Volkswagen Won't Sell Off Any of Its Brands to Pay for Dieselgate
Volkswagen has no plans of selling off its brands to cover the costs of its massive diesel scandal.
Late last year, there was a report that Volkswagen was ready to sell off some of its brands like Bentley and Lamborghini if it is unable to pay back a $21-billion loan. But recently, supervisory board chairman Hans Dieter Poetsch told German daily Boersen-Zeitung that “The Volkswagen group is financially solid and has many options for financing.” He went on to say that the company is financially solid without extraordinary measures like a capital increase and it is not thinking of selling parts of its brands.
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The German automaker has set aside $19.8-billion to pay for costs related to the worldwide diesel scandal and currently faces civil litigation and potential fines from government regulators in the EU and other markets. Poetsch, however, indicated that he doesn’t expect any further provisions will be necessary. “The items that seem most likely are reflected in the provisions made so far. From today’s point of view, that is robust,” he said.
[Source: Reuters]
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Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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Increase the fines! VW is not even hurting. What kind of deterrent is that?