Like a lot of you, I’ve been watching the story about Porsche’s supposed financial woes with great interest and, at times, even greater confusion. I say “supposed” because up to now, Porsche has been quite quiet on the whole subject.
Where does my confusion come from you ask? That’s easy. All the rumors, assumptions and conjecture being bandied about by others while waiting for the complete story to unfold are enough to cloud the issue for even the most seasoned financial experts. It should come as no surprise that someone like me (who lacks expertise and experience with the intricacies of options, puts, calls, and other financial black magic) can’t follow along that easily. While I’m sure there is more fact than fiction in most of these accounts, I would prefer to hear directly from the “horse’s mouth” (Porsche or VW) so to speak.
While we are all waiting for the story to play out and the truth to reveal itself, the following video from CNBC is one of the best I’ve seen so far. While not comprehensive, it does provide a short and easy to understand distillation of Porsche’s potential financial crisis.
What do you think? Do things make a bit more sense now? Or, are you just as confused as before?
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[Source: MSNBC.com]
View Comments (8)
Interesting, and I'd venture to guess it sums up about 75 - 80%.
I've said it before. "Believe nothing you hear and only half of what you see!". :-) Hmmm. I wonder if my phone will ever ring??
OK, 993C4S, how is your shrine to Wunderkind coming along by now?? You were starting construction last June, I believe? ;-)
Anyone remember their Greek mythology - the story of Icarus flying too close to the Sun and his wings melting? Obviously Wunderkind slept through that class or else has been too busy looking at himself in the mirror in recent years.
He's not alone, unfortunately.
@ChuxC4S,
I don't think of it so much as a "shrine", rather more of a sacrificial alter. :-)
Seriously, I think you have to give "Wunderkind" credit for what he's done to improve Porsche during his reign. While his most recent gamble with VW may fail (or already had), the fact is, if the market had given him a few more months I think he would have pulled off the impossible.
I agree, 993C4S, but he will pay the price for the big gamble that I would guess really wasn't necessary for Porsche's survival. It will prove to have been an ego trip, but now that the billions of Euros have gone "poof", there may not be a Porsche (that we love) for long.
Maybe it will end up just a lame version as was experienced 30 years ago when they were going to dump the 911 - in a similar economy...hope not, but it makes me sad to think about it.
@ChuckC4S,
I think "ego" is the key word here and the driving force between the current Porsche-VW or Wiedeking/Pieche drama.
Have you seen this post from early last year on TTAC?
http://www.thetruthaboutcars.com/porsche-pieche-putsch/
"Putsch" is a good, descriptive German word for what's happening in this power struggle. So does "kaput". I feel bad for the workers and for the customers - if the workers are unhappy then will the customers continue being happy?
Will there be a return to a 914/4 type of concept if Piech "wins"? With the huge size of the VW loan to Porsche recently, I would expect that loan to be "called" and Piech victorious as Porsche finds itself friendless.
:-(
Truly the idiots guide....
They can't pronounce "Porsche" correctly (I can let that slide) or get the euro symbol to display on their slideshow. Furthermore the plural of "euro" is "euro" as in "Fritz has one euro" or "Fritz has twelve euro." Have the presenters obtained any sort of education before being hired?