After all these years of suffering, why spin it off?
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.
[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.
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.
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.
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.
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.
For most Porsche shareholders, it's a slap in the face.
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