Porsche misses out on government loan
July 1, 2009 by Matt Brogan
German sports car maker Porsche has failed in its bid to secure a loan from Germany’s state bank, KFW, forcing 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 recently was said to be favouring the purchase of up to 10 per cent of Volkswagen.
A final decision from Qatar is expected later this month.
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*****PRIMO!*****
I believe due to EU laws the said countries governments cannot bail out manufacturers.Should have moved the HQ to USA!
Italy had the same issue with Alitalia Airlines.
Anyway, Porker wont go broke, ditch its vw plans and Qatar look like taking part ownership with new funds and all will be once again well.
Really it was bad timing by Porker managment trying to take over vw, in other times it would have well worked out.
Cheers
F-0
Put simply they got greedy……
Boo Hooo….
But i agree with u FrugalOne & phaeton…very bad timing and greed and not thinking the current financial crisis into consideration properly in my opinion.