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This same company once (just a few months back) wanted to eat up the largest conglomerate in the world; VW, and now it posts a 28% drop in profits. Deepening into debts, we all know that both companies are currently in talks of a merger stead. The reason I’m posting on this is to focus on the irony of the issue; comparable to a small toad trying to swallow an eagle!
Apparently, Porsche has seen its nine-month unit sales slump by more than a quarter after demand for its cars was hit by the worldwide recession. Global sales at the German carmaker declined 28% to 53,635 vehicles between August 2008 and the end of April, compared with a year earlier.
On a financial basis, its sales fell 15% to 4.6bn euros ($6.4bn; £3.9bn).
BIG note: The figures do not include those of Volkswagen (VW), in which Porsche increased its stake to 51% in January.
Porsche had planned to further increase its stake in VW to 75%, to gain a controlling interest, but talks with VW broke down in May amid reports Porsche could not raise the required funds. Now, I think I could say goodbye to their castles in the air!.
Furthermore, On a model-by-model basis, Porsche’s nine-month decline in sales was most pronounced for its Boxster and Cayman models, which fell a combined 47%. Sales of its core 911 model shed 18%, while those of its Cayenne four-wheel drive vehicle were down 25%.
Porsche said it had experienced falling demand across the world, but that the decline was most extensive in the US and Canada. Too bad then!
As some analysts have stated; Porsche’s VW Dream has become a Nightmare!
Update: The latest are rumours that Daimler, who have also been said to possibly do a stake swap with BMW, is in deep talks since the end of May 2009 to take up a stake in Porsche. This was according to a German business magazine called “manager magazin“.
Despite achieving things like owning a large amount of Volkswagen Group shares, Porsche is currently in debt (likely thanks to the Volkswagen stake buys) and has asked for German state aid while in talks to sell a stake to Qatar via the Qatar Investment Authority. Its debt tripled to 9 billion Euros after it raised its Volkswagen stake to 50.8% earli this year.
A Daimler AG spokesperson dismissed the report as speculation, while spokespersons from Porsche and Volkswagen said they were not aware if there were such talks. If this was proven to be true, seriously the Nightmare part is for real!
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