It started out as an elaborate scheme by Porsche’s executives to take hold of Volkswagen (VW), but ended up with the end of Porsche’s 72 year old independence.

In an industry where one automaker bought another - The VW group itself consists of six other brands: Audi, Skoda, Seat, Bentley, Lamborghini and Bugatti - Porsche continued independence was badge of honor for the firm which had become the most marginally profitable car maker.

The first Porsche.

But Porsche overreached. The plan was that Porsche would acquire a large stake in VW which it would then use to take control over the entire company. But around the same time that Porsche borrowed heavily for the initial stake, its car sales greatly dropped and credit markets froze due to the recession thus denying Porsche the needed funds both in reserve capital and in loans.

Porsche then found itself in a position of weakness - the German government did not help by keeping in place a law that gave a German state a 20% holding share in VW thus denying Porsche some maneuvering share options - and the company had to resort to asking the Qatari government to invest in it via its sovereign wealth fund. The government refused.

In the end, because of Porsche’s debt; it was VW that bought Porsche rather than the other way around.

Porsche will retain operation independence and it is in good, efficient hands; but it is somewhat sad that the firm has lost its independence. For Porsche represented strong and empowering independence like few others.