Recent reports point to Volkswagen undergoing a transformational restructuring in the coming months and years, as the German manufacturing giant has faced some financial headwinds recently. These issues are due to a number of variables, including EV adoption and that segment’s research and development spending, the shocks of the brand’s Dieselgate fiasco still being felt, the state of the world’s economic situation and its own very low penetration.
As such, drastic steps are now required to right the ship that once appeared unsinkable, and these steps extend not only to itself, but also to its brands, which may now include Ducati sales as well.
Volkswagen reports that both VW and Ducati have responded to these rumors ride separately All options are on the table and there is absolutely no denying that this includes the sale of Ducati. Now, just days after CEO Oliver Blume announced that VW was moving to cut one-sixth of the brand’s total workforce, VW said half of its lineup could also be cut, drastically reducing its overall footprint in the near future.
And this may be prophetic of Ducati’s future under Volkswagen ownership, especially when you consider a very important line in the company’s press release.
In a press release first reported by our brothers and sisters motor1“The model lineup (at VW) will gradually be focused on the most attractive market segments and streamlined by 50%; (and the company’s remaining) offering complexity will be reduced by 75%,” says VW. This means half of VW’s entire lineup will be eliminated, and whatever remains will have its trims reduced by 75%. This isn’t just eliminating unprofitable models, but dismantling the brand’s lineup wholesale.
according to Arno Antlitz, CFO of Volkswagen“Despite the progress achieved, the cost-cutting plans undertaken so far under agreed programs are not sufficient in the current economic and geopolitical environment. Instead we must fundamentally realign our business model and achieve structural, sustainable reforms. This includes improving the cost structure of our vehicles without compromising product content, significantly reducing overhead costs, increasing the efficiency of our plants and accelerating technology development and decision-making. We can only achieve this by reducing the complexity – across our product portfolio And in technology platforms, number of units and level of decision making.”
This is a worrying statement for Ducati’s continued survival under VW leadership, as reduced complexity in Volkswagen’s product portfolio is likely to impact the brands’ sales, as has been proven in recent times with the sale of both Bugatti and Everlens, the company’s marine engine divisions. But VW almost explicitly states that Ducati’s future may not lie within VW, saying, “Volkswagen Group is focusing on Automotive Main Business. “Equity and investment portfolios are being aligned with strategic contributions, returns and capital commitments – with the aim of achieving greater focus, less complexity and additional financial flexibility.”
Emphasis mine. But you’ll note that Ducati is not an automotive company. And on the heels of this line in VW’s release, it touts the recent sale of its stake in Everlens as strengthening its overall automotive position.
Ducati’s CEO has taken a defiant stance, saying that the company does not need VW to succeed. And VW again says all cards are on the table. The question remains: will Ducati be sold? And more importantly: who are the potential buyers?
