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.
The logic for that reasoning wasn’t sound, but the actions were certainly there, with Volkswagen tendering offers from a number of would-be suitors.
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.
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.
I woke up this morning to a message from a colleague, with a link to a story that linked Royal Enfield to buying Ducati Motor Holding. The story was from a fairly reliable news publication, but the headline read “Royal Enfield Might Consider Buying Ducati Pretty Soon” – the grammarist in me cringed.*
“Might consider” is the most nebulous phrase in the English language. Let’s think about that phrase for a moment, as it literally means that you are considering the possibility of considering something. Don’t get me started on the timeliness of “Pretty Soon” in the news realm, as well.
Metaphysics and meaningless headlines aside, for our purposes this narrative devolves further in that this story offers nothing new, beyond the story that Reuters published two weeks ago, which set off alarms in the motorcycle industry around the world.
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.
The last we checked-in with the Suzuki/Volkswagen divorce, the German automobile maker was ordered by the London Court of International Arbitration to sell its 19.9% stake in the Japanese manufacturer (worth $2.8 billion at the time).
That was back in September 2015, and now that ordered has finally been fulfilled, with Volkswagen completely divesting itself from Suzuki – a move that has been four years in the making.
We’re really enjoying the work of Tamás Jakus, better known as Jakusa Design. If that name doesn’t immediately ring a bell, we’re sure his recent work on the zeffed-out Triumph Tiger 800 will surely strike you as familiar. This time, Jakus has imagined a Ducati-powered car.
That concept is already in our headspace, thanks to the engineers at Volkswagen making the Volkswagen XL Sport, but Jakus’ version is far more appealing to us.
Extruding the distinctive intake of the Panigale across the trellis frame of an Aeriel Atom type oversized go-kart – complete with pigeon-toed three spoke wheels, just like the superbike – there are enough Ducati design elements to link the car to the brand to make the exercise convincing.
Leave your thoughts and your best Volkswagen emissions jokes in the comments section.
The big news this week might be about how Volkswagen falsified emissions reports on its diesel-powered automobiles – a move that today lead to Volkswagen CEO Martin Winterkorn stepping down from his position in the company, and VW stock dropping nearly 30%, at the time of this writing.
Less well-known though is that Volkswagen has also lost its long-fought battle with Suzuki over the Japanese company’s stock ownership. VW and Suzuki were supposed to untie the knot back in 2011, but Volkswagen did not go quietly into that good night.
Taking the case to arbitration, the London Court of International Arbitration has finally handed the two parties its verdict. As such, Volkswagen will have to sell its 19.9% stake back to Suzuki.
It has been almost a year now since we broke the news that Ducati Motor Holding was up for sale, and I still can’t tell if the appropriate metaphor for the ongoing acquisition is a game of musical chairs or Russian roulette. Vying for a seat or putting the chamber to its temple, our latest contestant in “Who Wants to Buy Ducati” is Audi, the four-ringed German car manufacturer. Reported to have a right of first refusal, Audi allegedly has until mid-April to finalize a deal with Investindustrial (Ducati’s main investor) to buy Ducati from the Italian investment group.
Though Ducati sold over 40,000 motorcycles in 2011, the Italian company has roughly €800 million in debt on its books. This means that any company interested in buying Ducati would have to assume the Italian company’s debt onto its own books, which changes the actual purchase price of Ducati dramatically. For its part, Audi is rumored to be making an offer in the €850 million range, which would put the actual purchase value of Ducati at over €50 million, and could put as much as €100 million on the table for Investindustrial to take.
This rumor just doesn’t want to die (maybe there’s some truth in it then?), but talk continues about a possible Volkswagen motorcycle. This time the speculation centers around NSU an old german brand that VW bought back in the 1960’s. Known for its wankel-style rotary motors, NSU was the world’s largest motorcycle manufacturer in 1955, but sadly went out of business in 1969 when the failing brand (primarily due to its automobile division) was acquired by Volkswagen, never to be seen again or so it would seem.