VW gauges interest in Ducati brand as a prelude to potential sale: sources

In this news, we discuss the VW gauges interest in Ducati brand as a prelude to potential sale: sources.

LONDON / FRANKFURT (Reuters) – Volkswagen Group VOWG_p.DE is holding preliminary talks with potential bidders for its Ducati brand to assess potential interest in the motorcycle maker ahead of a November planning cycle, three people said close to the file to Reuters.

During the five-year planning cycle, VW will look at the future of its Ducati brand as well as its Lamborghini and Bugatti super sports car brands, they said.

Volkswagen analyzes the future of Lamborghini, Bugatti and Ducati as part of a broader quest for economies of scale as it shifts to mass production of electric cars and the company more than attempts to double its value to reach 200 billion euros.

The review could result in technology partnerships for high-performance sports car and superbike brands, restructuring or other options up to and including listing or sale, the people said.

Whether Volkswagen will agree to initiate a formal sale process at this meeting is still uncertain, but for a sale to be possible early next year, investors and bankers must assess price expectations and potential strategic fit, said a second person familiar with the discussions.

“There is movement here,” said one of those sources, commenting on the potential launch of a Ducati auction. No decision has yet been made, the source added.

Two other people familiar with the matter said Volkswagen is expected to start the sales process in early 2021 and may appoint a sales advisor before Christmas.

Volkswagen declined to comment.

Volkswagen attempted to sell Ducati in 2017, when its counterpart Bajaj Auto BAJA.NS in a merger with KTM, as well as Polaris PII.N and private equity groups Bain, PAI and Investindustrial expressed interest in purchasing the Italian motorcycle brand.

A sale met with opposition from union leaders and was suspended.

As part of its upcoming review of its strategy, Volkswagen is also making plans to exclude Lamborghini and has polled bankers and potential investors to list the Italian sports car maker on the stock exchange, sources told Reuters.

A list could be attempted in 2021, a source familiar with the matter told Reuters on Tuesday.

Italian supercar rival Ferrari RACE.MI has seen its valuation more than triple since Fiat Chrysler FCHA.MI listed it in 2016, although the shares of rival Aston Martin AML.L have plummeted since its listing in scholarship in 2018.

Edited by Edward Taylor

Original © Thomson Reuters

Originally posted 2020-10-20 09:36:11.

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