VW seeks to boost finances to meet emission scandal costs

Volkswagen is looking at ways to cut costs and boost cash flow and could sell more shares if the price of clearing up a scandal over its rigging of diesel emissions tests puts its credit rating at risk. 

The German carmaker's supervisory board has discussed ways of strengthening its finances, but has not talked about selling assets or brands, two sources close to the board told Reuters. 

One said raising money by selling shares would become likely if the cash costs of the scandal exceeded a "critical level", without elaborating. 

Volkswagen declined to comment. 

Europe's largest carmaker has admitted cheating in diesel emissions tests in the United States and Germany's transport minister says it also manipulated them in Europe, where Volkswagen sells about 40 percent of its vehicles. 

The biggest crisis in the company's 78-year history has seen its shares plunge more than a third in value and forced out long-time chief executive Martin Winterkorn. 

It has also sent shockwaves through the global auto industry and the German establishment, which has for years held up Volkswagen as a model of the country's engineering prowess. 

The company has set aside 6.5 billion euros ($7.2 billion) to help cover the costs of the scandal, but some analysts think the final bill could be much higher. 

Volkswagen has said it will refit up to 11 million diesel vehicles containing software capable of cheating emission tests. It also faces potential fines from regulators and prosecutors, lawsuits from consumers and investors, and a possible hit to sales and prices from the damage to its reputation. 

The sources said the board was worried that, without boosting its finances, its credit ratings might be...