Previously, we reported that Europe’s largest automaker, VW will take a 20 billion euro bridging loan with banks to help shoulder the costs of its emissions scandal.
Now it seems like the automaker is allegedly ready to sell some of its assets worth significantly more than 20 billion euros if it doesn’t manage to find other sources of money to repay the one-year, multi-billion euro loan secured from 13 banks.
Although Volkswagen declined to comment on the matter and no specific assets have been discussed, one sources said to Reuters, “Volkswagen may also consider divesting luxury car brands Bentley and Lamborghini or motor bike brand Ducati, although these units don’t really move the needle.”
Listings of other divisions such as Audi, Porsche or its truck business – which is being carved out now – seem unlikely, but the non-truck parts of VW’s MAN subsidiary are expected to be at the top of the list of potential divestments.
The MAN power engineering operations, whose products include ship engines, mini power plants, special gear units, propulsion components and testing systems may be valued at 4-5 billion euros in a potential deal.
Aside from that, VW has some other plans dedicated to cutting costs. That said, it’s highly unlikely for the company to get rid of the most valuable marques in its portfolio.
Source: Reuters
