Volkswagen is reportedly considering selling Lamborghini and Ducati to help fund a massive restructuring effort, according to the Financial Times.
The discussion follows the successful sale of a majority stake in marine engine business Everllence, which achieved a stronger valuation than expected.
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However, the proceeds could quickly be consumed by the cost of a sweeping restructuring program and investment in future products.
Turnaround with a Hefty Price Tag
Volkswagen is preparing to eliminate up to 100,000 jobs and close four factories, making it one of the largest corporate restructurings in decades.
At the same time, the company faces fierce competition from Chinese automakers and is spending heavily to stay competitive in the electric vehicle era.
Advisers are encouraging Volkswagen to revisit earlier proposals, including selling Ducati or taking Lamborghini public.
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Ducati was already examined as a potential sale several years ago, and Lamborghini, which made $888 million last year despite tariff problems, is viewed as one of the group's most valuable businesses.
What the Brands Are Worth
VW's Audi division acquired Lamborghini in 1998 for $110 million, but Bloomberg Intelligence has since valued it at more than $22 billion.
VW bought Ducati through Audi in 2012 for $909 million.
Analysts argue that Volkswagen is unlikely to part with brands that consistently generate strong profits.
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For now, Volkswagen is not commenting on the speculation.
