As Volkswagen gears up to take on a massive loan to cover costs of the dieselgate scandal, there is a possibility that the German brand could sell some of its major brands.
To cover costs associated with the diesel emission scandal, reports indicate that the loans to Volkswagen from a host of financial institutions across Europe, in the form of credit line could amount to $21.1 billion (€20 billion or INR 1.4 lakh crore).
In order to secure this loan, the German automaker could be ready to sell-of major assets and divest brands – Bentley, Lamborghini or Ducati to fund these loans in the event that the company finds no other way to find other sources for repayments.
For this same purpose, Volkswagen may also need to divest other assets such as MAN, a division that manufactures ship engines, electric generators and heavy industrial machinery estimated to be worth €5 billion. However, it is highly unlikely that Volkswagen will have to resort to getting rid of the most valuable and premium brands in its portfolio to repay its loans.
The loan to meet expenses in respect to the Volkswagen Dieselgate Scandal has come from 13 financial institutions across Europe. Volkswagen has indicated plans to refinance the loan through issue of bonds in the months ahead.
All set to tackle the Volkswagen Dieselgate Scandal, Audi AG has announced a new board member for technical development. Dr. Stefan Knirsch will assume his new position on 1st January 2016. The suspected diesel engines went on sale in 2009 suggesting that the pollution cheating software could have been under discussion from as early as 2007-08.
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