The Volkswagen Group has been in deep trouble since the dieselgate scandal came to light. A small software tweak that resulted in an enormous cheating scandal has sent VW on the back foot. The company is now preparing for the worst as it will now have to shell out billions of dollars out of their pockets towards fines and law suits.
Current estimates suggest that VW Group might have to pay $21 billion towards recalls, lawsuits and regulatory fines. Furthermore, global ramifications could amount to $80 billion. The accountants now have their work cut out as they go credit hunting. One possibility is that VW might have to sell Lamborghini, Bentley and Ducati in order to secure loans from banks. That just show how bad the situations has gotten for auto giant.
According to Reuters, VW has secured 20 billion euros in loans from various financial institutions. The company will have to list some of its assets as an assurance to the lenders or selling them off completely would also be considered. So, given the least valuable assets will have to go first, VW could be looking giving up niche brands like Lamborghini, Bentley and Ducati.
Source: Reuters