Porsche’s nine-month results today (18 June) show the company gradually returning to its core business following its abortive takeover attempt of Volkswagen last year, a London-based analyst said.
“They are gradually getting it back together and normalising the financial structure, getting back to the car business,” IHS Automotive senior analyst Tim Urquhart told just-auto, adding it appeared Porsche’s takeover appetite was now firmly sated.
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VW agreed to merge with the sportscar specialist after Porsche’s debt tripled to over EUR10bn (US$12.4bn) and following the Stuttgart firm’s own failed bid to buy VW.
Porsche reported in an operating profit today of EUR600m, but a post-tax loss of EUR700m due to costs associated with the attempted Volkswagen coup.
“They [Porsche] are very much a company within the VW group. It goes back to scale, Porsche is a superbly profitable company, but making 100,000 units even at its peak, there was the possibility the profit margin would have been eroded,” Urquhart said.
He added Porsche would now clearly have access to R&D capability and vehicle construction technology among other VW skills and that “mutual synergy” would benefit the sportscar maker.
The senior analyst conceded however, there would be “short-term tensions” as the takeover bedded in but that historical links between both companies should work as Porsche was now “part of this amazing German automotive power base.”
Urquhart also highlighted the seeming inevitability of the problems facing Porsche as it launched its own takeover bid last year.
“The takeover completely ran out of steam – they ran out of cash as the credit markets seized up – it is effectively a reverse takeover.
“That battle has gone – they are no longer independent agents. It was the tail wagging the dog. It is a shame in some respects in that they will have to run model plans past the VW board but, for the long-term future, it is the stability of being in Volkswagen.”
