| Bloomberg reports Porsche AG's 911, a $72,400 sports | | | | euros of assets at SEB Asset Management in |
| car, spurred the carmaker's being the world's most | | | | Frankfurt, including Volkswagen and Porsche shares, |
| profitable last year. CEO Wendelin Wiedeking says | | | | commented that the alliance between Porsche and |
| earnings will grow even more because of Volkswagen | | | | VW is extremely important to Porsche. |
| AG's Golf, a $15,000 hatchback. | | | | As regards lagging profitability, the report says that |
| The report said Wiedeking may extend the luxury car | | | | such concern on Volkswagen would crimp Porsche's |
| company's share-price gains by increasing the stake | | | | growth sent the luxury carmaker's shares plunging 10 |
| and using Porsche's influence to convert Europe's | | | | percent on Sept. 26, 2005, a day after Porsche said |
| biggest carmaker. Analysts and investors say | | | | that it would acquire a stake in the larger automaker. |
| Porsche's experience in "thin" production will enhance | | | | In 2005, Wolfsburg, Germany-based Volkswagen's |
| Volkswagen's profitability, while the companies will | | | | operating margin was 3 percent as compared with 19 |
| save by sharing development costs. | | | | percent at Porsche in the 12 months ended July that |
| Sales and profit at Volkswagen, now 31 percent | | | | year. |
| owned by Porsche, have already increased since the | | | | Volkswagen's margin widened to 4.3 percent in 2006, |
| initial tie-up, spurring Porsche's shares more than | | | | as new models such as the Eos and the Audi Q7 |
| double. | | | | helped lift sales 10 percent to 5.72 million vehicles. Net |
| Peter Braendle, who helps manage almost 63 billion | | | | income increased more than doubled. |
| Swiss francs ($52 billion) in assets at Swisscanto | | | | Cost cutting already began at Volkswagen. As a |
| Asset Management in Zurich, plus shares in both car | | | | matter of fact, former Chief Executive Bernd |
| companies, said Porsche knows how to manage itself | | | | Pischetsrieder has thrown off 20,000 jobs. |
| and stands to significantly earn from its ownership in | | | | Andreas Dittmer, who helps manage nearly 3.5 billion |
| Volkswagen. | | | | euros in assets at Apo Asset Management in |
| Adam Jonas, an analyst at Morgan Stanley in London, | | | | Cologne, Germany, which includes Volkswagen shares, |
| forecasts that Porsche's profit may grow to more | | | | commented that "Volkswagen has become leaner''. |
| than 3 billion euros, which is tantamount to $4.1 billion, in | | | | Porsche is entitled to almost one third of Volkswagen's |
| five years from 1.39 billion euros in the 12 months | | | | dividend, which was 497 million euros in 2006. |
| ended July 2006. He expects that the company's | | | | Wiedeking said on June 26 that Porsche's profit will |
| shares will reach 1,650 euros within a year, as | | | | really rise significantly this year. And thanks to |
| compared with Thursday's closing price of 1,330 euros. | | | | Volkswagen. |
| Juergen Meyer, who helps manage almost 1.3 billion | | | | |