Porsche announces US$6.6 billion loss

The losses were attributed to several factors, such as the global economic downturn, and the subsequent decrease in sales, with every model in the Porsche range seeing a double-digit dip in sales. However, the biggest cause of the loss was Porsche’s failed attempt to takeover Volkswagen earlier this year.

The failed takeover resulted in a massive write-down in exchange for the cash-settlement options on Volkswagen shares, which Porsche originally purchased using debt. Porsche, however, was quick to point out that the write-down exercise wouldn't actually affect the company's actual cash flow, showing up instead as just an on-paper loss.

It has to be noted however, that the statement was reported by Porsche SE, which is the holding company of Porsche AG, the actual car manufacturing division. Porsche AG said that its own operations still posted a double-digit margin in operating profit last year and remains the most profitable automaker in the world.