Volkswagen might sell one of its engines units image

Sources told Reuters that several investors were interested in buying one of Volkswagen’s units which make engines used in ships or small power stations.

With costs over the emissions scandal mounting up, many analysts are speculating that Volkswagen will eventually be forced to sell some assets to cope with the financial predicament. Europe’s biggest carmaker is struggling to calculate all the expenses related to the recalls, fines and lawsuits, postponing last week the publication of its 2015 results. Most of the rumors are pointing towards the MAN truck business as a viable option to raise some cash, but Volkswagen stated the division was not for sale. However, the unit’s chief said earlier this week that it was keeping all options open with regards to expanding overseas, including a stock market listing. Recent reports are showing though the company might consider giving up on some of its divisions, as it apparently received expressions of interest for a unit making engines used in ships or small power stations, people familiar with the matter told Reuters.

Investors from China, Europe and the United States have recently told Volkswagen they were interested in buying the operations of MAN that are not central to its trucks business, the sources said, adding that the unit may be valued at up to 4-5 billion euros (4.5-5.6 billion dollars). One person said that Volkswagen was expected to engage soon in a round of exploratory talks with a potential Chinese suitor. “There has been a formal exchange. Talks are in preparation. But it’s all very early stage,” the person said.

Via Reuters