Porsche, the automaker behind some of the world's most renowned cars, is facing a financial crisis that could drag it into bankruptcy court, or lead the once-proud company to sell itself to a rival.
Australia's Wheels24 reports, "Porsche's financial position is growing desperate as the German state bank KfW has postured it would deny the carmaker a critical €1.75bn debt servicing loan. One of the world's last remaining independent sporstcar manufacturers, Porsche, despite enjoying strong sales and running with production efficiencies envied by all other manufacturers, has gambled and stands to lose severely in an aborted takeover bid for VW." The company owes more than $9 billion Euros after the failed takeover bid.
The company "will make a second approach for state funding after the German government asked the carmaker to prove its woes aren't the result of mismanagement," according to Bloomberg.
If the German bank does deny the loan, The U.K.'s AutoCar explains, "The decision...would raise the pressure on Porsche, whose search for cash is reported to be widening." The company is reportedly in negotiations with the Middle Eastern nation of Qatar, which may "invest up to 2.5 billion Euros for a stake of about 25 per cent in the company. However, new reports suggest Qatar may increase its stake further and that Daimler may either try to acquire a stake in Porsche or loan it money."
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