VW lines up $21.5 billion in financing to weather crisis
VW will meet with around a dozen banks as soon as Nov. 16 to line up the money before the end of the year. The cash won't be necessary immediately but will be a buffer for expected upcoming costs, the insiders claim. "It is perfectly normal that we are in a constructive ongoing dialog," the automaker said in a statement, according to Automotive News. The company had over $30 billion in net liquidity from its automotive division as of its third quarter financial announcement.
VW already racked up significant costs from this scandal. The company set aside $7.3 billion to deal with the diesel emissions cheating, but group CEO Matthias Müller admitted that amount was just a start. The automaker also estimated the price of its carbon dioxide problem at $2.2 billion. There was a recent $13 million fine in Brazil too. One estimate places the total charge for this wrongdoing anywhere between $24.5 billion in the best case and $87 billion at the absolute worst.
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