Porsche in the dung?

[CommanderJameson]

I've been sitting here thinking that Porsche were all right. They had money. So much money, in fact, that the senior management wears suits made of money.

Apparently it's not true; they're up a certain creek without a certain implement, much like the rest of the motor industry, and are seeking government loans. This turn of events has also kiboshed the Porsche/VW merge, for the moment at least.

Post at The Truth About Cars

Translated article at Sueddeutsche.de

[Olf]

They did have money but have basically fooked up the VW takeover plan for three main reasons. They've taken on a shed load of debt to do it and now can't get any more to close the deal. They were hoping to get their hands on VWs 10 billion euro cash pile but that hasn't worked out and probably most seriously they assumed they would be able to takeover VW by sweet-talking the Lower Saxony council which has absolute veto over any deal involving VW. And that hasn't worked either.

The only likely outcome of all this is that VW will now take-over Porsche.

Edited by Olf on Monday 25th May 10:53

[leginigel]

That must be a very large creek because there are a lot car firms up there,like you did not think Porsche was one of them.

[cardigankid]

Porsche take over VW, VW take over Porsche, what does it matter? I'm sure that it's not comfortable for anyone in the car industry just now, but equally, if there are subsidies going, you do your best to get them. That is what is so corrosive about subsidy.

What do you expect them to do. Stand back and say, no, unlike all my competitors I will refuse your money and nobly fight it out to the bitter end it's the right and proper thing to do.

[Tahiti]

Exactly - you have to wonder whether they "need" the money rather than just applying for it because it's there.

[MatteoB]

Probably because their chief executive took home about $40million in salary and bonuses last year

[cardigankid]

I think not. And if he did, he was running a very successful car business and why shouldn't he? Certainly if Porsche take public subsidy, I would expect restrictions on future executive pay - however this will be worth it for the good of the company. My reading of Wiedeking is that he will put the company first.

The German Government seem to have taken a decision to support their major players through the crisis, by various means including subsidizing short time working. It is the absolutely correct and sensible thing to do, and when recovery comes Germany will be in a strong position, once more, with it's manufacturing industries intact.

What's not to like?