A few months back, Volkswagen was plagued by a serious scandal that had put them in headlines all over the world. Dubbed as the ‘Dieselgate’ scandal, VW was found intentionally programming their TDI diesel engines to activate certain emissions controls only during laboratory emissions testing. And the numbers staggers us as well as VW put this programming in about 11 million cars worldwide.
In order to handle this Dieselgate ordeal, VW was forced to borrow a huge sum of 20 billion Euros from several banks to conduct the massive recalls around the world and paying up the fines as well. The catch is that this credit line must be paid back in full in one year, which had led VW to line up the solutions including a worst-case scenario to sell units like Bentley, Ducati or Lamborghini.
“Volkswagen may also consider divest luxury car brands Bentley and Lamborghini or motor bike brand Ducati, although these units don’t really move the needle,” said one of the sources to Reuters. It is worth noting that VW has various brands under their umbrella such as Audi, Bugatti, Porsche, Seat and Skoda, but the three stated earlier are some of the smallest and least valuable due to their niche products and small annual production numbers, reported Road and Track.
VW has already taken some financial steps to deal with the issue, one of them being reducing the number of versions and trims of VW-branded models which could save them about 1.9 billion Euros. They will also reduce the annual investments by one billion Euros and there is also a rumour about supplier cost cuts of three billion Euros.