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.
06/03, 4:07 PM
posted by:
Borat
http://www.leftlanenews.com/report-porsche-to-post-1b-operating-profit.html
Huh?
06/03, 4:08 PM
posted by:
Rafa LL
They’re asking for more frankfurters with they mouth already full.
06/03, 4:30 PM
posted by:
Dr. Lincoln
O.K. how does this work? I don’t understand. Please expalin.
06/03, 4:49 PM
posted by:
mayer_ray_nagin
LMAO. Just yesterday the big profit was reported and I posted in that thread ….
……….Profit, bankruptcy, profit, bankruptcy, profit, bankruptcy …..
…………….. Herr Porsche: “Whacha cookin’ for dinner tonight, liebchen?”
…………….. Frau Porsche: “Zee books, mein
I’ll now take a bow of humbleness as you all acknowledge my greatness!
06/03, 4:57 PM
posted by:
Borat
I just can’t resist.
Listen Dr. Lincoln, try to put letters together they will comprise words!
06/03, 5:04 PM
posted by:
xcatchmyshadowx
as i said Porsche itself is healthy but they are struggling with the VW overtaking.
06/03, 5:06 PM
posted by:
xcatchmyshadowx
(take over, not overtaking)
06/03, 5:08 PM
posted by:
johnnycanuck
I feel for them. Begging isn’t near as much fun when you take the Nazi paraphernalia, costumes and sexual aids out of the equation.
06/03, 5:19 PM
posted by:
ahnuconun
As much as I respect the brand, I can’t bring myself to feel sympathy for companies that sell status symbols to douchebags.
06/03, 5:27 PM
posted by:
mayer_ray_nagin
Johnny, these guys are begging from Angelika Merkel. I am quite certain nazi paraphernalia, costumes, whips and torture toys are going to play a large role in it.
06/03, 5:37 PM
posted by:
A4
Porsche sucks. Outside of a short short list of a few variants of the 911 they dont make a single product that I’d want.
06/03, 6:14 PM
posted by:
beemerdude
A4: Are you kidding? A Cayman S is an incredibly sexy vehicle.
06/03, 6:31 PM
posted by:
olds307
Just let them die. They are a relatively low volume producer of niche vehicles for rich housewives. Don’t need them.
06/03, 6:56 PM
posted by:
xcatchmyshadowx
they are producing 100.000 luxury cars a year and are the most profitable carmaker on earth.
wait for the recession to end and they will make more money than ever before.
before they will die everyone else will.
06/03, 7:06 PM
posted by:
Pazzo Canguri
Put your left hand in, put your left out put your left in….and forget which hand it was….then start again…
now everybody
06/03, 7:42 PM
posted by:
Borat
Since they made 7 billions in profit last year selling 1 billion worth of cars (per one the guys comments here) Porsche is more financial house then automotive business. Perhaps it is delayed reaction to financial crisis, they reported billion buck profit yesterday, so borrowing 2.5 billions, if you can make in the neighborhood of billion a year or a quarter isn’t huge undertaking. Ford folks are shaking heads: we wish we had Porsche problems!
06/03, 8:30 PM
posted by:
carstuff
Hope the government makes them sell 50% of their company to Fiat to get the loan;)
06/03, 8:40 PM
posted by:
AutoCritical
If everyone is getting a cash handout to keep their company going, so should Porsche – Even if they don’t need it, having extra cash should be able to help them to do whatever it is they do…make cars?haha – but i’m sure the cash can help out. Even if it helps prevent them possibly going down similar paths as the other autos.
06/03, 10:47 PM
posted by:
aggie531
wait a minute.. didnt they post 1b in profit just yesterday?? im confused
06/04, 10:46 AM
posted by:
shane train
MRN- I’ll take a bow of HUMILITY, but humbleness isn’t real.
….messing with you man.
But yeah, I recall a profit, what is this all about? Is it really a trend this powerful?
06/04, 11:16 AM
posted by:
Barry Obama
This is what happens when you don’t get the “Adolf” seal of approval when you start High Horsing, trying to buy out everyone.
Time for the Quandt’s to sell Lamborghini back to the Italians.
06/04, 11:21 AM
posted by:
cocksterS
The squeaky wheel gets the oil, I suppose (even if that wheel is a 19″, three piece, magnesium one)
Did anyone happen to catch the news about that request by Joe Francis and Larry Flint for a $1 Billion porn industry stimulus? Haha. Cheeky bastards.
06/04, 11:27 AM
posted by:
xcatchmyshadowx
Barry, Lambo is in the hands of Audi. the Quandts (who own BMW) could sell rolls royce back to engerland tho.
06/04, 1:13 PM
posted by:
scratchy
xcatchmyshadowx , but then Rolls Royce would land in the hands of Russians, Chinese, Indians , etc , the Brits can’t run a car company. BMW is doing a fine job with Rolls Royce.
06/04, 5:31 PM
posted by:
xcatchmyshadowx
scratchy, was just a hoax. of course BMW are doing a nice job for the RR brand, they would be stupid to sell it, as there is still a lot of potential and Audi will never ever sell Lambo as well. Lambo is becoming a serious Ferrari contender in sales and is def. a dreamcar maker again.