Volkswagen, mired in a huge scandal involving rigged diesel and gasoline engines, will reportedly get a total of €20 billion ($29.2 billion CAD) in loan from 13 German banks to help cover the costs of this mess.
This information was told to Reuters by three different sources.
Each bank has offered to lend either €1.5 billion or €2.5 billion. Volkswagen desperately needs the money to pay fines, settle lawsuits, and conduct vehicle recalls after it admitted to cheating in diesel emissions tests and falsifying carbon dioxide emissions. Analysts expect the bill to amount to at least €40 billion.
According to Reuters, Volkswagen hopes its bonds will have returned to more normal levels by next spring, allowing it to issue debt and repay the loan in full.
Roughly 11 million vehicles globally need to have a special software removed because it helped them defeat emissions rules. And despite implementing a whistleblower program and conducting several investigations, Volkswagen still hasn’t pinpointed the individuals who were responsible for installing the defeat device.