VW’s supervisory board hasn’t backed the decision.

News of the Volkswagen Group putting Ducati up for sale broke out over the internet recently. As of July 29, five confirmed shortlisted bidders were interested in acquiring the Italian motorcycle maker, offering the VW group anywhere between 1.3 to 1.5 billion Euros. The company’s included Polaris Industries, Bain Capital, PAI from France (a private equity fund), Ducati’s previous owner Investindustrial and the Benetton family. There were even rumours that some Indian companies like Eicher Motor and Bajaj Auto were bidding, but failed to make the shortlist.

According to a Reuters report though, the sale of Ducati might not go through. The company’s supervisory board hasn’t backed this decision made by the management board, which intended to streamline operations and make them cost effective. In the light of Dieselgate, the company announced a multi-billion Euro shift to electric cars and new mobility services back in June 2016.

The supervisory board, which consists of 20 members, is occupied by the company’s labour leaders. Speaking to Reuters, a spokesman for the VW Group’s works council said, "The employee representatives on Volkswagen's supervisory board will neither approve a sale of Ducati, nor one of Renk or MAN Diesel & Turbo. Everyone who can read the VW half-year results should know: We don't need money and our subsidiaries are not up for grabs by bargain hunters.”

The works council spokesman added, “The management board has not even asked the supervisory board of Volkswagen, where such sales have to be ratified, for its approval. Therefore, we advise all supposedly interested parties: Save your time to check any books. A sale will not happen."

News You May Like

Can the Indian car market go all-electric by 2030?
  • Published On : 9 June 2017
  • 1 min read

The government has set an ambitious target to sell only electric cars in the country by 2030.

Read More

BS-III ban deadline sees huge discounts
  • Published On : 31 March 2017
  • 1 min read

To cut losses, most automakers are selling their cars and bikes at a steal.

Read More