Volkswagen supervisory board has decided to halt the sale of Ducati due to consistent opposition from powerful worker groups
Volkswagen AG has decided not to sell the Italian bike manufacturer Ducati due to the consistent opposition from its powerful worker unions. Ducati CEO Claudio Domenicali has revealed that Volkswagen supervisory board decided to halt the sale process of the Italian company. Several two-wheelers giants from across the world were racing to buy the brand since the German group first revealed its intention to sell Ducati.
Motorcycle makers like Royal Enfield, Harley Davidson were among the interested buyers for Ducati. Volkswagen was trying to sell the Italian brand in order to collect fund and also to streamline its operations in wake of the huge fine amounts the group has been slapped with after the Dieselgate scam. By selling Ducati, Volkswagen AG could have brought around $1.8 billion cash reserve.
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Now being unable to sell the company is a major blow for the German automobile group and specially for Audi that purchased the brand back in 2012. The worker unions that control a major part of the supervisory board have been opposing the decision of selling Ducati saying that the Italian company brings profit and Volkswagen doesn’t need to sell it in order to collect fund.
Volkswagen AG started the bidding process for the sale of Ducati in July this year and five companies from across the world showed interest in purchasing it. The deal was supposed to be finalised by the end of this month. Royal Enfield was being seen as a keen bidder for Ducati.
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Considering the fact that Royal Enfield is trying to become the leading brand in middleweight category of the world motorcycle market, Ducati could have become a very valuable buy for the Chennai-based motorcycle maker. With Ducati under its arm, Royal Enfield could have got perfect chance to apply the modern technology and premiumness to its products.
Source: Automotive News