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If VW defaults on loans it may sell Bentley or Lamborghini

If something goes catastrophically wrong with Volkswagen Group's recent $21 billion loan, brands like Bentley or Lamborghini could hit the auction block. According to two insiders to Reuters, the beleaguered German automaker agrees with its creditors to sell assets if the company somehow can't pay back the debt in a year. One of these anonymous people claimed the company hasn't yet deliberated over what to sell. However, the sources were willing to speculate that the power engineering portion of Man could be among the first to go. "Volkswagen may also consider divesting luxury car brands Bentley and Lamborghini or motor bike brand Ducati, although these units don't really move the needle," an insider said to Reuters. VW Group negotiated with the banks earlier this week to get the massive loan. The cash is necessary as a buffer in case the automaker doesn't have enough money on hand to repair vehicles or settle upcoming fines. VW would reportedly issue bonds in the spring to begin paying the debt. The company's bills will start racking up quickly in the new year. German authorities mandate a recall there in early 2016, and repair campaigns in the US for the 2.0- and 3.0-liter diesel engines are inevitable. There are also hundreds of class-action lawsuits to settle. The company needs to resolve its CO2 emissions scandal in Europe, too. In response to these financial threats, VW management created a cost-cutting plan to slash the research and development budget by $1.1 billion next year.

Lamborghini could be sold or spun off from the Volkswagen Group

Volkswagen is reportedly considering a sale or stock listing for its high-end Lamborghini brand. The German automaker is looking to fold the Italian supercar brand into a separate legal entity, reports Bloomberg, which cites "people familiar with the matter" who don't want to be identified "because the deliberations are confidential and no decisions have been made." Any of this sound familiar? The goal of spinning off Lamborghini would be to stockpile more cash and other resources for VW's massive planned push into electric vehicles. Back in March, reports circulated that Volkswagen's "Vision 2030" corporate plan might include plans to focus on the brand's core brands — VW, Audi and Porsche. That means the futures of fringe players like Lamborghini, Bentley, Bugatti, motorcycle brand Ducati and design firm Italdesign (and note this isn't a comprehensive list of brand's under the expansive VW Group umbrella) are up in the air. VW, according to the report, is targeting a market value of $220 billion, which is a big jump from the brand's current $89 billion valuation. Bloomberg pegged Lamborghini's valuation at around $11 billion back in August, buoyed by sales and profits generated by the introduction of the Urus sport utility vehicle. On the flip side, Lamborghini is currently grappling with how best to update its supercar lineup in the face of ever-increasing emissions regulations.

2020 Bentley Flying Spur First Edition ratchets up the exclusivity

For the 2020 Bentley Flying Spur's first year of production, the automaker will offer the First Edition model. The sedan adopts a brace of options taken from the standard car, as well as identifying badging. Outside, a set of Union Jacks with a number "1" in the center can be found on the C-pillars, just as were found on the Continental GT First Edition released last year. The words "First Edition" appear on the treadplates, and the sedan sits on 22-inch Mulliner Specification wheels. Up front, the electronic Flying B mascot with illuminated wings retreats to its den inside the grille frame when the car is locked. Inside, the instrument panel gets another Union Jack along with the Bentley Rotating Display. Owners can choose to have the First Edition Bentley Winged Emblems embroidered into the headrests. The panoramic roof and mood lighting come standard, as does Touring Specification, which adds driver assistance features like a head-up display, lane assist, night vision, and adaptive cruise control. The premier example of the breed is set to be auctioned at the Elton John AIDS Foundation's inaugural ball called the Midsummer Party, taking place at Jean Pigozzi's Villa Dorane on July 24, in Cap d'Antibes. All proceeds from the Mulsanne's sale will be given to the EJAF, but the new buyer will still have work to do. A Bentley designer will host the owner in Crewe or travel to the owner's home to spec out the car "through Bentley's exclusive Co-Creation Luxury Service." We're not sure how that's different than Mulliner, but to anyone buying a Bentley in the South of France at an Elton John event, it isn't likely to matter. They'll get whatever they want, including the right to say, "First."