Volkswagen is more concentrating on its multi-billion-euro shift to electric vehicles and transportation services than any possible sale of motorbike brand name Ducati or transmissions maker Renk, its head of strategy informed Reuters.
Experts and bankers have been anticipating Europe’s most significant automaker to sell properties soon to help meet the cost of its diesel emissions test cheating scandal, that has cost billions.
But Thomas Sedran stated the German automaker was in no hurry to make divestments, which are opposed by its effective labor unions, indicating the group’s strong monetary performance in spite of the “dieselgate” scandal.
“It’s far more crucial to talk about which new business fields the company will go into. Divestments are less pertinent,” he stated.
“Big decisions like ways to broaden or enhance the business portfolio of an international company require time and have to be established by consensus. For Volkswagen, the topic of business portfolio is crucial however not time critical,” he said.
Volkswagen has asked banks to analyze alternatives for Ducati and Renk, consisting of selling the two departments, sources have stated, as it examines its company after announcing a significant push into electric vehicles and services such as ride-hailing a year back.
Five bidders have been short-listed for Ducati, including Italy’s Benetton family, with offers ranging from 1.3-1.5 billion euros ($ 1.5-1.8 billion), a separate source stated last month.
But the prospective deal presently does not have the assistance of a majority on Volkswagen’s supervisory board, with labor leaders – who inhabit half the board seats – withstanding a sale unless there are compelling financial factors.
“Top management has a clear concept of what comes from core company and what does not,” Sedran stated, without elaborating. “It is now a concern of how the supervisory board will evaluate this and what one wishes to do.”
He stated the variety of possible modifications was “far greater than simply the things that are seized on in public conversation”, adding the money to spend for the emissions scandal needed to be found someplace.
