Volkswagen plans on merging its components business and mulls asset sale

According to sources, German carmaker Volkswagen AG plans to combine the components business of its brands and divest certain assets as part of its strategy to navigate itself out of the emissions crisis.

The company’s senior management outlined its plans to the board, and may disclose it to investors by Thursday.

According to sources, the company plans to merge the components units of each brand into one new entity that would include about 70,000 employees at more than two dozen locations worldwide, allowing it to save costs and boost efficiency from a single management.

Currently, there were no plans outlined by VW to spin off or sell the new VW components unit.

VW is also likely to announce plans for a portfolio review, which could lead to the sale of non-core assets. While no decisions have been made on which assets are part of the sale, ones that could end on that list include motorcycle brand Ducati, the MAN Diesel & Turbo business and propulsion specialist MAN Renk.

An initial public offering of the trucking business could also be considered in future.

Source: Bloomberg

Bosch sets aside €650m for Volkswagen related risks

Robert Bosch GmbH stated on Wednesday that it would put aside €650m ($735m) for legal risks for FY 2015, after it emerged that the company had supplied Volkswagen AG with software used to cheat on emissions tests.

The news comes in the wake of Volkswagen disclosing plans to buy back about 480,000 vehicles in an attempt to limit damage caused by the emissions scandal.

Bosch had provided two components used in Volkswagen’s vehicles.

Source: WSJ