Porsche has been the embodiment of how an auto manufacturer is supposed to be run for quite some time. It has consistently kept itself from running deep in the red and has reliably made more profit per unit sold than any other manufacturer.

So it is with great shock that the Porsche empire may have been technically broke in March.  The money needed to take a 51% controlling stake in Volkswagen was burrowed from the banks, pulling the company into a €9 billion ($12.6 billion) hole. The situation was so bad in March that, rumor has it, the company didn’t have one cent to its name for two days. It had to borrow €700 million—approximately $980 million—from Volkswagen to make it through until it secured another line of credit.

At this time, Porsche is looking for another €1.75 billion ($2.5 billion) in financing. If crunch time hits before then, Porsche will likely have to sell off assets or seek government assistance.

[via Forbes.com]

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