Emperor:

RIP Porsche, Lamborghini and Audi.

The merger or VAG and PAG will be the first step of VAG walking its path to become the GM of Europe. Audi, Lamborghini and Porsche can impossibly co-exist in the same company portfolio without heavy cannibalisation. Matters have already turned sour with the R8 and Gallardo situation with the A8 next in-line to face competition from its cousin -- the Panamera.

I foresee stifled creativity as ever product decision will be a democratic decision between a staggering number of CEO, board members, product strategists and executives. Most cars will result in having as much personality as a product by Unilever or Proctor and Gamble. With VAG absorbing Porsche, the company will officially be too big and complex for its own good. This is exactly what brought GM down, not the competitors, but GM itself -- too many managerial levels, too many conflicting brands and loss or touch with essence of car manufacturing.

BMW AG is exemplary with its 3 brands that have distinguishable customers; low end segment – Mini, premium segment – BMW, prestige segment – Rolls-Royce. All three manufacturers can operate with an ample degree of independence without running the risk of conflicting with brands under the same umbrella.

 

BMW,MBZ and VW will all be combined in the next 10-20 years . Count on it. By then there will probably be only 4- 6 global mega car companies left , each with myriad niches/brands .
 

Heck , by then " car companies " may be virtual marketing firms only , with everything from  engineering to manufacturing outsourced to private entities such as today's Magna firm so as not to deal with " legacy " costs in this capital intensive but elephantine biz.