The credit and default risk arising from financial assets involves the risk of default by counterparties, and therefore comprises at a maximum the amount of the claims under positive fair values receivable from them and the irrevocable credit commitments. The risk arising from non-derivative financial instruments is accounted for by recognizing bad debt losses. Cash and capital investments and derivatives are only entered into with prime-rated national and international counterparties. Risk is additionally limited by a limit system based on credit assessments by the international rating agencies and on the equity base of the counterparties concerned.

There were no material concentrations of risk in fiscal year 2008 due to the global allocation of the Group’s business activities and the resulting diversification.

There are no overdue financial instruments measured at fair value in the Volkswagen Group. As a consequence of the fluctuations in fair value caused by the financial crisis, securities measured at fair value with a cost of €363 million were individually impaired in fiscal year 2008.

The Volkswagen Group performs a credit assessment of borrowers in all loan and lease agreements, using scoring systems for the high-volume business and rating systems for corporate customers and receivables from dealer financing. Receivables rated as good are contained in risk class 1. Receivables from customers whose credit rating is not good but have not yet defaulted are contained in risk class 2.

Collateral that met the recognition criteria under IFRSs was recognized in the balance sheet in the amount of €225 million in fiscal year 2008 (previous year: €174 million). This mainly relates to vehicles.