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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