Volkswagen Might Hold a Big Ol' Yard Sale: Report
With its expansion dreams fading fast in the rear-view, Volkswagen needs to shrink and streamline its operations in a hurry, meaning unwanted brands could soon be priced to sell in its driveway.
According to Bloomberg, the automaker plans to conduct a wide-ranging strategy and portfolio review, with details of the strategy expected to go public tomorrow. An asset sale could be in the works, and insiders are already hinting at which brands will be dropped.
Before its name became synonymous with clouds of dirty air, VW went on a buying spree, fleshing out its portfolio with 12 brands and a ship engine business.
Sources told Bloomberg that Italian motorcycle company Ducati could be one of the assets VW plans to ditch. German multinational MAN Diesel & Turbo — a marine engine producer — could also be on the chopping block, along with its propulsion technology arm, MAN Renk. Swedish commercial truck maker Scania is another candidate.
VW’s asset yard sale would take time to put together, but it’s not the only cost-saving measure the automaker has up its sleeve. The automaker plans to merge the component units of all of its brands into a single unit, with a single management group. The component units, which also provide parts to third-party buyers, is a massive operation employing 70,000 people worldwide.
The company’s powerful unions will fight any reduction in workforce, but the $18.2 billion cost of the diesel scandal and falling sales at its namesake brand means something has to give.
Speaking of which isn't VW supposed to release the details of its buyback plan in the next week?
Oh, here we are again, back to the Volkswagen Battersea Power Station. Can you maybe photoshop in the big pig balloon from the Pink Floyd Animals album?
It is obvious, they should sell VW and keep the rest.
Tata or Geeley might be interested in buying the VW brand.