Porsche posts $6.5bn loss

Porsche has posted a pre-tax loss of $6.5bn for the fiscal year ended July 31. The loss is attributed to its unsuccessful  bid to takeoverVolkswagen. Let us recall that Porsche attempted to take full control of VW and ended up getting swallowed into VW’s family. The takeover turned unsuccessful after Porsche failed to secure the required funds.

Porsche has also issued a warning statement that stakeholders losses could reach $7.4 billion as the company recovered from massive losses related to the failed Volkswagen takeover. As a result of the failed acquisition, Porsche fired CEO Wendelin Wiedeking and CFO Holger Härter.

If we go one year in the past, Porsche posted a pre-tax profit of $12.8 Bn. Porsche say that despite such huge losses, it has posted double digit operating margin profits although no official figures were announced to support this.  “Porsche remains the most profitable automobile manufacturer in the world,” the company said in a statement. According to The Financial Times Deutschland, lenders have agreed to loan Porsche $12.65 billion now that it is a subsidy of Volkswagen.

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