Skip to comments.Porsche on the financial brink
Posted on 05/25/2009 5:21:46 PM PDT by bruinbirdman
German car maker Porsche is struggling to raise 1.75bn (£1.54bn) to cover debts and unwind derivative positions stemming from its botched attempt to take over vastly-bigger Volkswagen.
Porsche's shares fell 3.1pc in Frankfurt on Monday after it emerged that the company had obtained a 700m loan from Volkswagen as long ago as March. A Porsche spokesman said the group is negotiating bridging finance with a variety of banks, including the state lender KfW.
It is understood that Porsche is also in talks with the Bank of Tokyo for a 750m loan, and is seeking help from the regional government of Baden-Wurttemberg.
The crisis is yet another headache for the German authorities as they put together a rescue deal this week for Opel, most likely with Fiat. Separately, the hotel and retail group Arcandor said it faced collapse without a 650m state bail-out. Arcandor's share price fell 20pc. The company owns the Karstadt department stores, Quelle, and Thomas Cook. It employs 50,000 workers.
Porsche acquired a 51pc share of VW earlier this year after a series of derivatives deals that tripled Porsche's debt to 9bn.
The takeover bid went badly wrong, forcing Porsche chief Ferdinand Piech to press instead for a merger of the two car makers on increasingly less favourable terms.
Porsche's travails are largely due to financial acrobatics, not falling sales.
(Excerpt) Read more at telegraph.co.uk ...
They should get 0bama to force them into bankruptcy where he takes control.
have you driven a porsche, lately?
It is a very negative article on Porsche..Try this one.
After reaching an agreement on May 6th to call off Porsches improbable attempt to take over VW, a company 15 times its size, the Porsche and Piëch families, who control 100% of the voting stock in Porsche Automobil Holding, gave themselves four weeks to hammer out the terms and structure of a merger between the two firms. But Mr Piëch, who personally owns 10% of Porsche, has now made it quite clear that it is he and VW that are in the driving seat and not, as seemed likely only a few months ago, his cousin, Wolfgang Porsche, or Mr Wiedeking. The final shape of the merged group has yet to be fixed, but Mr Piëch dropped some pretty broad hints.
Mind you I would love one and they still look cool, but my understanding is a lot of other brands, even Corvette, can outperform — across the board — Porsches by class, even a the super upper end.
Any car folk want to confirm or enhance?
Take over Volkswagen?
A Porsche IS a Volkswagen - with a higher pricetag, some bodywork and a driver who loves retrotech.
(Donning Nomex and getting out the extinguisher.)
Do not even joke about stuff like that....
Proud Porsche owner...
Typical Germans. My male Daschund fell in love with the neighbor's Labrador .....
That is what I have been hearing — Porsche has dropped to 3rd or 4th in all classes it competes in.
The two cars that I mentioned - I own one and a lazy relative of mine owns the other.
(The guy with no visible means of support has the Vette - go figger!)
Porsche had this takeover in the works for years,if the economy had not gone south they would control VW now.
And yes the Germans have a habit of biting more than they can chew.
How does the dog love story end badly i presume?
I have never driven a Porsche but my sister in law has one and I have ridden in hers. It is probably the most uncomfortable car I have ever ridden in. Maybe they are so much fun to drive that the driver doesn’t realize the passenger wants out!
>>The guy with no visible means of support has the Vette - go figger!
Same way that the “poor people who followed the rules” being foreclosed on always have a beautiful 60” flat screen TV while I, who never has missed a payment, have a 10-year 32” old tube type.
Let me get this straight: They are borrowing money from a company, larger than them, that they took over? How exactly does that work? Well, maybe it doesn’t work.
They aren’t that much fun.
The owners just won’t admit that they made an $80,000 mistake.
The moral of this story: stick with what you know, and quit trying to make a dishonest buck with financial shenanigans!
It's a sports car, it's not designed for comfort.
Do you know which model it is?
I’d love to have a 911 from the mid 1980s. Non turbo is fine.
I guess you would them call it the BOrsche?
I don’t know what the year or model is but it is newer than the 80’s.
If you are referring to the supercharged SS, it was cancelled in 2008.
Got me a 2006 model. Coupe. Black. FAST! Corners real good too!
The Ford GT, which is Ford's modern recreation of the GT 40 is in a class of it's own compared the Z06, Mustang or Camaro.
I have driven all of them on the track, and while the Z06 is an excellent car it still doesn't come close to the Ford GT.
Ford called their car the "Ford GT" since they couldn't use the name "GT 40" because Eric Broadley (Lola Cars), who built the original Le Mans vehicles, still owns the rights to the name.
Check out the Nissan GTR. One, bad automobile!
A statement with no meaning!!!
Oh, wait we tax payer are going to take care of that for you. So I guess we have heard from one of the welfare receivers.
Boy would we all be a lot better off if the wall street crowd had practiced that about 8 years ago!!
“We” = plural.
“Payer” = singular.
“Welfare receivers” - Are those the digital thingys for the TV that the feds were paying for?
As for the car, 30,000 miles. Not even a hiccup.
“Check out the Nissan GTR. One, bad automobile!”
Good performance for the $. Maybe on par with Corvette?
Up a couple of notches up would be the Audi R8 with the 10 cylinder, 550 hp powerplant. Supremely balanced!! Street and trackwise.
And the Audi is part of the VW company.
Instead of Porsche buying VW, perhaps VW should buy Porche?
Is it money, egos, ?
They do share chassis and other technology (Taureg/Cayenne, etc.).
“have you driven a porsche, lately?”
I guess you have never drove a Porsche?
Vastly different cars..
The difference is that the Porsche actually is useful and desirable...
You guess wrong.
I have driven many Porsches.
I just don’t like them.
Very Shakespearean. Porsche’s Plea For Mercy.
That's fine but comparing them to VW is like a chevette to a Corvette..
Part of the problem is that cars nowadays have limits so very high that you can be a pitifully bad driver and still go faster than most great drivers could in real race cars only 15 or 20 years ago... there is no real difference on the street , in terms of usable speed, between a GTI and a Carrera4....
Porsche and VW/Audi do share platforms ...
The bug/356/912/earliest 911’s
The “Porsche” 914 was VW all the way and badged VW in Europe
The 924/944/931/968 was built by Audi and the 924/931 was Audi powered
The Touareg/Cayenne/Q7 are triplets (and Audi’s Q7 with the “LeMans” diesel 10 is far superior to any Cayenne)
I have raced rear engined air cooled 6cylinder 2 door sports cars (Corvair) and I find any 911 after the 1980’s to be seriously lacking in the fun factor area ,, fast ?? YOU BETCHA! but you don’t have that “you gotta stay in it or the A008r’s will come unglued out back” edginess.
Porsche needs to build a cheap fun car ... think lightweight and rear drive with no options or roof... something to compete with a S2000 at the same price point.
You are correct. There’s no comparison.
They are about $60,000 more expensive.
(Sorry! I’m afflicted with uncontrolled hyperbole.)
Thanks for the pingeroo potlatch
Fritz had big eyes
And a small wallet
All I know about cars is getting in and driving one, lol, but I know how you like them.
That’s fine but comparing them to VW is like a chevette to a Corvette..
Your analogy is seriously flawed ,, at the time that Chevettes were in production their build quality far exceeded that of the Corvette.
I’d put a GTI VR32 against a BoxsterS on any road course.
A Corvette Z06 would kill anything Porsche makes including the GT2/GT3 “club racer” models, and it would do it with the A/C on and no factory options removed for weight savings.
From the latter link:
"So you thought Porsche financed the VW takeover by foisting overpriced floormats and trucks on their well-heeled buyers? Yesterdays issue of Die Welt, Germanys conservative newspaper, thinks different. They undug the dirt on Porsches takeover-machinations of Volkswagen. Its a story that makes Cerberus look like a frisky puppy. Its an account that makes banks and hedge funds look like morons....."
By the way, I like Niedermeyer’s analysis.
In my not-so-humble opinion, the last really fun Porsche was the 911S Targa, circa 1969.
And also, by the way - beautiful family!
Try driving one of those into the rising or setting sun.
My Corsa-TRW/Turbo (very “slightly” modified) was my version of a Porsche
Borrowing some stock ‘Vette and Z-28 and Trans-Am parts and aircraft tech and the access to pro shops
There was no street production Porsche that would run with it
The Silver Bullet would zip to NYC and back each day
Recently, the Ford GT-40 that first beat the Ferrari's went on auction. Bidded to > $6 million but not enough for a sale.