who owns volkswagen company

Guri Bee

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21-10-2024

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Who Owns Volkswagen? Unpacking the Complex Ownership Structure

Volkswagen, a global automotive giant, is a company with a complicated ownership structure. It's not as simple as a single individual or family holding the majority of shares. To understand who "owns" Volkswagen, we need to delve into the intricate network of shareholders and their roles.

The Key Players:

• Porsche Automobil Holding SE (Porsche SE): This is the most significant shareholder, controlling approximately 53.1% of Volkswagen's voting rights. Porsche SE is a publicly traded company, but the Porsche and Piëch families hold the majority of its shares, giving them significant influence over Volkswagen.
• Lower Saxony State: The German state of Lower Saxony owns around 20% of Volkswagen's voting rights. This ownership stake dates back to the company's founding in 1937 and is enshrined in the company's statutes.
• Publicly Traded Shares: The remaining shares of Volkswagen are publicly traded on the stock market. These shares are dispersed among individual and institutional investors worldwide.

Understanding the Power Dynamics:

While Porsche SE holds the majority of voting rights, it's important to remember that the Lower Saxony State's stake grants them significant influence as well. This creates a complex power dynamic, where both entities can impact the direction of the company.

The "Control" Question:

The question of who "controls" Volkswagen is further complicated by the fact that Porsche SE does not have full control over the company. This is due to a complex ownership structure that includes a "blocking minority" provision, which prevents a single shareholder from gaining full control. This provision was established in 2009 after a power struggle between the Porsche and Piëch families.

Implications of this Ownership Structure:

• Stability and Continuity: This structure ensures a high level of stability and continuity in Volkswagen's management, as both Porsche SE and Lower Saxony have a vested interest in the company's success.
• Influence and Power: The complex ownership structure creates a balance of power, ensuring no single entity has absolute control. This dynamic can lead to both cooperation and conflict.
• Public Accountability: While the Porsche and Piëch families hold considerable influence, the public trading of Volkswagen shares also makes the company accountable to external investors.

Further Considerations:

It's also worth noting that Volkswagen is structured as a "Volkswagen Aktiengesellschaft" (AG), which is a German public limited company. This means that the company is subject to German corporate law and governance standards.

Conclusion:

The question of who "owns" Volkswagen is not easily answered. The complex ownership structure with Porsche SE, Lower Saxony State, and publicly traded shares creates a dynamic environment where power is shared and distributed. This structure has its own implications, leading to both stability and power struggles. Understanding this complexity is essential to grasp the dynamics that shape this automotive giant.

Sources:

• Volkswagen Group
• Porsche Automobil Holding SE
• Wikipedia

Disclaimer: This article is intended for informational purposes only and should not be considered financial advice.