Porsche Struggling And Denies VW
The latest news from the German auto manufacturer is that Porsche denied the merger option set forth by VW. According to insiders, VW offered to purchase 49% of Porsche. Details are sketchy, but according to a Porsche spokesman the deal apparently didn’t make sense for Porsche. Obviously this is having an impact on both stock prices in a troubling economy.
Further disappointment for Porsche comes when Germany denied a request for a multi-billion euro loan. This loan was the help alleviate financial pains felt by Porsche, for trying to purchase VW. Yes, purchase VW, apparently these companies can’t make up their mind who wants to own whom.
“Porsche will now hold talks about alternative financing possibilities,” it said in a statement.
“Porsche has always made clear that what we are talking about here is a loan for its operations that will not burden the German taxpayer,” it said.
Sounds like a power struggle that neither parties need to take part in right now. Also, echoing the sounds of the Big 3 domestic manufacturers and we all know the loans didn’t help GM. Up until just recently the head of Porsche seemed to have it right, “luxury and assistance do not fit well together.” So why start now?