The Volkswagen Group might have to sell some of its owned brands like Bentley and Lamborghini, should it be unable to repay a loan it had taken. Recently, the German automaker applied for a 20 billion euro bridging loan to help it withstand the Dieselgate scandal.
The one-year loan is to necessary to ensure the carmaker’s financials are kept in check, especially when it is expected to fork out tens of billions of euros to cover fines, lawsuits and vehicle recalls/buybacks. The company lately realigned its investment activity in light of its current situation by reducing capital expenditure to approximately 12 billion euros next year.
A report by Reuters revealed that under the loan terms, Volkswagen AG would have to sell or auction of its assets should it be unable to find ways to finance the loan. However, divisions within Volkswagen AG, such as Audi and Porsche are very unlikely to go under the hammer.
“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,” a source told Reuters. Non-vehicle divisions within Volkswagen AG such as MAN, which produces ship engines, mini power plants, special gear units, propulsion components and testing systems, might be let go first.
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HOORAY! thats is a great news! I HAVE A DREAM.. of a world without VW and its cheating devices & DSG
wow, that vw north america dieselgate scandal surely affecting you and your family here right…
Please also sell VGM, your Malaysian branch. They are cheating Malaysians left right and center. Our VW cars are still breaking down non stop but VGM has lied to everybody saying mineral oil has solved the problem.
Current owners are cryin too. I hear a 2014 Passat now being sold for even RM65k.
Plase VW AG. Please close down VGM
Please recommend your friend to me. I can offer him 70K for low mileage Passat 2014. Desperately wanna buy one!
I want one too. Deals like Beetle 1.4 2014 for 80K
bro, i want to buy VW CC. Can i get it for RM50K. Pleaseeee.
Grow up. U act like a toodler kid who wish other kids toy to broken just because ur mommy cant afford to buy u one.
He is very likely an owner of the faulty dsg vw. You are the one who need to grow up for using toy as a metaphor lol
Sell it to Lotus group for 1 pound.
sad if it happens , its a cash cow for them , plus , vw with their huge budget , only they can improve those luxury brands , its gonna be doomed if they sell it to a consortium or other brands who wont be able ,financially, to make it stand out . . .
Relax..they aint sell nothing. Vw has way more money than that. Just that paying in cash a lum sum directly frm bank hurt the brain, eye, and heart. Borrow it n repay over period seems like a good way out for any us too.
Obviously you know nothing about business. Once your reputation and trust are gone, so does your business. Plus, the fall of share price is a gun shot to the head. Sales down, R&D budget down, lawsuit after lawsuit are killing VW. Remember the auto industry is VERY competitive :)
Reputation & trust might gone, but it does’nt mean that it can’t be recovered. It’s a matter of whether VW had learned any lessons from this episode or not , and had taken the necessary actions.
Toyota went through similar things in the US with their airbags and unintended acceleration fiasco.. at the end didn’t really hurt the reputation… N ppl have forgotten abt it.. So much for your biz knowledge btw!!
This genius is comparing VW with toyota LOL. And he thought he knew what he is talking about :DDD
the irony calling people loser (fallacy of adhominem)
its ironic that u cant even rebuke his statement yet u try to discredit him by acting all high and mighty like a know it all
his reasoning is valid while yours? err where is your reasoning? pathetic
If VW sell Lamborghini, will Proton consider to buy it?
Yes. Then the company will eventually disappear like guthrie.
VW should instead hire Arul Kanda to do the job on financing. Look what he done to ‘turnaround’ 1MDB + free publication also. Jho Low, you should make a call to VW top management today. You can also get advised from our leaders how to get a donations instead of loan.
ok, China buyers q up for bidding now
I can say Lambo will be sold to BMW for sure. Bentley will go to TaTa.
It would be very interesting if Bentley goes to Tata. Very impressed with the development of Jaguar Land Rover since Tata took it over~
TATA really lucky when FORD let go the 2 companies, it is in its stellar performance. Actually, FORD is the turnaround agent for that 2 companies. Since Allen Mullaly focus on profit making, they have to let go those 2s.
Sell both to pronton then they will say ‘Lotus handling, Lambo speed and Bentley comfort. Honda could never yo!’
They are in a place no company wants to be in. But then when you learn of the high-risk games these corporate giants = banks, pharmaceuticals etc – play with consumer trust and safety in the hunt for profit…they’ll never learn. As long as greed lives, scandals like this are fated to be repeated.
Sell to proton for 2.6b and wait… Proton definitely will sell it again for 1 pound and me and jibby will buy it and wait…and we will sell it to 1MDB for more than 11b. Genius…me better than Arul…obviously..