Volkswagen Considering Possible Sale Of Ducati

Posted April 30, 2017

The motorcycle maker has been making profits, but following the dieselgate scandal, Volkswagen announced in June 2016 that it will look into its portfolio of brands and assets to streamline operations.

The automaker has started reaching out to prospective buyers to sound out their interest, no decision has been handled whether the brand will be sold, they added.

Ducati is owned by VW's Audi division through its Italian subsidiary Lamborghini.

VW referred requests for comment to Audi; Audi and Evercore declined to comment.

Potential buyers could be its peers in China, India's Hero or investors such as the consortium that bought British sports vehicle maker Aston Martin in 2007, the report said. Private equity firms may also be interested in this brand with a rich track record.

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Analyst questioned Audi's purchase of Ducati when it was announced in April 2012, saying the move bore no economic or industrial logic and exclusively reflected former Volkswagen Chairman Ferdinand Piech's passion for the Italian company's expertise on design and light engines.

Having repeatedly said no in the past, Volkswagen may now be changing its tune to a yes in the case of the potential sale of Ducati.

Should Ducati fail to find a buyer, Volkswagen may consider a stock market flotation to raise funds.

According to Reuters, the manufacturer could sell motorcycle arm Ducati in order to pay the multibillion-dollar fines and taxes after the diesel scandal.

Industry insiders expressed initial doubts on VW's purchase of Ducati, considering it a less than financially astute notion of then VW Chairman Ferdinand Piech, who is no longer in charge. In 2016, Ducati's sales were worth 593 million euros, or almost $644 million.