Volkswagen Says It Is Focusing On The Future Not On Selling Assets

Financial analysts and industry experts have been expecting Volkswagen to begin selling assets to help cope with the cost of its diesel emissions cheating scandal. The penalty for its deception may have already reached $24.2 billion, and German lawsuits could tack on another $8 billion.

However, Europe’s largest automaker says it’s not interested in selling off properties to recoup losses associated with the scandal. It has another plan to rake in the cash.

VW says it’s more interested in focusing on the shift into electrification and mobility services. Cutting up assets for sale is not a good long-term plan for the company, according to corporate strategy head Thomas Sedran. While that may not be his personal assertion, it is a contention among the board members who forced the decision. Sedran said labor unions don’t want properties moved around, citing the group’s strong overall financial performance in spite of the scandal.

MDarringer - 8/22/2017 8:23:04 AM

-8 Boost

VW's new slogan: "Kraft durch Freude"

TomM - 8/22/2017 6:40:37 PM

+2 Boost

I would severely object to any attempt to do that. While there are times when Matt has posted things that are mind puzzling - he is clearly well informed and has expertise on automobiles - and can often point out things that the average person here would not ever think of. Compared to the people here who are clearly paid spokesmen for at least one manufacturer - he brings insight that includes many different cars - many different makes - and the group would be missing something if you tried to cut Him off.

MDarringer - 8/22/2017 9:00:32 PM

-2 Boost

Thank you @TomM

CANADIANCOMMENTS - 8/23/2017 12:49:00 PM

+2 Boost

As much as I have disagreed with much of what MDarringer has posted in the past (and called him out on it) and may do so in the future, I too like to read his posts. I know he has more inside info and knowledge than I do and I want to hear it. Even if I greatly disagree with his view of the world from time to time, he adds value to the site and is also brand neutral which is great too.

MDarringer - 8/23/2017 11:00:49 PM

-2 Boost

@Canadiancomments LOL you will now be accused of being the account that the agents created to respond to me the account they supposedly created to drum up traffic here. LOL

bw5011 - 8/22/2017 12:40:40 PM

+8 Boost

Can I submit a script to run on your webserver that automatically votes down any of MDarringer's comments?

TauronB2G - 8/22/2017 1:04:49 PM

0 Boost

I wish they'd sell Porsche back to Porsche so they could be independent.

Dr550 - 8/22/2017 3:01:42 PM

+6 Boost

And Porsche SUV prices would shoot up 20% without VW's shared: platforms, electronics, cost of labor, etc. Same situation for an "independent" Lexus, Acura, and Infiniti.

TheSteve - 8/22/2017 3:49:09 PM

+1 Boost

As far as I can tell, Porsche is "doing it right"[1] in a big way. I don't know if that's because of the VW relationship, or in spite of it.

A Porsche 911 Turbo compares favorably to a Ferrari, Lamborghini, or McLaren, at a fraction of the purchase price, with much higher reliability, and with much lower ownership costs. Many have called the 911 "the best 'all around' sports car" and "the most reliable super-car." I'm not alleging that Porsche products are "perfect," but I do believe they're noteworthy, just as they are, even with VW in the picture.

____
[1] Aside from Dieselgate and other emissions fraud, in which Porsche participated, right in step with parent company VW. Boo on that :-(

MDarringer - 8/24/2017 8:35:13 AM

0 Boost

VW has always done engineering with Porsche and VW called product shots at Porsche even when they weren't the same company. The Porsche 914 was originally designed to replace the ancient Karmann Ghia, but when VW discovered it would be an expensive build, they pushed it off to Porsche. The 914 was very much a VW design with parts-bin engineering.

Mind you, if you've ever seen a 914 up close there is nothing expensive about its build, but I digress.

The 924 was supposed to be an Audi, but once again, VW could not figure out how to target a price point effectively. So with a flick of the wrist, it became a Porsche. Granted, Porsche had been doing the engineering of it for VW.

VW and Porsche have always been one company by one definition or another.