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Porsche Facing Dire Times, Actually Skirted Bankruptcy In March

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

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.

Credit spigot off, MEW impossible... no Porsche in driveway.

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Guest redwine
Hang on, didn't Porsche bankrupt a few hedge funds about 3 months ago because it turned out they secretly had bought most of VW on the quiet?

i don't think that porsche will go bankrupt its a bit like morgan, bentley jag etc they say that everything is going bad but i am sure that in a hundred years in the future they will still be there after all the oil won't run out for at least 500 YEARS we will all be dead before the the electric car see's its day

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after all the oil won't run out for at least 500 YEARS

oil will never run out.

it'll just get too expensive to pull the last of it out the ground.

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?

Fuel, tyres, servicing (high labour costs and mid-engined layout means large bills) relative not to other sports cars, but to other more 'sensible' cars.

Genuine Porsche spares ain't the cheapest either.

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Hang on, didn't Porsche bankrupt a few hedge funds about 3 months ago because it turned out they secretly had bought most of VW on the quiet?

Yeah, that was about a year ago.

The money probably went in to their "financing" arm!

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Hang on, didn't Porsche bankrupt a few hedge funds about 3 months ago because it turned out they secretly had bought most of VW on the quiet?

"That cannot be gran'ma's voice", thought Little Red Riding Hood, "for her voice is sweet and low".

"Why do you not open the door, gran'ma?" asked the little girl, for grandma had never behaved in this manner before.

I am sick in bed with a terrible cold, my dear. Just lift the latch and walk in!"

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Fuel, tyres, servicing (high labour costs and mid-engined layout means large bills) relative not to other sports cars, but to other more 'sensible' cars.

Genuine Porsche spares ain't the cheapest either.

New Porkers have two year 20000 miles servicing IIRC. The new DI engines are very efficient. I thought spares were quite reasonable (compared to some bits on my NSX). However.....warranty is now ~£1300 a year and I'm not sure I would do without one.

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oil will never run out.

it'll just get too expensive to pull the last of it out the ground.

And of course there are those who ultimately would be prepared to pay,for example,a hundred a quid a gallon to keep driving.Then the car really would become a status symbol.

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New Porkers have two year 20000 miles servicing IIRC. The new DI engines are very efficient. I thought spares were quite reasonable (compared to some bits on my NSX). However.....warranty is now ~£1300 a year and I'm not sure I would do without one.

Three words.

Rear main seal.

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Two letter and one number

GT3

different engine. New one is apparently fabulous

You are funny Noel. You questioned my mention of high running costs and then talk about a car that costs £80K to buy and does 15mpg (not to mention the £400 road tax you'd be paying).

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A ew more words:

"Ass-engined nazi slot car"

Hmmm. Well, I wouldn't put too much stock in the words of a yank who's idea of car design was to let others do all the hard work (the British) and then cram in the biggest engine he could possibly find so as to make it far too powerful for the chassis, suspension and brakes.

On the other hand.....he was right.

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You are funny Noel. You questioned my mention of high running costs and then talk about a car that costs £80K to buy and does 15mpg (not to mention the £400 road tax you'd be paying).

15mpg?

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Three words.

Rear main seal.

That's old hat and did not affect a number of 911s with a completely different engine (GT3s and Turbos in the 996). And it's only £800 to fix.

Try the DRC on an RS6, or the servicing costs on a Ferrari, or the repair bills on just about any DB9 or AMV8. Or Gallardo clutches. I doubt the R8 will prove to be a bargain either. Or moving down the food chain - rust = Mercedes, blown turbo = BMW diesel, you name it, things have a reputation, but usually amongst those who've not had one since the bad ones were about.

911 will do 30mpg - or sub 20 if you boot it - if you are getting 15mpg in a GT3 you're just not trying - and if you are getting sub 12mpg in a GT2, then your balls are bigger than mine.

I do wonder what's happened to Porsche's profits last year and how much the Porsche family spirited out of it. A £9Bn loan should not be that much to them - so there's something odd going on - the development costs of the next Cayenne are shared with VW, the 911 is always in development, the Boxster/Cayman is a very profitable parts bin special (or was)... I suspect the debt is a story to get government money in. After all, why buy it yourself when you can someone else to pay it for you ?

Oh, and paying £80K is nuts, you can get an 09 plate Gen1 997 new and unregistered for under £60K. And a 3 year old one (there is only a 2 year warranty on Porsche in the UK (IIRC) so they are all out of warranty) for under £45K for a decent spec one. At that price point, it's cheaper to run than say a new 2.5 Titanium Mondeo or a new Vectra VXR in terms of ownership costs over three years.....

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That's old hat and did not affect a number of 911s with a completely different engine (GT3s and Turbos in the 996). And it's only £800 to fix.

No need to go any further I think.

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Guest มร หล&#3
Not to mention; no environmental credentials, high running costs and a bit of a faux pas turning up to work in a new £50K motor when you are laying people off.

These fancy motors, IMO are one of the reasons we are in a mess today. Greed, stupid, selfish, impractical, intangible, status driven greed.

The reason all those little boys in the city were busy ripping the ar$e out of it was to buy one of these things.

Thailand 1997, Mercedes-Benz another good example.

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No need to go any further I think.
try changing an exhaust on a Peugeot 607. Or doing a cambelt and water pump on anything with a VW/Audi diesel unit. Or a clutch on a Mondeo. Or a dual mass flywheel on just about anything. Or fixing the damage caused by most BMws with plastic impellors on their water pumps. Or fixing the Ford TDCI engine.

It's a £70K car - it's just over 1% of its price to fix - and most people get at least a 50% contribution from Porsche on it.

If you can't stomach these costs, you should not be in a £70K car - even a Skyline will be crippling to run when things need fixing. It's what they cost - you can't run any of them for Nissan Micra money...... - you'd certainly not like £300 a corner tyres and a set of ceramics that cost £6K then........

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Fuel, tyres, servicing (high labour costs and mid-engined layout means large bills) relative not to other sports cars, but to other more 'sensible' cars.

Genuine Porsche spares ain't the cheapest either.

I was never a big Porsche fan, but when I had a decently paid job a few years back a 911 fitted the bill and made sense for what I needed/wanted.

True, it was NOT cheap to service but it NEVER went wrong and after 5 years of ownership I sold it for slightly more than I paid for it (bought in Germany, sold in England).

An awesome car and if I could afford to i'd have another tomorrow. 175mph top speed but if you drive it like a vicar you could get 30 mpg. Extreme!

Compared to some other more "sensible" (unreliable) cars I've owned it really wasn't outrageously expensive over 5 years.

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An air cooled 911 is a great car, cheap to run and virtually nil depreciation. Great parts availability.

No question about it all the issues with quality and over production started with the watercooled 996 cars.

Having said all that its funny to see how jealous some people are, most Porsche drivers enjoy driving, thats why they buy one.

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