Abstract
Porsche might soon lose its status of world' s smallest independent car maker
as it becomes clear it will soon be object of a merger with VW, Europe' s
largest car maker. The operation will entail a redefinition of the role of
Porsche within the VW galaxy, which already contains nine brands. The ties
between the two car makers are long-standing. In fact, VW already represents a
key supplier and production partner of Porsche, with which it already shares
two platforms for the Cayenne and the brand new Panamera. The creation of a
new merged group will entail no major changes on the uber-outsourcing strategy
which characterises Porsche' s approach to sourcing, at least in the short run,
and changes at management level might imply an overhaul of the Purchasing
division. In the longer term, more platform sharing and content transfer from
VW is seen highly likely with the inevitable consequences on supplier
selection. Contract manufacturing could also be reduced in the future and more
operations could be brought back in house. The low level of vertical
integration requires a Japanese-style management of relations and involvement
with suppliers. This might be at risk when more purchasing activities are
carried out together by the two car makers. Therefore a shift towards more
adversarial relations is likely to occur, mainly because of an increased
pressure on suppliers for price reductions.
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