The holding company behind Porsche, Porsche SE, expects to lose as much as 150 billion kroner because Volkswagen has become less valuable.
Porsche SE, the largest shareholder in Volkswagen AG, expects to have lost 150 billion kroner after tax on the Wolfsburg brand.
Back in December, the holding company Porsche SE made it clear that it expects to lose an awful lot of money on Volkswagen. But now more concrete figures have emerged.
Reuters writes.
However, Volkswagen is not the only investment Porsche SE is losing money on. The holding company is also writing down the value of its investment in the car brand Porsche AG itself.
Here, it is expected that 3.6 billion euros have been lost. An amount that corresponds to just under 27 billion Danish kroner. This is close to what the accountants expected in December to be the maximum write-off.
The majority of the huge depreciation is to be found in electric cars. Porsche – the car brand in particular – is struggling to sell its electric vehicles.
In fact, it is such a big headache for the management in Zuffenhausen that 800 million euros are now being allocated to the development of new combustion engines.
A generally weak sales in China and tariffs from the USA are not making it any easier to be a leading figure at the VW Group these days.
Conversely, car brands are far from the only ones losing money. In fact, values are currently pouring out of the automotive industry.
For some companies, things are even so bad that bankruptcy is the last and only option. This is what happened to 500 people who, in the middle of a wage negotiation, were told that everyone had been fired and the factory had closed. Read more about it here .
