Truemors
is reporting from
Member
NP Rank:
NP Rank:
REPORT: Porsche facing dire times, skirted bankruptcy in March
Share:
by Edmund Jenks | May 25, 2009 at 08:31 am
75 views | 11 Recommendations | 1 comment
Videos
These are some confusing times in the automotive world. For the past few years, it seemed as though Porsche was primed to rule the world. It was selling plenty of product, and more importantly, it was quickly gobbling up shares of German juggernaut Volkswagen. Dried-up credit markets and slow sales have conspired to put a big wrench in Porsche's plans, though.
We already knew that the Stuttgart sports car (and SUV) maker has ditched plans to take over VW and instead plans to merge the two companies. German magazine Der Spiegel (via The Local) is reporting that times are so tight at Porsche that it actually skirted bankruptcy for three days in March. The German automaker received a 700 million euro loan ($978 million USD) from VW to stay out of trouble, but needs another 2.5 billion euros (nearly $3.5B USD) to stay in business. Porsche has tried to tap the German government to receive more loans to pare down the enormous debt it had incurred in attempting to buy VW. In fact, Porsche, which sells fewer than 100,000 vehicles per year, has accrued an astonishing 9 billion euros worth of debt (around $12.6B USD). That's 50% more debt than Chrysler.
Source>>
What is NowPublic?
NowPublic lets people work together to cover news events around the world.
Crowd Power
Edmund Jenks
Los Angeles, California, United States
Most RecentMost Recommended Comments (1)
at 09:00 on May 26th, 2009
To my understanding, Porsche makes (and loses) most of its money via stock trades and other market activity, rather than by selling lots and lots of cars, which sort of makes sense if one looks at the price-tag on a Porsche.
VW is a better position, but I'd like them more if they brought the Thing into mass production.