The Great Debate UK
Porsche and Volkswagen gave themselves four weeks to come up with a blueprint for “an integrated car manufacturing group”.
Their time is up. The carmakers made their statement on May 6, but investors are still in the dark. In the meantime, VW shares have staged the kind of yo-yo performance more normally associated with a highly leveraged hedge fund.
Porsche’s financial situation has not improved either. The sports car maker has gone cap in hand to German state bank KfW for a 1.75 billion euro loan to plug the gap left by its banks. The German government will discuss the loan request on Monday.
Ferdinand Piech needs to decide whether he ‘s driving a Porsche Cayenne or a VW Touareg. The Volkswagen chairman and part owner of Porsche cannot continue to drive both. He should step down as chairman and hand VW CEO Martin Winterkorn the wheel to negotiate any merger talks between the two carmakers.