A question of quality in merger of automakers; can Porsche retain allure now that VW, maker of the Beetle, is taking over?

The vast resources of Volkswagen, with sales last year of 6.3 million vehicles, will allow Porsche, which has never produced more than 100,000 cars annually, to support the costly development of new models that consume less fuel and have fewer emissions. The trick will be to preserve Porsche's exclusivity. "There are opportunities to grow, but they have to watch out they don't dilute the brand by going downmarket," says Gregor Matthies, a partner in Munich for Bain & Company, the consulting firm, who specializes in the auto industry