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Volkswagen to sell Ducati?
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Volkswagen to sell Ducati?

December 7th, 2015 NewsReaper News, News From Abroad comments

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Ducati may be put up for sale by carmaker Volkswagen to pay off its loan after the emission norms fiasco, which the German manufacturer found itself in.

Reports have stated that Volkswagen may be willing to sell off the Ducati brand to strengthen its finances after taking a financial hit with refunds, lawsuits and returns. Volkswagen had earlier admitted to cheating the U.S. diesel emission tests. Other than Ducati, brands luxury brands like Bentley and Lamborghini.

In April 2012, Audi had bought Ducati from the Investindustrial group. Audi in turn is owned by parent company Volkswagen. VW is looking at the option of selling Ducati to generate funds for paying off its loans. It is still unknown how much will it cost VW in terms of refunds, lawsuits and returns. Only after there is clarity  on the amount of funds required, will VW make a decision on the selling off these assets. VW has taken a 20 billion Euro loan from 13 banks. In comparison the sale proceeds from brands like Ducati will be a tiny amount in the VW coffers. Bringing forth the question whether it will be worth selling Ducati for VW.

The Italian motorcycle manufacturer has been on an uptrend for the past few years and will see interest from multiple quarters if it is put up on sale. And what off the future of Ducati? The company has seen steady increase in sales, on the basis of which it has been regularly launching new motorcycle models. Recently Ducati unveiled the XDiavel and Scrambler Sixty2 at EICMA, entering two segments simultaneously, cruiser and small capacity. Ducati has also seen reasonable success in motorsports in WSBK and MotoGP. Motorsports being an integral part of the Bologna based manufacturer.

Source: http://www.reuters.com/article/us-volkswagen-emissions-idUSKBN0TM1BA20151204#vLBEsGvOFuIEK2XV.97

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