Porsche has announced that its loan request with KFW – Germany’s state bank – has been rejected. The German automaker was seeking a $2.5 billion government loan but will now be forced to find “alternate” financing sources.
Porsche was planning to use the government loan to shore up its worsening financial condition but will now have to look elsewhere to make up its $3.5 billion cash shortfall. The German sports car maker has racked up more than $12 billion in debt trying to overtake the much larger Volkswagen.
Porsche said it will not submit another loan application to KFW.
Porsche’s last option is now likely a major investment from the Gulf state of Qatar. Qatar had been mulling a 25 percent investment stake in Porsche but is now said to be favoring purchasing VW call options from Porsche. Porsche currently holds call options equivalent to a 20 percent stake in VW. An announcement on the Qatar-Porsche tie-up is expected to be announced by next month.
06/30, 6:20 PM
posted by:
Mutant@DCX
Who is buying who now?!!
06/30, 6:24 PM
posted by:
leftwingagenda
like many things in life, this porsche/vw thing has me confused…porsche, who owns a big chunk of vw stock options, tried to buy vw, and went into serious debt in order to do so, but then ended up not buying vw, but the debt load porsche incurred was so big that they then begged for a loan from vw to stay afloat, and they still need more money, even though they didn’t successfully buy vw? right? w/e!
06/30, 6:27 PM
posted by:
moparsalesman1
WTF?
06/30, 6:35 PM
posted by:
elviososa
I thought Porsche made tons of money…..
06/30, 6:41 PM
posted by:
scratchy
@ elviososa , …witch they used to buy a big chunk of VW.
06/30, 7:05 PM
posted by:
Borat
leftwingagenda, no it is not right, it is left!
06/30, 7:05 PM
posted by:
johnnycanuck
Porsche also announced that the base price on the 2010 Cayman will be $463,256 and to expect similar increases throughout the range.
06/30, 7:41 PM
posted by:
leftwingagenda
see, b, that’s how confused i am over this whole thing…
06/30, 7:52 PM
posted by:
andy
maybe they should invade poland?
06/30, 8:44 PM
posted by:
Borat
andy, spare the world, don’t give ‘em any ideas. Pols are crapping pants as it is since re-unification. For us it was Iron Wall, for them it was chance of peace.
06/30, 9:14 PM
posted by:
The Stig
And if Qatar doesn’t go through? Bankruptcy? Oh well, at that point they got what they deserved.
06/30, 9:58 PM
posted by:
Veda
If Qatar doesn’t go through, VW would be the one buying Porsche. Strange turns of events don’t you think? But who could’ve predicted the crisis.
06/30, 10:01 PM
posted by:
teahead
Wow, a gov’t bailout denied.
WHy do they need a gov’t bailout? b/c they make POS cars that don’t sell???
07/01, 2:04 AM
posted by:
Rafa LL
teahead, you’re not getting this right. Besides, their cars sell, a lot.
Hate this fanboys that don’t even read more than the title.
07/01, 2:24 AM
posted by:
skeee1
I am really surprised by Porsche. They used to be a smart company. I actually own three Porsches myself and i see a lot of them here in Poland where I have my summer house and in Boston, MA where all the rich kids go to school.
But as we all know MBA degree are a waste as you can see from Porsche.
07/01, 10:13 AM
posted by:
Borat
Its Dr. Porsche for you, sub-humans!
07/01, 10:45 AM
posted by:
Dante_JoseCuervo
I’m so confused… first porsche speaks out against government loans. Then they end up applying for one, and then they’re wanting this nonsense? Man, they flip-flop more than John Kerry.
07/01, 10:48 AM
posted by:
shaver
Why not just sell VW shares for cash, instead of selling your souls to the Arabs?
07/01, 3:15 PM
posted by:
Sgt Pepper
Andy if they invade Poland it wont help build a better car. Well maybe a Yugo type car or somethin. Alright im in I say invade.
07/01, 9:29 PM
posted by:
Dante_JoseCuervo
Sgt Pepper
-HELL YEAH!!!! I’m with you on this!!!
07/02, 10:55 AM
posted by:
scratchy
invading a country doesn’t help the car industry , look what happened with the American car industry after the Iraq invasion.