EU grants Porsche permission to purchase VW

Porsche is one step closer to its goal of purchasing Volkswagen. Back in April of last year, the German automaker passed the 30-percent mark, forcing it to make an outright offer for The Volkswagen Group in its entirety, which it did. Not too many VW shareholders sold their stake to Porsche, as the bid was for the bare minimum amount allowed by law. Still, the legal requirement had been met, allowing Porsche to continue gobbling up the automaker according to its own timetable. Earlier this year, the VeeDub board approved a request by Porsche to obtain 51-percent of the company for some $15.73 billion, which would give it a majority stake. Before the house that Ferdinand built could complete its acquisition, the European Commission required it to make one last purchase, which took place in June of this year. Finally, the EU has granted its permission for the buyout.
This story is likely far from over, as the German State of Lower Saxony still claims a 20-percent stake in Volkswagen, which gives it certain rights to block decisions made by VW's new parents. Still, it seems that its only a matter of time before VW and Porsche are united under a different Ferdinand... Piech that is, grandson to Mr. Porsche himself.

[ Via: Reuters ]
[ Tag: eu, european commission, european union, EuropeanCommission, EuropeanUnion, lower saxony, LowerSaxony, porsche, porsche volkswagen, PorscheVolkswagen, volkswagen, volkswagen law, VolkswagenLaw ]

Volkswagen recalls 2009 Tiguan, 2008 Passat and Wagon for "Engine Surge"

Volkswagen is recalling 4,000 2008 Passats and 2009 Tiguans for an "engine surging" issue. The problem is an engine control module that may not control engine idle when the air conditioning is turned on. In rare cases, the ECM can trigger an unexpected jump in engine RPM, which could obviously lead to an accident. NHTSA has informed VW that since the recall is a safety concern, dealers cannot sell the vehicles until the problem has been fixed. Owners of potentially affected vehicles are being told not to operate the air conditioning until a VW dealer has serviced the ECM, which is less than terrific news considering it's June and temperatures are around 90 degrees in many parts of the country. While it's disheartening that the brand new Tiguan is already getting its first recall, at least the problem was discovered early and there's a fix readily available.

[ Via: Inside Line ]
[ Tag: ECM, NHTSA, recall, tiguan recall, TiguanRecall, VW Tiguan, VwTiguan ]

European Union taking Germany to court over amended VW Law

In a move that may undermine Germany's protection of Lower Saxony and its close ties to Volkswagen, the European Commission plans to review the case of Volkswagen Law in the European Union's top court. As you may recall, Porsche has been trying to take majority control of rival Volkswagen. However, the so-called "Volkswagen Law" has protected VW from takeover by allowing the state of Lower Saxony (where thousands of VW jobs are at stake) to retain just enough stock in the company to prevent Porsche from capturing a majority vote. While the upcoming ruling may not only alter the ownership of Volkswagen, it also demonstrates the escalating authority that the European Commission has over once sovereign countries.

[ Via: Automotive News Europe ]
[ Tag: Control, European Commission, European Union, EuropeanCommission, EuropeanUnion, Lower Saxony, LowerSaxony, Majority, Porsche, Stock, Takeover, Volkswagen, Volkswagen Law, VolkswagenLaw ]

The Volkswagen Law returns

The Volkswagen Law is doing its best impression of Lazarus -- or perhaps a better analogy would be whack-a-mole. The European Court and minority VW shareholder Porsche keep trying to kill it, but it keeps popping up. Now the German government has agreed on an altered VW law -- but one that still gives the state of Lower Saxony, with it's 20.1-percent holding, blocking minority power.
The government runaround appears to hinge on the fact that the EU Court, in striking down the law, specifically cited the "20-percent cap on shareholder voting rights" as cause for striking down the VW Law. So the German government scrapped that, but retained the part where important decisions would need more than 80-percent of shareholders' approval. Which means Lower Saxony stays in control.
With VW keeping about 150,000 people in jobs, it's understandable that the state government is trying to stay in the saddle. A German Justice Ministry spokesman said "We believe our draft law is compatible with European law." An EU Court spokesman said, "The Commission expects that all three provisions and therefore the blocking minority as well will be abolished in order to implement the court's judgment." One of those two parties is eventually going to end up eating its words.

[ Via: Automotive News ]
[ Tag: lower saxony, lower saxony volkswa..., LowerSaxony, LowerSaxonyVolkswa..., porsche, volkswagen, vw, vw law, VwLaw ]