VW faces re­sis­tance to sell­ing Du­cati

Northwest Arkansas Democrat-Gazette - - BUSINESS & FARM - — Bloomberg News

Volk­swa­gen AG is fac­ing stiff­en­ing in­ter­nal re­sis­tance to the sale of its Du­cati mo­tor­cy­cle unit, threat­en­ing to de­rail the deal even as the process moves for­ward with a short list of five bid­ders set to sub­mit bind­ing of­fers by the end of Septem­ber, ac­cord­ing to peo­ple fa­mil­iar with the mat­ter.

Per­sis­tent op­po­si­tion from VW’s pow­er­ful la­bor unions and doubts within the car­maker’s Porsche and Piech owner fam­i­lies about the dis­posal will test man­age­ment’s re­solve to sell­ing a non­core as­set to re­duce cor­po­rate com­plex­ity, said the peo­ple, who asked not to be iden­ti­fied as the talks are con­fi­den­tial. Ex­ec­u­tives in­volved have been puz­zled by mixed sig­nals, since the Audi unit, which owns Du­cati, only started ex­plor­ing a deal af­ter par­ent com­pany lead­ers urged the divi­sion to do so, the peo­ple said.

Spokes­men for Volk­swa­gen, Audi and the fam­i­lies’ hold­ing com­pany de­clined to com­ment. A spokesman for Volk­swa­gen’s works coun­cil said la­bor lead­ers con­tinue to op­pose as­set sales in gen­eral. Em­ployee rep­re­sen­ta­tives make up half of Volk­swa­gen’s 20-mem­ber su­per­vi­sory board and can veto strate­gic de­ci­sions. The Porsche and Piech bil­lion­aire clan has four board seats.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.