VW still considers selling assets image

As part of its strategy to raise cash to cover the costs of the diesel scandal, Volkswagen is likely to sell some of its assets, such as the MAN truck division.

Europe’s biggest automaker has been working on a new business plan aimed at saving costs and boosting profitability to slowly recover after the emissions scandal. According to Bloomberg sources, the strategy – which will be presented on June 16 – will likely include some streamlining approaches, such as the merger of the components business, with its different brands, into one big division that would include about 70,000 employees at more than two dozen locations worldwide. However, as the dieselgate triggered the biggest operating loss in VW’s history, forcing the company to set aside 16.2 billion euros, further radical moves have to be made in order to recoup some of the financial damages.

Therefore, the German automaker is also likely to announce plans of reassessing its entire non-core divisions, which could ultimately lead to the sale of several assets. There are targeted units such as motorcycle brand Ducati, trucking divisions MAN and Scania and MAN power engineering operations, whose products include ship engines, mini power plants, special gear units, propulsion components and testing systems.

Separately, Porsche SE – the holding company for the Porsche and Piech families which controls 52 percent of company’s voting shares – is considering blocking VW’s plans to pay a dividend for 2015, Reuters reported earlier this week.

Via Bloomberg