VW could sell Ducati to offset cash shortage

• Published On: 28 April 2017
• 1094 Views

Hero MotoCorp has supposedly shown interest in purchasing Ducati.

The scandal titled ‘Dieselgate’, along with a move to focus on electric vehicles and other mobility solutions, have put the VW Group in a bit of a cash crunch. The company plans to deal with it by offloading a few of its less important functionaries. The first of these, it seems, is Italian bike-maker Ducati.

The superbike maker was acquired by Audi in April 2012, a move regarded as poor strategy by analysts, but then VW chairman Ferdinand Piech loved the Italian company for its engineering and design capabilities. According to Reuters, the Italian superbike maker’s gross annual earning is roughly 100 million Euros, leading to a valuation of as much as 1.5 billion Euros.

The rumour mill says that a few Chinese two-wheeler makers and the Indian two-wheeler giant, Hero MotoCorp, could be interested in purchasing Ducati. The VW Group, however, has not confirmed its decision to sell Ducati; it has simply floated the idea into the market to gauge reactions and elicit interest and bids. The company might unload other brands such as truck-makers Scania and MAN and could include even its non-automotive diesel engine business.