Rumour: Volkswagen considering sale of its Ducati brand

According to few media reports, Volkswagen is considering to sell its Italian motorcycle brand - Ducati. This probable sale is being claimed to be a part of the German automotive group's plans to cut down its operational costs and streamline its portfolio as it embarks on a brand overhaul strategy post the infamous dieselgate emissions scandal.

VW's luxury car vertical - Audi had acquired Ducati in 2012 for around 860 million Euros. Sources suggest that the bike maker can currently be valued at around 1.5 billion Euros, which is 15 times its annual earnings of the last year. VW is currently said to be scouting the market for interested potential buyers of the Ducati brand. If the automaker doesn't manage to receive satisfactory response or valuation for its motorcycle brand, it might also consider a stock market flotation for Ducati in order to raise some money.

Volkswagen will be spending heavily on alternate energy and new mobility technologies in the next few years, as it is aiming to redefine its brand image that got tarnished with the dieselgate emissions scandal. To fund this major brand reformation, the automotive group has been cutting costs across its brand portfolio. This includes cutting several jobs at its passenger car business, VW quitting the World Rally Championship and Audi exiting the World Endurance Championship, including the coveted 24 Hours of Le Mans. The sale of the Ducati brand might also be VW's approach of establishing enough liquid capital and bandwidth to fund its multi-billion dollar shift towards renewable energy.

Source: Reuters