The diesel scandal continues to rock Volkswagen AG, the parent company of Bentley Motors. You may remember that as news of the scandal broke, VW took out a massive loan (in the form of a $18B bond issuance) to boost its cash levels.
As part of that deal, Volkswagen AG, “…assured the lenders it would sell or list assets worth up to significantly more than 20 billion euros if it fails to find other sources of money.” At the time of that post in early December 2015, an inside told Reuters that the short list of assets that could be sold included Bentley, Lamborghini and Ducati.
Fast forward to this week and VW finally released their delayed financials. The company had delayed releasing their financial results as they attempted to tally the cost of the scandal.
In their annual report, Volkswagen confirmed that funding demands may lead to “assets having to be sold.” According to Bloomberg, this could mean an IPO (sale of shares) of their truck unit. According the company, it wouldn’t mean selling any of their 12 brands outright.
Frank Witter, Volkswagen Board Member for Finance, said that the company believed it had provisioned adequately for all known risks, although there were naturally uncertainties given the scope of the issue.
“We believe in our multi-brand group, so we don’t have brand or unit sales on the agenda at all,” Witter said.