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VW Drops Plans to Sell Ducati Unit
Volkswagen AG has abandoned plans to sell its Ducati motorcycle business due to union opposition, Bloomberg News reports.
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Volkswagen AG has abandoned plans to sell its Ducati motorcycle business due to union opposition, Bloomberg News reports.
Bruno Papignani, a regional head of Italy’s FIOM CIGL union, says Ducati’s CEO told workers on Friday about VW’s decision. Ducati had expected to receive binding offers from five bidders by the beginning of October. The Italian motorcycle maker has been valued at about €1.5 billion ($1.8 billion).
Ducati was earmarked for possible sale by an asset review VW Group launched last year. VW’s Audi unit acquired the company for €860 million in 2012. VW had been considering a sale, estimated to be worth about €1.5 billion ($1.8 billion), as part of a review of non-core assets that began last year. Ducati is owned by VW Group’s Audi unit.
Bloomberg notes that critics are likely to assail VW’s inability to sell an asset with almost no connection with the rest of its operations.
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