Volkswagen AG, known internationally as VW, is one of the world’s leading automobile manufacturers and the largest carmaker in Europe. The company was founded in 1937 by the German Labour Front and headquartered in Wolfsburg, Germany. VW owns several well-known brands including Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, and Škoda. With its global presence and diversified brand portfolio, Volkswagen has emerged as a highly valued automaker worldwide.
Like other large multinational corporations, Volkswagen has a complex ownership structure with multiple major shareholders. Determining the company’s single largest investor requires analyzing the stakes held by various individuals, families, investment firms, and the German state of Lower Saxony.
Major Shareholders of Volkswagen
Here are some of the major shareholders of Volkswagen AG as of October 2023:
- Porsche Automobil Holding SE – 31.4% of voting shares
- State of Lower Saxony – 20% of voting shares
- Qatar Holding LLC – 17% of voting shares
- Private shareholders – 12.7% of share capital
- Foreign institutional investors – 15.6% of share capital
Porsche Automobil Holding SE currently holds the highest single stake of 31.4% of Volkswagen’s voting shares. However, Porsche SE itself has a complex shareholding structure with over 50% stakes owned by the Porsche and Piech families. The State of Lower Saxony comes second with 20% voting rights.
The Porsche-Piech Family as Top Shareholders
While Porsche SE is the largest single shareholder of Volkswagen, the Porsche and Piech families together form the biggest block of shareholders when their stakes are combined.
The billionaire Porsche and Piech families of Germany are descendants of Ferdinand Porsche, the founder of the Porsche car company. Members of the two industrial dynasties hold major stakes in Porsche Automobil Holding SE, which gives them an influential shareholding in Volkswagen.
Here is a breakdown of the ownership of Porsche SE:
| Shareholder | Ownership |
|---|---|
| Porsche and Piech families | 53.3% |
| Qatar Holding LLC | 17% |
| Free float | 29.7% |
Based on their 53.3% stake in Porsche SE, the Porsche and Piech families control an equivalent stake in Volkswagen AG. This makes them the automaker’s single largest block of shareholders.
The family shareholders include Wolfgang Porsche (chairman of Porsche SE), Hans Michel Piech (son of former VW chairman Ferdinand Piech), as well as other Porsche and Piech descendants. The families directly own only a small percentage of Volkswagen shares, but their interests are mostly represented through Porsche SE.
The Influence of the Porsche-Piech Families
The Porsche and Piech families have inherited substantial shareholding in Volkswagen AG since it was founded in 1937 by Ferdinand Porsche. Their control has solidified over subsequent decades through complex cross-shareholdings between Volkswagen, Lower Saxony, and Porsche SE.
As the de facto top shareholders, the billionaire owners have significant influence over Volkswagen’s business, strategy, leadership appointments and corporate decisions. However, their power is balanced by Lower Saxony’s 20% voting rights as the second largest shareholder.
The shareholding gridlock between the families and Lower Saxony has contributed to friction at Volkswagen’s top leadership in the past. Nevertheless, the Porsche-Piech clan remains firmly positioned as the automaker’s most dominant investor due to their major 53% stake in the controlling owner Porsche SE.
Other Notable Investors
Beyond the Porsche-Piech families and Lower Saxony, Volkswagen has other influential minority shareholders:
Qatar Holding LLC
The sovereign wealth fund of Qatar owns 17% of Porsche SE, which translates into an equivalent 17% interest in Volkswagen. This makes Qatar the third strongest shareholder of VW after the families and Lower Saxony.
Foreign Institutions
Foreign institutional investors hold around 15.6% share capital in Volkswagen. These include leading US fund managers Harris Associates and BlackRock.
Private Shareholders
Nearly 13% of Volkswagen shares are owned by private individual shareholders from around the world.
Conclusion
Volkswagen has a diverse base of shareholders, but the Porsche and Piech families are the de facto largest investors. By aggregating their 53.3% stake in the controlling shareholder Porsche SE, the descendants of Ferdinand Porsche form the biggest single block of shareholders in Volkswagen AG.
The billionaire owners have sway over VW’s business decisions and leadership, while state-owned Lower Saxony and Qatar Holding also own sizeable minority stakes. Volkswagen’s complex multi-layered ownership structure gives the Porsche-Piech clan the most dominant influence as the automaker’s largest investor.