CN EN
Advanced

Porsche: Carmaker or Hedge Fund?

Abstract

Porsche, the most profitable carmaker in the world, earned six times more in 2008 from managing financial derivatives than from selling cars. This case discusses Porsche’s car business as well as its financial management business. Since the mid-1990s, Porsche has achieved steady growth in the luxury sports car market and has also expanded successfully into the markets of SUVs and low-end luxury cars. Porsche has used currency derivatives to manage its large exposure to currency risks and has made considerable profits from currency derivatives. Since 2005, Porsche has been aggressively purchasing the stock of Volkswagen. In 2008, Porsche realized a windfall from its management of Volkswagen stock. This case features a debate about Porsche’s business model in association with its governance structure. The case can be used in courses focused on international finance and risk management.

Keyword


Related Article

Source

Published by:China Europe International Business School

Publish Date:2009-01-01

Language:English

Cited Count
W
Loading...
C
Loading...
Get Fulltext
Rights and Licenses
Related Keywords
Communities & Collections
Access Stats
Creative Commons Licence
The content of CEIBS Research Online is licensed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY-NC-ND 4.0).