Volkswagen is bracing itself to be plugged into debt as it will be taking a massive loan to compensate for the damage done by the ‘dieselgate’ scandal. As a result of which, the German automaker might just have to lose out on some of its top selling and globally revered brands. Reports have indicated that Volkswagen will have to sign-up for a credit line worth Rs. 1.4 lac crore to make up for all the damages caused by the scandal. Volkswagen’s loan will be facilitated by 13 financial bodies, spread across Europe. Volkswagen has also hinted that it may refinance the loan by issuing bonds in the near future.
To do so, Volkswagen might have to sell some of the brands that it owns, which include, Lamborghini, Bentley, Bugatti, MAN, Ducati. MAN is one of the company’s sub-brands, which manufactures generators, heavy industrial machinery, ship engines, etc and is suppose to be worth around Rs. 3,700 crores. These possibilities are still a matter of speculation, as sale of the high-profile brands will be Volkswagens last resort. To take on the responsibilities of ‘diselgate” damage control and that of other Volkswagen responsibilities, Dr. Stefan Knirsch will join Audi AG as a new board member.
Also Read: Volkswagen Diesel Cars to be Tested By Indian Government Volkswagen India Recalls over 3 Lakh Cars Volkswagen Gets Solutions Ratified for Dieselgate Scandal
Source : CarDekho