Wednesday, November 12, 2008
Volkswagen to approach European Bank for cash
Volkswagen has become the first European carmaker during the financial crisis to say it would tap the European Central Bank for liquidity, in an unusual move that highlights how refinancing stress has hit the car industry.
Europe's biggest carmaker said it planned next month to use €2.8 billion in securities backed by German car loans as collateral for ECB liquidity. Car executives said Volkswagen's rivals were thinking about similar moves as the ECB offered 'generous conditions'.
DATED: 12.11.08
FEED: AW
