Wolfgang Porsche sets date for rescue talks

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Family disputes fought out in a boardroom nearly always end in tears. When you’re feuding over the future of one of the world’s most loved motoring brands then the stakes are taken to an even higher level. Porsche chairmain, Wolfgang Porsche, is attempting to lay down the law by setting showdown talks for July 23 to decide on the company’s future.

In short, there will be two plans on the table. Should the company seek financial input from the Qatar Investment Authority, or sell 49% of the business to Volkswagen? Given Porsche has been desperately trying to take control of Volkswagen itself, this makes the latter scenario even more intriguing. This also puts to rest any future merger talks between Porsche and VW.

Handing over any financial control to anyone outside of the Porsche extended family had previously been a subject that dare not be mentioned. Now, though, with near crippling debt levels approaching €10 billion, extreme measures must be considered.

So, which plan will win? The Wolfgang Porsche favoured Qatar option, or the plan sell almost half of the business to Volkswagen, as championed by Volkswagen chairman, and Porsche shareholder, Ferdinand Piëch.

Those who have been following the Porsche-Volkswagen saga will know the answer could still be months away. Even those attending the extraordinary supervisory board meeting on July 23 anticipate a conclusion may not be reached.

[Source: Financial Times]

UPDATE 19 July: Autoblog reports that a deal may be close to agreement that would see Volkswagen buy out Porsche for €8 billion, to be paid in two instalments.