Porsche makes €5.5 billion profit in 6 months

unkel

RTE article

The profit largely comes from lucrative financial instruments to do with buying VAG shares. Porsche owns more than half of VAG now.

In the meantime, the actual number of cars sold is down, but the Cayenne is still the best selling Porsche :eek:

whippet

there was a great BBC documentary a few months back on this.

In essence Porsche were playing the Hedge Fund managers at their own game and won. They were holding loads of positions on VW stock through other products and the Fund managers really didn't know that all the the options were held by one interest.

The value of VW stock was rising against the tide of the rest of the global car makers and the Fund managers were short selling in the anticipation of a sharp drop in prices.

When this didn't happen and the Funds had to settle their positions there was a severe lack of VW stock being released to the market causing panic and Porsche let the markets know on the sunday what their position was leading to a manic monday where Porchse made a fortune and the Hedge funds lost a mint.

There was talk of some funds taking action against Porsche for manipulating the markets .. but this seems to have quitened down now .. sure Hedge funds actually profit by manipulating the markets themselves.