Did Porsche Bite Off More Than It Could Chew By Attempting to Take Over VW?

Porsche is in for a rough ride, as the German sports car manufacturer is struggling to pay off the debts it incurred in the company’s flurry to acquire a bigger stake in Volkswagen.

Things have reached a point where Porsche is fearing rejection of a loan worth 1.75 billion Euro requested from German state bank KfW, as the company tries to service some 9 billion Euro ($12.5 billion) in debt.

Porsche, as with most other companies in the automotive industry, is struggling in terms of sales and profitability. Porsche sales were down 28 percent over the previous 9 months, with only 53,635. Sources say that sales figures of the company’s Cayman and Boxster models were the most affected.

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monkeyrun - 6/24/2009 3:17:33 PM

+4 Boost

If something sounds too good to be real, it probably is.
They over leveraged. Maybe time to cut loses for Porsche?

inspirion7 - 6/24/2009 4:29:18 PM

+2 Boost

Pride before the fall.

009load - 6/24/2009 4:41:53 PM

+6 Boost

Old news Bart. Keep scouring Motor Authority for the next KILLER story!

tango - 6/24/2009 4:53:15 PM

+2 Boost

This is what happens when the boy outgroes his breeches.

sector - 6/24/2009 5:10:38 PM

0 Boost

What the... they sell cars at around 200% markup, what happened to all the money?

Porsche should just close shop :(

ThierryHenry14 - 6/24/2009 10:03:57 PM

-1 Boost

its easy to judge after the fact... While they were in the middle of the takeover, they were the genius, they were the smart ones, they were the all powerful. Its easy for everyone to start saying Porsche bit off more than they can chew after things went sour.

Had things not gone so sour so quickly, everyone would be praising the small auto company that mingled into the finance industry.

stevenv1999 - 6/25/2009 9:44:31 AM

0 Boost

Porsche already has a seat at the Volkswagens table. This control was to stop the infighting with Volkswagens board of directors over product and the direction of Volkwagens future.

dt32886 - 6/25/2009 5:57:05 PM

+1 Boost

Porsche needs to have entry level luxury autos. They have the high end SUV and sports car segment covered, and the Panamara is a nice addition to compete with new sport sedan segment. The Boxter/Cayman is priced much too high for people to purchase one over a Z4 or SLK.

The price of the Boxter/Cayman needs to go down, or they need to add an even less expensive sports car to the lineup. They would completely dominate the segment as long as the style and handling is there. Everyone and their mother would want to get their hands on a 30-40K Porsche.