Volkswagen is facing approximately $25 billion in costs related to its Dieselgate scandal but the company’s head of strategy has revealed the automaker isn’t going to cut back on investments or hold a fire sale of assets.
Speaking to Reuters, Thomas Sedran said Volkswagen isn’t focused on selling companies such as Ducati because the automaker has been posting strong financial results despite the scandal. Sedran went on to say “It’s much more important to discuss which new business fields the company will enter. Divestments are less relevant.”
Despite downplaying the possibility of a sale, Sedran admitted Volkswagen will have to come up with the money somehow and stated it’s “perfectly plausible that we consider whether the time may have come to find a more suitable owner for certain business areas.”
Multiple reports have suggested Volkswagen has tapped investment banks to explore a possible sale of Ducati and Renk. Five groups were reportedly interested in Ducati with bids rumored to be between €1.3-1.5 ($1.5-1.7) billion.
However, the report suggests the company’s supervisory board doesn’t support a possible deal unless there are “compelling financial reasons.”
While Volkswagen needs to come up with billions of dollars, Sedran said the company isn’t hitting the brakes on development. The automaker recently confirmed talks with Tata collapsed but the executive confirmed the company is moving forward with a car for emerging markets under the leadership of Skoda. The car is slated to arrive by 2020 and could eventually be offered in markets such as Brazil, India, and Iran.
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