VW will take a 20 billion Euro bridging loan with banks to help shoulder the costs of its emissions scandal.
After more than two months the VW’s dieselgate scandal became public, the company is under pressure to strengthen its finances, where they will have to pay out tens of billions of euros to cover fines, lawsuits and vehicle refits. This has caused them some big financial troubles on top of their plunging sales. Now, VW has agreed the terms of a €20 billion bridging loan with several banks.
Thirteen banks have each offered to lend VW either 1.5 billion euros or 2.5 billion euros, or a total of 29 billion euros, Reuters reports, declining to be named because the matter is confidential. VW were said to decide how to allocate the loan in the coming days, probably next week.
Besides the bridge loan, last month,Volkswagen said it will cut back on versions and trim options in order to save around 1.9 billion euro. The company also announced the next-gen Phaeton will be delayed as a part of a bigger plan to save around 1 billion euro.
Even with the firm’s massive cost cuts, VW will try to protect jobs in the company citing “Jobs are a very valuable asset. This asset mustn’t be squandered.”
Source: Reuters
