Car maker says it will take out loan at commercial rates, rather than ask government for cash
3 June 2009

Porsche has asked the German government for a loan, raising questions over its ability to manage its nine billion Euro (£7.8 billion) debt mountain.

A Porsche spokesman revealed the company asked for a 1.75 billion Euro (£1.5 billion) loan, but stressed it didn't want to take the money from a government industry rescue fund.

"We don't want to take money at the expense of the taxpayer," a spokesman told Automotive News.

But the state banking group running the fund - KfW - said any loan would have be paid from the roughly 100 billion Euro (£86.6 billion) state scheme that was put in place by the government to to stimulate the flagging German industry.

In March, Porsche tried to raise 12.5 billion Euros (£10.8 billion) in loans to refinance its debt, but only managed to get 10 billion (£8.6 billion).

It has lined up another 750 million (£649 million) in bank loans since then, leaving it on the lookout for another 1.75 billion (£1.5 billion).

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16 December 2016
That's really not a small amount that Porsche is asking for! It'd be nice for people to see where exactly all that money is going to go if they receive it. But honestly, if they are asking money from the government that doesn't come from the people, where are they expecting all this money to come from? I'm certain the government HAS the money, but why should they put it into the car industry when there are so many other pressing issues to invest in?

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