Volkswagen‘s planned sale of motorcycle brand Ducati and transmissions maker Renk has presently no huge support on the automaker’s supervisory board, with opponents to asset sales feeling stimulated by the group’s strong results.
The automaker has entrusted banks to examine choices for Ducati and Renk consisting of divesting the two departments as it intends to enhance operations to assist fund a post-dieselgate strategic overhaul.
Volkswagen has been evaluating its portfolio of assets and brands after announcing in June 2016 a multi-billion-euro shift to electrical vehicles and new automobile services as part of its so-called Strategy 2025.
Five bidders have been shortlisted to purchase Ducati, consisting of Italy’s Benetton family, with deals received valuing the brand at 1.3 billion-1.5 billion euros ($ 1.76 billion), a source stated on Saturday.
However VW’s labour leaders, inhabiting half the seats on the 20-member supervisory board which decides on asset sales, withstand a sale of Ducati and Renk without compelling financial factors.
“The worker representatives on Volkswagen’s supervisory board will neither authorize a sale of Ducati, nor one of Renk or MALE Diesel & Turbo,” a spokesman for VW group’s works council informed Reuters.
“Everybody who can read the VW half-year results need to understand: We do not need money and our subsidiaries are not up for grabs by deal hunters.”
Six-month operating profit at VW group climbed 19 percent to 8.9 billion euros, the automaker said on Thursday, as cost cuts and R&D enhancements at the core namesake brand made VW a respite from the billions of euros in costs for fines, automobile refits and payment related to its dieselgate scandal.