Porsche May Receive Funds From Government of Qatar

Last month Porsche substantiated that it is seeking an outside investor, in spite of the ongoing drama of the merger with Volkswagen. The company is more than €9 billion ($12 billion) debt, and with no distinct path for quick access to VW’s cash, the government of Qatar may step in as the answer. Qatar’s finance minister, Youssef Kamal, has been quoted as saying, “Our government is interested in acquiring a stake in Porsche. When and how much, I don’t know. We are always looking for opportunities in the car market.”

Porsche has also applied for federal loans from the German government-owned bank KfW according to a Financial Times report. Porsche originally accumulated the debts while increasing its stake in VW to just over 50% last year. In terms of shareholder ownership, VW and Porsche are already combined, though a closer consolidation was desired to wipe out remaining debts.