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.