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AutoBlog: REPORT: Porsche facing dire times, actually skirted bankruptcy in March

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Filed under: Porsche, Volkswagen, Earnings/Financials

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These are some confusing times in the automotive world. For the past few years, it seemed as though Porsche was primed to rule the world. It was selling plenty of product, and more importantly, it was quickly gobbling up shares of German juggernaut Volkswagen. Dried-up credit markets and slow sales have conspired to put a big wrench in Porsche's plans, though.

We already knew that the Stuttgart sports car (and SUV) maker has ditched plans to take over VW and instead plans to merge the two companies. German magazine Der Spiegel (via The Local) is reporting that times are so tight at Porsche that it actually skirted bankruptcy for three days in March. The German automaker received a 700 million euro loan ($978 million USD) from VW to stay out of trouble, but needs another 2.5 billion euros (nearly $3.5B USD) to stay in business. Porsche has tried to tap the German government to receive more loans to pare down the enormous debt it had incurred in attempting to buy VW. In fact, Porsche, which sells fewer than 100,000 vehicles per year, has accrued an astonishing 9 billion euros worth of debt (around $12.6B USD). That's 50% more debt than Chrysler.

[source: The Local | Image: Michael Latz/AFP/Getty]

REPORT: Porsche facing dire times, actually skirted bankruptcy in March originally appeared on Autoblog on Mon, 25 May 2009 11:39:00 EST. Please see our terms for use of feeds.

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Will this make the evening news? Probably not. I guess 'cause it's not cool to hate on the foreign companies.

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Ha! I knew that things weren't as special as they seemed with "rich" Porsche!!

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Hell no this won't make the evening news!!!

What would all of the yuppies do if they found out that there favorite old world producers were seeing it rough/

Just like it didn't make the news when VW was in a world of $h! a couple of years ago.

The only companies we WISH death upon are our own... Remember that... We WILL it to happen through the media until everyone flips out and it becomes a self fulfilling prophecy. That's how the PROPAGANDA/PANIC MACHINE, that is the media, works. Same thing happened with oil prices and the same thing continues with the "recession"

If Porsche dies, I say GOOD RIDDANCE! They're the most over-rated, bland cars on the planet.

(And before anyone chimes in with "That's your opinion" I'm gonna go ahead and give the pre-emptive STFU in case I'm not around. We've thrown a pissing match about Pontiac around here for a year now, so just STFU)

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If Porsche dies, I say GOOD RIDDANCE! They're the most over-rated, bland cars on the planet.

i remember a friend arguing how much superior porsche was than the vette. 7yrs down the road it was corvette vs aston martin. Guess we'll have to settle for porsche's lunch again now that gt1 is gone.

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How can a Co sell >100K a year, often at prices over $100K, and have 50% more debt than Chrysler ????

Wow, that has GOT to be some major-league BAD MANAGEMENT.... at least in part.

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