Here's What Volkswagen Can Sell Off to Help Pay Billions in Fines
With Volkswagen potentially facing fines for its dieselgate scandal that will cost it billions of dollars, the company may be looking at ways to shed some of its bigger assets to make some extra cash.
We’re sure the giant company has enough cash stashed away to pay the massive fines, but in case it doesn’t, here are a few ideas we came up with for how the German automaker could sell some of its biggest assets or halt some of its biggest sponsorships to come up with some extra cash:
Audi
Volkswagen has owned a majority of Audi since the 1960s, and lately, the two companies have shared a lot with one another, including diesel technology. While Audi vehicles are also affected by the dieselgate scandal, the company reported $56.7 billion in revenue last year. Audi is a moneymaker and a top dog in the luxury segment. However, many Audi models share parts, platforms or technology with VW products, so it’s unlikely the company would give it all up.
Porsche
Porsche, on the other hand, shares very little with VW. Sure, the Cayenne and Macan have some mainstream roots, but the rest of the lineup uses its own platforms and engines. While not as profitable as Audi, Porsche still makes a lot of money, and has a long history of making prestigious and high-performance vehicles.
Other Automotive Brands
Volkswagen also owns Bugatti, Lamborghini and Bentley. Surely, they don’t need both Lamborghini and Bugatti, since both are exotic and desirable brands. Or Bentley, for that matter, since Audis can get extremely luxurious, allowing the VAG to cover that market with its own brands.
Ducati
Here’s one that could actually make sense. Ducati, which is owned by Lamborghini (which is 100 percent owned by Volkswagen) was purchased back in 2012 for US$909 million. While Volkswagen used some Ducati tech in the XL Sport Concept, there really isn’t a big collaboration between the two companies, and selling off one of the most desirable motorcycle companies could bring in a big chunk of change for VW.
Lamborghini IPO
Maybe Volkswagen and Lamborghini could take a page out of Fiat and Ferrari’s playbook and consider an initial public offering of the exotic Italian marque. In the example of Ferrari, the expected value of the company on the stock market could hit as high as $11 billion! If Ferrari can do it, so can Lamborghini.
Motorsports
Would Volkswagen have to pull its participation in the various motorsports it takes part in like WRC? The automaker participates in the world and global rallycross championships and has some pretty big names under its belt, including Tanner Foust of Top Gear USA fame.
Furthermore, Audi could pull its team from the World Endurance Championship and Le Mans. Known for being a dynasty of a racing team, Audi leaving the Endurance championship would be a whole blow to the series.
Sponsorships
Volkswagen is a major sponsor of various sports teams, including the Bundesliga soccer league in Europe and it even owns the Wolfsburg team VfL Wolfsburg. That team also plays in the Volkswagen Arena, so maybe VW could sell off the naming rights for the arena to make some extra coin. Although for a team that plays in VW’s hometown of Wolfsburg, it may be sacrilegious to drop the Volkswagen connection.
Audi is also a title and presenting sponsor of the Ski World Cup. Cutting its involvement there could really hinder the sport, but save the company a lot of money.
Volkswagen also sponsored the winter Olympics in Sochi and provided cars for the event. These types of global sponsorships are great for exposure but are incredibly expensive to run, so don’t be surprised if VW has to cut its Olympic ties.
Do you have any ideas of how VW could make some extra money so it can pay the massive fines? Let us know in the comments below.
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Sami has an unquenchable thirst for car knowledge and has been at AutoGuide for the past six years. He has a degree in journalism and media studies from the University of Guelph-Humber in Toronto and has won multiple journalism awards from the Automotive Journalist Association of Canada. Sami is also on the jury for the World Car Awards.
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I think this sounds crazy but I think CEOs, President's and Chairmen should forgo without pay for a year or whenever this mess is completed. They have rich bank accounts and survive on them.
Of course, Lambo's main product is farm equipment, the sports cars are more of of a vanity sideline. I'd expect there's a much bigger market for the tractors than the supercars. Most supercar brands are propped up by the parent company for the prestige they bring, not because they contribute to the bottom line, as most of them cost more than they make.