DU­CATI FOR SALE

Af­ter­math of VW’S diesel scan­dal could see them dump the Ital­ian mar­que

Motorcycle News (UK) - - This Week -

Volk­swa­gen are con­sid­er­ing a sale of Du­cati as part of their mis­sion to stream­line the busi­ness in the wake of the emis­sions scan­dal, ac­cord­ing to the Reuters news agency.

VW are said to have ap­pointed in­vest­ment spe­cial­ists Ever­core, who are ap­par­ently eval­u­at­ing pos­si­ble op­tions for the sale af­ter VW’S Audi divi­sion pur­chased the brand in 2012. Although the ex­act price has never been con­firmed, the 2012 pur­chase of Du­cati was said to be worth ap­prox­i­mately € 860 mil­lion (that is around £726 mil­lion).

Reuters say their source told them that Du­cati have an­nual earn­ings of € 100 mil­lion be­fore tax, which would give the com­pany a val­u­a­tion of be­tween € 1-1.5 bil­lion.

Aside from ‘diesel­gate’, one of the other rea­sons for the po­ten­tial sale is that bike fan and for­mer VW Chair­man Fer­di­nand Piech, who was in­stru­men­tal in the pur­chase of Du­cati, is no longer part of the busi­ness. With him out of the pic­ture, it would come as no sur­prise if Du­cati joined the list of other non-core as­sets that are up for sale.

Are Po­laris in the frame?

As for po­ten­tial pur­chasers, the three that leap to mind are Amer­i­can gi­ant Po­laris, which owns In­dian and ei­ther Hero Mo­to­corp or Mahinda – two large In­dian cor­po­ra­tions that al­ready have huge mo­tor­cy­cle busi­nesses.

We con­tacted Du­cati about this and they said “It is Du­cati’s pol­icy not to com­ment on ru­mours in the me­dia”.

While Du­cati have changed own­er­ship in the past – for ex­am­ple when sold to the Texas Pa­cific Group – they have al­ways op­er­ated with a sig­nif­i­cant de­gree of au­ton­omy. From that we would as­sume that if VW does sell Du­cati, it wouldn’t have an im­me­di­ate, or dra­matic, im­pact on the prod­uct range.

€1-1.5 Bil­lion – Du­cati’s es­ti­mated value based on their an­nual earn­ings

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.