Report: Volkswagen to Begin Distancing From Lamborghini
More evidence has surfaced that Volkswagen Group may be on the cusp of relieving itself of some of its less-profitable subsidiaries. Following news of a November board meeting that would help decide the fate of numerous ultra-premium brands, rumor has it that VW is currently working out ways to give Lamborghini more autonomy and open the door for supply deals that could foreshadow it being listed on the stock market.
Additionally, the automaker’s supervisory board has already reportedly met to discuss the future of Bentley, Bugatti, Lamborghini, and its Ducati motorcycle arm. Discussions were said to include how to electrify the more sporting nameplates via industrial partnerships and procuring investment dollars. Some of these deals are already in the early stages, according to Reuters, with a possible IPO for the Italian supercar brand alleged to be moving forward at the time of this writing.
“Volkswagen is in the process of carving out Lamborghini, and to organize future supply and technology transfer deals,” one of the sources familiar with the matter told Reuters.
It was then speculated that Lamborghini (currently a division of Audi) could be partially listed, with VW holding on to the lions share of stock to maintain control. But there has been “no formal decision to divest Lamborghini,” according to a secondary source, and no timetable for any of the arrangements suggested during the meeting.
“This is a first step which gives VW the option to list the unit further down the line,” they said.
From Reuters:
Volkswagen is reviewing what role its high-performance brands Lamborghini, Bugatti and Ducati will play within the multi-brand carmaker as part of broader quest for more economies of scale, senior executives told Reuters.
A global clampdown on combustion-engined vehicles has forced automakers to accelerate development of low-emission technology for mainstream models, leaving Volkswagen managers struggling to find resources to electrify low-volume sportscar models.
That will undoubtedly be touched upon again in November and Volkswagen Group CEO Herbert Diess has suggested big changes will be announced before year’s end. Meanwhile, we’ve heard talk that Croatian supercar firm Rimac Automobili may already be in the process of scooping up Bugatti for itself with VW’s blessing.
[Image: Lamborghini]
A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.
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Bugatti was always a money losing vanity project, so it’s eventual demise/sale is predictable, Why VW needs a motorcycle brand was always a mystery, and deserves to be sold. With respect to Lamborghini, VW is probably just looking at the market cap of Ferrari and sees the ability to unlock “shareholder value”, as they say in the investment bakers pitch book. Bentley should be kept to highlight the electric car prowess of VW - it’s hard to see a segment better suited to electrify.
These were all Piëch's vanity projects, so it would make sense to spin them off. I'm surprised it took this long, but I guess the dieselgate and its related mess required all of VW's attention. I can see them keeping Bentley if only to have something to compete with the Rolls-Royce and the Mercedes-Maybach. I'm not sure VW's ego will allow Munich and Stuttgart to have all the nice cars.