There's hardly any business rationale for this deal. It really dilutes the image of Porsche, and raises questions about whether the management has control over the capital of the company.
Arndt Ellinghorst
Schrempp is one of the last dinosaurs of Germany Inc. He represents a strategy of acquiring assets and building empires that just didn't work.
strategy work germany
This increases the likelihood that Zetsche will make major changes. He needs to break up all these networks that were built up over the 10 years of Schrempp. It's going to be a painful process.
break process
Until now, the Germans thought, 'We can make it with diesel.' They saw hybrid as a technology that was just filling a gap. Now they're seeing that, particularly in the U.S., they're missing a market.
technology thought market missing germans
[Analysts were stunned by Porsche's move, which they said was a radical departure for a traditionally conservative company.] Porsche told us that they were going to invest back into the company rather than pay higher dividends,.. Now they're investing in one of the least profitable car companies in Europe.
car company europe radical conservative investing
Porsche told us that they were going to invest back into the company rather than pay higher dividends. Now they're investing in one of the least profitable car companies in Europe.
car company europe investing
management business image control questions company
For most Porsche shareholders, it's a slap in the face.
face
The quarterly results are very, very good. Profitability at Chrysler and Commercial Vehicles is convincing. This should take some of the fear out of the market. I think earnings estimates will now have to be raised.
estimates results fear good market
After all these years of suffering, why spin it off?
suffering
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