Volkswagen Group had decided to sell the iconic motorcycle brand Ducati to manage the rising costs of diesel-emission cheating scandal.
But now, a report states that Volkswagen Group has halted the possible sale of Ducati after opposition from its powerful labour groups.
Ducati CEO, Claudio Domenicali informed workers that Volkswagen Group's supervisory board has decided to halt the sale process. The labour union leader, Bruno Papignani said that FIOM CIGL, the Italian metallurgical worker's union that represents Ducati employees opposed the sale of Ducati.
Volkswagen considered the sale of Ducati as part of the asset review in 2016 to examine operations that are not fit for its car and truck business. Audi also hired Evercore Partners to advise strategic sales options.
In 2012, Ducati was purchased by Volkswagen Group through Audi for $981 million. Reports suggest that by selling Ducati, Volkswagen would have raised a cash reserve of $1.8 billion.
The raised money could have been used to buy back the diesel cars tampered by the cheating software to hide emissions. Previously it was reported that Royal Enfield and Bajaj Auto were also interested in purchasing the iconic brand. In fact, Bajaj hinted that it was closing on a deal through its Austrian partner KTM.
Volkswagen Group has decided to halt the sale process of Ducati. This is a huge setback for Audi, as months of work goes in vain. The latest development has also made things difficult for Volkswagen which is embroiled by the diesel emission scandal.