The Dieselgate scandal is far from over and it appears Volkswagen could be prepared to sell off some of its brands to help cover the increasing costs.
According to The Detroit Bureau, a Volkswagen official has confirmed the company is considering a sale or IPO of Scania and MAN. As they explained, “We’re keeping all options open in regards to expanding overseas, about a possible takeover as well as about a stock market listing."
A decision isn't expected anytime soon but reports have suggested the company was considering the possibility of spinning off its truck division before the Dieselgate scandal occurred.
According to Citi analysts, the companies could be worth as much as $13.5 billion. This would go a long way in helping Volkswagen cover the costs associated with the Dieselgate scandal. The final cost is still being determined but some estimates have put the total at approximately $55 billion. Volkswagen has already set aside more than $7 billion to cover the costs of the scandal and has access to an additional $20 billion from European banks.
If the costs are greater than Volkswagen anticipates, the company could find itself in a pinch and rumors have suggested the automaker could sell Ducati if needed.
Source: The Detroit Bureau