Who Will Buy Ducati from Volkswagen?

Dieselgate is probably one of the largest scandals in automotive history. Volkswagen admitted to selling vehicles armed with defeat devices that helped them cheat emissions testing. This led to a $2.8 billion fine from U.S. regulators as well as fines from countries all over the world. After combining these fines with the total costs of fixing affected vehicles, experts believe VW is on the hook for an estimated $35 billion. So, it’s no surprise that the company is looking to tighten its belt, but does that put Ducati on the chopping block?

Is Ducati Still Up for Sale?

As a measure to restructure the company and pay down its huge liabilities, Volkswagen has evaluated the sale of several of its assets. One of those assets is Ducati Motor Company. Taking bids from interested parties all over the world, the company’s asking price was a cool $1.8 billion. Despite this high price, several groups expressed interested in the sale.

Bain Capital, which owns stake in Ski-Doo and BRP, put in a bid for the company as did Eicher Motors and Bijaj Auto. Even Harley-Davidson was putting together an offer, but none were close to VW’s asking price. Now it seems that even if their offers had been close to Volkswagen’s asking price, it still would not have mattered.

As it turns out, nobody will be buying Ducati for now. That’s because the labor leaders on the supervisory board at VW won’t approve a sale. These board members, who make up nearly half the board, don’t see a reason to sell an asset that has been and continues to be profitable for VW. The board members expressed a similar logic looking at the potential sales of Renk—a transmission maker owned by VW—and MAN Diesel & Turbo.

So, it looks like Dieselgate won’t be rocking the motorcycle industry just yet. But do you think there could be other threats to the Italian brand? Keep checking in with the attorneys who ride to learn more about where the motorcycle industry is heading.