It is expected that for the second year in a row, Porsche Automobil Holding SE will have an annual loss in the billions of euros. Unfortunately, Porsche still hasn’t been able to recover from ex-CEO Wendelin Wiedeking’s failed takeover of Volkswagen AG. Porsche’s debt had mounted as the automotive markets collapsed.

As a result, Porsche had to drop its takeover bid and instead, agree to a merger with Volkswagen. Officials gave a statement last Wednesday about the indebted automotive holding company, which was created for the acquisition, staying in the red as it is now being forced to deconsolidate its Volkswagen stake and a large portion of its Porsche AG sports car business. Porsche is now set to merge in 2011 with its 51-percent owned Volkswagen unit. The first hurdle is selling to VW a 49.9 percent stake in the Porsche AG sports car business by the end of 2009.

[via autonews]

Tags: car news, Porsche, porsche news, porsche sales, porsche second loss

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