Lamborghini And Ducati Could Be Sold By Volkswagen

Financial pressure is fueling fresh speculation that Volkswagen may sell some of its biggest brands.

New reports suggest the German giant is reconsidering whether venerable brands such as Lamborghini or Ducati could help finance the 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 fetched a much stronger valuation than many expected. Still, the proceeds could quickly be swallowed up by the costs of a comprehensive restructuring programme and much-needed investment in future products.

Volkswagen’s problems are not small. The company is reportedly preparing to cut up to 100,000 jobs and close four factories at the same time in one of the biggest corporate restructuring efforts in decades. At the same time, it is battling fierce competition from Chinese automakers and investing heavily to stay competitive in the era of electric vehicles.

That perfect storm inevitably reignited the conversation about selling the property. The Financial Times reports that advisers are encouraging Volkswagen to reconsider earlier proposals, including selling Ducati or going public with Lamborghini. Ducati has been mooted as a potential sale candidate for several years now, and the highly profitable Lamborghini has long been considered one of the group’s most valuable businesses.

Audi bought Lamborghini in 1998 for $110 million, but Bloomberg Intelligence has since valued it at more than $22 billion. Volkswagen bought Ducati, again through Audi, back in 2012 for $909 million.

However, not everyone believes the sale of either brand will happen. Analysts contacted by the Financial Times say it is unlikely that Volkswagen will part ways with brands that consistently generate strong profits.

For now, Volkswagen is not commenting on the speculation, but the debate itself speaks volumes about the pressure facing Europe’s largest carmaker.

• Read More: Lamborghini Revuelto SV To Debut Later In The Year