Volkswagen’s current situation appears to be even worse than originally reported, as a leaked memo indicates that the company is planning to lay off not 100,000 employees, but more than 150,000, as well as cutting model-specific lineups by 75% as well as cutting its lineup by 50%.
Report, as detailed by our brothers and sisters motor1shows that VW CEO Oliver Blume is considering closing four separate German manufacturing plants, putting a total of another 50,000 workers at risk. They have plants in Emden, Hanover, Zwickau and Neckarsulm. All of this points to evidence that Volkswagen’s other brands – Lamborghini, Porsche, Bentley, Audi and Ducati – are at risk of being sold.
The most rumored of these is about Ducati, as the motorcycle brand is outside the automotive giant’s usual scope, and when Volkswagen executives released a statement about the company’s future, it said it expected it to scale back and focus on its “automotive” business, in part due to the sale of its marine engine division, Everlens, a few weeks ago.
Ducati CEO, Claudio Domenicali, however, is focused on the task at hand, and he told ride separately“We do not comment on speculation.”
in a statement to ride separatelyAnd attributing it to Domenicali, the longtime Ducatista said, “Ducati is in a very solid position, with a highly modern model range that regularly performs strongly in comparative tests, record-high customer recommendation levels and a very engaged community. To this has been added an extraordinary streak of racing success in both MotoGP and the Superbike World Championship.”
This statement is a version of what Domenicali has said in the past, such as, “We don’t need Volkswagen.”
Last year, Ducati sales declined slightly, but most of the brand’s lineup was introduced or re-introduced. Similarly, tariffs have also raised prices for consumers, reducing sales throughout the industry, as sales have fallen for most other manufacturers, except those playing in the small-displacement, entry-level sector – which are affordable for the average consumer. Still, the economy remains strained, with high prices, wage stagnation, and basic necessities being prioritized over expensive purchases like motorcycles and cars, which is likely what led Volkswagen to where it is today.
But Domenicali’s statement went further, saying, “Also, as a matter of principle, we do not comment on speculation,” that is, speculation on a potential sale. And from a business perspective, it makes sense, because companies like VW and Ducati are big machines with parts moving all over the place. One person, even a CEO, can derail things elsewhere by speaking out. However, the statement regarding speculation comes after Domenicali clearly said, “(Ducati) is also completely self-sufficient. We really don’t need support from (VW) to make our investment plan for the future, to create new models. It’s a very solid investment plan.”
So does the reversal of statements indicate that something is in the works and they can no longer reveal anything publicly? This is unclear. But we know from VW’s own public and private statements that the German automotive giant will have to make drastic cost cuts to ensure its place in the market for future generations. Whether it is with Ducati or not is yet to be seen.