The Clash’s hit song “Should I Stay, Or Should I Go” might perhaps perfectly fit the business situation for Ducati, within its parent company, Volkswagen AG.
The Italian motorcycle brand’s status in the German conglomerate has for the past few years been held on a tenuous string. Rumor about its divestiture, its selling to another company, are constantly dogging the iconic brand.
Talking to Bloomberg TV after Volkswagen’s quarterly earnings report, VW CEO Herbert Diess explained that there are two paths forward for Ducati, and one of them includes selling Ducati to the highest bidder.
The Volkswagen Group got a new CEO last week, and in less than seven days, that news has already sparked renewed rumors in the German automobile conglomerate divesting itself of Ducati Motor Holdings.
For those who have been following Ducati’s saga, there was much talk last year of Volkswagen selling off a number of its other brands, all under the reasoning that the German company would need to raise capital to cover its mounting Dieselgate liabilities.
There was a fly in the ointment though: Volkswagen’s labor unions, who control half of the VW Group’s board seats, and were vehemently opposed to any brand divestitures.
Because of the unions, any sale – including Ducati’s – was a non-starter for the Volkswagen executives, though that didn’t keep the warring factions from trying. By the end of last year though, it seemed we had put this issue to bed. 2018, however, is a new year.
Reports out of Italy are confirming the news that Ducati will remain as a part of the Volkswagen Group, with the German company ceasing its pursuits of divesting the Italian motorcycle company from its ranks.
This shouldn’t come as a surprise to anyone following Ducati’s business situation, as reports of the divestiture stalling out were circulating this time last month.
The news seems to come with a bonus, with Ducati CEO Claudio Domenicali reportedly confirming the news internally (other reports quote Audi CEO Rupert Stadler doing the same as well).
For the past few months, talk of Ducati’s divestiture from the Volkswagen Group has grabbed the attention from news outlets and Ducatisti alike, as the future of the Italian motorcycle company seemed uncertain.
Internally, a power struggle was a play, with Audi keen to unload Ducati from its books, but lacking the support from upper management in the Volkswagen Group.
Talks reportedly hit the skids once it was realized that the Volkswagen labor unions, which control half of the seats on the Volkswagen Group management board, weren’t onboard with divesting Ducati from the holding group.
This is probably information that investors would have liked to know, before they spent the time and resources putting together purchase proposals for Audi’s consideration.
Now, with no change in the position of VW’s labor unions, and with the possibility of an internal consensus seemingly out of sight, it seems talk of Ducati’s divestiture have stalled, with little chance of them resuming this year.
The hits keep on coming, in terms of Volkswagen’s plans (or non-plans) to sell its Italian motorcycle manufacturer, Ducati Motor Holding.
According to the latest report from Reuters, the votes are lacking on supervisory board for Volkswagen, when it comes to selling Ducati and transmission-maker Renk.
The lack of votes at the Volkswagen board isn’t a new problem, of course, with the German company’s labor unions accounting for half of the board seats, and reportedly very unenthusiastic about selling either brand.
Reuters continues to dish on Ducati’s possible divestiture from the Volkswagen Group, with news that several bids have been placed on the Italian motorcycle brand. Reuters says that amongst the bidders are several key brands like, Polaris, Bajaj, and Royal Enfield’s owners Eicher Motors.
Noticeably absent from the list of potential buyers however was the much talked-about Harley-Davidson, a name that the same Reuters reporters first offered as Ducati’s potential future owner.
Now Reuters offers us another name as the likely front-runner, pointing to Italy’s Benetton family (as in, the United Colors of Benetton), which has reportedly submitted a bid of $1.2 billion, through its investment arm Edizione Holding.
Rumors and reports continue to swirl around Ducati, as the Italian manufacturer is linked to one brand or another for a potential divestiture from the Volkswagen Group. And now, the latest name being thrown into the hat is none other than iconic American brand Harley-Davidson.
In a report by Reuters, Harley-Davidson is linked to buying Ducati by unnamed sources, with a purchase price that is pegged around €1.5 billion, a number that has been put together by the bean-counting minds at Goldman Sachs.
Volkswagen is said to be taking bids on Ducati this July, which means the fate of the Italian motorcycle brand could be decided by the end of this year.
We have been here before, with financial news outlets discussing the possibility of Volkswagen divesting Ducati Motor Holding from its collection of companies. Let’s be clear, this talk about talk…not talk about action.
The idea of VW selling Ducati isn’t new. We first reported on this rumor back in September 2015 – when VW was found fudging around with its diesel-powered cars. Many thought the ramifications of Dieselgate would mean a bevy of brands being unload by the German car company. Nothing came of that.
Then last year, around June 2016, more talk of Ducati’s divestiture came to the forefront. The rumors were so strong, that Audi AG (the direct owner of Ducati) had to publicly state that the Italian motorcycle brand wasn’t for sale.
So here we are today, again with reports that the highest levels of Volkswagen are considering looking into selling their little motorcycle brand.
After much buzz and fanfare regarding the future of Volkswagen, which in-turn called into question the future of Ducati, today we finally get a glimpse into how VW is going to soldier forth from the fallout of its “Dieselgate” scandal.
Instead of announcing how the company was going to restructure itself, and review its current business holdings and ventures, as was reportedly widely in financial circles, instead today saw Volkswagen strongly staking its future in electric and autonomous cars.
As the Wall Street Journal reported, this announcement failed to impress analysts investors; but for Ducatisti, some good news does emerge, as Ducati certainly won’t be leaving its home in the Volkswagen Group.
To drive that point further, a Ducati representative confirmed and conveyed to Asphalt & Rubber the words of Audi Chairman Rupert Stadler, who said emphatically that “Ducati is NOT FOR SALE” which is as straight and to the point as you can get.
It seems to come in waves, every time the news cycle picks up Volkswagen’s plight in dealing with “Dieselgate” that talk then shifts to the German powerhouse unloading its smaller holdings, one of which being Ducati Motor Holding.
This latest go-around comes courtesy of Bloomberg, which has Volkswagen CEO Matthias Mueller saying that the automaker’s current portfolio of companies and its overall corporate plan will be re-evaluated over the coming weeks and months.
Tomorrow (Thursday), Volkswagen is slated to make public what this new business plan looks like, but sources say that VW will put all its assets under review, which includes Ducati.
Could this lead to Ducati being divested from Volkswagen’s holdings? The answer is of course murky, but we would be very surprised by the news.