VW has asked for more than 10 bn euros in loan guarantees: report
Volkswagen, the biggest European car maker, has asked for more than 10 bn euros (14 bn dollars) in state loan guarantees for its financial services unit and bank, a press report said on Friday.
By Agencies |
FRANKFURT: Volkswagen, the biggest European car maker, has asked for more than 10 bn euros (14 bn dollars) in state loan guarantees for its financial services unit and bank, a press report said on Friday.
But the German banking sector stabilization fund Soffin, which has been accorded 480 bn euros for loan guarantees and cash injections, is only willing to provide four-five billion euros in guarantees to VW, the news magazine Der Spiegel added.
A VW spokesman contacted by AFP declined to comment, saying "we are in the midst of an ongoing process."
A Soffin spokeswoman also declined to comment. "The request has been filed and is being examined," she told AFP.
In early December, VW became the first German car maker to say it had asked for loan guarantees under the government's plan.
"It is a question of obtaining public guarantees. It is not a request for recapitalisation," the spokesman said at the time. The three largest German auto manufacturers each own their own banks that offer clients financing, either via credits or leasing programmes.
These activities used to make money for the companies but they have been hit hard by the international financial crisis that had made credit conditions more restrictive, in particular between financial institutions.
German car makers BMW and Daimler have also mulled asking for the loan guarantees, which make it easier to obtain financing in currently stressed credit markets, but have not yet formally asked for the aid.
But the German banking sector stabilization fund Soffin, which has been accorded 480 bn euros for loan guarantees and cash injections, is only willing to provide four-five billion euros in guarantees to VW, the news magazine Der Spiegel added.
A VW spokesman contacted by AFP declined to comment, saying "we are in the midst of an ongoing process."
A Soffin spokeswoman also declined to comment. "The request has been filed and is being examined," she told AFP.
In early December, VW became the first German car maker to say it had asked for loan guarantees under the government's plan.
"It is a question of obtaining public guarantees. It is not a request for recapitalisation," the spokesman said at the time. The three largest German auto manufacturers each own their own banks that offer clients financing, either via credits or leasing programmes.
These activities used to make money for the companies but they have been hit hard by the international financial crisis that had made credit conditions more restrictive, in particular between financial institutions.
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German car makers BMW and Daimler have also mulled asking for the loan guarantees, which make it easier to obtain financing in currently stressed credit markets, but have not yet formally asked for the aid.
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