2023 Author: Eric Donovan | [email protected]. Last modified: 2023-05-21 15:44
The state of Lower Saxony has a positive view of the Emirate of Qatar joining the financially troubled sports car manufacturer Porsche. It is said that VW could also benefit from this.
In the struggle for the future of Porsche and Volkswagen, the state of Lower Saxony would welcome direct entry by the Emirate of Qatar into VW. People familiar with the topic told the German press agency dpa on Friday that talks between Lower Saxony and Qatar had made "very large agreements" clear. More capital and liquidity would also help to accelerate VW's growth path. In addition, stable and deepened political relationships between Germany and Qatar would result.
Lifted on takeover
Porsche got stuck with the planned takeover of VW, is struggling with a massive mountain of debt and is looking for new sources of money. Porsche is negotiating with Qatar about joining the Stuttgart sports car manufacturer. Qatar could also buy options on VW shares from Porsche. As the "Süddeutsche Zeitung" reported, the VW employee representatives would also welcome Qatar joining VW.
Porsche owns almost 51 percent of the shares in Europe's largest car manufacturer and, with the help of the banks, holds stock options for a further 24 percent. The state of Lower Saxony holds just over 20 percent of VW and has the right to veto important decisions thanks to the controversial VW law. Lower Saxony's Prime Minister Christian Wulff (CDU) met with a delegation from the Emirates of Qatar last weekend. A government spokeswoman then spoke of a "constructive" exchange of ideas.
Credit declined
Wulff had refused a government loan of billions for Porsche. "If Porsche has taken over financially in the planned takeover of VW, it is appropriate to sell some shares instead of now applying for loans from the state-owned KfW," Wulff said. Porsche, however, has not yet given up hope of a billion-dollar loan from the state-owned KfW, despite an initial rebuff. The Ministry of Economic Affairs, however, asked the KfW executive board to inform Porsche that the application would not be pursued, it said on Thursday in Berlin government circles.
The “Süddeutsche Zeitung” quoted from the VW workforce representation that VW needs an investor if the company wants to steer “into a safe haven”. The employee representatives supported the plan not least because it would weaken the position of Porsche boss Wendelin Wiedeking, who is considered an attractive figure in Wolfsburg.
The VW works council spokesman recently said: "If the emirate of Qatar is considering joining Volkswagen, we assume that it will seek dialogue with the Volkswagen employees in good time." Anyone who becomes a shareholder in VW is responsible for more than 360,000 employees around the world. “The Emirate of Qatar must be aware of this before making a decision”. There have been others in the recent past who apparently were not aware of this. " (dpa)
