In order to handle the ongoing Dieselgate tribulation, Volkswagen AG is seemingly borrowing € 20 billion from several banks necessary to pay for the huge worldwide recalls and the upcoming fines and this loan must be paid back in one year. VW is already thinking about the worst-case scenario, if the company is not able to return the loan, a large chunk would come from the group’s “ MAN power engineering operations, which manufactures a number of goods including ship engines.
Reportedly, if this subsidiary is not enough, the company could consider selling other brands like Bentley, Lamborghini or Ducati. Though, the company also has Porsche and Audi under its umbrella, but these brands are likely to be untouched even in the worst of situations. But selling the brand like Lamborghini will be hard for the company, as this brand directly competes with its Italian sports car rival “Ferrari”.
Volkswagen AG has already started restructuring its financial section as the German automaker needs a significant amount of funds to handle the diesel and the emission scandal in which the company has admitted that 11 million vehicles worldwide were fitted with defeat devices and assured to recall them all.
Around €1.9 billion will be saved by reducing the number of versions and trims of VW-branded models. As of now, the company is focused to come out of the biggest trouble the it has ever faced.