VW board considering steps to prop up credit rating: sources
[BERLIN] Members of Volkswagen's supervisory board are concerned about the carmaker's credit rating and are considering steps to prop it up but have no plans to sell off assets, two sources close to the board said.
Volkswagen declined to comment on the sources, who spoke to Rueters late on Wednesday evening.
They said that following recent actions from credit rating agencies Fitch and Moody's, there were worries that a downgrade could inflict higher borrowing costs on the company, hampering its ability to win back the trust of investors.
As result, the board is considering cost cuts and revenue-generating measures. However no discussions on selling off VW assets or brands have taken place, the sources said.
The Wolfsburg-based company has been hammered by the revelations that it manipulated diesel emissions tests. The scandal has sent its stock sharply lower and forced out long-time CEO Martin Winterkorn, who has been replaced by Porsche boss Matthias Mueller.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Transport & Logistics
India’s IndiGo gets into long haul game with Airbus A350 deal
Hertz reports US$392 million loss as it unwinds Tesla fleet burden
Changi Airport’s Q1 passenger movements surpass pre-pandemic levels
Toyota and Nissan pair up with Tencent and Baidu for China AI arms race
China's largest auto show displays all-electric future, local brands dominate
Toyota hits record annual output, sales on robust demand