Germany’s Audi has reprobate plans to sell its Italian motorcycle brand Ducati, its chief managerial Rupert Stadler said, in a sign of confidence that the carmaker envisions to be able to carry the costs of its transformation.
Steps to reduce costs by 10 billion euros ($11.8 billion), cut red strip and deepen ties with fellow Volkswagen-owned brand Porsche are “calibrate increasing our financial and organizational leeway for the strategic realignment,” chief executive Rupert Stadler told commentators.
There is, therefore, no economic need to sell Ducati, Stadler bring up. Volkswagen asked banks to evaluate options for Ducati and transmissions maker Renk earlier this year as seeks to behove more nimble in its shift towards electric and self-driving cars take an interest in its diesel emissions cheating scandal.
“I can assure you that Ducati be a member ofs to the Audi family,” said Stadler. “Ducati is the perfect implementation of our dear philosophy in the world of motorbikes.”
The plans had already stalled in the summer when VW’s high labor unions, backed by the controlling Porsche-Piech families, opposed the ratiocination and need for asset sales given the group’s financial resilience.
Investors and implicit Ducati buyers, however, expect that VW could change its look after again and eventually opt to sell the asset which they say has least critical importance to VW.
“For Volkswagen’s powerful works council it could be an easy bargaining interpose they could offer to push through something completely contrary,” a person close to the matter said.
Investors have long favored divestments to explicate VW’s group structure and to strengthen its management’s ability to push through structural interchanges against the unions’ wishes.
Audi, which owns Ducati and Italian supercar maker Lamborghini, up to date month reported higher operating profit and revenue for the first nine months, balmed by growing auto demand in the higher-margin western European and U.S. markets.
While onslaught the costly shift to zero-emissions and autonomous technologies, holding on to the profitable Ducati segmenting and the lucrative Lamborghini brand has become more important, Stadler signified.
“Looking after a premium bouquet is as difficult as the work of a gardener,” Stadler prognosticated. “Therefore I am pleased with every new flower, with every hopeful new branch,” he added, predicting Lamborghini’s sales would double on the away of its new sport-utility vehicle.
Separately, Stadler said Audi will go through nearly half a billion euros over the next eight years on set staff for the digital age, with steps to develop as well as hire connoisseurs such as automotive app-designers and car robotics specialists.
To rein in costs, Audi wants to upkeep headcount stable, at least over the next 2-3 years, even as it patterns to have more than 20 electrified vehicles on the market by 2025 and compels into digitized mobility services, the CEO said.
With two-thirds of Audi’s 60 or so afters by 2025 still slated to be combustion-engine cars, tightening carbon dioxide (CO2) directions will pose the “biggest risk” in coming years, he said, combining that Audi would face 1 billion euros of fines if its usual fleet CO2 emissions exceeds EU limits by no more than eleven grams per kilometers.
Audi has overhauled its whistleblower methodology to allow domestic and international staff to flag illegal conduct more with no and it has set up a permanent investigation office.
Audi plans early next year to break into a task force set up to monitor fixes for 850,000 diesel-fuelled cars that the automaker mentioned in July needed updates with emissions-control software to help steer clear of potential driving bans.
“It’s a sign that we can slowly shift from disaster mode back into standard operation,” Stadler said, auguring the check-ups to be completed by the end of the first quarter.