Tough times at Porsche

JFG · 05-25-2009, 04:40 PM

Posthttp://www.spiegel.de/international/business/0,1518,626666,00.htmled this in the 930 section. Thought everyone would find it interesting.

JFG · 05-25-2009, 04:42 PM

http://www.spiegel.de/international/business/0,1518,626666,00.html

Buckterrier · 05-25-2009, 05:05 PM

Geez, now would would suck

ClickClickBoom · ClickClickBoom's Garage

So I am go out on a line and guess this isn't the year they are gonna start a F1 team, but hey there is always next year!
eric

porschefool · porschefool's Garage

I'm sure they could make a buck by dusting off all that old tooling and crank up the vintage parts production again!
Factory targa tops for $500, anyone?

jcunning · 05-25-2009, 06:57 PM

Why doesn't Porsche just sell the VW stock and get some money? Even if it is only 5 billion, this will at least allow them to pay back some of their debt and then they can work off paying back the rest of the debt the good old fasion way. Make money by selling cars.

This situation should never have happened in the first place. Even if the economy was great how could Porsche possibly pay 10 billion back in March? They must have been hoping the stock would go up even more so they could sell the shares and pay back the money.

Both the board and CEO need to go back to business school.

Venetian · 05-25-2009, 07:02 PM

I never really followed Porsches financial situation but always thought they were in pretty good shape. This is a surprise.

porschenut · 05-25-2009, 07:18 PM

Don't worry, the Panamera will save the company.

jwetering · jwetering's Garage

Jeezuz - what a mess. Since Wiedeking took over the company has been a whole lot less about building sports cars and a whole lot more about expansion and investing. Now he's close to ruining the whole thing.

That said, when it was still all about sports cars Porsche was this close to death as well, so maybe we should thank the man for giving us another decade and a half.

Interestingly, I also work for a large German multi-national company that is billions in debt because of a merger/takeover that went sideways. It's amazing how similar the two scenarios are in fact.

I wonder what the world will look like 5 years from now?

Oracle · 05-25-2009, 09:43 PM

They created a bubble and based their financials on that and now they're in debt like never before and have to pay those billions to buy VW..

Joe V · 05-25-2009, 10:16 PM

But didn't Porsche make a killing wheeling and dealing last year????

Never mind. It was just a shell game...

pwd72s · 05-25-2009, 10:32 PM

weideking is toast...IF Porsche survives, maybe they could stick to making cars?

ChkbookMechanic · ChkbookMechanic's Garage

When it comes to playing in the world of finances, if you play with the big boys and piss them off you can expect to get burned...

exc911ence · exc911ence's Garage

Wow, two months ago Porsche was supposedly the most profitable car maker on the planet and was mounting a takeover of VW! Things certainly change fast.

1982911SCTarga · 05-26-2009, 05:03 AM

You know things are bad if the family has to use the Austrian car dealership operation as collateral for more borrowing. That has always been a cash-generating heirloom of a gem.

Brian

stevemfr · 05-26-2009, 05:36 AM

Quote:

Originally Posted by jwetering

Jeezuz - what a mess. Since Wiedeking took over the company has been a whole lot less about building sports cars and a whole lot more about expansion and investing. Now he's close to ruining the whole thing.

That said, when it was still all about sports cars Porsche was this close to death as well, so maybe we should thank the man for giving us another decade and a half.

Interestingly, I also work for a large German multi-national company that is billions in debt because of a merger/takeover that went sideways. It's amazing how similar the two scenarios are in fact.

I wonder what the world will look like 5 years from now?

You don't happen to work for the Schaeffler Group, do you? There are huge similarities between that mess and Porsche's (Schaeffler owns bearing co's FAG and INA amongst others, and tried to take over Continental Tire AG for all those not in the loop)

Actually I have to disagree with your first statement, though - at least in part. The first years of WW's tenure were good for the co. and the sports car market. Then came the whole SUV thing - which, while good for Porsche in the short term, is not going to be good for Porsche as a sports car manufacturer in the long term. A car manufacturer, possibly - if they manage to survive. Not a sports car manufacturer though. Only after that came the investment/expansion thing. And the luxury sedan thing... (need the puking smiley available on other forums!)

The prob with the present Porsche management, though, is that they're not car guys. What WW did outside of modernizing Porsche production amounts to very effective brand management (and the VW-coup would have been the icing that secured his spot in manegerial history). Porsche will most likely survive as a brand somewhere within the conglomerate of the world's second largest car maker. And everyone will be able to buy a sporty SUV, a sporty luxury sedan, and maybe even a sporty 2-seat coupe with the Porsche name on it. Engineered in Wolfsburg. And sharing parts with Audi, Seat, and, if we're lucky, Lamborghini or Bugatti.

Sad and depressing. If I would've been in Wolfgang Porsche's shoes, I would've found me a business-savvy car-guy to run the shop and kept Porsche a sports- and race-car builder and highly specialized engineering firm. Then again, everyone says I'm a sentimental schmuck.

Sorry for the rant but this has been all over the news here for weeks and I have to vent. Shouldn't this be in OT though?

philski · 05:45 AM

Um, How much are they asking for it? lol

Porsche management need a good solid,, You Know What,,,
Seriously Outstanding Product, Global Brand. Loyal Customer Base, And selling more than they have in decades / Poor effort to even let it happen. IMO. Lets Buy It,,,,,

I drive Targa Roads every day here in Tasmania, and see so many Porsche cars, my hair never stops standing up. Seriously, They are Bloody Awesome . I just got my second one.

Kindest regards
Phillip
Sheffield, Tas

Sales make money

ratpiper71T · 05-26-2009, 06:49 AM

Although i was still a few years off from existence when my '71 rolled off the assembly line, and then I don't have the perspective of having lived through the economy of those times, it's my impression that even though Porsche has always marketed themselves as exclusive, back then it was viewed as a somewhat affordable sportscar. 997's now? Yeah right. Not even for the slightly above average income consumer.
Then again, for that matter the comparative values on everything are out of whack.

Winter · 05-26-2009, 07:01 AM

It's only a matter of time. . .

Porsche will become just another cog in the Volkswagen/Audi group. Too bad, but Wiedeking completely underestimated things, particularly the support that VW enjoys from Lower Saxony, the German state with an ownership stake in VW. There's some great coverage of how this is playing out in the latest issue of The Economist.

Or you can find some current info here, including some mind boggling numbers when it comes to Porsche's debt:

http://www.forbes.com/2009/05/26/porsche-volkswagen-bankrupcty-markets-equity-automotive.html

----

Tom '75 Targa ("stinky")

fbarrett · fbarrett's Garage

Quote:

Originally Posted by jcunning

Why doesn't Porsche just sell the VW stock and get some money?

J:

Because as soon as they start selling significant amounts, the price will drop like a stone.

It's ironic that Porsche makes more money per car than anyone else. Evidently thanks to greed (the family, Herr WW) and ego (Piech has enough for 100 people), the company may go down the tubes.

Frank