Volkswagen Might Sell Ducati

In the wake of the emissions cheating scandal, Volkswagen is faced with a few decisions regarding its future structure and focus.

It appears that the German colossus is shifting away from its “empire-building” era and reviewing its business for possible asset sales.

Bloomberg reports that Chief Executive Officer Matthias Mueller is undertaking a sweeping strategy review that targets Volkswagen AG’s current portfolio. The review will assess the company’s 12 brands, as well as side businesses, while components manufacturing across the group will be folded into one entity, as an unnamed source explained.

Volkswagen’s plan is to step up electric-vehicle development and address the brands that contributed to weak profits, even before the scandal. This could lead to the sale of non-core assets – according to the sources – albeit no decisions have been made regarding its subsidiaries. Either way, Ducati, MAN Diesel & Turbo, and MAN Renk are reportedly on the “expendable assets” list.

But considering the German state of Lower Saxony and the company’s powerful unions have a strong say on the matter, these disposals are a touchy subject and there’s a chance they won’t come to fruition.

Ducati was acquired by the Volkswagen Group in 2012 for a price of around 860 million euros ($966 million). Former VW chairman Ferdinand Piëch, a motorcycle enthusiast, had long coveted Ducati, and had regretted that he passed up an opportunity to buy the company from the Italian government in 1984.

At that time analysts questioned the acquisition, as the bike maker was too small to have a meaningful effect on the Wolfsburg-based company. It was considered just a trophy, bought by VW’s passion for nameplates.