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If VW defaults on loans it may sell Bentley or Lamborghini

If something goes catastrophically wrong with Volkswagen Group's recent $21 billion loan, brands like Bentley or Lamborghini could hit the auction block. According to two insiders to Reuters, the beleaguered German automaker agrees with its creditors to sell assets if the company somehow can't pay back the debt in a year. One of these anonymous people claimed the company hasn't yet deliberated over what to sell. However, the sources were willing to speculate that the power engineering portion of Man could be among the first to go. "Volkswagen may also consider divesting luxury car brands Bentley and Lamborghini or motor bike brand Ducati, although these units don't really move the needle," an insider said to Reuters. VW Group negotiated with the banks earlier this week to get the massive loan. The cash is necessary as a buffer in case the automaker doesn't have enough money on hand to repair vehicles or settle upcoming fines. VW would reportedly issue bonds in the spring to begin paying the debt. The company's bills will start racking up quickly in the new year. German authorities mandate a recall there in early 2016, and repair campaigns in the US for the 2.0- and 3.0-liter diesel engines are inevitable. There are also hundreds of class-action lawsuits to settle. The company needs to resolve its CO2 emissions scandal in Europe, too. In response to these financial threats, VW management created a cost-cutting plan to slash the research and development budget by $1.1 billion next year.

Porsche CEO Matthias Mueller throws hat back in ring for VW CEO job

Toward the end of February it got leaked that Porsche CEO Matthias Muller was being promoted to Volkswagen's supervisory board. Muller's credentials and his success over 36 years at the VW Group have, for observers, put his name in the pool of potential candidates to succeed current group CEO Martin Winterkorn when Winterkorn retires in two years. But the 61-year-old Muller told German newspaper Frankfurter Allgemeine Zeitung earlier in February, "It's no solution to put a 63-year-old at the head of Volkswagen," and the statement was taken to mean he wasn't considering the job. Muller now says the quote was misunderstood. In a report in Automotive News, the newly minted board member says he was commenting on what it would mean for the supervisory board and the Group if they nominated a 63-year-old to replace a 69-year-old - that it wouldn't result in a "generation change." However, if that's what they choose to do, Muller feels great: "I stand ready to take over any assignment," he said. Muller's name re-enters the candidacy pool, but we still have no idea who leads the running for the role and Winterkorn isn't saying a word. It could be three years before we know: Winterkorn's contract concludes at the end of next year but there is speculation he'll re-up for two years to see out the end of the Strategy 2018 initiative.

CARB found another emissions-defeating device, this time from Audi

The California Air Resources Board has discovered another emissions-cheating device on an Audi earlier this summer, reports German newspaper Bild am Sonntag. The device is different from the software found in the VW Group's diesel-powered engines, as it alters the way the cars' automatic transmission shifts. The latest device, according to Bild am Sonntag, measures how far the cars' steering wheel is being turned. If the wheel is turned less than 15 degrees, indicating that the vehicle is being tested in laboratory conditions, a program in cars with certain automatic transmissions changes the way the gearbox shifts. The change in the transmission allows the engine to produce less carbon dioxide than when driving in normal conditions. When the wheel is turned more than 15 degrees, the program automatically turns off, claims Bild am Sonntag. The paper reports that Audi took the software out of its vehicles, which was used in both diesel- and gasoline-powered vehicles in Europe and the US, earlier this May after CARB discovered the program on one of the automaker's older cars. Several engineers that were connected with the emissions-cheating device have already been suspended, reports Bild am Sonntag. As the German newspaper points out, the device, which is fitted to certain Audis with an automatic transmission, is different from the cheat devices found on the automaker's 3.0-liter TDI turbodiesel V6 engine and Volkswagen's 2.0-liter turbodiesel motor, even those were also designed to beat emissions tests. The 3.0-liter engine is found in the Audi Q7, Volkswagen Touareg, and Porsche Cayenne models. Audi didn't immediately respond to our request for a comment. Related Video: News Source: Bild am Sonntag via ReutersImage Credit: Reuters / Michaela Rehle Government/Legal Green Audi Volkswagen Emissions Diesel Vehicles vw diesel scandal