Buy Volkswagen Page
When Porsche finally revealed its massive position in October 2008, it triggered the biggest short squeeze in history.
In the early 2000s, the automotive world witnessed a saga that sounded more like a high-stakes financial thriller than a business expansion. It began with Porsche, then a small but incredibly profitable sports car manufacturer, setting its sights on the giant Volkswagen Group . The David vs. Goliath Strategy buy volkswagen
However, the 2008 global financial crisis derailed Porsche's plans. The company had taken on massive debt to fund its takeover bid just as credit markets froze. When Porsche finally revealed its massive position in
The goal was simple but audacious: for the small sports car maker to buy its massive supplier , Volkswagen. The Short Squeeze of the Century The David vs
Led by CEO Wendelin Wiedeking, Porsche began quietly accumulating Volkswagen shares. By 2008, Porsche had secretly gained control of nearly 74% of the company through complex stock options. At the time, Porsche was jokingly referred to as "a hedge fund with a carmaker attached".
Today, the relationship remains a "messy affair": Volkswagen owns the Porsche car brand, but the Porsche family's holding company (Porsche SE) still holds the majority of voting rights in Volkswagen. Porsche: The Hedge Fund that Also Made Cars - Priceonomics
: With Porsche owning 74% and the German government holding 20%, only about 6% of shares were actually available to buy.