VW expected to sell off Ducati Motorcycles to meet the need of liquid cash for paying off loans worth a proposed $ 21.1 billion.
The VW emission scandal is covering more and more countries with each passing day. The automaker’s Indian cars are also found to have variations in the emissions. However, it did not admit the use of defeat devices in the Indian vehicles. The automaker can face a fine up to INR 32 crore if the variations are proved to be voluntary. VW group is facing the same situation all over the world. It has to pay a lot of fines and the cost to repair the affected cars.
In addition, the Volkswagen AG has to pay off loans from banks up to a proposed $ 21.1 billion. To meet these expenses, the VW group needs liquid cash in their hand. For this, the automaker is planning to sell off some of its subsidiaries.
VW group has spent years buying these subsidiaries. Some of the prestigious brands include – Bentley, Bugatti, Lamborghini, Audi, Porsche, SEAT, Škoda and Volkswagen. The only motorcycle manufacturer is the Ducati motorcycles. It sells commercial vehicles under the MAN, Scania, Neoplan and Volkswagen Commercial Vehicles marques.
The first brand the automaker is expected to sell off is the Ducati Motorcycles. It was bought in 2012, not for any commercial purpose but to fulfill the dream of then Chairman of the VW group Ferdinand Piëch. He wanted to buy the Italian factory when it was on sale by the Italian Government in 1984. He always had a regret of not buying the factory. So, he bought the Ducati Motorcycles.
But, this decision has always disturbed the VW group financially. Hence, if the group plans to sell any of the subsidiaries, the first to come will be Ducati. The motorcycle manufacturer has been owned by 8 different owners after it was founded in 1926 by the Ducati family. Other brands like Lamborghini and Bentley can also be sold to get the funds needed.