REPORT: VW leans on Porsche, Porsche responds, "We will not accept extortion."
Porsche maintains it still has its mojo, but Volkswagen is treating the company like Porsche's got lunch money and VW is hungry. VW -- which Porsche effectively owns -- loaned Porsche €700 million ($983.8 million) earlier this year, with Porsche due to pay it back in September. As collateral for the loan Porsche used its wholesale distribution arm Porsche Holding GmbH.
The way things are going for Porsche, it might not be able to make that September repayment. So VW and the state of Lower Saxony made an offer: Porsche has until the end of June to accept an offer by VW to pay €3 to €4 billion ($4.2 billion to $5.6 billion) for a 49% Porsche's car business. If Porsche doesn't accept, then VW will "insist" Porsche repay the full amount of the loan in September. If Porsche can't come up with the coin VW could walk away with Porsche Holding GmbH.
Porsche, plucky as ever, didn't want to hear about any of that, saying "Ultimatums do not belong in the 21st century.... We hope very much in the interest of the common goals that the authors of the ultimatum regain their calm..." The crew at VW quickly issued a response, with one spokesperson simply saying, "There is no ultimatum."
Porsche has plenty of time to sort things out, and its investment talks with Qatar, which would greatly help its debt situation, are said to "have entered the final stretch." Thanks for the tip, C. Halen
[Source: Reuters, Automotive News - Sub. Req.]
Reader Comments (Page 1 of 1)
jrhmobile 9:36AM (6/29/2009)
Primo picture choice! I'm still chuckling ...
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Brad 12:16PM (6/29/2009)
I agree. I got a good laugh out of that one as well.
Frank 9:59AM (6/29/2009)
Quick! Better change that picture or PETA will start complaining!
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Wes 10:08AM (6/29/2009)
This is playing out like the end of that Michael J. Fox movie.... "no, you're not buying us, we're buying you"
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WetheSheeple 11:56AM (6/29/2009)
More like the Godfather when Moe Green says to Michael Coreleone "I buy you out, you don't buy me out!!" Classic scene
JayC 10:16AM (6/29/2009)
How the fortunes have reversed, this economy is a b1tch... :-)
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Rick 10:21AM (6/29/2009)
My, how things have changed for Porsche...
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Mark 12:36PM (6/29/2009)
They need a station wagon version of the Panamera quick! How about a $10K limited edition smoker's package on all models? Anything to generate a quick buck.
Skelbagz 11:21AM (6/29/2009)
My brain hurts from trying to figure out what's going on here
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Flea 12:00PM (6/29/2009)
basically, just like in private life, if porsche's financial division can't pay up, some people will come with lorries at their offices and start taking every pc, desk, stapler and coffee machine away to repay VW, hehee.
turbo-quattro 12:47PM (6/29/2009)
Skelbagz -- I 2nd that, this is getting very confusing.
Flea 11:54AM (6/29/2009)
I had no idea that watching someone's greed come around to bite them in the arse could have been so entertaining....ahh, Schadenfreude...
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Jared 6:55PM (6/29/2009)
No kidding. This is such a soap opera. Family dinners with the Porsche and Piech families must be amusing.
john 6:30PM (6/29/2009)
i thought they had like a gazillion shares in volkswagen.. why can't they just sell those? i mean, obviously the takeover plan isn't gonna work out anymore..
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Kei 9:22AM (6/30/2009)
Common Qatar. Save Porsche :D
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