Photo: Ducati/Volkswagen Group
Volkswagen AG, the German conglomerate and the biggest vehicle maker in the world, is going through a tough time because it cheated with its diesels, in spite of having strong sales across the board.
The group has hired an outside company named Evercore to do an internal audit and advise the board on strategic options for its well-being.
While it was initially reported that Evercore was hired to help the VW Group sell off Ducati, additional information clarified that the Germans wanted to know what they had on their hands and to look at their options.
A recent report from Bloomberg quotes unnamed sources close to the matter who said that the conglomerate considers selling the Italian motorcycle brand it acquired in 2012.
At that time, the purchase of Ducati was regarded as an ambitious move by the German group that did not have any motorcycles in its portfolio, while its rivals at BMW had a strong reputation on the market.
While the VW Group refused to comment on the situation, and the same response came from Evercore’s representatives, it is clear that an internal evaluation of “non-core” operations could be targeting Ducati. After all, the market for new motorcycles cannot grow as easily as the one for new vehicles.
Furthermore, the risk of diluting a brand could jeopardize the entire reputation of its other products, which means that selling low-cost models could be a wrong turn for the Italian marque.
Instead, selling it to the highest bidder could help Volkswagen pay off its fines and repairs with the entire Dieselgate predicament, while also maintaining its other brands in hand.
Audi AG is the owner of Ducati, and the same can be stated about the Lamborghini brand, but the Volkswagen Group controls the four-ringed company at the end of the day.
The internal review should give the conglomerate a few solutions on cost-cutting, and there may be a way for them to stay healthy without selling Ducati.
Sources close to the matter claim that no final decision has been made yet, but it will be interesting to follow the subject in the next few months.
While it was initially reported that Evercore was hired to help the VW Group sell off Ducati, additional information clarified that the Germans wanted to know what they had on their hands and to look at their options.
A recent report from Bloomberg quotes unnamed sources close to the matter who said that the conglomerate considers selling the Italian motorcycle brand it acquired in 2012.
At that time, the purchase of Ducati was regarded as an ambitious move by the German group that did not have any motorcycles in its portfolio, while its rivals at BMW had a strong reputation on the market.
While the VW Group refused to comment on the situation, and the same response came from Evercore’s representatives, it is clear that an internal evaluation of “non-core” operations could be targeting Ducati. After all, the market for new motorcycles cannot grow as easily as the one for new vehicles.
Furthermore, the risk of diluting a brand could jeopardize the entire reputation of its other products, which means that selling low-cost models could be a wrong turn for the Italian marque.
Instead, selling it to the highest bidder could help Volkswagen pay off its fines and repairs with the entire Dieselgate predicament, while also maintaining its other brands in hand.
Audi AG is the owner of Ducati, and the same can be stated about the Lamborghini brand, but the Volkswagen Group controls the four-ringed company at the end of the day.
The internal review should give the conglomerate a few solutions on cost-cutting, and there may be a way for them to stay healthy without selling Ducati.
Sources close to the matter claim that no final decision has been made yet, but it will be interesting to follow the subject in the next few months.
Google News