VW Is Killing Half Its Models And Focusing On Automotive Business. Is a Ducati Sale Forthcoming?

Recent reports seemingly point to Volkswagen going through a transformative restructuring in the coming months and years, as the German manufacturing giant has hit a handful of financial roadblocks as of late. These issues are due to a host of variables, including EV adoption and that segment's research and development spending, aftershocks still being felt from the brand's Dieselgate fiasco, the world's economic health, and its own spreading itself out too thin. 

As such, drastic moves are now required to right the once seemingly unsinkable ship, and those moves extend to not just itself, but to its brands, too, which might now include the sale of Ducati. 

Both VW and Ducati have responded to these rumors, with Volkswagen telling RideApart that all options are on the table and not flat-out denying that included Ducati's sale. Now, just a few days after CEO Oliver Blume announced that VW would be moving toward cutting a sixth of the brand's overall employees, VW stated that half its lineup could also be cut, drastically reducing its overall footprint in the near future. 

And that could be the foretelling of Ducati's future under Volkswagen ownership, especially when you consider one very important line in the company's press release. 

Fixing Houses

KTM Just Poached Another BMW Motorcycle Exec To Fix Its Rocky Ship

Snowmobile Sales Were Fine Last Year. But There's a Big Problem Coming

In a press release first reported on by our siblings at Motor1, VW states, "The model lineup [at VW] will be gradually concentrated on the most attractive market segments and streamlined by up to 50%; [and the company's remaining] offering complexity will be reduced by up to 75%." That means half of all of VW's lineup will die, and whatever remains will see its own trims be reduced by 75%. That's not just a culling of unprofitable models, but a wholesale gutting of the brand's lineup. 

According to Volkswagen's CFO, Arno Antlitz, "Despite the progress achieved, the cost reductions planned to date under the agreed programs are not sufficient in the current economic and geopolitical environment. We must instead fundamentally realign our business model and achieve structural, sustainable improvements. This includes improving the cost structure of our vehicles without compromising product substance, significantly reducing overhead costs, increasing the efficiency of our plants, and accelerating technology development and decision-making. We can only achieve this by substantially reducing complexity – in our product portfolio and technology platforms, in the number of units and decision-making levels."

That's a worrying statement for Ducati's continued existence under VW leadership, as reducing the complexity in Volkswagen's product portfolio likely will fall on the sale of brands, as that's proven to be worthwhile in recent days with the sale of both Bugatti and Everllence, the company's marine engine division. But VW goes on to almost explicitly state that Ducati's future may not lie within VW, stating, "The Volkswagen Group is focusing on its automotive core business. The equity and investment portfolio is being aligned with strategic contribution, return and capital commitment – with the objective of achieving greater focus, lower complexity and additional financial flexibility."

Emphasis mine. But you'll note that Ducati is not an automotive company. And just after this line in VW's release, it touts the recent sale of its stake in Everllence as strengthening its overall automotive position. 

Ducati's CEO has remained defiant, saying that the company doesn't need VW to be successful. And VW, again, said all cards are on the table. The question remains: Will Ducati be sold? And more importantly: Who are the prospective buyers? 

Stay informed with our newsletter every weekday

 

back

Subscribe For more info, read our Privacy Policy & Terms of Use.