I had previously posted about Porsche's Risk/Reward situation. Click here to read that. Now rumors are going around that instead of Porsche ending up controlling or taking over VW, it is going to be the other way around.
In this recent Reuters article on NYTimes.com Porsche's debt has climbed to more than 10 billion Euros. This Time.com article (from May 2009) reports that Porsche's sales were recently only 9.3 billion Euros. Porsche really leveraged themselves this time and are paying for it, especially in this contracting automobile market.
The price for Porsche is 11.28 billion Euros and the outgoing Porsche CEO may get more than 100 million Euros (for getting Porsche into this mess starting back in 2005).
Porsche took the risk for the reward, and this time it's not paying off. VW was 16 times the size or Porsche.
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