- VW reportedly considers selling prized brands as part of cost-saving restructuring plan.
- Lamborghini and Ducati could attract enormous investor interest if they became available.
- Analysts think VW is unlikely to sell profitable premium brands despite being urged to.
Volkswagen has already sold one major business, but it might not be finished trimming the family tree. Fresh reports suggest the German giant is again weighing whether prized brands like Lamborghini or Ducati could help fund an expensive turnaround.
According to the Financial Times, the discussion follows the successful sale of a majority stake in marine engine business Everllence. The deal reportedly achieved a far stronger valuation than many expected, but the proceeds could quickly be swallowed by the cost of a sweeping restructuring program and much-needed investment in future products.
A Turnaround With A Hefty Price Tag
Volkswagen’s problems aren’t exactly small. The company is reportedly preparing to eliminate up to 100,000 jobs while also closing four factories, making it one of the largest corporate restructuring efforts in decades. At the same time, it’s battling fierce competition from Chinese automakers and spending heavily to stay competitive in the electric vehicle era.
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That perfect storm has inevitably restarted the conversation about asset sales. The Financial Times reports that advisers are encouraging Volkswagen to revisit earlier proposals, including selling Ducati or taking Lamborghini public. Ducati was already examined as a potential sale several years ago, and highly profitable Lamborghini (it made $888 million last year despite tariff problems) has long been viewed as one of the group’s most valuable businesses.
What The Brands Are Worth
VW’s Audi division acquired Lamborghini in 1998 for $110 million, but Bloomberg Intelligence has since valued it at more than $22 billion. VW bought Ducati – again through Audi – in 2012 for $909 million.
Not everyone believes the sale of either brand will happen. Analysts contacted by the Financial Times argue that Volkswagen is unlikely to part with brands that consistently generate strong profits.
For now, Volkswagen isn’t commenting on the speculation. But the debate itself says plenty about the pressure facing Europe’s biggest carmaker. If Lamborghini or Ducati ever did leave the Volkswagen stable, who would you like to see take the reins, and what kind of projects should they greenlight that haven’t happened under VW ownership?
Lamborghini, Ducati
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