born in Maffersdorf, during the time of the AustroHungarian Empire, and Porsche's son-in-law Anton Pich, an Austrian lawyer. Cooperate Structure Porsche SE is the owner of Dr. Ing. h.c. F. Porsche AG (Porsche AG), and in June 2007 became a holding company for its stake in Porsche Zwischenholding GmbH (50.1%) (which in turn holds 100% of Porsche AG) and Volkswagen AG (50.7%).In August 2009, Porsche SE and Volkswagen AG reached an agreement that the two companies would merge in 2011, to form an "Integrated Automotive Group". During December 2009, Porsche SE lost control of Porsche Zwischenholding GmbH, which as a result is now a joint venture between Porsche SE and Volkswagen AG. As of 5 July 2012, Volkswagen is to acquire the 50.1 per cent in Porsche's capital that it doesn't already hold from holding company Porsche SE for 4.46 billion plus one Volkswagen share. Dr. Ing. h.c. F. Porsche AG (which stands for Doktor Ingenieur honoris causa Ferdinand Porsche Aktiengesellschaft), is responsible for the actual production and manufacture of the Porsche automobile line. The company currently produces Porsche 911, Boxster and Cayman sports cars, the Cayenne sport utility vehicle and the four-door Panamera.

Subsidiaries
Other subsidiaries and operating divisions include Porsche Consulting, Porsche

Engineering, Porsche Design Group, Mieschke Hofmann and Partner (81.1%) and Bertrandt (25%). Porsche Engineering Group (PEG) has for many years offered consultancy services to various other car manufacturers. Audi, Mercedes, Opel, Studebaker, SEAT, Daewoo, Subaru, Zastava Automobiles and others have consulted Porsche Engineering Group for their cars or engines. The Lada Samara was partly developed by Porsche in 1984. Porsche Engineering Group also helped HarleyDavidson design the Revolution 60-degree v-twin water-cooled engine and gearbox that is used in their V-Rod motorcycle. History
The roots of the Porsche history lie in Bohemia, where Ferdinand Porsche was born in Maffersdorf on September 3, 1875. He was the third child of his parents Anton and Anna Porsche. At the time the automobile was being invented, Ferdinand Porsche was 11 years old. Electricity held a particular fascination for him. At the age of 13 he installed electric bells in his parents house and provided it with electric light when he was 16. After finishing his apprenticeship in his fathers business, the technically talented and highly motivated Ferdinand Porsche started his job career with Vereinigte Elektrizittswerke Bela Egger & Co. in Vienna in the year 1893. Shortly before the turn of the century, Ferdinand Porsche started to work for the Lohner Imperial Royal Court Coach Factory in Vienna. With his development of the wheel-hub motor Porsche had the international audience at the Paris World Fair stunned in the year 1900. It was there that he presented a vehicle with four driven wheels: the first four-wheel drive vehicle in automotive history. Incidentally this construction principle was used by NASA in their lunar vehicle 70 years later. In fact also the first hybrid car in the world - a vehicle with a drive combining internal combustion/electric components - goes back to Ferdinand Porsche. Ferdinand Porsche, who got married in the meantime and became father of a daughter (Louise *1904) moved to Wiener Neustadt in 1906 where he joined Austro Daimler. Three years later his son Ferry was born. During his 17 years activity for this big Austrian enterprise, which he was also to lead as Managing Director, he developed powerful and for the first time aerodynamically shaped limousines. Driving one of them himself he won the Prinz-Heinrich-Fahrt, the top event of the time. For the Austro-Hungarian army Porsche designed trucks and the Landwehrzug, which could move both on the road and on rail. He designed aircraft engines for which he received an honorary doctorate from the Technical University of Vienna. After World War I, Ferdinand Porsche built the first two-seater sports car, the AD Sascha, which won the famous Targa Floria right after being launched. In 1923, Ferdinand Porsche transferred to Daimler, Stuttgart, where he held the position of Technical Director. He was in charge of designing the famous sports cars, type S, SS and SSK and also developed truck and aircraft engines. He did not renew his contract, but returned to Austria. He first took over the management of the SteyrWerke and in 1931 Porsche established his own design office in Stuttgart.

elationship with Volkswagen

The company has always had a close relationship with, initially, the Volkswagen (VW) marque, and later, the Volkswagen Group (which also owns Audi AG),

because the first Volkswagen Beetle was designed by Ferdinand Porsche. The two companies collaborated in 1969 to make the VW-Porsche 914 and 914-6, whereby the 914-6 had a Porsche engine, and the 914 had a Volkswagen engine, in 1976 with the Porsche 912E (USA only) and the Porsche 924, which used many Audi components, and was built at Audi's Neckarsulm factory. Porsche 944s were also built there,[29] although they used far fewer Volkswagen components. The Cayenne, introduced in 2002, shares its entire chassis with Volkswagen Touareg and Audi Q7, which is built at the Volkswagen Group factory in Bratislava. 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. Speculated suitors included DaimlerChrysler AG, BMW, and Renault.

Combined badging of the European 914

On 26 March 2007, Porsche took its holding of Volkswagen AG shares to 30.9%, triggering a takeover bid under German law. Porsche then formally announced in a press statement that it did not intend to take over Volkswagen Group (it would set its offer price at the lowest possible legal value) but intended the move to avoid a competitor taking a large stake, and to stop hedge funds dismantling Volkswagen Group, which is Porsche's most important partner. Porsche's move comes after the European Union moved against a German law that protected Volkswagen AG from takeovers. Under the so-called "Volkswagen Law", any shareholder with more than 20% of the voting rights has veto power over any corporate decision in the annual general meeting in effect, any shareholder in VW AG cannot exercise more than 20% of the firm's voting rights, regardless of their level of stock holding. (The local state government of Lower Saxony owns 20.1% of the shares.) However, the European Court of Justice ruled against the law, potentially paving the way for a takeover. On 16 September 2008, Porsche increased its holdings by another 4.89%, in effect taking control of the company, with more than 35% of the voting rights. It again triggered a takeover bid, but this time over Audi. Porsche dismissed the bid as a mere formality, since it is Porsche's intention to keep the corporate structure of the Volkswagen Group. There has been some tension and anxiety amongst the Volkswagen Group workers, who fear that a Porsche takeover might signify a hardened production efficiency control, rejection of demands for payment rises or even personnel cuts. Ferdinand

Pich and his cousin, Wolfgang Porsche, also seemed to be on a collision course.

Combined badging of the European 914

On 13 August 2009, Volkswagen AG's Supervisory Board signed the agreement to create an "integrated automotive group" with Porsche, led by Volkswagen AG. Volkswagen will initially take a 49.9 percent stake in Porsche AG by the end of 2009, and it will also see the family shareholders selling the automobile trading business of Porsche Holding Salzburg to 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. The deal was classified as a restructuring rather than a takeover due to the transfer of a single share as part of the deal. Volkswagen AG paid Porsche shareholders $5.61 billion for the remaining 50.1% it did not own. Porsche to launch six new dealerships.New Porsche Centres to be operational by 2013. Temporary facilities to accept vehicle orders in the mean time. Volkswagen Groups performance car division, Porsche has announced a new price structure and six new Porsche Centre.

Corporate restructuring
Through the Volkswagen AG stake acquisition, Porsche reformed the company's structure, with Dr Ing. h. c. F. Porsche AG becoming a holding company, renamed "Porsche Automobil Holding SE", and a new Dr Ing. h. c. F. Porsche AG operating company being formed in 2007. Thus the operating activities are separated from holding activities of the company. There was an Extraordinary General Meeting (EGM) for Porsche AG shareholders which took place on 26 June 2007, at the Porsche Arena in Stuttgart, Germany to discuss the change to the company structure. In the late 2009 VW (which also owns Audi) bought the controlling rights to Porsche.

On 3 March 2007, Porsche set the stage for obtaining a plurality stake in the Volkswagen AG. One day later Porsche sought to allay fears it would attempt to force a merger with Volkswagen Group. By September, 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, and on 7 January 2009, Porsche's holding in VW AG was raised to 50.76%. Porsche's move automatically triggered a bid for Scania AB, because VW AG already had a controlling position in the Swedish truck-maker. As Porsche had no strategic interest in the company, on 19 January, they offered the minimum price in that mandatory takeover bid. 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 & Poor's 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. On 23 July 2009, Michael Macht was appointed CEO, to replace Wendelin Wiedeking, who is expected to receive a compensation package of 50 million euros. In July 2010, Porsche appointed Volkswagen executive Matthias Mller to its new CEO position, moving Michael Macht to another executive position within Volkswagen AG. Production and Sales The headquarters and main factory are located in Zuffenhausen, a district in Stuttgart, but 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. The company has been highly successful in recent times, and indeed claims to have the highest profit per unit sold of any car company in the world.

Table of profits (in millions of euros) and number of cars produced. Figures from 2008/9 onwards were not reported as part of Porsche SE. year ending
31 July 2002 31 July 2003 31 July 2004 31 July 2005 31 July 2006 31 July 2007 31 July 2008 31 July 2009 31 July 2010 1 January - 31 December 2010 12/31/11

revenue
4,857m 5,583m 6,148m 6,574m 7,273m 7,368m 7,466m ?m 7.79b 9.23b 10.92b

pre-tax profit
829m 933m 1,137m 1,238m 2,110m 5,857m 8,569m -2,559m NA 1,670m 2,045m

production
55,050 73,284 81,531 90,954 102,602 101,844 105,162 76,739 89,123 NA 127,793

sales
54,234 66,803 76,827 88,379 96,794 97,515 98,652 75,238 81,850 97,273 118,867

Production split
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 3 Panamera and 3 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.

Sales
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.

North American sales

Annual sales 20032005 model 2003
units % of total
33% 21% 45%

2004
units
10,227 (3%) 3,728 (42%) 19,134 (40%)

2005
% of total
31% 11% 57%

units
10,653 (4%) 8,327 (123%) 14,524 (24%)

% of total
31% 25% 43%

911 (996)

9,935 (18%) 6,432 (38%) 13,661

Boxster Cayenne total

30,028 ( 33%)

33,289 (11%)

33,859 ( 2%)

Annual sales 20062008 model

units

2006
% of total units

2007
% of total units

2008
% of total

911 (997) Boxster Cayman Cayenne total

12,702 (19%) 4,850 ( 42%) 7,313 11,141 ( 23%)

35% 14% 20% 31%

13,153 (4%) 3,904 ( 24%) 6,249 ( 17%) 13,370 (20%)

36% 11% 17% 36%

8,324 ( 37%) 2,982 ( 24%) 3,513 ( 44%) 12,898 (4%)

30% 11% 13% 46%

36,095 ( 7%)

36,680 ( 2%)

27,717 ( 24%)

Annual sales 20092011 model

units

2009
% of total units

2010
% of total units

2011
% of total

911 (997) Boxster &Cayma n Panamer a Cayenne total

6,839 ( 17.8%) 3,875 ( 39.4%) 1,247 7,735 ( 31.0%)

35.00%

5,735 ( 16.1%) 3,499 ( 9.3%) 7,741 ( 520.8%) 8,343 ( 7.9%)

22.65%

6016 ( 5.0%) 3150 ( 9.02%) 6,879 ( 11.13%) 12,978 ( 55.55%)

20.72%

19.00%

13.84%

10.86%

6.33%

30.57%

23.70%

39.27%

32.94%

44.72%

19,696 ( 24.3%)

25,320 ( 28.6%)

29,023 (15%)

Reputation
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. Porsche was awarded 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.

Type

Industry Founded Founder(s) Headquarters Area served Key people Products Production output Services Revenue Operating income Owner(s) Employees Subsidiaries

Societas Europaea, (Xetra: PAH3), (FWB: PAH3) Automotive 1931 Ferdinand Porsche Stuttgart, Baden-Wrttemberg, Germany Worldwide Wolfgang Porsche, Chairman Martin Winterkorn, President & CEO Automobiles 127,793 Automotive financial services, engineering services 10,928;million (2011 Fiscal year) 2,045m (2011 Fiscal year) Volkswagen AG 15,307 (2012) Porsche Zwischenholding GmbH Porsche AG Porsche-SE.com

Website

Why is Porsche such a successful company?

First, they have a premium product and do not discount it. This allows them to make large profits despite having a relatively low margin in comparison to others.

Second, it has been (until the recent moves by VW) a closely held corporation with a specific vision and a brand, this has built brand identity and equity and allowed them to sell their cars for such high prices. Third, they have a low overhead and have advanced to modern production techniques. While this diminished the "character" of the hand made air cooled cars, it allows great economy of scale, and thus, greater profits.

Finally, they have had excellent financial people manipulating the derivatives, options and stock markets. In 2008, their profit exceeded their sales - which should not make sense, but it happened because of the returns on their investments.

However ,Ferdinand Porsche" started the company VW and designed the original Beetle. He then started another car company known as Porsche and designed the Porsche 356, which was a rear engined car just like the original Beetle. Every Porsche ever made was a sportscar with a Boxer engine until 2004 when they made the SUV. 1. Porsche has been growing because people were making more money so they can afford them. Porsche's are as fast as Ferrari's and Lamborghini's, but more practical, cheaper, more reliable, and more luxurious. When Porsche made the SUV, the Cayenne, they became very sucessful. The Cayenne is now the best selling SUV in the world and Porsche's best selling car. Porsche's are also very fuel efficient. The Porsche Boxster S with 295HP gets better gas mileage than slower cars with less or more power like the Nissan 350z and Mazda RX-8 and Ford Mustang V6 and GT. Porsche and VW always worked together since they came from the same founder. Now Porsche owns more than 40% of VW and they have the controling stock. And VW owns Bently, Skoda, Seat, and Audi, who owns Lamborghini. VW is Europe's best selling cars. And now that Porsche is buying them, they will soon become the largest car company in the world and beat GM and Toyota. Porsche is the only company allowed to buy VW by law.

Generation of PORSCHE

Protoype from Porsche of a Tiger I

Panzerjger Tiger, after the loss of the contract to the Tiger I Porsche recycled his design into a tank destroyer.

Porsche Diesel Super

The Porsche 912, from the 1960s

The second-generation Porsche 911, introduced in 1989, was the first to be offered with Porsche's Tiptronic transmission.

1952 Porsche 356 K/9-1 Prototype

The Martini Racing blue and green "psychedelic" livery on a 1970 917K. This car raced at Watkins Glen in 1970.

2010 Porsche 911 (997) GT2 RS

Porsche 911 (991)

Porsche Boxster

Porsche Cayenne

Porsche Panamera

Porsche sponsors Bundesliga club VfB Stuttgart. The picture shown is VfB Stuttgart against Borussia Dortmund.