VW/Porsche. Locust protection

Germany AG just took a big step backwards. Porsche’s plan to acquire a 20% stake in Volkswagen – enough to give it a blocking minority – confirms the worst instincts of the German management class. The measure is patently designed to shield Volkswagen, the perennially poorly managed car company, from the pressures of global capital markets. At the same time, it shows a fundamental disregard for the interests of Porsche’s own shareholders, who will finance the nearly $4bn investment. It is hard...