VW Taps Porsche Profit as People Mover Aims to Top Toyota: Cars

Volkswagen AG’s name translates as “People’s Car” and the company traces its roots to a push by the Nazis to mobilize the masses. Today, it’s counting on profit from cars for the world’s elite to gain an edge in its pursuit of General Motors Co. and Toyota Motor Corp.

With the completion of its purchase of Porsche in August, VW controls an unrivaled slate of high-margin luxury nameplates including Audi, Lamborghini, Bentley and Bugatti. If Porsche profit, which started flowing into VW’s books this quarter, had been included in the first half, luxury brands would have accounted for 54 percent of VW’s earnings, up from 39 percent in 2007, when Martin Winterkorn became chief executive officer.