After seven years of absence in Kenya, Porsche has finally made its comeback as it tries to benefit from the expanding economy in the region. To stage that return, Porsche has set up a new franchise in the country, working with local partner, Multiple Group, to sell its offerings in the region.
According to Steffen Fleck, network development director for Porsche Middle East and Africa, the sports car maker conducted an analysis and found out that Kenya's micro-finance indices indicate an economy that will surge 5 percent this year.
Fleck said that analysis prompted Porsche to set up a base in Kenya. The African Development Bank expects Kenya’s economy to gain 6 percent this year, further boosting the expansion it has made in the past two decades.
Porsche already has offices in Algeria, Angola, Ghana, Egypt, Mauritius, Morocco, Nigeria, Reunion, South Africa and Tunisia. An expansion in Kenya is part of the company’s goal to top annual global sales of 200,000 cars and SUVs by 2018. Analysts, however, expects Porsche to reach that goal as early as this year.
Based in Stuttgart, Baden-Wurttemberg, Germany, Porsche AG – formally Dr.-Ing. h.c. F. Porsche AG – is engaged in the manufacture of high-performance sports cars. It is owned by Volkswagen AG, in which Porsche Automobil Holding SE also owns a stake.
Even before Porsche became a part of the VW Group, the companies have always had a close relationship with each. This is primarily because the first Volkswagen Beetle was designed by Ferdinand Porsche, who founded Dr. Ing. h. c. F. Porsche GmbH in 1931. Interestingly, the Porsche 64 was developed in 1939 using several components from the Beetle.
In 2007, Porsche reformed its structure with it becoming a holding company as Porsche Automobil Holding SE (Porsche SE) and establishing a new company -- Porsche AG – as in charge of its operating activities.
After a huge failure to acquire the VW Group is late 2000s,Porsche SE became the subject of a reverse takeover. While Porsche SE retained its ownership in the VW Group, its carmaking division -- Porsche AG – was merged with Wolfsburg company. This made Porsche the newest and 10th brand under the VW Group. Initially, VW acquired a 49.9-percent stake in Porsche AG at end of 2009. In August 2012, VW agreed to take full ownership of Porsche AG.
As part of the agreement, Porsche SE would own 50.76 percent of Volkswagen AG. On the other hand, the management of Volkswagen AG would remain in control by taking management positions at Porsche SE.