In the wake of Volkswagen’s diesel emissions scandal, the company could be forced to do something that no one wants to see happen. To make up for losses, VW is contemplating on selling off the high-end motorcycle brand known as Ducati.
This information comes as a shock to the automotive industry simply due to the sheer size of the Volkswagen group and their business tactics over the past years. VW is known as the company that consistently buys and takes new brands under their umbrella, not sells them off. VW owns everything from Audi to Lamboghini, Bentley, and Bugatti.
This information all stems from a report done Bloomberg essentially stating that VW is having to weight their options to avoid taking too large of a financial hit.
“VW is also likely to announce plans for a portfolio review, which could lead to the sale of non-core assets, said the people. While no decisions have been made on which assets are expendable or what the time frame might be, ones that could end on that list include Ducati, the MAN Diesel & Turbo business and propulsion specialist MAN Renk, said the people. An initial public offering of the trucks business, which includes the Scania and MAN units, could also be considered down the road, one of the people said.”
Although Ducati is one of the largest upscale motorcycle manufacturers in the world, it is easy to see why VW would decide to sell them off. VW is in the business of cars and unbeknownst to many people VW shares chassis and engine blueprints between Volkswagens, Audis, and Bentleys to reduce production costs. This is something they simply can’t do with motorcycles, meaning it is very likely Ducati has a smaller profit margin than anything else in their portfolio.
