This is a good point. The government might keep them alive, given VW's depth and breadth of presence in the Lower Saxony (and more generally, German) economy. However, the quid pro quo might be that Lower Saxony ends up owning a much larger share than 20% of the company. And they might have to sell of some smaller assets such as Porsche, Bentley, Bugati, Ducati, Lamborghini, etc. to raise cash. Perhaps even Audi, depending on the size of the liability.