By on July 10, 2009

Porsche, up to their eyeballs in €9B debt, resulting from their Davidian grab for giant Volkswagen, scheduled an extraordinary supervisory board meeting for July 23, Automobilwoche [sub] reports. On the agenda: How do we get out of this mess?

Board members told Automobilwoche that they will discuss a possible investment by Qatar worth over €5B ($7B). More explosive: They will also decide whether 49 percent of Porsche will be sold to Volkswagen. It could be one or the other. Or both.

According to Bloomberg, the market value of Volkswagen stands at €68.7B. The stock exchange values Porsche at €7.4B. Paper assets clearly exceed hard liabilities.

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37 Comments on “Porsche: Fix It or Sell It?...”


  • avatar
    SupaMan

    I just had a ‘Megan Fox moment’ looking at that pic.

  • avatar
    LastResort

    bluecon: knowledge or no, I’d watch her try for hours.

  • avatar
    Cicero

    That’s Mistress Goodwrench, isn’t it?

  • avatar
    GS650G

    Hey lady, check your oil for ya!

    You can almost smell the blue smoke from the tires of cars screeching to a halt as guys exit the vehicles with tool kits.

  • avatar
    CommanderFish

    bluecon, I read the runes for you, it says you need to register. :P

  • avatar
    Ken Elias

    Porsche will go to VW…the Germans want to keep its ownership in the Fatherland.

  • avatar
    Paul Niedermeyer

    “paper assets clearly exceed hard liabilities”

    Bertel, what does that mean, or are you playing with words?

  • avatar
    midelectric

    I think it’s more than a coincidence that RF turned 50 about the same time cheesecake returned to the pages of TTAC.

    I ain’t complaining, mind you.

  • avatar
    sitting@home

    My brain hurts; if Porsche owns a percentage of VW, how can it sell a percentage of itself to VW. It would in effect be selling itself to itself. Is this some sort of money-go-round you have to spend four years at accounting school to understand ?

  • avatar
    GS650G

    Yeah, I thought hotties were banned for some reason. Cars and hot women go together like beer and pizza.

    Back to the topic. Here we have one company that makes a product that is highly refined though expensive and clearly one of the best sports cars in the world. On the other side we have a company that makes utilitarian cars which are advanced in some areas but not really tops in the field. They have good ideas, like TDI, while sales don’t reflect acceptance outside of Europe.

    What to do. How about asking the German gummint for a few billion dollars to tide them over? Surely Porsche VW is too big to fail and is a German icon of sorts.

    Failing that just charge more for the cars, the faithful will pay it still.

  • avatar

    I saw the headline and was sure this was going to be a Piston Slap article about yet another IMS failure.

    Related: Are 2008 Boxsters and Caymans still prone to high failure rates. There are some great local deals on CPO’ed but new Bs & Cs, but this whole 20% failure thing makes my wallet pucker.

  • avatar
    carguy

    Revenge of the Niedersachsens – VAG to the rescue.

  • avatar
    educatordan

    Perhaps that young lady could help Porsche raise the money through some “interpretive dance.” Perhaps that would help Mr. Moneybags in Qatar find the whole 9 billion in his wallet?

  • avatar
    th009

    CS650G: Here we have one company that makes a product that is highly refined though expensive and clearly one of the best sports cars in the world. On the other side we have a company that makes utilitarian cars which are advanced in some areas but not really tops in the field. They have good ideas, like TDI, while sales don’t reflect acceptance outside of Europe.

    VW is doing quite well “outside of Europe”. Don’t equate the poor US sales with the entire world: VW may well pass GM for the #2 spot next year.

    What to do. How about asking the German gummint for a few billion dollars to tide them over? Surely Porsche VW is too big to fail and is a German icon of sorts.

    There is no need for government funding. VW is sitting on close to 10B euros of cash, and is likely the most profitable car company today. The trouble Porsche Automobilholding SE has is that it can’t get its paws on that cash, and thus it may need to loosen its grips on the Porsche the manufacturer in order to reduce its debt load.

  • avatar
    th009

    sitting@home: My brain hurts; if Porsche owns a percentage of VW, how can it sell a percentage of itself to VW.

    What Bertel’s brief article doesn’t explain is that it’s the Porsche holding company that’s in a cash crunch, and that it’s comntemplating selling 49% of Porsche the car manufacturer (of which it owns 100% today) to VW to get some cash.

  • avatar
    Rada

    I’m sick of these companies trying to become high-finance geniuses, trading puts and calls, instead of sticking to their primary mission.

  • avatar

    Yeah, I thought hotties were banned for some reason.

    Not if I can help it. (But each one is vetted by my wife ….)

  • avatar
    mpresley

    Ok already…since it has to be done, I guess I’ll make the dipstick reference…

  • avatar
    ConejoZing

    VW probably going to purchase Porsche (instead of the other way around). That or Porsche will somehow limp back to a recovery or someone else will buy Porsche.

    Don’t mess with Piech.

    Ferdinand Karl Piëch (17 April 1937) is a German automobile engineer and manager. He is a grandson of Ferdinand Porsche, and son of Louise Piëch (the sister of Ferry Porsche). Piëch was the winner of the award of Car Executive of the Century in 1999.

  • avatar
    AKM

    Are those Porsche’s new airbags?

  • avatar
    Mark MacInnis

    Such misogyny….where’s KatieP when we need her?

  • avatar
    rx8totheendoftime

    ttac’s sister site = the truth about cheesecake?…by the way, I approve…more!more!

  • avatar
    walksatnight

    Wonder which is tougher for her to worm into – the skirt or those boots?

  • avatar

    I once drove through a dicey neighborhood outside of Vienna.

    The Hookers all look like that. It was really funny-like a “stereotypes R us” display. What was even funnier is that they still thought I was a customer, with two attractive blondes in the car already.

    Travel can be broadening.

  • avatar
    Mark MacInnis

    She better be careful, if that engine is hot….she might burn her…..protuberances!

  • avatar
    stevenm

    @The Comedian:

    The “20% failure” thing is quite exaggerated in my experience.

    Regardless, all 987 cars (new Cayman, Boxster) have the M97 engine. They have the much beefier intermediate shaft bolt, and are much more reliable in general than the M96 engines.

  • avatar
    NickR

    If the CAA hires her as a tech, I will renew my membership.

  • avatar
    Alcibiades

    Hey, that’s my mother you’re talking about!

  • avatar
    chuckR

    @stevenm and The Comedian:

    Regardless, all 987 cars (new Cayman, Boxster) have the M97 engine. They have the much beefier intermediate shaft bolt, and are much more reliable in general than the M96 engines.

    There was also a change in the sealed ball bearings supporting the IMS – rated bearing load increased from 2200# to 3500#. Try reading the LN Engineering website page on Bs & Cs- they sell a ceramic bearing and other race related upgrades also. Their easy recommendations – change the oil at 5000 to 9000 miles, not the originally specified 20000 miles(no typo) and use a different oil than Mobil 1 and bump the viscosity to 5W40 from 0W40. Their insight on how oil has been reformulated is generally applicable, not just to Porsches. Their last recommendation – drive it like you stole it and especially don’t lug it.

  • avatar
    63CorvairSpyder

    Her name is Monja, she’s 5’5″ and weighs in at 119lbs. You can find her at pedalpumpinggirls.com which I saw faintly visible on the L/F fender. This picture of her is tame. There are several better ones in their gallery.

  • avatar


    Her name is Monja, she’s 5′5″ and weighs in at 119lbs. You can find her at pedalpumpinggirls.com which I saw faintly visible on the L/F fender. This picture of her is tame. There are several better ones in their gallery.

    See? TTAC is a pillar of editorial restraint.

  • avatar
    vento97

    “Yes mistress, I will start…”

  • avatar
    venator

    Near the end of World War 2 a large quantity of Volkswagen components and all the currency on the premises disappeared from the Volkswagen factory. Arrest warrants were issued by the British occupational authorities for the apprehension of the Porsche-Piech family, who, with said missing parts and funds set up production in independent-again Austria, in an occupational zone NOT controlled by said British. With a beginning like that for the post-war Porsche organisation, the current shenanigans are just MORE OF THE SAME.

  • avatar

    venator:

    See http://www.thetruthaboutcars.com/porsche-vw-takeover-in-historical-context/

  • avatar
    rcolayco

    Bertel Schmitt:

    Please tell me if I’m wrong about this.

    What’s regrettable about this whole episode is how VW & Porsche have been put in play by the vaulting ambition of Wiedeking & the acquiescence of Wolfgang Porsche.

    The inevitable result of their “David/Goliath takeover” adventure was to load Porsche with a debt load that would render Porsche non-viable as a business entity unless . . . they could get hold of the VW cash hoard upon take-over & use THAT to liquidate the crushing debt burden.

    The next inevitable result is to create serious distraction on the part of both companies’ respective managements from the task of running their businesses.

    And along with that, created the current instability of ownership of both companies. VW did NOT need additional capital till it encountered the current need to resolve the debt problem brought upon it by Porsche’s financial misadventures.

    Unlike Daimler-Benz & other companies, there would have been no need to face the prospect of third party capital coming in, which will in turn create uncertainty as to the direction of the business.

  • avatar

    rcolayco :

    As you said.

    I would also not exonerate Piech. He definitely was part of the Davild/Goliath takeover – until the “hired help” Wiedeking developed delusions of grandeur.

  • avatar
    venator

    Bertel, thank you for the link. It is very informative. Keeping in mind where these companies are coming from, one gets the impression that members of the Porsche-Piech clan view Volkswagen as their birthright.


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