VW optimistic, mute on Porsche
- Source: Global Times
- [07:45 June 22 2009]
- Comments
Germany's Volkswagen will have a "positive result" in the second quarter and would consider giving sports car maker Porsche a loan if asked, VW's chief financial officer Hans Dieter Poetsch said Saturday.
“We will surely end with a positive result,” Poetsch told Reuters, referring to the second quarter. “We’ve reduced volumes and inventories which is why we have a strong cash flow. In the second quarter we will continue on this path. Net liquidity will remain at a high level,” he said on the sidelines of a conference in Bayreuth.
Net liquidity in the first quarter was more than 10 billion euros ($13.9 billion). Poetsch added that VW is also on track to having a “positive result for the full year.”
Driven by a sales boom in Germany and China, the carmaker outpaced its rivals and sold a total of 2.49 million vehicles during the first five months of 2009, while many other carmakers are running big losses due to a collapse in sales caused by the global economic crisis.
Asked whether VW would consider giving troubled Porsche a loan, Poetsch said: “One would have to examine such a case if it arose.”
“If we give a loan, enough collateral needs to be there. Loans can only be given at an arm’s-length principle. There are no exceptions,” he said.
Porsche amassed a 9-billion euro ($12.5 billion) debt in an aborted attempt to acquire 75 percent of VW votes, and looked to rescue itself by uniting with its subsidiary.
Porsche has said that it has received a 700 million euro ($975 million) loan from VW. However, Poetsch declined comment and said he was not aware of any request from Porsche. Poetsch added that an agreement to create an integrated company with Porsche would not be achieved within several weeks as planned.
In another development, Porsche was progressing in the talks with Qatar on investing in its 911 sports car, which would help the merger with VW.
Separately, German state-owned bank KfW is opposed to a massive loan request of 1.75 billion euros ($2.4 billion) from Porsche and its chances of obtaining any public aid are slim, Economy Minister Karl-Theodor zu Guttenberg confirmed in an interview yesterday.
Agencies