Volkswagen’s emissions scandal won’t be a cheap or quick problem to fix.
In addition to having to repair millions of vehicles, the automaker will likely face hefty government fines and the possible repercussions of lawsuits. To make sure there’s enough money in the account to pay for all of that, VW will reportedly apply for the equivalent of $21.5 billion in short-term loans, according to two anonymous insiders in an Automotive News report citing Bloomberg.
VW will meet with around a dozen banks as soon as this week to line up the money before the end of the year. The cash won’t be necessary immediately, but will be a buffer for expected upcoming costs, the insiders claim.
“It is perfectly normal that we are in a constructive ongoing dialog,” the automaker said in a statement, according to Automotive News. The company had over $30 billion in net liquidity from its automotive division as of its third quarter financial announcement.
VW already racked up significant costs from this scandal. The company set aside $7.3 billion to deal with the diesel emissions cheating, but group CEO Matthias Müller admitted that amount was just a start.
The automaker also estimated the price of its carbon dioxide problem at $2.2 billion. There was a recent $13 million fine in Brazil too. One estimate places the total charge for this wrongdoing anywhere between $24.5 billion in the best case and $87 billion at the absolute worst.