Volkswagen Budget Cuts Force Battery Unit to Seek External Funds

Volkswagen AG’s battery business is being forced to seek external financing after the German carmaker cut its five-year spending plan, creating a mid-term squeeze for the unit.

Third-party funding “is an option that we are looking into more closely than before,” PowerCo Chief Executive Officer Frank Blome told reporters at the unit’s plant in Salzgitter, Germany, on Tuesday. Bank loans, external investors and a potential public offering are all options under consideration after the unit’s budget was reduced, he said.