Reuters is citing sources within VW hinting that some of the assets could be sold if the company will have problems paying back the massive €20 billion loan.

Reuters is citing sources within VW hinting that some of the assets could be sold if the company will have problems paying back the massive €20 billion loan.

To handle the ongoing Dieselgate ordeal, VAG is apparently borrowing €20 billion from several banks necessary to pay for the huge worldwide recalls and the upcoming fines. This credit line must be paid back in full in one year and VW is already thinking about what to do in a worst-case scenario. If the company will not be able to return the money, the first asset to go will likely be MAN’s power engineering operations.

If that won’t be enough, VAG could consider selling Bentley, Lamborghini or Ducati, according to a source close to the matter cited by Reuters. However, the same person hinted that might not actually happen since “these units don’t really move the needle.”

Volkswagen has already started a financial restructuration as the German automotive conglomerate needs substantial funds to handle the diesel and emissions scandals. €1.9 billion will be saved by reducing the number of versions and trims of VW-branded models. Annual investments will decrease by €1 billion and there’s also a (worrying) rumor about supplier cost cuts of €3 billion, but this hasn’t been confirmed yet.

Source: reuters.com

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