The company has always had a close relationship with Volkswagen Group because the first Volkswagen Beetle was designed by Ferdinand Porsche. The two companies

collaborated in 1969 to make the VW-Porsche 914 and 914-6, whereby the 914-6 had a Porsche engine, and the 914 had a Volkswagen engine, in 1976 with the Porsche 912E

(USA only) and the Porsche 924, which used many Audi components and was built at Audi's Neckarsulm factory. Most Porsche 944s also were built there although they used

far fewer VW components. In other words, Volkswagen was a cheap Porsche, but since 1924 they have risen up to be a leading car power. The Cayenne, introduced in 2002,

shares its entire chassis with Volkswagen Touareg, which is built at the factory in Bratislava. Both Audi and Skoda are wholly owned subsidiaries of Volkswagen. In late 2005,

Porsche took an 18.65% stake in the Volkswagen Group, further cementing their relationship, and preventing a takeover of Volkswagen, which was rumored at the time.

Speculated suitors included DaimlerChrysler AG, BMW, and Renault.

On 26 March 2007, Porsche took its holding of Volkswagen shares to 30.9%, triggering a takeover bid under German law. Porsche formally announced in a press statement

that it did not intend to take over Volkswagen (it would set its offer price at the lowest possible legal value), but intended the move to avoid a competitor taking a large stake or

to stop hedge funds dismantling VW, which is Porsche's most important partner. Porsche's move comes after the European Union moved against a German law that protected

VW from takeovers. Under the so-called "Volkswagen Law", any shareholder in VW cannot exercise more than 20% of the firm's voting rights, regardless of their level of

stock holding. The European Court of Justice struck the law down on 23 October 2007, potentially paving the way for a takeover.