The $21B Loan makes VW to Sell Ducati, Lamborghini and Bentley
Volkswagen had to borrow $21B. In case the company is not able to pay the loan back, it will have to sell off assets.
The automaker’s insiders assure that the Man truck brand power engineering division can be sold first. Luxury automaker’s brands will follow. These brands include Italian Ducati and Lamborghini and British Bentley.
The Volkswagen Group loaned money for precaution in case it would be unable to pay in cash for the cost of recall service. We remind you, that the automaker had to recall millions of cars with defeat devices. The devices cheated io emissions tests. The producer will experience lawsuits, penalties and fines. Obviously, all these things are costly.
According to the reports, VW will issue bonds and start repaying the debt in spring.
The company is also initiating a cost-cutting scheme for its cars. Thus, the number of VW’s trim levels and offerings will be decreased. In such a way, the brand will be able to save $1B.