Question

Why did VW end up buying Porsche?

Answer 1

"Porsche SE" owned "Porsche AG" [the latter is the car company] had been buying the stocks of VW for years. They bought more than 50% of all the shares of VW. They used several bank loans for this purchase. However when the recession hit and their sales declined, they had to either sell VW shares, or their Porsche AG to repay the loans.

And they sold Porsche AG to VW, and it appears that VW owns Porsche AG. But it is also worthy to note that Porsche SE owns more than 50% (hence having a controlling share) of VW. [Now it is more of a brand name - which one to be termed as the owner - VW or Porsche, and they chose VW for strategic purposes.

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