VW Will Not Unload Brands like Bentley to Cover Diesel Scandal Costs

The Volkswagen Group has no plans to sell off brands like Lamborghini or Bentley in order to help pay for costs related to its diesel scandal. The report comes from German newspaperBoersen-Zeitung, which interviewed VW supervisory board Chairman Hans Dieter Poetsch.

"The Volkswagen Group is financially solid and has many options for financing," Poetsch said in the interview. "And that is without extraordinary measures such as capital increase. That is not being considered at this time. We are also not thinking of selling parts of our brands."

Poetsch's statement quashes rumors claiming VW would need to unload a number of its prized luxury brands in order to cover costs from its ongoing diesel emissions scandal. The automaker has set aside at least $19.8 billion to pay pending finesand lawsuits it faces worldwide.

VW's troubles began in September 2015 when U.S. regulators discovered software cheating devices in a number of the automaker's vehicles equipped with a 2.0-liter I-4 diesel engine. In real-world conditions, the engine's emissions surpassed legal limits, but the cheat devices tweaked the software to ensure the engines passed emissions tests. The scandal affects over 11 million vehicles worldwide and has also implicated the automaker's 3.0-liter turbocharged V-6 diesel engine.

Source: Reuters