IN A BID TO streamline its operations and shore up its finances following the diesel emissions scandal, Volkswagen is considering selling Ducati, reports Reuters. VW is said to have "started reaching out to potential buyers to sound out their interest", but no firm decision on the brand's future under the Group's umbrella is yet been made. While no official statement has been made, Reuters say no final decision has been made but Volkswagen is now contacting potential buyers.
The sources told the news agency that the brand may approach its peers in China, Hero MotoCorp or other investors.
"It is an asset for trophy buyers with bigger interest in the brand than in the technology", one of the people said.
Reuters say that VW have given investment banking firm Evercore the task of evaluating possible options with regards to the business; Ducati were acquired by VAG in 2012 for €860 million.
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There isn't a concrete buyer yet set for the deal, and neither Volkswagen or Audi chose to comment on the matter.
It remained unclear whether large competitors such as Polaris PII.N , Harley Davidson, Suzuki 7269.T , Honda 7267.T or Kawasaki 3045.T might be interested, they added.
The Volkswagen Group is investigating the possible sale of its motorcycle arm, Ducati, just five years after having assumed control of the Italian superbike builder, according to reports out of Europe.
One of the inside sources said that on the market Ducati could bring close to $1.5 billion, about 15 times its core earnings, a multiple the article says is similar to that of Ferrari. In 2016, Ducati posted sales of 593 million Euros in 2016 (over Rs 4,000 crore), selling over 55,000 motorcycles worldwide.