REPORT: Daimler, Porsche dismiss talks of stake as "speculation"
Daimler's Dieter Zetsche has called 2009 a "Darwin year" for the car business, with the weak and the lame being pulled down by larger forces. Surprisingly, Porsche was one of those businesses that nearly went under, and it has been looking for help almost anywhere it could get it. Reuters says that Germany's Manager Magazin recently reported that Porsche and Daimler held talks in May regarding Daimler taking a stake in either Porsche or VW in order to help Porsche balance its books.
The article asserted that Zetsche and Porsche's Wendelin Wiedeking were looking at options including a cash exchange for a piece of Porsche, or a derivatives purchase from Porsche that would then be converted in VW shares. Spokesmen for both carmakers has since called the report "pure speculation" and are refusing to comment further. If such a scenario were explored, we know how it would help Porsche -- but what would it do for Daimler?
[Source: Reuters]
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Reader Comments (Page 1 of 1)
adrian 10:35AM (6/22/2009)
It seems Porsche has got themselves into a mighty hole by getting greedy with VW and the money markets.
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SNIFFDAR 10:55AM (6/22/2009)
+1 on the greedy part...
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Avinash machado 10:56AM (6/22/2009)
Maybe the government of Qatar could help.
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Flea 10:57AM (6/22/2009)
that's what happens when you try to eat more than you can manage at the cheap buffet...you end up throwing up on the floor while everyone else laughs at you.
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FitFan 11:20AM (6/22/2009)
I totally agree. They made crazy money on the boxster and cayenne, and went on a shopping spree instead of focusing on their own business.
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ndb 11:21AM (6/22/2009)
Boy Germans certainly seem to love to apply Darwinism to inappropriate situations...
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Kattleox 11:44AM (6/22/2009)
Of all the companies that I thought would do well, my assumption was Porsche would succeed. I mean, they make nearly six times more per car than their competitors, but I suppose its expensive to buy a VW, especially the entire company.
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sparrk 12:14PM (6/22/2009)
this was never about selling cars, Wiedeking was gambling with the VW law. he lost , Piech won. Piech was hoping that Porsche would get into trouble so that VW will swallow Porsche allowing him to get more control over both VW and Porsche. it's a typical family feud, no matter who wins or loses , it stays in the family.
davet 12:42PM (6/22/2009)
Maybe if Porsche had stuck to making cars they'd be OK right now. Maybe if they had invested all the money they spent turning into a hedge fund into new technology instead they'd ride this thing out. They got themselves into this mess by getting greedy; the question is whether they'll take others down with them.
Frank 11:45AM (6/22/2009)
If I were Porsche I would run far away as possible from Daimler. They don't exactly have a good track record of "helping" companies.
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sparrk 12:19PM (6/22/2009)
actually they do , they are involved with a lot of companies( not just car manufacturers). if you're talking about Chrysler, get over it , Chrysler was dying with or without Daimler, when Daimler saw Chrysler is dragging them down they made the right choice and got out, as a capitalist you have to understand that. or are you a communist ?
Frank 1:15PM (6/22/2009)
A dying company? Please. Are you a historical revisionist? Let's not talk about Freightliner, American LaFrance, AdTrans, and Fokker. For a little education on a "dying" company read this: http://www.allpar.com/history/chrysler-years/1992.php
"Stripping all the companies of their assets like a vulture strips a rotting carcass, DBAG (Daimler) could, quite legally, project outstanding results as the profits grew. Their failures were yet to be discovered."
turbo-quattro 12:19PM (6/22/2009)
...and the dog-eat-dog plot thickens.
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Jim 2:32PM (6/22/2009)
Porsche fans better hope this doesn't happen. Daimler is like King Midas, 'cept everything they touch turns to crap.
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