Volkswagen’s trucks division head said the German automaker was not considering selling its truck business to raise cash in order to cope with the emissions scandal financial repercussions.
Volkswagen is facing billions of euros in costs after the automaker admitted it rigged millions of cars to bypass the emissions tests. Therefore, the pressure to raise cash to cope with the crisis’ effects is building up, but it is not as high as to force selling some of company’s assets, management board member Andreas Renschler told a German newspaper. “The operating results of the Volkswagen group are good, despite everything. There won’t be a fire sale,” Renschler, who also heads the trucks business at VW, was quoted to say during an interview with the Frankfurter Allgemeine Sonntagszeitung published on Sunday. Volkswagen hired ex-Daimler executive Renschler and created last year a holding company for its MAN and Scania heavy-truck units in an attempt to better compete with industry leaders Daimler and Volvo. With the new structure being separated from VW’s passenger car operations, a spin-off and a listing on the stock exchange of the trucks business could be possible. Asked about such an outcome for the division, Renschler told the paper that “everything is possible, but only if it makes strategic sense.”
At the beginning of December, Volkswagen reportedly signed a 20 billion-euro bridge financing deal with about 13 banks, according to people familiar with the matter. Under the terms, the company 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, the sources added. It is unlikely for Volkswagen to give up on its Audi or Porsche brands, but divisions like VW’s MAN are expected to be at the top of the list in case of potential divestments, the people said at that time.