The Porsche boss and his finance chief have both resigned with immediate effect after an all-night pow-wow. Big payoffs, and a merger/take-over by VW is surely to follow.
It seems Porsche ran out of money to effect their own take-over of VW, any such take-over would have had significant Middle East money, so the powers that be in Germany are probably happier with owner-ship of both companies staying within the fatherland.
Edited by rtj70 on 23/07/2009 at 14:07
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The resignation of the Porsche boss has been rumoured (more than that) for over a week. Looks like the pay-off was not as high as expected - I'd read 100 million Euros!
How many companies that own more than 50% of another (albeit 51%) end up being taken over by that company... it could end up them untangling themselves financially and no take over.
When the boss of Porsche rejoined he apparently got £1m and a 1% share of the profits. No wonder they started trading in money to make a profit - he made a lot from that.
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So, a few months ago Porsche borrowed a huge amount of money to try and take over VW. That landed them in a huge debt and now VW has taken them over!
Edited by Sofa Spud on 23/07/2009 at 13:25
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I have merged the two threads today and modified the title of the original thread.
Please continue to discuss in here and keep it motoring related.
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It's hard to believe the much smaller Porsche thought it could take over VW. VW make more cars each day and Porsche does each year. And I don't think Porsche themselves actually make all their cars themselves.
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But Porche have fingers in much more than cars.
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Assuming that VW and Porsche join up in some way, how much technology and components will they be swapping?
Will Porsche get loads of stuff from VW to make their cars cheaper?
Has Porsche got anything to make VW better? (VAG seem to be a technology leader anyway - so it can't be much)
Or would Porsche still go their own self-contained way, just part of a bigger company?
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They already do swop components they have done for years they even share factories,what stopped the takeover was the massive increase in the share value of VW when the takeover was first mooted last year.
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But Porche have fingers in much more than cars.
For years Porsche has behaved like an investment bank with a small car company on the side. They got their fingers burned with the credit crunch as well as getting caught out with how they tried to take over VW. Almost all of their profit came from trading and not car making.
But since their boss got 0.9% of the pre-tax profit as per his contract, is there any wonder this is what happened to Porsche?
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