Porsche battles bankruptcy

[Jason[98.EL]]

Originally Posted by 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!

unfortunatly they are about the only ones around atm that can afford to keep these companies going

all in all we get ripped either way they put the $$$$$ up to keep some going or the company folds what way would you like it

just a general question

Jason

[vztrt]

VW may raise 4 bln euros for Porsche deal: report

http://news.theage.com.au/breaking-n...0727-dyi7.html

VW may raise 4 bln euros for Porsche deal: report

July 27, 2009 - 4:49PM

Volkswagen, Europe's biggest automaker, could raise fresh capital of up to four billion euros (5.7 billion US dollars) to finance the takeover of its main shareholder Porsche, a report said Monday.

On Thursday, VW said it would take control of the sports car icon after a lengthy battle for which of the two companies, linked by strong controlling family ties, would come out on top of a new group aiming to challenge Toyota to be the world's number one auto company.

Porsche ended up with 10 billion euros of debt as it built up a controlling stake in VW and this cost ultimately weakened its own position.

The Financial Times said Volkswagen wanted to buy Porsche?s sports car business as fast as possible and so was considering strengthening its capital base to do so.

Raising fresh funds for the Porsche takeover, estimated to cost eight billion euros, will protect VW's credit ratings, the report said.

VW, which is poised to start looking into Porsche?s books in the coming days, declined to comment, it said.

VW and Porsche plan to decide on the structure of the combined group by August 13, it added.

© 2009 AFP

[vztrt]

Auto Union name set to return as VW, Porsche parent – report

http://www.caradvice.com.au/38107/au...parent-report/

Auto Union name set to return as VW, Porsche parent – report

Reports out of Germany this morning indicate that the boards of Volkswagen and Porsche have agreed on a deal that would combine their businesses, potentially under the historic Auto Union name.

The combined group would reportedly be led by current VW CEO Martin Winterkorn and, under the new entity, Porsche would operate independently from the other brands in much the same way Audi and Bentley do at the moment.

The deal would see Volkswagen buy a 49 per cent stake in Porsche – though a price tag for the share has yet to be announced.

The Auto Union name was used by the consortium that controlled Audi, Horch, DKW and Wanderer prior to World War II. Eventually, the company evolved into modern-day Audi, which became a Volkswagen unit in 1964.

It is noted in the report that the parent company could again share this name after the sale is complete in 2011.

With: Reuters

[vztrt]

Volkswagen agrees to purchase 42 per cent of Porsche, merger ahead

http://www.caradvice.com.au/38189/vo...-merger-ahead/

Volkswagen agrees to purchase 42 per cent of Porsche, merger ahead

Following news yesterday of Volkswagen and Porsche likely being held under the parent company name of Auto Union, news this morning from Reuters Newsagency can confirm that following weeks of negotiations, VW has agreed to purchase a 42 per cent stake in Porsche, totalling a US$4.7 billion investment.

The move will combine the two German manufacturers, most likely under the revived Auto Union banner, and will pave the way for a fully integrated merger by the end of 2011.

Volkswagen’s current CEO, Martin Winterkorn, will act as the new head of Porsche and will likely oversee the combined company as well.

Porsche’s failed takeover of VW earlier this year set the stage for the merger. Porsche fought over the last several months to takeover VW – Europe’s largest automaker – but wound up with a mountain of debt totaling US$12 billion. After the failed takeover, Porsche fired CEO Wendelin Wiedeking.

VW will finance the merger with a preferred share offering early next year. Despite the takeover, the Porsche and Piech families will remain the largest stakeholders in the new company.

CarAdvice will keep you posted on all developments as they come to hand.

With: Reuters

[vztrt]

VW pledges bigger, better Porsche

http://www.goauto.com.au/mellor/mell...257612000FD25C

Porsche models boost promised as VW takes control with $5.5 billion buyout

By RON HAMMERTON 14 August 2009

VOLKSWAGEN has promised more Porsche models with greater sales volumes after taking effective control of the debt-burdened luxury sportscar-maker in Germany last night.

In a victory to VW CEO Martin Winterkorn and VW chairman Ferdinand Piech, VW AG announced that it had agreed to buy an initial 42 per cent stake of Porsche AG by the end of this year as the first step in an eventual merger to create an automotive giant by 2011 with ambitions to be world number one.

It marked the final unraveling of Porsche’s ill-fated attempt to take control of VW, brought undone by the global financial crisis and the over-reaching ambitions of former Porsche CEO Wendelin Wiedeking.

The new, combined company will be run by VW’s Mr Winterkorn, but VW has promised that the Porsche’s independence will be safeguarded in the new group of 10 automotive brands with total annual sales of more than six million units.

The new arrangement is unlikely to have any short-term effect on Porsche’s Australian operations, where Porsche Cars Australia spokesman Paul Ellis today said it was business as usual at subsidiary level.

“We are not convinced that anything is broken and needs to be fixed,” he said.

“This is all happening at a global level. If there is a master plan for improved synergies or combined operations at our level, I can’t see anything happening in the short to medium term.”

The decision to integrate the companies was approved at an extraordinary meeting of the VW supervisory board in Wolfsburg, where VW also decided to press ahead with talks to sell Porsche’s VW share options to the Emirate of Qatar to bolster Porsche finances.

VW will pay about €3.3 billion ($A5.5b) for the 42 per cent stake in Porsche AG, financed by a fresh issue of preferred shares in VW in the first half of next year.

As well, Porsche’s financial state will be improved by the sale to Volkswagen of the separately owned Porsche Holding Salzburg for €3.55 billion by Porsche’s largest shareholders, the Porsche and Piech families.

Porsche Holding is Europe’s largest automobile trading company, selling up to 474,000 vehicles a year.

The family shareholders will use the bulk of the proceeds from the sale to increase the ordinary share capital of Porsche SE. This will be accompanied by an issue of new Porsche SE preferred shares.

Porsche SE will then be merged with VW in a final step in 2011.

The Porsche and Piech families will remain the largest shareholders in the combined VW and Porsche SE, with VW’s home state of Lower Saxony second with 20 per cent and Qatar third with a yet-to-be announced share holding. VW and Porsche workers will also hold a substantial share.

Under the new set-up, VW AG will be the umbrella company for 10 “independent” brands, including VW, Audi, SEAT, Skoda, Porsche, Lamborghini, Bugatti, Scania and VW Commercials.

“More than ever before, we now have what it takes to become the automotive industry’s number one,” Mr Winterkorn said.

“Volkswagen is systematically continuing its successful multibrand strategy by integrating Porsche. Additional new growth opportunities will emerge for Porsche under the umbrella of the integrated group.”

Mr Winterkorn promised that Porsche and VW would both benefit from shared technical expertise.

Porsche would also get new, additional models that would increase Porsche sales “substantially”.

“We want to write a new chapter in a history of substantial growth,” Mr Winterkorn said. “This will help us safeguard high-quality jobs in Germany for the long-term and create new ones.”

Already Europe’s biggest car-maker, VW made it clear in the announcement that it had its eyes on taking the number-one position from current leader Toyota.

“As a group with now 10 strong, independent brands, we will further expand out unique global position,” Mr Winterkorn said.

“More than ever before, we now have what it takes to become the automotive industry’s number one.”

While Mr Winterkorn is plotting world domination, his rival in the power struggle for control of VW, former Porsche CEO Wendelin Wiedeking, is licking his wounds with the help of a €50 million ($A87m) golden parachute after resigning last month.

[vztrt]

Porsche says raided in insider trading probe

http://news.theage.com.au/breaking-n...0821-esa0.html

Porsche says raided in insider trading probe
Laure Fillon
August 21, 2009 - 3:24AM

German prosecutors raided the headquarters of luxury carmaker Porsche on Thursday and opened a probe against former chief executive Wendelin Wiedeking on insider trading charges, the company said.

Wiedeking resigned as CEO last month after failing in his bid to acquire Volkswagen, Europe's biggest carmaker. Ex-finance director Holger Haerter, who stepped down at the same time, is also targeted in the probe, Porsche said.

"On Thursday morning, officers from Stuttgart prosecutors entered the company's offices with search warrants," the firm said in a statement.

It said it was facing allegations of breaching information publication requirements as laid out by the German Stock Corporation Act and of market manipulation.

"Porsche denies the accusations. The company will cooperate with the prosecutors and is fully supporting the investigating officers in order to contribute to a swift clearing-up of the matter," it said.

Under Wiedeking, Porsche built up a 51-percent stake in the much larger VW and wanted to take full control but the attempt failed and left Porsche squeezed under a huge debt pile. The two firms now plan to merge.

In the course of the takeover battle, VW shares soared but in recent days they have fallen back sharply as the takeover premium has unwound.

Prosecutors in the southwestern city of Stuttgart said they opened the investigation after receiving a tip by Bafin, Germany's financial market watchdog, about possible fraudulent activity.

A Bafin spokeswoman said it was looking at recent fluctuations in the share price.

During the Porsche/VW takeover saga, a series of so-called cash settlement options in VW shares earned Porsche billions as the stock climbed in value and were at one point quoted at more than 1,000 euros a share.

That briefly made VW the world's biggest company by market capitalisation.

VW was quoted at 144.31 euros at the market's close on Thursday.

Up until a few months ago, Porsche was making more money with its financial transactions than it was by selling its iconic 911 sports cars and other models, as analysts tried to explain how one car manufacturer was doing well while others were slammed by a collapse in global auto markets.

VW and Porsche aim to complete their merger by 2011 and to overtake Japan's Toyota to become the world's biggest car company by 2018.

The companies sealed the deal on the merger last week, ending a four-year battle marked by family feuds and boardroom disputes.

© 2009 AFP

[barbarian]

Porsche sells billion-euro stakes to Qatar

Porsche SE was forced to sell assets worth billions of euros to Qatar in a move to prop up its strained finances.

Saturday, 15 August 2009 13:47




Porsche SE was forced to sell assets worth billions of euros to Qatar in a move to prop up its strained finances, marking a climbdown for a predator that had once sought to dominate Volkswagen.

Qatar Holding will buy a 10 percent voting stake in Porsche as well as most of its cash-settled options for a stake in VW. The deal gives outsiders a say in Porsche, the debt-saddled family-controlled auto group, for the first time since it started building branded cars in 1948 and comes just after it was forced to sell part of its sportscar business to VW.

Porsche is selling a 42 percent stake in Porsche AG to VW for about 3.3 billion euros ($4.7 billion). Under Friday's deal, it has also sold a package of cash-settled options on shares to Qatar which Porsche said would free up 1 billion euros in cash.

Qatar Holding said in a statement it planned to use the options to acquire 17 percent of VW's ordinary shares, making it the third largest shareholder in Europe's biggest carmaker after Porsche and the German state of Lower Saxony.

Qatar said it would also contribute to Porsche SE's syndicated loan facility and that its total investment across all the components of the deal would top 7 billion euros ($10 billion).

Volkswagen has said it would add the Porsche marque as a 10th brand to its stable that already includes Audi, Bugatti, Bentley, Lamborghini, Skoda, Seat and Scania.

"The journey has been anything but easy. Up until the last couple of days there have been tough and sometimes emotional disagreements. But that time is now behind us," said Volkswagen Chief Executive Martin Winterkorn, who was also named Porsche CEO late on Thursday.

VW's ordinary shares fell 15.6 percent to close at 190.70 euros, having dropped as low as 165.00 euros during the day. Porsche shares rose 8.7 percent to close at 48.50 euros.

Lost power struggle

Porsche's capitulation comes after a failed attempt to take over VW and at the end of a prolonged power struggle that claimed the scalp of Porsche Chief Executive Wendelin Wiedeking.

Porsche had sought to seize control over Volkswagen as a way to gain access to key components and technologies it needs to meet stringent new pollution rules.

But Porsche's takeover attempt backfired after it took on more than 10 billion euros in debt while buying a 50 percent VW stake and a package of derivatives for control over an additional 20 percent of VW stock.

It was forced to seek help from Volkswagen, which already supplies components for about a third of all Porsche cars, including bodies of the four-door Cayenne and Panamera models.

In a further step to alleviate Porsche SE's debt, Porsche's controlling families -- the Piech and Porsche clans -- will sell their automobile trading business, Europe's largest, to VW.

The business, with an enterprise value of 3.55 billion euros, will be sold by 2011, Volkswagen said.

Porsche also aims to raise capital by issuing new ordinary and preferred shares, probably in the first half of 2011.

The Porsche and Piech families will retain a stake of between 35 percent and 40 percent in the new combined company, remaining the largest shareholders.

Reuters

http://www.worldbulletin.net/news_detail.php?id=45998

[chief]

Thanks vztrt for the updates and posts. Cheers

[vztrt]

More Porsches, Suzuki tie-up; says VW boss

http://www.caradvice.com.au/38897/mo...-says-vw-boss/

More Porsches, Suzuki tie-up; says VW boss

Volkswagen is looking at three new models for the Porsche line up to bolster sales for the German sports car maker and is interested in a small car tie-up with Japanese carmaker, Suzuki, according to the company’s Chief Executive Officer, Martin Winterkorn.

Reuters Newsagency quotes an interview Dr Winterkorn, above, gave to the German business publication Manager Magazin as saying he believed Porsche sales could be doubled beyond 2012 or 2013 with three new models, including a “cheap” sports car to sit under the Boxster.

This has raised speculation that Porsche could develop an entry-level sport car based on the Volkswagen BlueSport concept, which has been languishing within VW, despite obvious credentials, including an environmentally friendly diesel engine.

The other models under consideration was a sub-Cayenne SUV, probably based around the VW Tiguan/Audi Q5, and another model of the Panamera, rumoured to be a two-door coupe.

Dr Winterkorn also confirmed that VW could be interested in a tie-up with Japanese company Suzuki Motor Corporation.

“Suzuki would be an interesting partner because of its competency in small cars,” Reuters quoted him as saying in the interview.

Volkswagen, Europe’s biggest carmaker, was not immediately available for comment, while Suzuki had no comment.

Reuters quotes a person familiar with the matter said there had already been talks between VW and Suzuki.

The magazine said, without citing sources, that Volkswagen was interested in taking a 10 per cent stake in Suzuki or forming a joint venture. It said French carmaker Renault had also in talks with Suzuki, although Renault made no comment.

Suzuki CEO Osamu Suzuki had last told media in late June that he had had no contact with VW, shooting down a Manager Magazin report at the time that Europe’s largest carmaker was exploring a deal with its Japanese rival to boost its presence in ultra small cars.

In the magazine interview, Dr Winterkorn defended the terms of VW’s deal to buy an initial minority stake in Porsche’s sports car business for up to 3.3 billion euros (US$4.65 billion) as a step toward a full merger of the carmakers.

“We are not giving away any money here,” he said, adding several investment banks and auditors had confirmed it was paying a fair price in the deal.

The transaction is set to make Porsche the 10th brand in Volkswagen’s camp, which ranges from small cars to heavy trucks.

Dr Winterkorn said he could imagine Porsche’s annual vehicle sales doubling to around 150,000 units “in the foreseeable future, say 2012 or 2013″ as it adds more models.

[vztrt]

Red ink for Porsche as VW shares written down

http://www.goauto.com.au/mellor/mell...25766D0008AF80

$7 billion loss as Porsche mops up mess from failed take-over attempt

13 November 2009

By RON HAMMERTON

THE financial hangover from Porsche’s ill-fated attempt to wrest control of Volkswagen is evident in Porsche Automobil Holding SE's €4.4 billion ($A7b) pre-tax loss for the financial year ending July 31.

The loss – reflecting a €13 billion ($A20.8b) turn-around from the previous financial year’s €8.6 billion profit – came after the holding company’s bean counters wrote down the value of cash-settled options on shares of Volkswagen AG.

Porsche had taken the options in its failed bid to acquire 75 per cent of VW – an adventure that came unstuck when debt ballooned to more than €10 billion, funds availability dried up and car sales fell during the global financial crisis.

Faced with potential financial collapse, Porsche was forced into a merger with VW, and now faces the future as one of 10 brands controlled by the company it once tried to dominate.

The announcement of the loss comes just days after Porsche AG’s supervisory board elevated Lutz Meschke to the executive board as head of Porsche’s finance and operations division, filling the vacancy left by the departure of executive vice-president financial affairs Holger Harter in July.

Mr Harter fell on his sword after the architect of the failed take-over attempt, Porsche chief executive Wendelin Wiedeking, was shown the door.

Since then, the board has taken joint responsibility for the financial rehabilitation of the company.

It warned in July that write-downs would force a negative pre-tax result for 2008-9.

It said the earnings were “influenced by the hidden reserves and liabilities identified in the course of the purchase price allocation for the shareholding in Volkswagen”.

“This impairment loss was recorded at the end of the reporting period and paved the way for the sale of the substantial part of the options to the emirate of Qatar,” Porsche said.

Qatar is set to become the third biggest shareholder in Porsche after the original Porsche and Piech families and the German state of Lower Saxony.

Qatar’s investment fund has a 10 per cent stake on Porsche, but is set to move that up to 17 per cent.

Despite the red ink in Porsche SE’s pre-tax balance sheet caused by the write downs, Porsche AG - the car-making arm - is set to post a double-digit profit in operations for last financial year, despite a 12 per cent drop in revenue to €6.6 billion.

Porsche said the sportscar-maker was still the most profitable car manufacturer in the world at an operational level.

However, reports from Europe suggest the company is getting set to suspend production at its main factory in Germany for 18 days before the end of the year to balance inventory.

[vztrt]

http://www.autoblog.com/2010/10/27/r...-on-vw-shares/

Report: Porsche facing suit over 'stranglehold' on VW shares

by Chris Shunk (RSS feed) on Oct 27th 2010 at 8:00AM

Porsche spent billions in an effort to purchase as many Volkswagen shares as possible from 2006 to 2008. But eventually the luxury sports car maker's debt became so overwhelming that it was Volkswagen that ended up in position to snap up it's fellow German automaker. On the surface, that's the end of the story, but Viking Global Investors claims that the tale is a lot more complicated. Business Week reports that the New York-based investment company is suing Porsche for misleading investors to "believe that the VW shares were overvalued, inducing them to enter into short sales of VW shares." The fund lost $390 million in just two days, and short-sellers around the world reportedly lost $38 billion in the same time span.

Nearly $400 million is a lot of money, but it's only one of the short seller suits filed against Porsche. Back in January, several short sellers filed suit with similar claims, as the U.S.-based investors lost over $1 billion on VW short sales.

We aren't at all knowledgeable about the rules of short sales and we don't have any lawyers on the staff, but we can tell you that, at the very least, these lawsuits are likely a big-time hassle for Porsche. And if these suits ultimately bear fruit for the plaintiffs, Porsche could be a very costly problem for a car maker already short on cash.

[Source: Business Week]

[VICFPV]

It is amazing what's happening in this automotive world.
They make great cars that the world looks to better as they are the performance benchmark. But the world is catching up. Look at the local performance car products. They are catching up slowly but surely. The americans have done it now it is our turn.
Not long ago 12 second stock cars were for the high priced germans and supercars.
It will be their brand name the will save them. But for how long.
They should start making products for the low end of the market.

[vztrt]

http://www.caradvice.com.au/107887/p...gen-finalised/

Porsche’s sale to Volkswagen finalised
By Karl Peskett | March 3rd, 2011

Porsche has finally been sold to Volskwagen for a cool 3.3 billion Euro as of yesterday. While we all new it was coming, the official announcement came as the Geneva Motor Show commenced.

Porsche’s head office will remain in Salzburg, Germany, and according to Volkswagen, everything will carry on as normal.

VW now owns Porsche’s wholesale and retail business, Porsche Informatik, Porsche Bank, Porsche Immobilien and Porsche Versicherung as well as PGA Motors headquartered in Paris.

“The business performance of Porsche Holding Salzburg is outstanding. It is one of the world’s most efficient and profitable automobile trading companies and will therefore significantly strengthen the Volkswagen Groups sales activities,” Prof. Dr. Martin Winterkorn, CEO of Volkswagen, said.

Evidence of Porsche’s profitability is in the fact that in 2010, 565,000 Porsches were sold, which made 12.78 billion Euro. Per car, and not including retail sales (shirts, jackets, etc) Porsche makes more money percentage-wise than any other marque.

[bobthebilda]

It did seem a little confusing when you looked at the figures. Buying a company for 3.3 billion Euro, when the company made a 12.78 billion Euro profit last year.

But VW only bought the trading arm of Porsche for 3.3 Billion Euro. The manufacturing arm is seperate, which VW also owns apparantly 49.9% in.

VW looks certain to be the most profitable (and aiming to be the biggest) auto maker in the world.

[Rodp]

Originally Posted by Dezza

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

Ah, so the Panamera is actually just a paper jam?