Dieselgate: Volkswagen gathers bankers

Cheating car company Volkswagen has gathered its bankers together in Europe to strum up €20 billion in bridging finance to see it through its emissions crises.

With 11 million cars worldwide affected by its Dieselgate emissions cheat and another 800,000 hurt in a separate CO2/fuel economy fiddle, sources at Volkswagen said the company brought in its top 12 bankers on Monday.

While the company has no immediate liquidity problems, sources said it brought the bankers together to assure ratings agencies that its financial future was solid, even if the regulatory fines, class-action lawsuits and recall clean-up should cost it up to €25 billion.

It has sought the funding as a cushion, even though it had €27.8 billion in net liquidity at the end of September and had originally allocated €6.7 billion to cover the Dieselgate crisis and another €2 billion for the CO2 cheat.

It has almost €2.6 billion in bonds scheduled to mature this year, with another €14.3 billion next year and €13.5 billion in 2017.

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