Volkswagen risks losing 11 billion Danish kroner if the Swedish battery factory Northvolt goes bankrupt. Still, the car brand has pulled out.
Volkswagen risks losing billions on its investment in battery manufacturer Northvolt.
The German car giant has reportedly withdrawn from negotiations for further financing of the ailing company.
According to Affärsvärlden, Volkswagen has given up injecting more capital into Northvolt, in which the car brand is the largest shareholder with a 22 percent stake.
Volkswagen has so far invested 11 billion Danish kroner in Northvolt. Just like the Germans, they have 700 million kroner of so-called convertible bonds in the Swedish battery factory.
Should Northvolt go bankrupt, Volkswagen stands to lose the entire investment. And although the bankruptcy is not yet a reality, Northvolt has already had to see a subsidiary go that way.
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The situation for Northvolt then becomes increasingly serious. Last week, Volkswagen's representative resigned from Northvolt's board. However, Volkswagen assured that this did not change their ownership.
"Volkswagen has no further comment," a Volkswagen spokesman told Affärsvärlden.
Much now suggests that a reconstruction of Northvolt is necessary to try to save the debt-ridden company. It has also emerged that the factory's founder has left his position as chairman of the board. However, he is still the director of the factory.
The crisis really began to roll when BMW lost patience earlier this year and tore up a contract worth DKK 14 billion in the middle. Shortly afterwards, doubts arose about a similar contract with Volkswagen.
And since then, everything from fatal accidents to rumors of Chinese takeovers have plagued the factory, which as recently as October was one day away from being declared bankrupt due to tax debt. Read more about it here .
