The company last week sought the funding from more than a dozen banks, providing more cash to pay for expected recalls, criminal penalties and lawsuit payouts in the US market and abroad.
Reflecting the uncertainty surrounding the ultimate financial tally, VW promised to sell as many assets as needed to pay back the one-year loan if it fails to refinance the debt by issuing bonds or securing other funding, unnamed sources told Reuters.
Industrial portions of the group’s MAN subsidiary are said to be at the top of the list, with an estimated value of up to five billion euros (~$5.4 billion USD) for the power engineering unit.
The insiders also mentioned Bentley, Lamborghini and Ducati as other potential brands to put up for sale, though the luxury car divisions “don’t really move the needle.”
A VW official has denied the allegations, claiming that “no specific assets have been discussed. A separate contact claimed the company is considering an emergency rights issue, allowing funds to be received from stock sales.
Analysts have disagreed over the costs that VW ultimately faces for cheating emissions regulations. Several pessimistic estimates warn of a final cost of up to 35 billion euros ($38 billion USD), while Credit Suisse has predicted a 78 billion euro (~$87 billion USD) doomsday scenario for the German automaker.
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