Embattled Volkswagen’s supervisory board is considering steps to prop up the carmaker’s credit rating, amid fears that the company is likely to be downgraded by rating agencies.
Cost-cutting and revenue-generating measures are under consideration, but asset sales have been ruled out, sources close to the board told Reuters.
Volkswagen declined to comment on the plans.
Three credit rating agencies have voiced concerns over the carmaker’s position in the last week.
VW’s reputation has been hammered by the revelations that it manipulated diesel emissions tests on cars sold in the US and Europe.
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Volkswagen, whose share price has fallen by more than a third since the scandal arose 10 days ago, fears that a downgrade will lead to higher borrowing costs and make it difficult for the company to win back investors.
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Yesterday the German car maker said that nearly 1.2 million UK cars are fitted with the software behind the emissions scandal.
Customers will be contacted about the manufacturer’s next steps.
Standard & Poor’s said last week that it expected Volkswagen to incur substantial costs to correct the engines of the cars affected and warned that the company could also face fines from regulators.