FRANKFURT (AFP) -- Volkswagen said Tuesday it had sought loan guarantees for its financial services unit as part of government aid for the banking sector, the first German automaker to ask for such help.
""We have filed two requests,"" one for the financial services division itself and another for the Volkswagen bank that is a sub-unit of the division, a VW spokesman told AFP. He declined to give the amount requested and the date the request was made. ""It is a question of obtaining public guarantees. It is not a request for recapitalization,"" the spokesman said. VW had said several weeks ago that is was considering such a move after encountering problems with refinancing for its auto credit operations. The German government's bank support plan provides a total of 480 billion euros (620 billion dollars) in aid, with the vast majority representing guarantees for loans. Berlin is also ready to inject cash into troubled German banks in exchange for stakes in them, but relatively few banks have applied for the cash.
""We have filed two requests,"" one for the financial services division itself and another for the Volkswagen bank that is a sub-unit of the division, a VW spokesman told AFP. He declined to give the amount requested and the date the request was made. ""It is a question of obtaining public guarantees. It is not a request for recapitalization,"" the spokesman said. VW had said several weeks ago that is was considering such a move after encountering problems with refinancing for its auto credit operations. The German government's bank support plan provides a total of 480 billion euros (620 billion dollars) in aid, with the vast majority representing guarantees for loans. Berlin is also ready to inject cash into troubled German banks in exchange for stakes in them, but relatively few banks have applied for the cash.
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