AUTO INDUSTRY NEWS

Report: Volkswagen withdraws sale of Ducati

Report: Volkswagen withdraws sale of Ducati image

Anton Andres / Manufacturer Press | October 07, 2017 03:22

Volkswagen halts sale of Ducati amid union opposition

Two months ago, it was reported that board members from the Volkswagen Auto Group (VAG) disapproved the sale of Italian motorcycle manufacturer, Ducati. In a new development, VAG has withdrawn its sale of Ducati following opposition for union groups in Italy.

Italian union FIOM CGIL announced the sale was halted and added that VAG should continue investing in the company which has helped and sustained Ducati employees. Both Volkswagen and Ducati have declined to comment regarding the matter.

Ducati, which has been under Audi (a member of VAG) since 2012, was ready to be sold off in order to pay off it's mother company's fines and legal fees following the emissions scandal. However, the board did not support the move, saying that Ducati has been posting strong sales. Prior to that, there were several companies expressing interest in buying the motorcycle manufacturer, one of them being Harley Davidson.

Should Ducati have been sold off, VAG could have received a $1.8 billion cash injection. There could have been more money for VAG but, again, the board denied the sale of its other subsidiaries. Aside from Ducati, the board did not approve the sale of Renk and Man Diesel and Turbo. Renk is one of the transmission suppliers of the Volkswagen Auto Group and the automaker owns a significant share of the said company.

Source: Bloomberg