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VW’s Plan to Sell Ducati Stalls
Volkswagen AG has suspended the proposed sale of its Ducati motorcycle business because of union opposition and internal debate about the plan, sources tells Reuters.
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Volkswagen AG has suspended the proposed sale of its Ducati motorcycle business because of union opposition and internal debate about the plan, sources tells Reuters.
VW acquired the brand in 2012. The carmaker began shopping the unit in April to help fund efforts to restructure and streamline its operations. Analysts estimate Ducati is worth about €1.5 billion.
But Reuters says labor representatives, who occupy half the 20 seats on the VW management board, oppose a sale at any price. VW’s Audi unit, which controls Ducati, also disagrees with details about the parent company’s strategy. Any deal must be approved by the board, which last week replaced its HR, sales, finance and manufacturing chiefs.
The sources say VW has told five would-be bidders not to make offers until the company resolves its internal differences about the plan. One source says negotiations aren’t likely to resume until next year.
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