BBC: "Volkswagen law" Ruled Illegal

zenkidori

zenkidori

Banned For Trolling
Joined
Jun 12, 2005
Messages
4,806
Location
A mile high...and then some
Car(s)
RX-7, Jeep Cherokee
http://news.bbc.co.uk/2/hi/business/7057815.stm

The BBC said:
Volkswagen law' is ruled illegal

The European Union's highest court has said a German law protecting carmaker Volkswagen from takeovers is illegal.

Under the "Volkswagen Law" any shareholder in VW could not exercise more than 20% of voting rights, even if their stake in the firm was bigger.

The European Court of Justice said the law discouraged foreign investors from taking a stake in Volkswagen.

Porsche, which owns 31% of VW, declined to say whether it would now move to take control of its compatriot.

'No decision'

While some analysts have long believed that Porsche wants to take full control of VW, the luxury carmaker said following the court verdict that there was currently "no decision on how we will proceed".

We regret that the court did not recognise our good arguments about protecting Germany as a business location
German Justice Ministry

Porsche set to take control of VW

A Porsche spokesman added that any decision regarding its stake in VW would be made by its board members, but that it was not yet known if any decision will be made at their next meeting on 12 November.

For the time being, Porsche chief executive Wendelin Wiedeking said his company was "naturally very interested in being able to fully exert our voting rights" in VW.

Porsche has already said that it has secured enough options to let it "significantly" raise its stake in VW.

Law change

The European Court of Justice also rejected the right of the German government to appoint members to the VW board.

The federal government has said that it will move quickly to change the law.

"We regret that the court did not recognise our good arguments about protecting Germany as a business location," a Justice Ministry spokesman said.

The German state of Lower Saxony, VW's second largest shareholder, with a 20.3% stake, said it "accepts the decision" of the court and will retain its stake.
Click to expand...
 
jensked said:
Good!

Let's get rid of protective laws. We have a unified market and that rule counts for everybody.

And while we're at it, let's ditch the European Common Agricultural Policy (CAP, commonly reffered to as the Crazy Agricultural Policy, Communist Agricultural Policy, Costly Agricultural policy,...)
Click to expand...

:thumbsup:

Good idea!!
 
Was this rule a holdover from VW's Nazi origins or was it a more recent thing?

Either way it has no place in today's economy.
 
It was established when VW was (partly) privatized in 1960.
 
I'm surprised it took this long for the law to get changed.
 
tigger said:
I'm surprised it took this long for the law to get changed.
Click to expand...

Well it hasn't been changed yet, but it should happen quickly.

The issue was only raised in the autumn of 2005, don't remember if there was a particular reason or just a random idea of the EU commission.

There are however very nationalistic laws in US still in place, so look around and you will surprised.
 
Be interesting to see, if they go through with it, how much Porsche will want to purchase.
 
Good. I can't believe such a law was ever enacted, as if VW is something quintessentially German ... oh wait :p

Seriously, though, this world needs less corporate protection.
 
^:+1:
 
^ Sweden - You guys are paying in too are you not? Go to Spain or Ireland and watch your money being spent on their roads.
 
Cobol74, do you know how much the UK benefits from EU membership? Well, we pay in 17 billion (roughly) and receive 10 bn in regional aid (which also pays for projects such as the promotion of engineering and educational projects amongst other things), about the same amount is saved in free trade that we receive as a member and there are a huge amount of other things too, but this isn't the time nor the place.

As for the Volkswagen law, I'm glad it's gone.
 
I think there's no denying that EU membership is good for your economy.

Protective laws and measures only benefit companies with inferior products or companies that are in the wrong country (eg companies that make labour intensive products should move to low-wage economies and EU countries should focus on capital intesive goods).

Protective laws are bad for everybody on the long term...it's like making the life of an ill, dying patient with lots of pain longer.
 
Cobol74 said:
See what the UK is up against with this lot of European cheats? The French are far worse - I say leave the EU (let them pay for the whole disorganized bureaucratic mess)
Click to expand...

except that you guys are some of the biggest cheats yourself with the uk rebate that you still get. the UK really is one of the more bigot members of the EU. on the one hand you are happy to get all the advantages of the EU membership, while on the other hand selfishly blocking reforms of uk rebate and the like...thats not much different from french or polish behavior.
 
ryosuke said:
except that you guys are some of the biggest cheats yourself with the uk rebate that you still get. the UK really is one of the more bigot members of the EU. on the one hand you are happy to get all the advantages of the EU membership, while on the other hand selfishly blocking reforms of uk rebate and the like...thats not much different from french or polish behavior.
Click to expand...
OK BMW can take over Rover but Rover could not ever take over Volkswagen - hows that fair then? BTW there are NO advantages to us - you can try to name one if you like.

Rebate http://news.bbc.co.uk/1/hi/business/4094652
http://news.bbc.co.uk/1/shared/spl/hi/europe/04/money/html/who_pays_what.stm

I think you need to flame a Frenchman really do you not? We actually get the rebate because we would have left well before now without it, and as the second (in all fairness to Germany) EU contributor you would be up a brown river without a paddle. Anyhoo reactions like that make me convinced that I have much more in common with an Alabama red neck than you mate. And you can whine all you like, Volkswagen - i.e. your politicians are the cheats. The rebate was agreed under negotiations which I seem to recall is not actually cheating - that is the problem - you lot do not understand us, we play by the rules, you lot pretend. Challenge convince me I am wrong - BTW do you know the history of Volkswagen, and the British Major Ivan Hirst who kept it 'alive' in 1945?


http://www.superbeetles.com/hirst.htm

You need to give the Poles some slack BTW, but the French have absolutely no excuse at all.
 
Last edited:
Well, at least that explains Clarkson's comment on that Astra VXR/Golf GTI/Megane 220 review.
 
You must log in or register to reply here.
Top