VW Group May Sell Ducati As It Continues To Streamline
One of the most famous brands in the bike world may soon be up for sale. Italian motorcycle manufacturer Ducati has been under the ownership of Audi subsidiary Lamborghini since 2012, but with Audi parent company VW Group cutting spending across the board in the wake of dieselgate, the fancy bike brand may have to go.
Citing two insider sources, Reuters reports that VW has handed investment banking firm Evercore the job of exploring a range of cost-cutting measures, one of those being the sale of Ducati. VW is said to have “started reaching out to potential buyers to sound out their interest,” but no firm decision on the brand’s future under the Group’s umbrella is yet been made.
One source noted that floating Ducati on the stock market may be considered if VW doesn’t receive appropriate interest. But if the brand is sold, it won’t be cheap. With earnings of roughly €100 million, Ducati could fetch a value as high as €1.5 billion, one of the Reuters sources reported.
When contacted by the news agency, both Audi and Evercore chose not to comment.
Comments
So does this mean no XL1 Sport? I’m disappointed.
I don’t get it, if a devision makes a profit, why sell it?
And I hope that whoever ends up with Ducati, they look after them!
Several reasons spring to mind:
Infusion of cash that they can use to finance other capiral-intensive projects (such as new factories).
Infusion of cash for fines and settlements.
Simplify the operations of VAG (likely this).
Look at how VAG shares parts and platforms across it’s subsidiaries. You have VWs, Audis, Porsches, Lamborghinis, and Skodas all built on the same platform.
What does Ducatti bring to the others? What technologies can it share or innovate for the VAG as a whole?
This is my opinions but there are very few, if any, technologies that motorcycle companies have pioneered that did not already exist on cars.
ABS, TC, and most other driving aids we are seeing appearing on motorcycles nowadays have existed on cars for decades. Yeah Duccatti may be innovating for motorcycles but it is such a niche market with razor thin margins.
So if they are trying to further simplify and streamline operations, it makes perfect sense to get rid of their motorcycle brand first.
Do you accept cash vw?
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