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Piech Wants 13 Brands or More. What Marque(s) is He Targeting?

6K views 27 replies 20 participants last post by  StringTheory 
#1 ·
It never fails that comments made by Volkswagen Group Chairman Ferdinand Piech tend to be dissected to a level nearly unparalleled in the auto industry. Piech is the grandson of Ferdinand Porsche and the main man behind notable happenings as Audi's move to quattro and the Porsche 917. He's been the main catalyst for the surprising agility of the gargantuan Volkswagen Group for many years and often the final decision in many moves by the company. So, when Piech mentions the possibility of adding brands, the press gets awfully interested.

This latest quote comes from an interview with the German monthly magazine ADAC Motorwelt. Piech mentions in the chat that his children 10 years from now will drive one of the car manufacturer's "at least 13 brands". By last count the Volkswagen Group (including Audi, Lamborghini and Ducati) was at 12.

So what brand could Piech have in mind when he makes such claims? VW's chairman has mentioned Alfa Romeo on numerous occasions and is quoted as appreciating its "cult" status. Still, the brand is currently owned by Fiat SpA whose CEO Sergio Marchionne reiterated as recently as last week that the brand is not for sale.

Another theory at thedetroitbureau.com focuses more on Asia. No one can deny the growth in China and the Chinese government has been pressuring car makers to launch domestic Chinese brands. Companies like GM and Nissan have already made such moves, though the Volkswagen Group has made no such move thus far.

That same theory also sites Proton for its presence in Southeast Asia and also its current ownership of the ailing yet storied Lotus brand. This is an interesting theory as well, though rumors back in 2012 suggest Volkswagen already looked at Lotus and decided not to make the move.

On paper Asia makes a lot of sense, though watching Volkswagen's record might suggest otherwise. The company made a failed move to invest in Suzuki and that could have left a bad taste in their mouth. Daimler's own problems in trying to manage a multi-continent union with Chrysler may have also been a consideration, as Volkswagen could have likely stepped in and snapped up the Chrysler portfolio before Fiat was able to do so. Given all this, it is quite possible that Volkswagen has elected to adopt a Euro-centric philosophy. All twelve of its marques hail from Europe.

Going with the Euro theme (and also Fiat), we've made our case for the company to focus more on Fiat's ailing yet still cool Lancia brand whose penchant for engineering, design and motorsport would make it a seemingly perfect fit as a starter brand within the Audi side of the Volkswagen group. Still, even this seems unlikely given the lack of love lost between Marchionne and Piech.

Another way to look at this might be to examine the Volkswagen Group business model of maximizing economies of scale and then applying it to the current portfolio. There are now two commercial truck brands, and now a number of car brands spanning the range of customer pricing needs. Then, there's Ducati - the sole motorcycle manufacturer in the mix. To help raise economies of scale in motorcycle manufacturing, maybe Volkswagen might look toward growing its two-wheel portfolio.

Now, apply Piech's love for icons, the Euro-centric nature of the portfolio and the group's economies of scale production strategy and that offers up an interesting list of potential acquisitions.

The marque that sticks out in our head most (and this is just a guess) would be Vespa. All that said, Vespa is part of the Piaggio Group that owns a mix of reknowned brands like Aprilia and Moto Guzzi, along with lesser-knowns like Derbi, Gilera and Scarabeo. They've also got a commercial division.

So, in the end this is all guesswork. What marques do you think Piech is targeting when he makes such comments?
 
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#2 ·
Oh, definitely China, or even India.

Lancia and Alfa are out of the picture because the markets for them are completely filled with product.

Picking up a Chinese brand to fill out the product portfolio over there would make stunning sense.

Oh, wait..... :laugh:
 
#3 ·
They'll launch a low cost brand in China and India, possibly use it to attack Dacia in Europe. Maybe they'll use the DKW brand, although some sources suggest a new brand would be named.

I also think FIAT will eventually be forced to sell some of it's brands to ensure survival, so I wouldn't rule out Alfa, Maserati or even Ferrari. Piech is that crazy :D
 
#6 ·
They'll launch a low cost brand in China and India, possibly use it to attack Dacia in Europe. Maybe they'll use the DKW brand, although some sources suggest a new brand would be named.

I also think FIAT will eventually be forced to sell some of it's brands to ensure survival, so I wouldn't rule out Alfa, Maserati or even Ferrari. Piech is that crazy :D
Imagine the reaction when people realize that Ferrari and Lamborghini are part of the same company. :eek:

Although we'd finally get the Lamborgotti Fasterossa :laugh:

 
#9 ·
I wouldn't write off Suzuki - they might find themselves in a spot where they can't get the money they need at a price they need to keep being successful. And, old men eventually die.

I like the Piaggio idea - 2-wheeled transportation will remain important and even grow around the world, and Piaggio may just have the basic engineering just right (plus add VW fuel and EV engine technology). I might be biased on this one, though, since I love Piaggio. :heart:
 
#11 ·
May as well. At least if they run into trouble down the road they have 12 other things they can sell to stay alive.
 
#19 ·
I wouldn't consider VAG and GM a like. GM sold rebadge cars in same market, while VAG has them spread across the world. Skoda and Seat are not selling in the same market areas. In NA they only have VW and Audi. I dont count Porsche, Lambo, Bentley, Buggati.
GM has Pontiac, Chevy, Buick, Saturn all producing same cars on same platforms to same market. They where essentially competing against each other.
 
#27 ·
And to think that Wiedeking and company almost caught him napping and were about to take his empire away. What luck!

It's a tough guess to make as to which brand, because they've been fairly successful in making existing brands successful as operations, and able to penetrate new markets. So they could buy a brand like Alfa and expand its appeal and reach and achieve profitable growth. Or they could just as easily start a Chinese brand, though doing so would require them to share with a Chinese partner, which I don't see them wanting to do. Yes they already do to sell VWs in china, but I don't see them wanting to do so more than they have to.

A long shot, and two strong personalities would collide, but it would be interesting to see a giant like VW team with Tesla. Economies of scale from their Audi/Bentley chassis along with Tesla's unique powertrain, or scaled down versions of Tesla's powertrains in Golfs and Polos.
 
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