Editing Volkswagen (section)

===Relationship with Porsche and the Volkswagen Law===
Volkswagen has always had a close relationship with [[Porsche]], the [[Stuttgart|Zuffenhausen]]-based sports car manufacturer founded in 1931 by [[Ferdinand Porsche]], the original Volkswagen designer and Volkswagen company co-founder, hired by Adolf Hitler for the project. The first Porsche car, the [[Porsche 64]] of 1938, used many components from the [[Volkswagen Beetle]]. The 1948 [[Porsche 356]] continued using many Volkswagen components, including a tuned engine, [[gearbox]] and suspension.

The two companies continued their collaboration in 1969 to make the [[Porsche 914|VW-Porsche 914 and Porsche 914-6]]. (The 914-6 had a 6-cylinder Porsche engine, and the standard 914 had a Volkswagen engine.) Volkswagen and Porsche would collaborate again in 1976 on the [[Porsche 912]]-E (the USA only) and the [[Porsche 924]], which used many [[Audi]] components and was built at Audi's [[Neckarsulm]] facilities. The 924 was originally designated for AUDI. Most [[Porsche 944]] models were built there, although they used far fewer VW components.

The [[Porsche Cayenne]], introduced in 2002, shares its entire chassis with the [[Volkswagen Touareg]] and [[Audi Q7]], and is built at the same Volkswagen factory in [[Bratislava]] that the other SUVs are built.

In September 2005, Porsche announced it would increase its 5% stake in Volkswagen to 20% at a cost of €3&nbsp;billion, with the intention that the combined stakes of Porsche and the government of Lower Saxony would ensure that any hostile takeover by foreign investors would be impossible.<ref>{{cite news |url=http://news.bbc.co.uk/1/hi/business/4281864.stm |title=Porsche wants 20% Volkswagen deal &#124; 26 September 2005 |work=BBC News |date=26 September 2005 |access-date=27 September 2010 |archive-url=https://web.archive.org/web/20071006040107/http://news.bbc.co.uk/1/hi/business/4281864.stm |archive-date=6 October 2007 |url-status=live }}</ref> Speculated suitors included [[DaimlerChrysler]], [[BMW]], and [[Renault]]. In July 2006, Porsche increased their ownership again to 25.1%.

On 4 March 2005, the European Commission brought an action against the Federal Republic of Germany before the European Court of Justice, claiming that the [[Volkswagen Law]], which prevents any shareholder in Volkswagen from executing more than 20% of the total voting rights in the firm, was illegally restricting the flow of capital in Europe.<ref name="Official Text of the action">{{cite web|author=Commission of the European Communities|title=Action brought on 4 March 2005 by the Commission of the European Communities against the Federal Republic of Germany|url=http://curia.europa.eu/juris/document/document.jsf?text=Volkswagen&docid=59985&pageIndex=0&doclang=EN&mode=req&dir=&occ=first&part=1&cid=66367#ctx1|publisher=European Court of Justice|access-date=13 February 2012|archive-url=https://web.archive.org/web/20130521044955/http://curia.europa.eu/juris/document/document.jsf?text=Volkswagen&docid=59985&pageIndex=0&doclang=EN&mode=req&dir=&occ=first&part=1&cid=66367#ctx1|archive-date=21 May 2013}}</ref> On 13 February 2007, [[Advocate General]] [[Dámaso Ruiz-Jarabo Colomer]] submitted an opinion to the court in support of the action.<ref>{{cite news |url=http://news.bbc.co.uk/1/hi/business/6356787.stm |title=Top EU court finds against VW law |work=BBC News |date=13 February 2007 |access-date=27 September 2010 |archive-url=https://web.archive.org/web/20081206031746/http://news.bbc.co.uk/1/hi/business/6356787.stm |archive-date=6 December 2008 |url-status=live }}</ref> This again opened the possibility of a hostile takeover of VW and so on 26 March of the same year Porsche took its holding of Volkswagen shares to 30.9%. Porsche formally announced in a press statement that it did not intend to take over Volkswagen, but intended the move to avoid a competitor's taking a large stake and to stop hedge funds from dismantling VW.<ref>{{cite news |url=http://news.bbc.co.uk/1/hi/business/6494593.stm |title=Porsche triggers VW takeover bid |work=BBC News |date=26 March 2007 |access-date=27 September 2010 |archive-url=https://web.archive.org/web/20090430193512/http://news.bbc.co.uk/1/hi/business/6494593.stm |archive-date=30 April 2009 |url-status=live }}</ref> As expected, on 22 October 2007, the [[European Court of Justice]] ruled in agreement with Ruiz-Jarabo and the law was struck down.<ref>{{cite news |last=Landler |first=Mark |url=https://www.nytimes.com/2007/10/23/business/worldbusiness/23cnd-volks.html |title=Court Strikes Down 'Volkswagen Law' |location=Germany |newspaper=[[The New York Times]] |date=23 October 2007 |access-date=26 August 2011 |archive-url=https://web.archive.org/web/20130522045808/http://www.nytimes.com/2007/10/23/business/worldbusiness/23cnd-volks.html |archive-date=22 May 2013 |url-status=live }}</ref><ref name="Full Text of the Judgment">{{cite web|author=European Court of Justice|title=Judgment of the Court (Grand Chamber) in Case C-112/05|url=http://curia.europa.eu/juris/document/document.jsf?text=Volkswagen&docid=70710&pageIndex=0&doclang=EN&mode=req&dir=&occ=first&part=1&cid=66367#ctx1|publisher=European Court of Justice|access-date=13 February 2012|archive-url=https://web.archive.org/web/20130521042228/http://curia.europa.eu/juris/document/document.jsf?text=Volkswagen&docid=70710&pageIndex=0&doclang=EN&mode=req&dir=&occ=first&part=1&cid=66367#ctx1|archive-date=21 May 2013}}</ref> In October 2007, the [[European Court of Justice]] ruled that the VW law was illegal<ref>{{cite web|url=http://curia.europa.eu/jcms/upload/docs/application/pdf/2009-02/cp070074en.pdf|title=THE VOLKSWAGEN LAW RESTRICTS THE FREE MOVEMENT OF CAPITAL|date=23 October 2007|publisher=COURT OF JUSTICE OF THE EUROPEAN COMMUNITIES|access-date=17 February 2013|archive-url=https://web.archive.org/web/20140714224528/http://curia.europa.eu/jcms/upload/docs/application/pdf/2009-02/cp070074en.pdf|archive-date=14 July 2014}}</ref> because it was [[Protectionism|protectionist]]. At that time, [[Porsche]] held 31% of VW shares&nbsp;– although a smaller proportion of voting rights, due to the Volkswagen Law&nbsp;– and there had been speculation that Porsche would be interested in taking over VW if the law did not stand in its way. The court also prevented the government from appointing Volkswagen board members.<ref>{{cite news|url=http://news.bbc.co.uk/1/hi/business/7057815.stm|title='Volkswagen law' is ruled illegal|date=23 October 2007|publisher=BBC|access-date=17 February 2013}}</ref> The German government then rewrote the Volkswagen law, only to be sued again.<ref>{{cite news|url=http://online.wsj.com/article/SB10001424052970204630904577057730270544356.html|title=EU To Sue Germany Again Over 'Volkswagen Law'|date=24 November 2011|work=The Wall Street Journal|access-date=17 February 2013|archive-url=https://web.archive.org/web/20111229143801/http://online.wsj.com/article/SB10001424052970204630904577057730270544356.html|archive-date=29 December 2011|url-status=live}}</ref><ref>{{cite news|url=http://www.autoblog.com/2011/11/27/germany-in-court-again-over-vw-law-could-face-fines-of-nearly/|title=Germany in court again over "VW Law," could face fines of nearly $375,000/day|last=Ramsey|date=27 November 2011|work=Autoblog|access-date=17 February 2013|archive-url=https://web.archive.org/web/20120701181741/http://www.autoblog.com/2011/11/27/germany-in-court-again-over-vw-law-could-face-fines-of-nearly/|archive-date=1 July 2012|url-status=live}}</ref><ref>{{cite web|url=http://www.theparliament.com/latest-news/article/newsarticle/germany-sued-for-second-time-over-volkswagen-law/|title=Germany sued for second time over 'Volkswagen law'|date=25 November 2011|work=The Parliament|access-date=17 February 2013}}{{Dead link|date=September 2021 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> In October 2013, the EU Court of Justice in Luxembourg ruled that the rewritten Volkswagen law "complied in full" with EU rules.<ref>{{cite news|url=https://www.bloomberg.com/news/2013-10-22/germany-wins-eu-court-fight-over-vw-law-legality-escapes-fines.html/|title=Germany Wins EU Court Battle Over VW Law, Escapes Fines|author=Bloomberg|date=22 October 2013|access-date=5 February 2014|archive-url=https://web.archive.org/web/20140222145253/http://www.bloomberg.com/news/2013-10-22/germany-wins-eu-court-fight-over-vw-law-legality-escapes-fines.html/|archive-date=22 February 2014|url-status=live}}</ref>

On 26 October 2008, Porsche revealed its plan to assume control of VW. As of that day, it held 42.6% of Volkswagen's ordinary shares and stock options on another 31.5%. Combined with the state of Lower Saxony's 20.1% stake, this left only 5.8% of shares on the market—mostly with index funds that could not legally sell.<ref>{{cite web |url=http://www.ft.com/cms/s/0/05a4df12-a396-11dd-942c-000077b07658.html |title=Financial Times &#124; Porsche plans to raise VW stake to 75% |work=[[Financial Times]] |date=26 October 2008 |access-date=27 September 2010 |archive-url=https://web.archive.org/web/20081029052916/http://www.ft.com/cms/s/0/05a4df12-a396-11dd-942c-000077b07658.html |archive-date=29 October 2008 |url-status=live }}</ref> [[Hedge fund]]s desperate to cover their [[short (finance)|short]] positions forced Volkswagen stock above one thousand euros per share, briefly making it the world's largest company by [[market capitalisation]] on 28 October 2008.<ref>{{cite web |url=http://www.ft.com/cms/s/0/05bbd234-a4d2-11dd-b4f5-000077b07658.html?nclick_check=1 |title=VW vies for title of world's biggest company |work=Financial Times |date=28 October 2008 |access-date=27 September 2010 |archive-url=https://web.archive.org/web/20081029223857/http://www.ft.com/cms/s/0/05bbd234-a4d2-11dd-b4f5-000077b07658.html?nclick_check=1 |archive-date=29 October 2008 |url-status=live }}</ref> By January 2009, Porsche had a 50.76% holding in Volkswagen AG, although the "Volkswagen Law" prevented it from taking control of the company.<ref name="bbc-porsche-jan-2009">{{Cite news|title=Porsche takes majority VW stake |url=http://news.bbc.co.uk/1/hi/health/7813073.stm|access-date=16 June 2010|work=BBC News|date=6 January 2009}}</ref>

On 6 May 2009, the two companies decided to join, in a merger.

On 13 August, Volkswagen Aktiengesellschaft's supervisory board signed the agreement to create an integrated automotive group with Porsche led by Volkswagen. The initial decision was for Volkswagen to take a 42.0% stake in Porsche AG by the end of 2009, and it would also see the family shareholders selling the automobile trading business of Porsche Holding Salzburg to Volkswagen.<ref>{{Cite news|url=http://news.taume.com/World-Business/Business-Finance/Volkswagen-to-take-a-42-0-percent-stake-in-Porsche-AG-11861|title=Volkswagen to take a 42.0 percent stake in Porsche AG|access-date=22 January 2009|publisher=Taume News|date=14 August 2009|archive-url=https://web.archive.org/web/20090818162016/http://news.taume.com/World-Business/Business-Finance/Volkswagen-to-take-a-42-0-percent-stake-in-Porsche-AG-11861|archive-date=18 August 2009}}</ref> In October 2009 however, Volkswagen announced that its percentage in Porsche would be 49.9% for a cost of €3.9&nbsp;billion (the 42.0% deal would have cost €3.3&nbsp;billion).<ref>{{Cite news|url=http://news.bbc.co.uk/2/hi/business/8317010.stm|title=VW to buy half of Porsche by 2010|access-date=20 October 2009|work=BBC News|date=20 October 2009|archive-url=https://web.archive.org/web/20091022045153/http://news.bbc.co.uk/2/hi/business/8317010.stm|archive-date=22 October 2009|url-status=live}}</ref> On 1 March 2011, Volkswagen has finalised the purchase of Porsche Holding Salzburg (PHS), Austria's leading specialty automobile distributor, for €3.3&nbsp;billion ($4.55&nbsp;billion).<ref>{{cite web|url=http://www.industryweek.com/articles/vw_buys_porsche_sales_unit_24005.aspx?SectionID=4|title=VW purchase Porsche Holding Salzburg (PHS)|access-date=1 March 2011|work=IndustryWeek|date=1 March 2011|archive-url=https://web.archive.org/web/20120324221730/http://www.industryweek.com/articles/vw_buys_porsche_sales_unit_24005.aspx?SectionID=4|archive-date=24 March 2012}}</ref>

In January 2020, Volkswagen was overtaken by [[Tesla, Inc.]] as the second-most valuable auto maker.<ref>{{Cite news|url=https://www.wsj.com/articles/tesla-tops-volkswagen-to-become-second-most-valuable-auto-maker-11579709320|title=Tesla Tops Volkswagen to Become Second-Most-Valuable Auto Maker|last=Higgins|first=Tim|date=22 January 2020|work=The Wall Street Journal|access-date=23 January 2020|language=en-US|issn=0099-9660}}</ref>