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Porsche Volkswagen

Porsche prepares sale of options

Porsche prepares sale of options

The statement contained below makes almost zero sense to me. Not having a mind that copes well with financial matters, apart from expenditure, probably doesn’t help.

Anyway, this news comes hot on the heels of former CEO Wendelin Wiedeking’s departure, and from what I can tell, it says Porsche is getting ready to sell its options on Volkswagen shares off to a bunch of rich blokes in Qatar. Apparently this will lead to “a substantial book capital loss”.

But it’s okay, because this devaluation is “purely accounting related” and the sale will improve cash flow by more than €1 billion. That’s good.

However, the next paragraph contains the words “up to minus five billion Euro”. Hmm, that’s not so good.

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Porsche Volkswagen

Wendelin Wiedeking walks

Dr Wendelin Wiedeking walks

The Porsche-Volkswagen buy out saga has claimed its first major scalp with Porsche CEO Dr Wendelin Wiedeking resigning today. This is a stunning turn of events, given the state of play just a few months ago in January, and Volkswagen is now likely to turn the tables and take control of Porsche. This would make Porsche the tenth brand under the Volkswagen umbrella. Although expect this to be played out as a Volkswagen-Porsche merger.

Volkswagen buy out talks first emerged in April, but this was quickly followed by happy merger talks in May. However, it seems Dr Wiedeking’s insatiable appetite for Volkswagen shares was his undoing. The cost of buying up big has put Porsche €10bn in debt. No surprise, then, that this has created some friction at board level with Wiedeking forced to swallow his pride by seeking further capital investment from Porsche family owners.

Porsche has also been courting financial input from a Qatar investment fund and it is now believed this will form part of the latest plans to rescue the Stuttgart company.

Porsche Chief Financial Officer, Holger Haerter, will join Wiedeking in making an immediate departure. Other key executives are believed to be “in between jobs” as well.

Still, it hasn’t been all bad news for Wiedeking who joined Porsche as CEO back in 1993 when the company was on its financial knees. Through smart production techniques and a focused product line he saw Porsche reach a level where they could boast the highest profit margins in the automotive world. Oh, yeah, he’s getting a €50 million pay out, as well. This, after reports suggest he earned €77 million in 2008.

Clearly, I’m doing it wrong!

UPDATE: Comprehensive coverage of these events can also be read at Spiegel.de.

UPDATE 24 July: A joint statement from Volkswagen and Porsche can be read after the jump.

[Source: Bloomberg & Times Online | Thanks to Dmitry for the tip]

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News Porsche

Wolfgang Porsche sets date for rescue talks

Porsche logo

Family disputes fought out in a boardroom nearly always end in tears. When you’re feuding over the future of one of the world’s most loved motoring brands then the stakes are taken to an even higher level. Porsche chairmain, Wolfgang Porsche, is attempting to lay down the law by setting showdown talks for July 23 to decide on the company’s future.

In short, there will be two plans on the table. Should the company seek financial input from the Qatar Investment Authority, or sell 49% of the business to Volkswagen? Given Porsche has been desperately trying to take control of Volkswagen itself, this makes the latter scenario even more intriguing. This also puts to rest any future merger talks between Porsche and VW.

Handing over any financial control to anyone outside of the Porsche extended family had previously been a subject that dare not be mentioned. Now, though, with near crippling debt levels approaching €10 billion, extreme measures must be considered.

So, which plan will win? The Wolfgang Porsche favoured Qatar option, or the plan sell almost half of the business to Volkswagen, as championed by Volkswagen chairman, and Porsche shareholder, Ferdinand Piëch.

Those who have been following the Porsche-Volkswagen saga will know the answer could still be months away. Even those attending the extraordinary supervisory board meeting on July 23 anticipate a conclusion may not be reached.

[Source: Financial Times]

UPDATE 19 July: Autoblog reports that a deal may be close to agreement that would see Volkswagen buy out Porsche for €8 billion, to be paid in two instalments.

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Audi BMW Mercedes-Benz MINI News Peugeot Porsche Toyota Volkswagen

Volkswagen 1.4 TSI wins International Engine of the Year

Volkswagen 1.4 TSI engine

Volkswagen has knocked BMW off its perch by winning the International Engine of the Year overall honour with its twincharged 1.4 litre four cylinder engine.

Not content with the overall title, the 1.4 TSI also won the Best Green Engine 2009 and Best Engine in the 1.0-litre to 1.4-litre category.

A panel of 64 judges from 32 countries voted on the awards. Dr Ruediger Szengel, Head of Gasoline Engine Development for Volkswagen AG, was on hand to accept the award behalf of Volkswagen, “A combination of downsizing, direct injection and high boost pressure produce exceptionally high specific power output and torque with low emissions and fuel consumption from a gasoline engine.

“The success of TSI technology in this competition has blossomed as it has become available in more countries throughout the world. We are convinced that our competitors will follow but we are determined to keep our lead.”

The full list of winners is shown below, with links to the IEOTY website. Press releases from Volkswagen, Porsche and BMW can be read after the jump:

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Porsche Top Gear Video

Top Gear tea break – You need to be awake to drive this fast

Good news, it looks as though the Top Gear YouTube channel now allows video embedding. That means I can take another stab at posting the Porsche Carrera GT clip from Series 4, Episode 4.

Turn up the volume and enjoy…

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News Porsche Volkswagen

Porsche-Volkswagen merger talks stall

Porsche & Volkswagen logosThe supposedly happy merger talks between Porsche and Volkswagen have stalled before even making first gear.

An unnamed Volkswagen spokesperson has been quoted as saying, “we recognised at the end of the week that Porsche is lacking several fundamental conditions for the discussions.”

The saga is travelling on a seemingly neverending path of intrigue and the balance of power appears to see-saw by the day. About the only thing that does seem clear is that Volkswagen CEO Martin Winterkorn looks set to be the big winner in the executive stakes. Well, for now.

Stay tuned for more news as it comes to hand.

[Source: Reuters]

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Porsche

Bargain hunt

Porsche 914

Truth be told the Porsche 914 is probably a love or hate model. I happen to be one who loves its slightly oddball looks and revel in its equally awkward history.

This example above was recently passed in at a Shannons auction held on Monday. The expected price range was a seemingly reasonable $12,000-18,000. For more pics check out the Shannons website.

The pre-auction press release from Shannons can be read below, which includes a brief history of the 914 and how it came to be.

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News Porsche Volkswagen

If you can’t beat ’em, join ’em

Porsche & Volkswagen logosAfter plenty of wrangling it looks as though the Porsche-Volkswagen takeover will end up being a friendly merger. At least, that’s how it is being played out in media reports across the globe.

The merger, announced today, will put an end to Porsche’s takeover bid and it is hoped the combined approach of the two companies will help circumvent the Lower Saxony “VW law” that could see any takeover plans quashed, despite Porsche being the majority shareholder in Volkswagen.

Both Porsche and Volkswagen have released brief press statements (available after the jump) and we’ve been told to expect more detailed news in the next month as to just how this merger will take shape.

In the meantime, check out this report from the BBC for a more in depth analysis.

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Mitsubishi Nissan Porsche Targa Tasmania Volvo

Targa Tasmania 2009 – The winners

Targa Tasmania 2009

Tony Quinn (QLD) and Naomi Tillett (SA) in a 2008 Nissan GT-R have won this year’s Targa Tasmania. Quinn was at the pointy end of the field throughout the event, but he faced an eight second deficit to the 2007 Lamborghini Gallardo Superleggera of Kevin Weeks (SA) leading into the final day. And what a drama filled day it proved to be.

The cool and wet conditions which faced the drivers meant it was a case of finding that balance between pushing hard and simply staying on the black stuff.

The first stage of Leg 5, TS35 ‘Strahan’, was a 33.3km long stretch of unforgiving slippery tarmac. And with the start point on the edge of the town itself, drivers were given little chance to work much needed heat into their tyres and brakes.

Quinn fought desperately hard in the heavy GT-R and was 11 seconds faster than Weeks. The ball was now in Weeks’ court and he attempted to wrestle back the lead on the following 6.4km ‘Queenstown’ stage. The stage begins with a tight and twisty climb out of the mining town, before opening up into a frighteningly quick downhill section. It was here that the result of the rally was decided when Weeks lost control and flew off the bitumen into the roadside scrub and bushes.

It was a savage incident and Weeks and navigator Rebecca Crunkhorn were airlifted to Hobart General Hospital. Fortunately, both suffered little more than bruised pride, Crunkhorn was released later that day, but Weeks remained in hospital overnight with suspected rib injuries. The South Australian is expected to make a speedy recovery.

Local competitors Jason and John White, also in a Lamborghini Gallardo were now in second place. For the previous four days they formed part of a very tight leaderboard, but mechanical gremlins suffered by the Lambo on the final few stages meant that Tony Quinn would claim a six minute winning margin. The largest in the event’s 18 year history.

Quinn and Weeks have both come very close to winning Targa Tasmania in the past. Both are likeable characters and either driver would have proved to be a popular winner. Speaking at the post-rally function the following day “Quinny” was gracious in victory and expressed heartfelt thanks to the numerous well wishes and support he and navigator Naomi Tillet had received.

Targa Tasmania is a gruelling event, extremely tough on cars and a fierce mental test of driver and navigator, anyone who thinks Quinn won this event simply because he was driving a GT-R is kidding themselves.

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Porsche

Nürburgring Warz: GT-R still more better than Porsche

2010 Porsche GT3

The latest sortie in the Battle of Nürburgring between Porsche and Nissan has dealt another killer blow in favour of the Japanese.

Reports have surfaced today that legendary test driver Walter Rohrl recently lapped the Green Hell in a 2010 Porsche 911 GT3 in an “unofficial” time of 7 minutes and 40 seconds.

Or, sadly for Porsche fans, some 13 seconds slower than the best time recorded by a GT-R. Porsche have reportedly assumed the foetal position and are rocking in the corner saying that a standard GT-R can’t go any faster than 7 minutes 54 seconds.

Check out AUSringers.com for more detail.

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Porsche Volkswagen

Volkswagen to Porsche: Anything you can do…

Porsche & Volkswagen logosThe Porsche-Volkswagen tale appears to have a few twists in the offing. In January, Porsche became the majority shareholder of Volkswagen. Although, there is still the Lower-Saxony ruling, preventing outright control of Volkswagen by another party, to be overcome.

And now, well, things are seeming to spice up somewhat. How much of the latest developments are speculation, fact or even outright fantasy is open to debate, but you can be sure that all bases have been covered.

But, is Volkswagen really considering a takeover bid all of its own?

That is the conclusion drawn by a report in today’s Sydney Morning Herald which claims Volkswagen itself wants to buy Porsche.

Then, a story on CarAdvice runs a quote from Volkswagen CEO Martin Winterkorn that everything is hunky dory and he can’t wait to get into bed with the Stuttgart massive.

Adding further intrigue to that last point is a story on autoblog reporting on a rumour that Porsche and Volkswagen will be playing CEO swapsies, with Winterkorn moving south and Wendelin Wiedeking moving north to Wolfsburg.

Whatever the outcome, let’s hope this ends up a long and successful relationship that produces worthwhile offspring. Think Henry Fonda followed by Jane, Peter and Bridget; not Britney Spears and Kevin Federline and whatever is to become of Sean and Jayden.

[Thanks to Michael for the tip.]

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Porsche

Porsche Panamera makes world debut in Shanghai

Porsche Panamera Turbo

The highly anticipated Porsche Panamera super saloon had its worldwide public debut at Auto Shanghai overnight. The four-door Porker will go on sale in Germany on 12 September this year. UK buyers should be able to get their hands on the car soon after.

Speaking in Shanghai, Wolfgang Dürheimer, Porsche’s Executive Vice-President Research and Development said, “Our engineers, technicians, and designers have invested all their know-how, years of experience, a wealth of ideas, and their full passion for sports cars in this four-seater Gran Turismo.”

It’ll probably sell like hot cakes too, with the GFC-immune ready to lap up the latest status symbol among the elite.

Have to say, from the front, at least, the car is actually starting to look quite good. That frumpy bum might take a while to get used to, however.

Press statement and a bunch of Panamera Turbo images after the jump.