Welcome to the modern practice of vertical integration, wherein suppliers are commonly owned – wholly or partly – by the companies at the receiving end of the supplies. One of the latest examples is Porsche, which is planning on buying a hefty 25 percent stake in its goto carbon fiber supplier, Capricorn Composite GmbH.
As Bloomberg Business reports, Porsche and Capricorn are no strangers; the auto parts/carbon fiber manufacturer supplied much of the material found in the 918 Spyder, as well as the 919 Hybrid LMP1 race car (pictured). If all goes according to plan, Porsche should own a quarter stake in Capricorn Composite by a week from now.
Interestingly enough, Porsche’s parent company Volkswagen AG already owns a 10 percent stake in Capricorn’s biggest carbon fiber rival, SGL Carbon SE. But Volkswagen has stated that they have no plans to increase their stake in the supplier, and they would likely come up against opposition from BMW at any rate, which owns a far larger stake in SGL.
Time will likely show Porsche’s interest in Capricorn Composite to be a keen one, as carbon fiber makes up an increasingly large portion of automobile construction thanks to its light weight and superior strength.
No Comments yet