Volkswagen is in one trouble after the other. According to a report by Reuters, Volkswagen could sell one of its luxury brand, if the company is unable to repay the 20 billion Euro loan it recently secured. Brands such as Lamborghini, Bentley or Ducati could be auctioned in such a case.
Volkswagen recently secured a loan of 20 billion Euros to pay as compensation to customers and to settle lawsuits filed against the company. In order to assure to its creditors, Volkswagen had to confirm that the company is ready to sell off one of the smaller holdings, which is either Lamborghini, Bentley, or Ducati. Volkswagen will also start issuing bonds to repay the debt.
Since Lamborghini, Bentley, and Ducati cater only to a specific crowd with limited numbers, these brands risk being auctioned off first. Another company that has high chances of being auctioned away is MAN, which supplies marine engines.
The Diesel Gate scandal has affected over 11 million cars made by Volkswagen worldwide. The cars have been fitted with a defeat device that passes emission norms illegally, but pollutes the atmosphere beyond permissible limit. Volkswagen also issued recalls in India due to the same problem, which has affected over 3 lakh cars.
The German carmaker faces multiple lawsuits and in India, apart from recalling over 3 lakh cars, Volkswagen could be fined upto Rs. 32 crore for fitting cars with substandard quality devices.