• 08Jun

    Porsche is looking at the possibilities of seeking out for outside investors amid the negotiationsFPorsche VW of a merger with Volkswagen. The car manufacturer is on a worry-seat of debt amounting to $12 billion. The company may not have an immediate access to VW’s resources but the government of Qatar has shown interest.

    The moves of Porsche are fully backed up by majority of its shareholders but the union at the Volkswagen group is still reviewing the potentials of things to come if the Porsche takeover will push through. The VW end worries that Porsche might interfere with their operations and production especially with the Audi line up which may directly compete with some of the vehicles of Porsche.

    In a recent conference in Russia, the finance minister of Qatar verbally expressed the intention of their government to acquire some stakes in Porsche. The amount of the investment and its details has not been disclosed though.

    Porsche applied for a loan with the government owned bank KfW. The auto maker is asking for a $2.5 billion dollar loan from the federal government and it will primarily be used to manage their debt.

    Porsche acquired over 50% of Volkswagen last year. The process of increasing its VW stake contributed to the ballooning of the debt. Technically the two companies are already combined but a closer integration might help erase their debt.

    The main thrust of the negotiation centered on combining ten brands from Porsche and Volkswagen under a single umbrella group. Despite some impediments encountered, the top management of both companies has expressed their desire to achieve the goal amicably and constructively.

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