You Know It's Bad When Porsche Reports A Big Slump

Discussion in 'Economy' started by Devin, Jun 19, 2009.

  1. Devin
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    Devin Feel the breeze

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    Porsche Global Sales Slump by 28%
    Porsche has been hit hard by the global recession


    10:04 GMT, Friday, 19 June 2009 11:04 UK
    news.bbc. co.uk/ 2/hi/business/ 8108863.stm

    Porsche has seen its nine-month unit sales slump by more than a quarter after demand for its cars was hit by the worldwide recession.

    Global sales at the German carmaker declined 28% to 53,635 vehicles between August 2008 and the end of April, compared with a year earlier.

    On a financial basis, its sales fell 15% to 4.6bn euros ($6.4bn; £3.9bn).

    The figures do not include those of Volkswagen (VW), in which Porsche increased its stake to 51% in January.

    Porsche had planned to further increase its stake in VW to 75%, to gain a controlling interest, but talks with VW broke down in May amid reports Porsche could not raise the required funds.

    Share option

    Porsche will have to decide later whether it meets a Friday deadline that gives it the option to buy a further 20% of VW shares.

    In the first nine months of the ongoing fiscal year, the Porsche subgroup could not avoid the downward trend that has overtaken the worldwide automobile industry

    While most analysts expect Porsche will make a payment to extend the option period, there has been some speculation in the markets as to whether it can afford to do so.

    If it doesn't extend its option, the banks who own these shares could sell them on the stock market.

    Shares in VW were down 3.8% in Friday morning trading on Frankfurt, while those in Porsche were 1.3% lower.

    Separately, Porsche is also continuing talks with the Gulf state of Qatar over a possible investment by the Qatar Investment Authority, the country's state run sovereign wealth fund, in the firm.

    Reports have suggested that the Qatar government wishes to buy a 25% stake in Porsche.

    Worldwide dip

    On a model-by-model basis, Porsche's nine-month decline in sales was most pronounced for its Boxster and Cayman models, which fell a combined 47%.

    Sales of its core 911 model shed 18%, while those of its Cayenne four-wheel drive vehicle were down 25%.... >>>MORE>>>
     
  2. wimpy77
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    wimpy77 Member

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    cars like porshe are luxury items much like guitars. the guitar industry especially the high end ones having trouble. people right now just aren't buying things they dont need. why buying a $80,000 dollar car when all i need is maybe a nice $25,000 car.
     

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