Saturday May 16, 10:09 PM
Porsche, BMW consider state loans: report
BERLIN (AFP) - German car makers Porsche (Xetra: POR3.DE - news) and BMW (Xetra: 519000 - news) have discussed the possibility of state loans as they navigate the global economic crisis that has taken a heavy toll on demand, Der Spiegel magazine reported.
"The two companies have not yet made an official request," the magazine reported in its edition due out on Monday.
"The financial director (of Porsche) Holger Haerter visited the headquarters of public bank KfW in Frankfurt ... to sound out the possibilities of Porsche obtaining state credit."
The magazine reported the amount to be about one billion euros (1.4 billion dollars).
BMW also made inquiries with KfW, the German government's financing arm, in April, according to Der Spiegel.
Porsche, which announced its merger with Volkswagen (Xetra: 766400 - news) earlier this month, has seen its debt climb to some 10 billion euros.
BMW, meanwhile, has been hard hit by the economic crisis and cut more than 900 jobs in the first quarter.
The German government has created a 100-billion-euro fund to assist companies hit by the crisis.
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