The German manufacturer, Volkswagen, seems to be finding itself in quite some trouble. Because of the ongoing Dieselgate scandal, the car maker will have to take out a massive €20 billion bridging loan to cover the diesel scandal costs. The company was caught cheating on emission tests by placing cheating mechanism in their cars, and now they are facing heavy fines. It’s been two months now and the investigation is still going on. Following an announcement that VW’s US sales went down by 25 percent in November, it has now emerged that Europe’s biggest automaker has agreed to the terms of a €20 billion loan with banks.
There are a number of banks that will be loaning the car giant money. Last month VW said it would cut back on versions and trim options in order to save around €1.9 billion. The company also announced the next-gen Phaeton will be delayed to save around €1 billion.
However, VW also announced it will try to protect the jobs of their employees. “Jobs are a very valuable asset,” Wolfgang Porsche, chairman of Porsche Automobil Holding SE, commented at a gathering of 20,000 workers at VW’s main plant in Wolfsburg. “This asset mustn’t be squandered.”
