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