By Drew Johnson
Wednesday, Jun 3rd, 2009 @ 4:05 pm
 
Casting more doubt on the company's financial health, Porsche confirmed earlier on Wednesday that it has asked the German government for a $2.5 billion loan. The German sports car maker has found itself under a mountain of debt in the recent months, most of which can be directly linked to Porsche failed takeover of Volkswagen.

Porsche recently said it didn't "want to take money at the expense of the taxpayer", but the company was left with few options due to a looming cash shortfall. Porsche racked up more than $12 billion in debt trying to takeover VW, leaving the company with a rather large $3.5 billion cash shortfall.

If approved, the German government would carve Porsche's loan out of the 100 billion euro state program to bolster German industries, according to Automotive News.

Porsche was hoping to secure more than 10 billion euros from the takeover of VW, but was left with zilch after the European Union sided with the state of Lower Saxony and its ability to veto any VW decisions. Lower Saxony is one of VW's biggest shareholders.

As it stands now, Porsche only has enough cash flow to tread water. Porsche's current sales levels will allow the German car maker to make interest payments on its loans, but not pay off the principle.