Stuttgart - Luxury German sports carmaker Porsche SE warned Wednesday it is facing a pre-tax loss of up to 5 billion euros (7.1 billion dollars) in the group's business year ending July 31.

The Stuttgart-based group said that the loss was due to an expected loss on the planned sale of options it acquired during its now failed attempt to takeover Volkswagen AG, Europe's biggest carmaker.

Porsche is currently holding negotiations with Volkswagen on a takeover after VW turned the tables on the legendary sports car group and launched a bid for the company.