Photo: Ducati
Volkswagen Group’s expansion campaign, which led to creating a group with 12 brands, might have done more harm than good.
A recent report ponders the possibility of Volkswagen selling off some of the brands it recently acquired. Among the names considered for sale are Italian motorcycle manufacturer Ducati, along with Swedish heavy-duty vehicle maker Scania, as well as MAN, the semi truck specialist. The sports car brand Porsche is sort of a recent acquisition as well, but it will not be considered for sale.
As analysts explain in an article published on Bloomberg, the high number of brands in Volkswagen’s portfolio led to the current situation of the corporation, where it has weak profits for some of its brands.
The German group is also considered slow at adapting to changes, and bureaucracy could affect employees of the massive automotive group.
Volkswagen has huge numbers of employees worldwide, and the company is currently pondering a restructuring process.
Instead of firing some workers and closing factories, a deed which could bring costly penalties, the German company is thinking of a way to trim fat without losing strength.
A unified strategy is among the steps that will be undertaken by the German corporation, as well as focusing on a single management team and reducing spending. Volkswagen is also considering selling one of its parts units, a move which has been previously done with success by GM, when Delphi was born, and by the Ford Motor Company, when Visteon was established.
At the moment, Volkswagen leaders are still considering if they should sell MAN Renk, a propulsion specialist, Man Diesel & Turbo, the MAN brand, the Scania brand, the Ducati brand, or all of them combined. Commercial vehicle demand is increasing in Europe, analysts say, so the German group might fetch a pretty penny for its MAN and Scania units, if it chooses to sell them.
However, Volkswagen cannot just sell its recent acquisitions so quickly, analysts say. Considering that fact that the German company’s second-largest shareholder, the state of Lower Saxony, has strong views on the matter, and some believe they would not appreciate the VW Group getting smaller.
As analysts explain in an article published on Bloomberg, the high number of brands in Volkswagen’s portfolio led to the current situation of the corporation, where it has weak profits for some of its brands.
The German group is also considered slow at adapting to changes, and bureaucracy could affect employees of the massive automotive group.
Volkswagen has huge numbers of employees worldwide, and the company is currently pondering a restructuring process.
Instead of firing some workers and closing factories, a deed which could bring costly penalties, the German company is thinking of a way to trim fat without losing strength.
A unified strategy is among the steps that will be undertaken by the German corporation, as well as focusing on a single management team and reducing spending. Volkswagen is also considering selling one of its parts units, a move which has been previously done with success by GM, when Delphi was born, and by the Ford Motor Company, when Visteon was established.
At the moment, Volkswagen leaders are still considering if they should sell MAN Renk, a propulsion specialist, Man Diesel & Turbo, the MAN brand, the Scania brand, the Ducati brand, or all of them combined. Commercial vehicle demand is increasing in Europe, analysts say, so the German group might fetch a pretty penny for its MAN and Scania units, if it chooses to sell them.
However, Volkswagen cannot just sell its recent acquisitions so quickly, analysts say. Considering that fact that the German company’s second-largest shareholder, the state of Lower Saxony, has strong views on the matter, and some believe they would not appreciate the VW Group getting smaller.
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