Ducati, Ducati for sales, VW Ducati

Still reeling under the spell of the infamous 'dieselgate', an image-breaking emission scandal, renowned German automaker Volkswagen (VW) has set its sights on a repositioning track through the brand and its products. A report by Reuters claimed that the company is planning a major shift in its focus with possible sales of its non-core assets including the Italian motorcycle-maker Ducati. While no decision has been put on the table, sources privy to the discussions says the sales will help streamline operations and fund a strategic overhaul of its core brands.

In June last year, it was widely reported that Volkswagen Group, while undertaking a review of its portfolio assets and brands, could end up putting some of its 'non core' businesses such as Ducati or a diesel engine business for machinery under the hammer.

The latest report suggested that the German car-maker is already in the market and reaching out to potential buyers for Ducati. The plan is to rein in spending across the VW Group and includes job cuts at its core passenger car brand to help multi-billion Euros shift to the fast-expanding electric cars space and sustainable mobility services. In this regard, a leading firm has been roped in to evaluate its options and the sale of Ducati, acquired by its Audi division in 2012, for 860 million Euros.

If the report holds true, the Ducati brand could find willing suitors in the expansive Chinese and Indian markets with India's Hero MotoCorp or investors such as the consortium that bagged Aston Martin being touted as top contenders. Harley Davidson, Suzuki, Honda and Kawasaki could also be interested. The superbike brand stands at a rough valuation of 1.5 billion Euros, which is almost 15 times of its core earnings.

Source: Reuters