The Dieselgate scandal is taking its toll on the Volkswagen Group; the German car maker is struggling to get its finances in order and will likely have to sell some of its assets in order to repay the €21.1 billion credit loan it took out.
News site Reuters, reports that the automaker is under extreme pressure to repay the debt, the multi-billion euro loan took 13 banks to cover and its terms state a one-year repayment. The credibility of Reuters sources are unknown, however if they are correct and Volkswagen are unable to repay the debt, the terms of the loan would require Volkswagen to sell or list assets worth significantly more than €20 billion.
Volkswagen has yet to publicly comment on the matter, however the sources did mention that “Volkswagen may also consider divesting luxury car brands Bentley and Lamborghini or motor bike brand Ducati”.
The loan taken out by VW is being used to cover the required recall which is set to cost over $2 billion, as well as the 500 lawsuits filed just within the United States. Sales of VW’s have seen a drop since news of the scandal broke, making it ever so difficult to recoup the losses. Investment bankers have been pitching ideas to aid VW in raising money, but decisions won’t be made until clarity of the penalties have emerged.