Volkswagen Scandal Impacts $3 Billion of Securitized Car Loansby and
Volkswagen AG said 2.6 billion euros ($3 billion) of loans or leases for vehicles built with engines using emissions-cheating software were packaged into asset-backed securities.
The loans were found in 15 securitizations, according to documents on the carmaker’s website. More than 61 percent of collateral backing a deal sold two years ago, known as Driver France One, were affected, as were more than 20 percent of loans packaged into a deal currently being marketed, the documents show.
Volkswagen said last week it plans to recall about 8.5 million vehicles after a U.S. investigation found cheating software in the EA189 engine fitted in cars. Chief Executive Officer Matthias Mueller says the fallout from the scandal will cost much more than than the 6.5 billion euros the automaker has already set aside.
Officials at VW couldn’t immediately be reached for comment on the securitizations.