There have been some developments on the Volkswagen diesel scandal. Last week, the German car maker secured a bridge loan of 20 billion euros to tide it over the repercussions of the biggest scandal to rock the company in its 78-year history. The money raised is to be used to cover the expenses of penalties and the thousands of recalls the company will have to issue to rectify the cheat device that was being used in their EA 189 engines.
The loan that is for a period of one year has been raised from 13 different banks and VW plans to refinance the same by issuing bonds over the next few months. But with the stocks of the company taking a hit thanks to the scandal, raising funds have will be difficult.
According to a report from Reuters, sources at Volkswagen have said that the company may even consider selling of some of its brands to raise funds. Of course, their main brands such as Skoda, Porsche and the like are not under threat but there are indications that brands like the bits of MAN that are not directly related to truck manufacturing might be the first to go.
What is more alarming to us is that the company might even consider selling off Bentley, Lamborghini or even Ducati if the situation gets too dire. Other details are scant and there is no official word of this from Volkswagen yet, but stay tuned and we will update you on any developments.
Meanwhile, here are more details on the entire situation.