The expected Ducati sale may be in doubt. Audi is selling Ducati, although Volkswagen ultimately owns Ducati through its ownership of Audi. Audi has been a Volkswagen brand since its purchase in 1965. Consequently, the sale cannot go through without the Volkswagen supervisory board agreeing to it.
Additional to that, the Renk sale involves the sale of the Renk transmissions manufacturer. Probably, both these sales indicate the company’s plan to move away from diesel vehicles.
It seems that Benetton is on the final shortlist of five bidders for the Italian motorcycle company. Edizione Holding is handling Benetton’s bit. This is the company the Benetton family uses for its investments. According to the Italian press, other bidders include Polaris Industries, the US snowmobile and automotive sports vehicle company. It mentioned some others, among them some private equity funds. However, none has confirmed their interest.
The offers are said to have valued Ducati at €1.3 billion – €1.5 ($1.53 billion – $1.76 billion). The final selection of bidders will get access to Ducati’s business accounts.
Volkswagen is the largest of the European car manufacturers and was recently hit in the pocket by the emissions scandal. Consequently, the company faces a number of fines and settlements totaling billions of euros. Volkswagen’s plan, known as Strategy-2025, involves offloading some of its diesel-oriented activities and focusing primarily on battery-operated vehicles. The question is, will the sale go through?
The Renk and Ducati sale needs Volkswagen board approval for it to proceed. It seems for now, however, as though that is not forthcoming. One issue is the way Volkswagen has constructed its board.
The Volkswagen supervisory board, which decides on the disposition of the company’s assets, comprises 20 members. Half of these are employee representatives who have rested the move. They make the point that the firm is not short of money, having reported a six-month operating profit of €8.9 billion. For now, it seems like a stalemate.
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