Once a year, in a huge conference room in Stuttgart, you can witness a singular spectacle: the general meeting (GM) of Porsche SE, the financial company which holds the majority of the shares with voting rights (53% ) of the automotive giant Volkswagen (VW). It is the reunion of one of the most powerful families of German capitalism: the Porsche-Piëch family, the descendants of Ferdinand Porsche (1875-1951), inventor of the Beetle and engineer adored by Adolf Hitler. The GA is the only opportunity to see a clan that is usually ultra-discreet, but whose known intrigues have nothing to envy to those of famous families with crowned heads.
On the podium, Wolfgang Porsche, soon to be 80 years old, chairman of the supervisory board of the holding company, still sits as patriarch. At his side, his cousin and rival Hans Michel Piëch, 80, also holds his place. For the 2022 GA, these two grandsons of Ferdinand Porsche refused to give up their duties, despite all age limits.
In the shadow of the room, in the front row, you have to be well informed to recognize their children, grandchildren and cousins, shareholders of Porsche SE. About 200 heirs, who often carry Ferdinand, or one of his variations, in their first name. For a decade, their decisions have influenced the fate of the manufacturer with 630,000 employees and 250 billion euros in turnover.
Financing the transition to electric
September 29 will be a key date in the history of the family: it is the day when the Porsche brand, which builds the cars of the same name, a subsidiary of the VW group, will go public. It is the largest share issue by a German company since that of Deutsche Telekom twenty-five years ago.
A major event for German capitalism: the company Porsche AG (33 billion euros in turnover in 2021, with 300,000 vehicles sold) is one of the most successful, famous and profitable companies in the country. Its market value could reach 75 billion euros. By way of comparison, the current value of the parent company, VW, is 85 billion euros, for 9 million vehicles sold.
Neither the war in Ukraine, nor historic inflation, nor the expected economic recession have discouraged this project. Porsche hopes to reap 10 billion euros on the markets. The operation should provide VW with valuable cash to finance its transition to electric. The Stuttgart manufacturer, he regains his freedom and hopes to finally be listed at a fairer value. In Germany as elsewhere, conglomerates are no longer popular anyway.
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