Andy @ Don Rosen Imp

I recvd this today from Porsche.



Ladies and Gentlemen,

I am sure you are aware that our parent company, Porsche AG, on Sunday
announced that it plans to acquire a stake of about 20 percent in
Volkswagen AG. This equally bold and unexpected move aims at strengthening
ties between the two companies and, in particular, preventing a future
hostile takeover of Volkswagen, Europe's largest automaker. As you know,
over the past few years Volkswagen has become a significant supplier for
about 30 percent of our sales volume, as well as an important partner in
development. Our two companies worked together to develop the Cayenne and
Volkswagen's Touareg. They recently announced that they, along with Audi
AG, were forming an alliance to develop hybrid engines. Porsche will
introduce a hybrid version of the Cayenne by the end of this decade.


"With this engagement, we want to secure our business relations with VW
and also safeguard in the long term a significant part of our future
planning," our chief executive Wendelin Wiedeking said in a statement. The
strategic investment should enable Porsche to head off any future hostile
takeover of Volkswagen by investors "who do not have the long-term
interests of VW as their aim." That scenario could arise if the European
Court of Justice rules against a German law that effectively protects the
company from such a takeover. The European Commission took Germany to
court last year over the VW law. It has long argued that the decades-old
law goes against the grain of the 25-nation bloc's single market
principles, although German politicians claim it helps ensure stability at
the company. The Commission objects to provisions of the 1960 law
privatizing Volkswagen that cap a shareholder's voting rights at 20
percent, regardless of the number of shares held, and requires a majority
of 80 percent for 'important decisions'. A ruling can be expected not
before spring of 2007.


"Our planned investment is the strategic answer to the risk of a hostile
takeover," Wiedeking said. "This solution that we are seeking is a
significant precondition for the stable development of Volkswagen AG and
for the two companies' future cooperation." Porsche is in close
communication with Volkswagen's management and does not plan to take over
the company. Volkswagen has welcomed Porsche's move, which it said
supported its "independent business policy and provided for a stable
shareholder structure, which is very important in the long term."


The state of Lower Saxony, where VW's Wolfsburg headquarters is situated,
is currently the biggest shareholder, with a stake of 18.2 percent. A 20
percent stake would currently cost Porsche more than $3.6 billion. Porsche
will be able to finance the purchase with available liquidity, and the
investment will not impact the planned development of major projects such
as the Panamera fourth model line or the hybrid Cayenne.


As significant a business deal this decision has been within the auto
industry, you can rest assured that our day-to-day business operations and
our long-term relationship with you will not be impacted. Through this
strategic investment Porsche's strong position will ultimately become even
stronger thus providing a solid foundation for sustainable growth and
continued success of both Porsche Cars North America and its dealer body.

I wanted to personally share my sentiment with you and remain,

Yours Sincerely,


Peter Schwarzenbauer

Jnice

D:

USP

NEWCARPARTS123's investment in repost.

USP

shouldn't read too much into that.

floorit

maybe this will result in better build quality