VW advisers push sale of Ducati, Lamborghini after Everllence deal

Volkswagen is facing mounting pressure to sell prized brands including Ducati and Lamborghini as its financial crisis deepens, with advisers pushing the automaker to capitalize on the momentum from its recent Everllence divestiture, according to a report in the Financial Times London Stock Exchange published on Sunday.ft+1

Crown Jewels on the Block

The Financial Times reported that "following the success of the Everllence auction in stoking competition between bidders, advisers are hoping that recent pitches to VW to sell crown jewels such as its motorcycle brand Ducati — an idea it explored in 2017 — or to list supercar maker Lamborghini will gain traction". The report comes days after Volkswagen confirmed it had entered an exclusive arrangement to sell 51 percent of Everllence, its heavy-engine subsidiary, to Bain Capital for approximately €7.4 billion in proceeds.everllence+3

Patrick Hummel, an analyst at UBS ↘ 0.76%, told the Financial Times that "there is a very high probability that we will see additional restructuring costs emerging in the second half of the year, which could reach billions of euros. All the enthusiasm surrounding the Everllence transaction has practically disappeared from the shareholders' point of view".neofeed

A Familiar Debate

Speculation about selling Ducati is not new — Volkswagen explored the idea in 2017 before labor representatives on its supervisory board blocked the move. Both Ducati and Lamborghini are highly profitable, making them attractive targets for potential acquirers in a market where investors are showing renewed interest in industrial assets. However, the Financial Times noted that "some analysts said the likelihood of VW selling these brands was low and cautioned that offloading loss-making assets such as PowerCo would be unlikely to be as lucrative as the Everllence sale".rideapart+3

Volkswagen has not confirmed any plans to sell either brand and declined to comment on possible asset sales.neofeed

The Broader Restructuring

The potential divestitures sit within a sweeping overhaul led by CEO Oliver Blume. According to Manager Magazin, Blume is considering cutting up to 100,000 of the group's roughly 657,000 jobs worldwide and closing four German factories — at Hanover, Zwickau, Emden, and Audi's Neckarsulm plant. Volkswagen is also exploring opening its PowerCo battery unit, its ADMT autonomous driving division, and its Scout pickup truck brand in the United States to outside investors.electrek+3

Hummel of UBS offered a blunt assessment: "The best thing to do would be to simply stop investing and accept the fact that what you've spent so far are sunk costs. I think that would be the best financial outcome".neofeed