Porsche 2011 Annual Report Download - page 105

In 2010, the appointment of a special auditor
was applied for before the Regional Court of Stuttgart.
The application related to the examination of the
management activities of the company’s executive
board and supervisory board in connection with hedg-
ing transactions relating to shares in Volkswagen AG
that were aimed at creating the conditions to enable
the company to purchase Volkswagen AG shares at
economically secured conditions, if it later decided to
purchase them, as well as payment agreements with,
and severance payments to, former members of
Porsche SE’s executive board. All the applicants
withdrew their applications in May 2011, thereby
ending the proceedings.
The company believes that adequate provi-
sions have been recognized for the anticipated attor-
neys’ fees and litigation expenses arising from the
above cases.
Opportunities and risks of cooperation projects
Cooperation projects include opportunities
and risks, particularly in the areas of development
and production.
The cooperation between the Porsche Zwi-
schenholding GmbH group and its main cooperation
partner Volkswagen can lead to additional synergies
within the Porsche Zwischenholding GmbH group in
future. The two groups have already cooperated for
many years on the Colorado project, in which a plat-
form was developed for the Porsche Cayenne, the VW
Touareg and the Audi Q7. In another cooperation
project, the Porsche Zwischenholding GmbH group is
using various modules and components from the
Volkswagen group to develop an additional vehicle for
the sporty off-roader segment. Potential synergies
could arise in the design of additional shared plat-
forms and in the field of new technologies as well as
auto-electrics and electronics. By avoiding duplicate
investment, the annual depreciation charge can be
reduced. Moreover, the earnings of the Porsche Zwi-
schenholding GmbH group can also be improved by
combining purchasing functions and sharing existing
sales channels.
The main risks relating to cooperation con-
cern changes desired by a cooperation partner, for
example to a platform and/or parts. As a result,
achieving the planned development and production
goals (in particular, start of production) may involve
delays, and additional expenses. Production at two
locations (as, for example, in the case of the Cayenne,
which is produced in Leipzig and Bratislava) is the
cause of potential interface problems, particularly in
the later production phase, which can result in inter-
ruption to production. Where the cooperation partner
procures parts for prototypes and series production,
this can also present a risk as it creates a depend-
ency that the Porsche Zwischenholding GmbH group
cannot counter by direct influence, for example on
Volkswagen’s suppliers. To promote cooperation and
avoid risks of this kind, Porsche and its partner are
equally represented in the organization for coopera-
tion projects. The ultimate decision-making body, with
representatives of both companies, has sole respon-
sibility for key topics such as project strategy, key
figures, technology, quality, deadlines, finances and
model updates, and meets several times a year.
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