Volkswagen Group has shelved the plan of selling Ducati brand amidst rising opposition from its labour union.
Acquired by Volkswagen subsidiary Audi in 2012, the premium motorcycle brand Ducati was being considered for sale to balance Volkswagen’s diesel-gate emission scandal charges. The German giant has halted the proposed sale due to opposition from Germany’s largest metalworkers’ union IG Metall and FIOM CIGL, the worker’s union which represents workers of the Italian brand.
While Ducati was considered as a non-essential part of business, its workers requested to remain a part of the Volkswagen Group which made dominant labour unions work hand-in-hand to oppose the brand’s sale. Even Volkswagen’s supervisory board was unlikely to approve this sale as it believed that this decision made little financial sense.
Recently, Volkswagen also reported damages of 2.5 billion Euros due to its two-year-old emission scandal which amounts to a total charge of nearly 25 billion Euros (or $29.5 billion). The sale of Ducati brand was speculated to fetch around 1.5 billion Euros for the brand.
Volkswagen Halts Ducati Sale
– Decision comes after opposition from IG Metall and other labour unions
– Ducati workers wished to remain a part of Volkswagen Group
– Volkswagen reported an additional 2.5 billion Euro charge for its emission scandal recently
Source – AutoNews.com Europe