VW faces resistance to selling Ducati

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.