Porsche receives a €700 million aid from VW

It was confirmed today by Porsche that it has received a 700 million Euro ($980 million) aid from VW although it insisted that it could take care of its own financial dilemmas. A spokesman for the company has said that even though there are reports that Porsche is going insolvent, he insists that that is not going to happen.

This is with reference to reports concerning Porsche’s supposed takeover of VW which has stalled and has turned into a proposal of a merger with VW instead. Last weekend VW reportedly said that it loaned the money to Porsche, its largest stakeholder, an unexpected turn after Porsche plan to take over VW did not materialize. The German carmaker, which owns 51 percent of voting stake in Volkswagen, said that the loan will mature by the end of September 2009.
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Lamborghini_vs_Ferrari_Racer - 5/26/2009 4:41:05 PM

+1 Boost

OK, so Porsche was going to take over VW but not really and then they were going to merge. Now VW gives money to Porsche. WTF!

monkeyrun - 5/26/2009 5:33:05 PM

+2 Boost

LOL porsche is too big to fail.

it's almost like VW is giving them money to buy themselves.

SHOWTIME - 5/26/2009 7:46:50 PM

+2 Boost

o yea...the porsche sales person tells me Porsche is doing fine...they're not even sweatin it...meanwhile he's been calling me every month, trying to still sell me the Cayman...but I don't answer

Lamborghini_vs_Ferrari_Racer - 5/26/2009 11:42:10 PM

+1 Boost

^^^ LOL ^^^ Good Idea though since there is going to be an all new model next year

VISO - 5/26/2009 11:47:54 PM

+1 Boost

The Volkswagen owned Porsche. Get used to it.

E36er - 5/27/2009 1:46:40 AM

+1 Boost

Sorry, any way you look at this it's bad for Porsche. I suppose Porsche is going back to their roots, the 911 is essentially a rear engine beattle on steroids.

BozzorTheGreat - 5/27/2009 5:52:14 AM

+1 Boost

The fact Porsche is in this predicament shows how scary the car industry can be: up to the middle of last year, Porsche was going gangbusters, riding the debt fuelled boom in the West, the rising stars of Eastern Europe and Russia, the explosive Far East and the oil drenched Middle East. During that time, they invested massively in the Panamera and many other ventures that counted on expansion. But when it all turned sour, Porsche's debt position has become almost untenable.