Volkswagen, Europe’s largest car maker, plans to sell the Italian motorcycle brand ‘Ducati’ which it acquired in 2012 under the Audi division for about Euro 860 million. Sources say that currently, Volkswagen faces a financial crisis to increase the fund for streamlining the operations following the car emission scandal. Volkswagen is also reportedly cutting down thousands of jobs at its core passenger-car brand.
It is not the first time that Ducati is looking for a new owner. Since 1926, Ducati has seen the ownership of around a dozen different entities.
It is believed that Ducati may approach potential investors from China or even our very own Hero MotoCorp. It is not confirmed but even large competitors such as Polaris, Harley-Davidson, Suzuki, Honda or Kawasaki might show interest in the brand Ducati which made annual earnings of roughly Euro 100 million (before interest, taxes, depreciation and amortization). It is estimated that up to 1.5 billion euros or 15 times its core earnings could be its current valuation.
Volkswagen Group sells passenger cars under the Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, Skoda and Volkswagen marques; motorcycles under the Ducati brand; and commercial vehicles under the marques MAN, Scania, and Volkswagen Commercial Vehicles.
Source: reuters.com
