OT: German Carmaker Narrowly Averts Bankruptcy
05-26-2009, 07:02 AM
#1
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OT: German Carmaker Narrowly Averts Bankruptcy
05-26-2009, 10:46 AM
#5
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I hate to be the dissenter, but Porsche's arrogant pricing policies coupled with latent mechanical issues that were only recently addressed (RMS) leave my sympathy meter at...zero.
05-26-2009, 12:25 PM
#7
Drifting
Over the last few months of problems in the automotive sector, I've been comforted by the fact that Porsche "made" about 7.5 billion dollars on the purchase of Volkswagon shares, when they caught a bunch of investers shorting the stock (one guy even committed suicide).
Guess I got confused between paper profits and cash flow.
Hope they can pull through this, but if the families are fighting, it may be very difficult to pull off the merger.
Guess I got confused between paper profits and cash flow.
Hope they can pull through this, but if the families are fighting, it may be very difficult to pull off the merger.
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05-26-2009, 01:24 PM
#8
The entire takeover maneuver by Porsche was a risky venture. Especially given the German laws protecting such takeovers from happening. Porsche was willing to gamble their company on this merger and we all know that when you gamble there are winners and losers. 
05-26-2009, 02:17 PM
#10
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Interesting read, thanks for posting.
My how times change. A year ago, Porsche was acquiring VW shares. Now they need VW to help save it from insolvency. That's what massive leverage does for you; the potential for huge profits and equal potential for huge losses. I'm sorry but I attribute it to poor management; not the economy. It doesn't matter that the CEO was a hero in 1993. Different times evidently required different leadership. The company was too highly leveraged and should have never pushed for ownership of VW until they had the cash flow to support the larger ownership position.
Porsche buying VW probably seemed like a good idea at the time, but It sounds like a case of a 3 foot snake trying to eat a 4 foot gator. Something's got to give, and it won't be the gator.
Porsche buying VW probably seemed like a good idea at the time, but It sounds like a case of a 3 foot snake trying to eat a 4 foot gator. Something's got to give, and it won't be the gator.
05-26-2009, 04:51 PM
#11
Interesting info... But sad !
05-26-2009, 06:20 PM
#12
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Personally I hope Porsche does go bankrupt and Dr. W ends up in jail.
Under his leadership, Porsche has jumped the shark, there are no new Porsches I would ever consider buying.
Under his leadership, Porsche has jumped the shark, there are no new Porsches I would ever consider buying.
05-26-2009, 06:26 PM
#13
Drifting
But wait.....isn't the Panamera there saviour?
I told them not to build the Cayenne and they never listened.
Sorry, I have little sympathy. They have shown arrogance and now it's, for whatever reason, biting them on the ****.
They will pull through and hopefully realise they are a sports car maker and a not a people mover maker.
I told them not to build the Cayenne and they never listened.
Sorry, I have little sympathy. They have shown arrogance and now it's, for whatever reason, biting them on the ****.
They will pull through and hopefully realise they are a sports car maker and a not a people mover maker.
05-26-2009, 06:30 PM
#14
Agent Orange
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Porsche really had no choice but to either merge with or buy VW. The new emissions regulations in the EU would've killed Porsche as a standalone company. That's part of the reason why you see Ferrari in the Fiat group.
Now I'd much rather prefer Porsche buying VW than VW buying Porsche. But at least they will still be around. But don't be surprised if you see a V8 from a Lambo or Audi in the back of a 911...
Now I'd much rather prefer Porsche buying VW than VW buying Porsche. But at least they will still be around. But don't be surprised if you see a V8 from a Lambo or Audi in the back of a 911...
