autoevolution
 

Porsche's Debt, Larger than 9Bn Euros?

The stall in which negotiations between German manufacturers Porsche and Volkswagen seem to have entered may be caused by an alleged 14 billion euro Porsche debt, much more than the 9 billion the company already admitted to. The report surfaced today in German newspaper Bild, reinforced by sources which told Reuters Porsche's debt is clearly "larger than 10 million euro".

As a result of the new developments, German media reports that Volkswagen has made a 8 billion euro offer to the holding company for the complete control of the sports car business, Porsche AG. The two sides have until July 23 to decide on the matter, the sources say.

In the beginning, Volkswagen would acquire 49.9 percent of Porsche AG, with the rest of the company to be purchased later. This deal would allow Porsche to pay most of its debts.

The rumors about Porsche's CEO, Wendelin Wiedeking, grow in intensity and now even a replacement for him has been found. If the alleged 100 million euro severance package gets through, Wiedeking may be replaced by production chief Michael Macht.

Overall, things are going towards the outcome foreseen by Porsche back in May, when it announced the projected merger with Volkswagen. "The family shareholders of Porsche Automobil Holding SE, Suttgart, have discussed the proposals resulting therefrom, with the inclusion of capital measures, this Wednesday and argued for the creation of an integrated car manufacturing group. "In the final structure ten brands shall stand below an integrative leading company alongside each other, whereby the independence of all brands and explicitly also of Porsche shall be ensured."
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)
About the author: Daniel Patrascu
Daniel Patrascu profile photo

Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
Full profile

 

Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories