Cash-strapped Volkswagen Thinking of Dropping Ducati: Report

Steph Willems
by Steph Willems

After history’s largest and most expensive automotive scandal forced a sudden pivot at Volkswagen Group — from expansion-minded to profit-focused — the German automaker might let go of a cherished toy.

According to insider sources who spoke to Reuters, VW is exploring the sale of Italian motorcycle manufacturer Ducati as part of a company-wide streamlining effort. After shoveling over $20 billion to the United States in a bid to end its diesel debacle, the company is in full penny-pinching mode.

The revered boutique motorcycle company was a long-awaited feather in ex-VW chairman Ferdinand Piëch’s hat, but after just five years of ownership, it may be time for Ducati to find a new home.

Two sources claim VW has hired investment banking firm Evercore to look at money-saving options, including a Ducati sell-off. This shouldn’t come as a major shock. One year ago, the company admitted in its annual earnings report that unexpected expenses could lead to a sell-off of one or more of its many holdings. (The brief mention was subsequently downplayed by VW’s chief financial officer.)

While no decision has been made on the divestment, VW has already reached out in search of potential buyers, the sources claim.

Volkswagen Group’s Audi brand purchased Ducati for just under $1 billion in 2012, 18 years after Piëch, a motorcycle enthusiast, passed on an earlier chance. Ducati began manufacturing its own motorcycles in 1950 after first selling small engines for bicycle conversions. The company was founded in 1926 as a radio component manufacturer.

In recent decades, Ducati became something of a foster child. After being sold to Italian motorcycle manufacturer Cagiva in 1985, the brand fell under the control of private equity firm TPG Capital in the late 1990s. The following decade, it changed hands again, this time to Investindustrial Holdings.

Both VW and Audi refused to comment on the report. Should the company decide to let the storied brand go, it could prove a lucrative move — one of the sources estimates Ducati’s value at 1.5 billion euros ($1.63 billion), 15 times what the sportbike builder earns every year.

[Image: Audi AG]

Steph Willems
Steph Willems

More by Steph Willems

Comments
Join the conversation
5 of 26 comments
  • Bikegoesbaa Bikegoesbaa on Apr 27, 2017

    Bah to Ducati. Was fixing to buy a Hypermotard before I learned they use un-warranted timing belts because "tradition".

    • See 2 previous
    • Tylermattikow Tylermattikow on Apr 28, 2017

      @bikegoesbaa In the late 2000's Ducati vastly increased service intervals in response to these concerns. The Desmo and belt service is at 7500 miles, which is a pretty long time for a bike considering how little most are ridden. I believe the interval used to be 4500... For the record my bike only had one issue, a faulty immobilizer when it was nearly new. It now has 6500 miles and it is 8 years old with no other problems.

  • Markf Markf on Apr 27, 2017

    Yeah, timing belt and Desmo valves "Tradition" Ducati is a lifestyle brand, like every guy on a Harley every Ducati rider has branded clothing on when they ride. But they can't make enough of them. I'll stick with Aprilia, Italian bikes, reliable and much less than Ducati. Just hard to find dealers and get proper service.....

  • CanadaCraig You can just imagine how quickly the tires are going to wear out on a 5,800 lbs AWD 2024 Dodge Charger.
  • Luke42 I tried FSD for a month in December 2022 on my Model Y and wasn’t impressed.The building-blocks were amazing but sum of the all of those amazing parts was about as useful as Honda Sensing in terms of reducing the driver’s workload.I have a list of fixes I need to see in Autopilot before I blow another $200 renting FSD. But I will try it for free for a month.I would love it if FSD v12 lived up to the hype and my mind were changed. But I have no reason to believe I might be wrong at this point, based on the reviews I’ve read so far. [shrug]. I’m sure I’ll have more to say about it once I get to test it.
  • FormerFF We bought three new and one used car last year, so we won't be visiting any showrooms this year unless a meteor hits one of them. Sorry to hear that Mini has terminated the manual transmission, a Mini could be a fun car to drive with a stick.It appears that 2025 is going to see a significant decrease in the number of models that can be had with a stick. The used car we bought is a Mk 7 GTI with a six speed manual, and my younger daughter and I are enjoying it quite a lot. We'll be hanging on to it for many years.
  • Oberkanone Where is the value here? Magna is assembling the vehicles. The IP is not novel. Just buy the IP at bankruptcy stage for next to nothing.
  • Jalop1991 what, no Turbo trim?
Next