Porsche battles bankruptcy

[my gt]

Porsche battles bankruptcy, seeks billions
26/05/2009 7:46:01 AM
German luxury sportscar maker Porsche sought to deflect talk of bankruptcy on Monday after acknowledging it had borrowed hundreds of millions of euros from Volkswagen and needed billions more.

A spokesman for Porsche -- producer of the iconic 911 sportscar -- confirmed a report in Der Spiegel magazine that it had secured a loan of 700 million euros (980 million dollars) from VW, in which it holds a 51 percent stake.

"The loan expires at the end of September," the spokesman said without giving further details.

Porsche asked for the loan in March, Spiegel said, as the company struggles to raise cash to finance the huge mountain of debt it undertook when bidding to take over the much larger VW.

At the time, Porsche needed to raise 12.5 billion euros. The spokesman said it has got 10 billion from the banks, leaving it needing around 1.75 billion after the 700 million from VW is taken into account.

"We are still lacking 1.75 billion (euros). We are negotiating with several banks, including the KfW (state development bank)," said the spokesman.

Porsche has found itself facing debts of nine billion euros during its ambitious takeover bid for VW -- Europe's biggest carmaker.

After the bid failed, the two auto giants agreed on May 6 to begin merger talks, giving themselves four weeks to agree a tie-up but negotiations have since foundered amid clashes between the bosses of the two firms.

Shares in Porsche plunged over six percent on the German stock market before recovering in late trade on Monday.

[Dezza]

Their first step to avoid bankruptcy has been undertaken already. They replaced all their design team with a photocopier.

[BlackLS]

Originally Posted by Dezza!

Their first step to avoid bankruptcy has been undertaken already. They replaced all their design team with a photocopier.

HAHAHAHA! Funniest post of the day.

[JG66ME]

Originally Posted by Dezza!

Their first step to avoid bankruptcy has been undertaken already. They replaced all their design team with a photocopier.

Whilst it may not be true that really made me giggle.

[351@GT]

looks like instead of taking over VW, there will be a merger ( wheels magazine )

says that in the last line anyway ha =\

[Nikked]

Didn't Porsche allready own a % ow VW, or were they in the process of doing so?

I hope that they don't go under :(

[351@GT]

They own 51%, and wanted 75%, a gov shire owns 20% also.

[csv8]

Q




June 14, 2009 03:30am

QATAR is ready to acquire at least a 25 per cent stake in German luxury sportscar maker Porsche, heavily in debt after increasing its shares in Volkswagen, according to German media.

"The emirate of Qatar and its adviser Credit Suisse on June 8 finished the preliminary examination of Porsche's books,'' the German news weekly Der Spiegel says in an article to appear in Monday's edition.

Ferdinand Piech, a co-owner of Porsche and former Volkswagen boss, does not have enough backing to turn down Qatar, the weekly says.

A special meeting of Porsche's board of directors could decide in early July on a capital increase to present to shareholders at an annual general meeting in September.

At the latest by November, up to five billion euros ($A8.61 billion) could be added to Porsche's accounts by a capital increase,'' Spiegel said.

According to the Sunday edition of the Frankfurter Allgemeine Zeitung, how Qatar can invest in Porsche will be discussed this weekend.

Qatar has asked for voting shares, a first at Porsche which is wholly controlled by members of the Porsche-Piech families, German media reported.

Porsche is being crushed by nine billion euros ($A15.51 billion) of debt incurred when it tried to take over Volkswagen, the biggest European carmaker, in which Porsche now holds a stake of 51 per cent.

Porsche abandoned its bid to take full control of VW last month and the two car makers said they would discuss terms of a merger, but disagreements quickly surfaced between the Porsche and Piech families.

The state of Qatar investing in Porsche could allow the car maker to revive its original plan of taking over the much bigger VW.

It would also mark the second major investment by Middle Eastern interests in Germany's auto sector.

In late March, the Abu Dhabi state investment fund Aabar Investments bought a nine per cent stake in Daimler, which owns Mercedes-Benz.

Porsche could not be reached on Saturday for comment on the media reports.

[Melz]

This 'economic crisis' could be what the car industry needs... (yet in ways doesn't).. Just picture how dramatically the dynamics of the industry can change with all these buyouts and takeovers....

Interesting times ahead.

[aquahead2001]

The Qatari's love their Cayennes, Escalades and anything with a 3 pointed star on it! Having been to Qatar on a few occasions, I'm sure that if the Emir wanted to, he could have bought all of Porsche and anything else on the table too.

[prydey]

Originally Posted by aquahead2001

The Qatari's love their Cayennes, Escalades and anything with a 3 pointed star on it! Having been to Qatar on a few occasions, I'm sure that if the Emir wanted to, he could have bought all of Porsche and anything else on the table too.

yeah, someone's found some loose change in the gutter and wondering what to do with it.

[vztrt]

Porsche will give Qatar its stake in VW.

http://www.caradvice.com.au/33572/po...atar-vw-stake/

Porsche is moving towards a deal with Qatar that, if successful, will give the Gulf state a shareholding in Volkswagen and will clear the way for the two manufacturers to merge.

Porsche has been left with substantial debt (9 billion euros) since trying to absorb bigger rival Volkswagen shortly before the global economic crisis took hold, but as the financial situation worsened in the car industry, so too did Porsche’s position.

Initial talks saw Qatar interested in a stake in Porsche, but now with Volkswagen dominating the debt-riddled partnership, Qatar’s interest has shifted.

Aid from the state could save the deal from ever going ahead, but there are strong signals from Berlin that the request will be denied.

Porsche, already owning almost 50 per cent of VW stock, is rumoured to be prepared to surrender its right to buy about a fifth of Volkswagen’s voting shares, leaving these open for Qatar to purchase.

If the deal were to be completed, Qatar would be on equal footing with Volkswagen’s second biggest shareholder, the state of Lower Saxony.

We’ll keep you posted on any further developments.

[vztrt]

Porsche is not getting any government loans.

http://www.caradvice.com.au/34043/po...vernment-loan/

Porsche has failed in its bid to secure a loan from Germany’s state bank, KFW, which has forced the company to seek alternate sources of funding.

The German manufacturer was seeking some US$2.5 billion in government support after accruing more than US$12 billion in debt trying to take over Volkswagen.

Porsche said it will not submit another loan application to KFW but will instead work harder on sourcing major investment elsewhere - namely the Gulf state of Qatar.

Qatar had been deliberating on a 25 per cent investment stake in Porsche for some time now but is presently said to be favouring the purchase of up to 10 per cent of Volkswagen.

A final decision from Qatar is expected later this month.

[barbarian]

Qatar may buy VW or Porsche stake



The Gulf state of Qatar is considering buying a big stake in either Volkswagen or its majority owner Porsche.

VW said in a statement that it would welcome the investment because it would speed up its merger with Porsche.

The Qatar Investment Authority (QIA) is in advanced talks about buying up to 25% of Porsche, according to a report in the Financial Times.

Porsche owns more than 50% of VW, but suspended attempts to buy a controlling stake of 75% when it ran out of money.

Porsche took on 9bn euros ($12.2bn; £8bn) of debt to increase its stake in VW, but that debt is now creating tension between the two companies.

Had Porsche succeeded in controlling VW, it could have used the larger company's financial muscle to refinance its debt, but having failed to do so, it has been forced to apply to the German government for an emergency 1.75bn euro emergency loan.

VW and Porsche own stakes in each other through a complicated family history that unites the two carmakers and the German state of Lower Saxony, which holds a 20% stake in VW and can block strategic decisions under the "VW law".

VW chairman Ferdinand Piech is the grandson of Ferdinand Porsche, the founder of the car company that bears his name. He has a seat on Porsche's board.

Mr Piech strained relations recently by saying that Porsche had to trim its debt if the merger was to move ahead.

Porsche's holding company is chaired by Mr Piech's cousin, Wolfgang Porsche.

Developing industry

Qatar's interest in Porsche follows the purchase in March by Aabar, an Abu Dhabi state investment fund, of a 9.1% stake in German carmaker Daimler for 1.95bn euros.

Daimler and Aabar said they would work together on the development of electric vehicles and establish a training centre in Abu Dhabi for the auto industry.

An investment by Qatar into Porsche could involve a similar agreement.

Among the more high profile stakes held by the Gulf State of Qatar are a 27% stake in Sainsbury's and 15% of the London Stock Exchange.

http://news.bbc.co.uk/2/hi/business/8090627.stm

[vztrt]

Porsche to cut 911 production

http://www.caradvice.com.au/34123/po...uction-report/

Weakening demand may force German sports car maker Porsche to further cut production of its iconic 911 model, according to reports.

Reuters Newsagency says that the falling sales is forcing Porsche to consider cutting production later this year at its main Zuffenhausen plant near Stuttgart where the 911 Carrera is built.

“We have to think about this if car sales continue to develop like this and do not recover,” Reuters quoted a company source as saying.

Due to the ramp-up of production of the newly introduced Panamera luxury sedan in the second half of 2009, Porsche’s plant in Leipzig, Germany, which assembles the Panamera, and the Cayenne SUV should remain unaffected by the output cuts in Zuffenhausen.

To counteract a severe slump in demand, Porsche said late in January it will cut costs this year by far more than 100 million euros (US$140.7 million) and will halt production in Zuffenhausen by another 19 days before its summer break in addition to the 11 already taken since the start of last December.

A Porsche spokesman said no decision was made yet for further production cuts, but if it became necessary management and labour could decide quickly on such a measure.

In the first nine months of the fiscal year to July, Porsche’s global sales fell 28 per cent to 53,635 vehicles.

[vztrt]

Porsche in talks with Qatar: spokesman

http://news.theage.com.au/breaking-n...0706-dae2.html

Porsche in talks with Qatar: spokesman
July 6, 2009 - 7:59PM

German luxury sports car maker Porsche is still in exclusive talks with Qatar on a possible Qatari stake in the company but is unable to give a date for a deal, a spokesman told AFP on Monday.

"We are talking exclusively with Qatar," the spokesman said following press reports that others were interested in buying Volkswagen stock options owned by Porsche.

State-owned funds in China and Russia were among those mentioned, according to the business daily Handelsblatt, which quoted a Porsche spokesman.

But "we deny this declaration," the Porsche spokesman told AFP. "This is speculation on which we will not comment."

Heavily-indebted Porsche said last week that it had received an offer from the Qatar Investment Authority and expressed confidence it would reach agreement on selling a direct stake in Porsche and VW stock options.

A deal would allow Porsche to pay off some of the 9 billion euros ($A15.81 billion) in debt it accumulated trying to increase its holding in VW, the biggest European car maker.

Porsche currently owns around 51 per cent of VW.

On Monday however, Porsche could not say when a deal might be signed.

Discussions with Qatar have been troubled by a dispute between Porsche's two main shareholders, the Porsche and Piech families.

They met last week for talks, the spokesman said, without providing details.

© 2009 AFP

[vztrt]

Go Auto Article

http://www.goauto.com.au/mellor/mell...2575EC000AD2CC

Qatar bids for Porsche stake

Middle East offer to buy into Porsche confirmed as Germany rejects loan application

By DAVID HASSALL 7 July 2009

THE Middle East state of Qatar has formally made an offer to buy into Porsche and help reduce the sportscar-maker's troublesome €9 billion ($A15.8bn) debt as falling sales of the 911 raise the prospect of further production cuts later this year.

The proposed Qatar investment took on even greater significance on Wednesday when the state-owned KfW bank in Germany rejected a request from Porsche for a €1.75 billion ($A3.05b) loan to relieve its mounting financial pressure.

A Porsche spokesman confirmed that talks with Qatar had “entered the final stretch”, but reports from Germany suggest they are being complicated by a stand-off between Porsche and Volkswagen, in which Porsche holds 51 per cent of the voting rights.

“We received an offer from the Qatar Investment Authority concerning an investment in Porsche SE and the purchase of options in Volkswagen AG stock,” said the spokesman.

Porsche's mountain of debt forced it to abandon a complete takeover of VW and talks to merge the two companies froze.

Porsche announced earlier this year moves to slash 911 production at its famed Zuffenhausen plant in Stuttgart, but is now considering further down days in December unless sales pick-up considerably in the coming months.

Introduction of the four-door Panamera, which is built alongside the Cayenne SUV at Porsche's plant in Leipzig, has helped to maintain production levels at the Austrian plant.

Porsche has been harshly affected by the economic downturn, particularly in the United States – its largest single market – with global sales down 28 per cent this year to 53,635 vehicles.

[vztrt]

Porsche denys CEO leaving

http://www.caradvice.com.au/35234/po...s-ceo-leaving/

Porsche denys CEO leaving

Porsche has denied that its embattled CEO, Wendelin Wiedeking, is to leave the company.

Germany’s business weekly WirtschaftsWoche reported yesterday that Mr Wiedeking would leave Porsche, which has a 51 per cent stake in Volkswagen, and a successor will be decided on shortly.

“We deny it. Wendelin Wiedeking is doing his job and will continue to do his job,” a Porsche spokesperson told news agencies.

WirtschaftsWoche said an interim executive, who has had management experience at both Porsche and Volkswagen, would replace Mr Wiedeking.

Porsche’s labour boss, Uwe Huek, told German television that Mr Wiedeking would stay in office until his contract runs out in 2012.

Mr Wiedeking has been under fire since an attempt to take over VW failed and left Porsche’s holding company with debts of more than nine billion euros.

When car sales collapsed and credit became tougher to obtain, Porsche’s take over bid for VW left it with no option but to propose a merger of the two companies.

Porsche is also currently trying to source billions of euros worth of loans to help it deal with its debt problem.

[vztrt]

Fresh report says Porsche to replace boss

http://news.theage.com.au/breaking-n...0718-dohz.html

Fresh report says Porsche to replace boss
July 18, 2009 - 3:34AM

Speculation mounted Friday on whether embattled Porsche executive Wendelin Wiedeking would keep his job amid moves to tie the group to Europe's biggest car maker, Volkswagen.

An online report by Spiegel magazine, which did not identify its sources, said the Porsche and Piech families that control the company would name production chief Michael Macht as new CEO of its core sportscar operations.

But a Porsche spokesman told AFP: "Wiedeking is and remains the boss" of the company, while noting that Porsche would hold an extraordinary meeting of its supervisory board next Thursday.

The head of Porsche's works council Uwe Hueck also voiced support for the boss, saying in a statement that "Wiedeking is the chief executive and will remain so."

Hueck said "false information" was the result of an attempt to "destroy a man."

Both Porsche and Volkswagen have called board meetings on Thursday in Porsche's home town of Stuttgart, raising speculation that a deal may be near.

Wiedeking on Thursday personally denied rumours that he would resign as chief executive, saying he planned to complete his contract which expires in 2012.

He has come under fire after running up Porsche's debt as the company acquired nearly 51 percent of the shares in VW, and stock options for another 20 percent.

Wiedeking had sought to buy 75 percent of VW's equity, but the collapse of global auto markets and stricter credit conditions as a result of the financial crisis thwarted his ambitions.

VW had since made a counteroffer for nearly half of the shares in Porsche, saying that a sale would allow it to trim its debt of around nine billion euros (12.6 billion US dollars).

Wiedeking is battling meanwhile to take on the Gulf state of Qatar as an investor in Porsche, and the families that control voting rights in the car maker are to study the question next week.

But Christian Wulff, regional premier of Lower Saxony, the German state that owns 20 percent of VW, said he wanted the group to integrate Porsche as its 10th brand.

That position "should be supported by a large majority" on Thursday, Wulff told the magazine WirtschaftsWoche in comments to appear Monday but released in advance.

He added that Qatar did not want a direct stake in Porsche but rather to invest in an integrated group.

"Qatar is very well informed and intervened clearly and predictably with a desire to acquire a holding in a Volkswagen/Porsche group," Wulff said.

He expressed no opposition to Qatar acquiring an eventual blocking majority in VW similar to one held by Lower Saxony thanks to a special law drawn up for the automaker.

"The VW law is not exclusively for Lower Saxony. Whoever owns 20 percent holds a blocking minority," he said.

© 2009 AFP

[Bossxr8]

This whole situation seems like a massive fiasco. They were one of the most profitable car markets in the world, yet they are now in massive debt because of a power grab. This has badly blown up in their face.

[vztrt]

Porsche boss braces for boardroom clash

http://news.theage.com.au/breaking-n...0719-dpcx.html

Porsche boss braces for boardroom clash
William Ickes
July 19, 2009 - 2:04PM

Embattled Porsche chief Wendelin Wiedeking is gearing up for one of his toughest board meetings on Thursday, when the debt-laden sports car maker's fate could take a decisive turn.

An extraordinary meeting of the Porsche supervisory board is to study an offer by the state-owned Qatar Investment Authority for a stake in the company along with Volkswagen (VW) stock options owned by Porsche.

VW, meanwhile, has made a counter-offer to buy almost half of the shares in Porsche, in which case Wiedeking, currently chief executive, could be left standing by the side of the road.

Media reports have said Qatar was prepared to pay up to seven billion euros (9.9 billion US dollars) for the stakes, while VW's bid is estimated to be worth around four billion euros.

Both Porsche and VW, which is holding its own supervisory board meeting the same day in Porsche's hometown of Stuttgart, want to create an integrated auto group. The question is who will be behind the wheel.

Qatar and creditor banks are keen meanwhile for Porsche and VW to end their epic boardrooom battle.

Just a few months ago, it looked like Wiedeking might pull off an audacious plan to take over VW after building up a stake of almost 51 percent in Europe's biggest car maker.

His strategy backfired against a backdrop of collapsing global car markets and tighter credit conditions however, and Wiedeking now sits in an ejector seat.

After turning Porsche around in the 1990s, he has driven it into one of the biggest dramas in its more than 60-year history.

"I don't think we have had a comparable situation in the history of the German economy," German auto expert Ferdinand Dudenhoeffer, reportedly close to Wiedeking, told AFP.

In his gamble to buy VW, Wiedeking used tactics that made Porsche look more like a hedge fund than a car maker and while the good times rolled it made more money through financial transactions than by selling its 911 sports cars and other models.

Complex VW stock options earned Porsche billions as the shares soared in value to more than 1,000 euros at their peak, but on Friday they closed just below 250 euros.

Porsche ended up nine billion euros (12.6 billion US dollars) in debt and shelved plans to take its VW stake higher.

An initial target of 75 percent would have given Porsche access to VW's coveted cash reserves.

VW and its supervisory board chief Ferdinand Piech have now tried to turn the tables on Porsche with a counter-offer.

Piech, a grandson of Porsche founder Ferdinand Porsche, is also a major Porsche shareholder but in a sign of how heated the debate has grown, Dudenhoeffer said the Porsche family "knows they would destroy the heritage of Ferry Porsche if they agree to Piech's plan."

Ferdinand (Ferry) Porsche was the founder's son, but auto analysts say his determination to preserve Porsche's independence would already be laid low by the sale of a minority blocking stake to Qatar.

Meanwhile, Wiedeking says he has no plans to step down.

"Why should I resign when I have a contract that suits me?" Wiedeking asked reporters Thursday at a ceremony marking the centenary of VW's Audi unit and media speculation about his future swirled.

Wiedeking, 56 and an engineer by training, took the top post at Porsche in 1993 when the car maker was in dire straits.

He turned Porsche around, but 16 years later the group, which is owned by the Porsche and Piech families, is once again fighting to remain independent.

Wiedeking viewed Qatar as a saviour willing to invest in Porsche without seeking to take it over. While that might not save his job, he might still save face by getting the company out of one last jam.

Wiedeking, who began building Porsche's VW stake in 2005, sparked opposition among unions and directors of the much bigger car maker by threatening worker's power and its unique relationship with Lower Saxony, the German state where VW is based.

Lower Saxony owns 20 percent of the shares in VW and by virtue of a special law holds a veto over strategic decisions, which Wiedeking wanted to abolish.

Dudenhoeffer said that if Piech gained control of Porsche, it would become mired in a complex corporate culture that predominates at VW.

"Porsche will be VW-ized," he forecast.

© 2009 AFP

[vztrt]

Volkswagen to take over Porsche – reports

http://www.caradvice.com.au/35418/vo...rsche-reports/

Volkswagen to take over Porsche – reports

There’s probably no better example of how the best laid plans can go horribly wrong in an economic crisis than the attempt by Porsche to take over Europe’s largest car maker, Volkswagen AG.

It now seems more than likely that Volkswagen will, in fact, take over Porsche’s sports car business if reports by Reuters Newsagency are to be believed.

Reuters quotes reports in the German magazine Der Spiegel that the controlling families of Porsche Holdings SE will agree on Thursday to accept an offer by Volkswagen to buy its sports car business Porsche AG for roughly 8 billion euros (US$11.28 billion).

Germany’s leading weekly magazine wrote that the rival Porsche and Piech families, which own 100 per cent of Porsche SE votes, will approve the two-stage takeover at a supervisory board meeting on July 23.

Volkswagen would purchase a 49.9 percent stake in Porsche AG and at a later date acquire the rest, in a deal that would create an integrated automotive group with 10 brands under the leadership of the Wolfsburg-based carmaker.

The sale would help Porsche SE pay off most of its debt, which two sources told Reuters has ballooned to considerably more than 10 billion euros.

Der Spiegel also said embattled Porsche SE and Porsche AG CEO Wendelin Wiedeking, who lead the charge to take over VW, is negotiating over a severance package that could total more than 100 million euros.

In the meantime, Porsche production chief Michael Macht will replace him as head of Porsche AG, the magazine reported.

Last week, Mr Wiedeking rejected speculation he was about to leave the group.

Asked whether the two families have reached a decision for the July 23 board meeting, Porsche spokesman Anton Hunger said “we have not been informed of one,” adding that the Spiegel report was speculation that the company would not comment on.

Separately rival German weekly magazine Focus reported that Volkswagen’s powerful chairman and part owner of Porsche, Ferdinand Piech, plans to remove Mr Wiedeking on Thursday from the influential six-man steering committee on the VW supervisory board.

The vacancy could open up the opportunity for Mr Piech’s cousin and rival, Wolfgang Porsche, VW supervisory board member and Porsche SE chairman, to replace Mr Wiedeking in the committee as a representative of his side of the family.

The grandfather of Wolfgang Porsche and Ferdinand Piech was Ferdinand Porsche, designer of the VW Beetle and founder of Volkswagen.

[vztrt]

Porsche holds key meeting a day early: source

http://news.smh.com.au/breaking-news...0723-du1o.html

Porsche holds key meeting a day early: source
July 23, 2009 - 9:54AM

The supervisory committee at German sports car maker Porsche began a crucial meeting Wednesday, one day ahead of schedule, in a bid to seal a historic alliance with Volkswagen, a source close to the matter told AFP.

The meeting in Weissach near Stuttgart in southwestern Germany had been scheduled for Thursday.

A Porsche spokesman declined to comment on the report.

The executive committee of Volkswagen is also to convene near Stuttgart early Thursday followed by a gathering of the VW supervisory board.

The main shareholders in both Porsche and VW, the Porsche and Piech families, are to examine offers that would allow Porsche to pay off, at least partially, its roughly 10 billion euros (14.2 billion US dollars) in debt.

The first offer was designed by the Porsche management and its contested boss Wendelin Wiedeking. The proposal calls for the Gulf state of Qatar to take a major stake in Porsche and to buy VW stock options owned by Porsche.

The second offer comes from VW, which would buy Porsche's core automaking activities, making it VW's 10th brand, with Qatar possibly investing in the integrated company.

In either case, the decision belongs to the Porsche and Piech families.

They might also decide the fate of Wiedeking, who German press reports say could step down in exchange for a compensatory package worth more than 100 million euros.

Wiedeking is backed by the head of Porsche's works committee Uwe Hueck, and a rally by Porsche workers is planned at the company's emblematic site in the Stuttgart district of Zuffenhausen.

© 2009 AFP

[vztrt]

Porsche debt a massive 14 billion euros

http://www.caradvice.com.au/35692/po...billion-euros/

Porsche debt a massive 14 billion euros

Porsche Automobil Holding SE, the administrative company of the Porsche business, amassed 14 billion euros (US$19.75 billion) in debt in its failed attempt to take full control of Volkswagen, Germany’s Bild newspaper has reported, citing an informed source.

Sources told Reuters Newsagency recently that Porsche’s debt was “clearly” higher than the10 billion euros that had so far been revealed by the German sports car maker.

As a result of the immense debt, Der Spiegel magazine reported on Saturday that Volkswagen would pay 8 billion euros to Porsche SE to buy its fully owned sports car business, Porsche AG.

The two companies are set to decide on the issue tomorrow in Germany.

[Corzza]

Ouchy!!!

They think they going to get out of this.....

Not anytime soon

[vztrt]

Porsche management given go-ahead for Qatar deal

http://news.theage.com.au/breaking-n...0723-dufy.html

Porsche management given go-ahead for Qatar deal
July 23, 2009 - 1:49PM

German luxury car maker Porsche opened the way Thursday to the Gulf state of Qatar taking a stake in it prior to creation of an integrated group with German automaker Volkswagen.

"The supervisory committee of Porsche at an extraordinary meeting unanimously gave power to the management to seal the discussions with Qatar Holding LLC on a raising of Porsche capital" said a very brief communique issued early Thursday.

A little earlier Porsche had announced that it would seek a boost in capital of at least five billion euros, without however saying who would take part.

The decision was taken at a meeting of the supervisory committee that started Wednesday in Weissach near Stuttgart in southwestern Germany, one day ahead of schedule, in a bid to seal a historic alliance with Volkswagen.

"The basis for the creation of an integrated group between Porsche SE and Volkswagen AG has thus been laid," the builder of the 911 sports car said in a brief statement.

© 2009 AFP

[mrbaxr6t]

hm it seems porsche are in very deep poop here. good luck maneuvering out of that.

[vztrt]

http://news.smh.com.au/breaking-news...0723-dulg.html

Porsche boss Wiedeking, financial director are out
July 23, 2009 - 3:49PM

German luxury car maker Porsche announced Thursday the resignation "with immediate effect" of its chairman Wendelin Wiedeking and financial director Holger Haerter.

In a statement the Stuttgart-based firm said an agreement on the resignations had been reached with the supervisory board, and that Wiedeking -- said to be the best-paid executive in Germany -- will get a golden handshake worth 50 million euros (71 million US dollars), with half that sum going to a "social foundation".

Porsche's current production chief Michael Macht is to succeed Wiedeking, who together with Haerter, was the architect of Porsche's bid to take over Volkswagen, Europe's biggest automaker.

© 2009 AFP

[vztrt]

Porsche merged into Volkswagen

http://www.caradvice.com.au/35969/po...to-volkswagen/

Porsche merged into Volkswagen

German sports car maker, Porsche, will be merged into the Volkswagen group of companies following an all-night board meeting that sealed the fate of the company.

Volkswagen chairman Ferdinand Piech tightened his grip over Porsche on Thursday after the company’s chief executive was ousted following a power struggle to keep Porsche independent.

Porsche’s board, of which Mr Piech is a member, axed Wendelin Wiedeking in the early hours of Thursday morning, removing a key obstacle to the sale of Porsche’s sports car business to VW.

Porsche abandoned an audacious takeover attempt of Volkswagen after it ran up more than 10-billion euros (US$14-billion) in debt.

The Stuttgart-based company was instead forced to negotiate a merger with VW but repeatedly clashed with Volkswagen’s chairman about the terms of such a deal.

“Together, Volkswagen and Porsche have all it takes to occupy a leading position in the international automotive industry,” Mr Piech said in a statement.

Speaking in Stuttgart, Dr. Wolfgang Porsche, the company chairman and Mr Piech’s cousin, emphasized that today’s resolutions represented a landmark decision and a milestone achievement for the future.

He added: “Porsche will preserve the myth and identity of the Porsche brand in the integrated group. That brings new prospects for growth.”

Reuters Newsagency says the Porsche board also proposed raising five-billion euros in equity to prepare for the integration process. The Arab state of Qatar will also take a 17 per cent holding in the merged companies as part of the deal.

Mr Wiedeking’s ouster marks a crucial step toward adding a tenth brand to an automotive empire built by Mr Piech that includes low-end, mass-market and luxury carmakers as well as trucks, and holds the VW, Bentley, Bugatti, Skoda, Audi and Scania brands.

Reuters says Mr Piech’s career might then eclipse that of his illustrious grandfather Ferdinand Porsche, who founded Porsche and designed the original VW Beetle.

The deal still requires negotiation, but Mr Piech looks set to dictate the terms for creating an “integrated” company.

Getting hold of Porsche would also mark a return of Piech’s management influence at Porsche, where he spent nine years of his career before quitting as board member for research and production in 1971.

Although Mr Piech’s aspirations for leading Porsche were dashed in the 1970’s, he went on to hold senior positions at Audi and Mercedes-Benz before rising to become Volkswagen’s chief executive in 1993 and eventually chairman in 2002.

In recent months Mr Piech has stepped up a campaign to assert his influence over Porsche, both as a shareholder himself and as head of Volkswagen, one of Porsche’s most important suppliers.

Porsche is heavily dependent on Volkswagen, which delivers or assembles components for a third of all Porsche cars, including the body and engine for the four-door Panamera and Cayenne luxury off-road models.

Under Mr Piech VW bought the Bentley, Bugatti and Lamborghini brands in a single year.

[BFZ Wagon]

It's a shame if Qatar are allowed to get their grubby little hands on anything in the VW group. The Middle Eastern greedy oilers need to stay away and just play in their own sandpit. VW needs to stay wholly European. I'm tired of all these people from the Middle East thinking they can just step in and buy whatever they want. That's my opinion and I stand by it!