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    Rumorpile/As the Diesel Emits: Volkswagen To Meet With Banks For Short-Term Loans


    • Volkswagen Asks A Number of Banks For Short-Term Loans

    Volkswagen's emission scandal will not be an easy or quick problem to fix. Along with fixing a number of vehicles, the automaker will be facing a large amount of fines from various governments and possibly payouts from lawsuits. To make sure they have enough money to cover all of this, Volkswagen is reportedly is taking out some short-term loans.

     

    Bloomberg has learned from two sources that the German automaker will meet with a number of banks tomorrow to apply for 20 billion euros (about $21.5 billion) in short-term loans to act as a buffer for upcoming fines. The hope is to have the loans by the end of this year.

     

    “It makes perfect sense” to shore up financing, said Sascha Gommel, analyst for Commerzbank AG.

     

    “In order to protect their rating, they need to show that liquidity will never become an issue for them, because then you have a vicious circle. If the ratings agencies think you won’t have cash and they downgrade you, then your funding gets more expensive.”

     

    Source: Bloomberg

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    Oh wow.

    From World's Largest Automaker (more or less) to this in the space of a few months.

    Unbelievable, really. How bad does Wolfsburg think this is gonna get that they don't even trust their cash reserves to hold?

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    And to think, it wasn't our regulatory agencies that actually caught wind of this.

     

    VW was brought to the light by NGOs. 

     

    And their restructuring in progress would actually make it simpler to spin off separate business units... with the 4 distinct holding companies each representing 2 or 3 of the VW Group's brands.

     

    Who'd have have figured?

     

    And because they're going to utilize more product/sales discounts and other goodwill shoring activities that hurt the bottom-line, it's going to definitely hurt their recovery.

     

     

    This story is going to continue to unfold. I hope this burns a lesson into their organizational culture. And Winterkorn, he must be sweating bullets, as he's indirectly implicated, some of the people in the 'know' said that his outlandish targets forced the engineers to cheat. He LIED to shareholders first, even before the power-train engineers decided to use the cheat.

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    And to think, it wasn't our regulatory agencies that actually caught wind of this.

     

    VW was brought to the light by NGOs. 

     

    And their restructuring in progress would actually make it simpler to spin off separate business units... with the 4 distinct holding companies each representing 2 or 3 of the VW Group's brands.

     

    Who'd have have figured?

     

    And because they're going to utilize more product/sales discounts and other goodwill shoring activities that hurt the bottom-line, it's going to definitely hurt their recovery.

     

     

    This story is going to continue to unfold. I hope this burns a lesson into their organizational culture. And Winterkorn, he must be sweating bullets, as he's indirectly implicated, some of the people in the 'know' said that his outlandish targets forced the engineers to cheat. He LIED to shareholders first, even before the power-train engineers decided to use the cheat.

    NGO's????????

     

    Not sure what it stands for but I thought this came out by the universities that were trying to figure out how VW diesels did not need to use the same emission controls that everyone else is using?

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    And to think, it wasn't our regulatory agencies that actually caught wind of this.

     

    VW was brought to the light by NGOs. 

     

    And their restructuring in progress would actually make it simpler to spin off separate business units... with the 4 distinct holding companies each representing 2 or 3 of the VW Group's brands.

     

    Who'd have have figured?

     

    And because they're going to utilize more product/sales discounts and other goodwill shoring activities that hurt the bottom-line, it's going to definitely hurt their recovery.

     

     

    This story is going to continue to unfold. I hope this burns a lesson into their organizational culture. And Winterkorn, he must be sweating bullets, as he's indirectly implicated, some of the people in the 'know' said that his outlandish targets forced the engineers to cheat. He LIED to shareholders first, even before the power-train engineers decided to use the cheat.

    NGO's????????

     

    Not sure what it stands for but I thought this came out by the universities that were trying to figure out how VW diesels did not need to use the same emission controls that everyone else is using?

     

     

    NGOs - non government organizations. It was Universities in the U.S. and I believe some industry-affiliated organizations in Germany that first discovered this. The latter part I may be wrong, but alas, yes NGOs continue to show how slow our paid-for regulators are.

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    And to think, it wasn't our regulatory agencies that actually caught wind of this.

     

    VW was brought to the light by NGOs. 

     

    And their restructuring in progress would actually make it simpler to spin off separate business units... with the 4 distinct holding companies each representing 2 or 3 of the VW Group's brands.

     

    Who'd have have figured?

     

    And because they're going to utilize more product/sales discounts and other goodwill shoring activities that hurt the bottom-line, it's going to definitely hurt their recovery.

     

     

    This story is going to continue to unfold. I hope this burns a lesson into their organizational culture. And Winterkorn, he must be sweating bullets, as he's indirectly implicated, some of the people in the 'know' said that his outlandish targets forced the engineers to cheat. He LIED to shareholders first, even before the power-train engineers decided to use the cheat.

    NGO's????????

     

    Not sure what it stands for but I thought this came out by the universities that were trying to figure out how VW diesels did not need to use the same emission controls that everyone else is using?

     

     

    NGOs - non government organizations. It was Universities in the U.S. and I believe some industry-affiliated organizations in Germany that first discovered this. The latter part I may be wrong, but alas, yes NGOs continue to show how slow our paid-for regulators are.

     

    Thanks for the clarification, I agree, the Gov organizations are slugs in comparison to the NGO's that seem to want to dig into why things do not add up.

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