Give us an overview of how Porsche is doing and where you are heading.
Our fiscal year ended the end of July and will again be a record year. All the details will be announced at the end of October. The numbers look great, and our profit-and-loss statement will be excellent.

What are you doing to prepare for the new Panamera four-door sedan? This is a different car from what Porsche the sports car maker sells.
It is on its way. I've done a test drive, and it's excellent. It will be a great new car for Porsche — and it will be a Porsche. In 2009, it will be on the market. It's too early to say more.

Will you then be a luxury vehicle company rather than a luxury sports car company?
We will be the producer of very sporty luxury cars. That's it. Our core business is and will be sports cars in the future.

Can you be a little more specific on when you'll launch the hybrid Cay-enne?
Hybrid technology is more or less driven by battery technology. In this area, there is still a lot to be done. The efficiency of batteries is not as good as it should be. We all know about the laptop battery recall by Sony, and we don't want to have an exploding Cayenne. We are looking for technology that would help us to store more energy and to recharge it better. This is the name of the game.

Will you use nickel batteries?
No, we are leaning toward a different technology. We are involved in the project with Audi and Volkswagen, but we are following different roads because we believe the battery technology is very important.

Will the hybrid come in 2010 or before that?
It depends on whether the technology is available or not. We want special technology to be built into the car. We are already building very clean cars that are fun.

We changed the Cayenne's engine after four years — and spent more than $100 million for direct gasoline injection. That was only possible because the fuel quality worldwide is now available. That was the problem.

We could use other technologies if the infrastructure is there. It isn't just up to us to build the most efficient car for the environment.

Why is taking control of VW a great financial opportunity for you?
There is a possibility for us to define with colleagues within the organization more (joint) projects than we currently can.

If you look back to the past, the question was why should VW work with us in other areas. We decided to change the strategy and to take a major share in VW.

What do you want from VW? Increased production?
Firstly, we want technology and shared investment in new technologies. For instance, the electronic platform in a premium car counts for 30 to 35 percent of the total cost. If we can find common components and systems that can be used in Porsche as well as Audis and Bentleys, it would allow all of us to reduce our price position. There are a lot of other areas — like the development of the next-generation Cayenne.

Does VW's cost structure make sense to you?
Everyone knows there is much to do. (VW group CEO) Martin Winterkorn announced what he wants to achieve. The management knows there is potential, and it looks like Porsche did many years ago. That's why we decided to go in. Otherwise, it would be the wrong investment, and we believe in this investment.

You are successful in the United States. As a major shareholder in VW, can you say what VW is doing wrong in the U.S. market?
I shouldn't discuss this issue openly. They have a restructuring plan under way, and there is a lot of need for change. From time to time, you have to move to get rid of old structures. To build new things, you have to move.

Does VW need to make cars aimed specifically at North America? VW's failure is it makes great middle-market cars in Europe that are failures in America.
There are many opportunities. The plant in Mexico is not fully loaded. Today they have opportunities to produce cars in the American market for the American market. If there is a need for more plants, they can do it, but first use what you have already invested. To be successful in such a huge market, you must be near the customers to make sure you are still in business.

The major problem the European industry has with exporting to America is the weakness of the U.S. dollar. It's also not easy for us to manage at Porsche. Today Porsche is making money even with the exchange rate.

But Porsche has products that Americans want.
You should always have cars the customer wants — that is the very minimum requirement. Otherwise, you are in the wrong business.

If you become a 51 percent shareholder in VW, what happens?
That is not decided. There is only a discussion of if, that and whatever.

You have options to buy?
We have options to increase our share to a substantial level.

What involvement do you personally have at VW now?
My colleague for finance and I are members of the supervisory board. We are members of the steering committee. We are in the middle of the company and have a lot of influence. We built a team that only does the preparation and analyzes details.

Are there any brands that the VW group does not need?
Their brand portfolio is good. Every brand and every car has to make money — that is all I ask for. No hobbies.

You've said before that diesels aren't for Porsche. But now, as a part owner of the VW group, does that change things?
We have looked many times over the years whether it makes sense for us to have a diesel.

We were allowed with the first generation of the Cayenne to use a diesel. We are following a global car and engine strategy. We are too small to have different engines for different regions — it is too expensive and makes no sense for us.

The name of the game is not to build cars but to make money. It will cost a lot of marketing money to make Americans want to drive diesels. I prefer to invest my money not in marketing but perhaps in VW shares.

 

DJ,
do you know who is participating in this conversation that you've posted here?

-------- NEVER MIND -------------

I found it ->

Wendelin Wiedeking, CEO of Porsche AG, is in an enviable position. The brand is profitable,
even the Cayenne SUV has proved the naysayers wrong, and he's preparing to launch the new four-door Panamera sedan in 2009. Although Porsche is a small player, it's about to get bigger. The little fish is about to swallow a whale. Porsche owns 31 percent of Volkswagen and has enough options — if the reports are correct — to buy up to 51 percent and take control. The Volkswagen group would become a subsidiary of Porsche.

Wiedeking was interviewed last month at the Frankfurt auto show by Peter Brown, editorial director, and Diana T. Kurylko, staff reporter, of Automotive News; Guido Reinking, editor of Automobilwoche; and Arjen Bongard, editor of Automotive News Europe.