Volkswagen’s plan for selling Ducati doesn’t boast majority backing in VW’s board; Bajaj and Harley Davidson are top contenders among potential buyers
Volkswagen Group might not sell the Italian superbike manufacturer company Ducati, as the plan of selling this brand has failed to receive majority backing from the German automobile group’s supervisory board. Several members of the board have been citing the recent strong results of the company against the plan of selling it.
Not only Ducati, transmission manufacturer Renk is also in the list of brands for potential selling. But several board members have opposed that decision as well. The plan of selling these two companies has been a part of Volkswagen’s streamlining strategy as the auto major is facing financial crisis due to the huge fine amounts slapped on it as a result of the Dieselgate scandal.
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Also, as Volkswagen is focusing on the development of electric vehicle fleet, it needs huge amount of money to fund the project. Selling companies like Ducati and Renk could help the auto major to collect the fund. However, now with nearly 10 members of the 20-member supervisory board opposing the plan, Volkswagen might not sell the Italian bike manufacturer.
India’s very own Bajaj Auto is in the race to buy Ducati in collaboration with its Austrian partner KTM. Apart from that, American motorcycle manufacturer Harley Davidson too is in the race as a potential buyer. As we reported earlier, Bajaj is closer to finalise the deal. Now, it is to be seen what becomes Volkswagen Group’s final decision regarding the plan of selling Ducati.
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Porsche and Piech families that has 52% of voting shares in the Volkswagen group and holds four seats in the supervisory board is also opposing the plan of selling Ducati. The members opposing the plan clearly say that Volkswagen doesn’t need to sell the companies in order to collect money as the German auto manufacturer is already seeing profit along with its subsidiaries.
Source: Reuters