Volkswagen Boss Says Company is Working to Sell Non-Core Assets

Volkswagen is close to a decision to sell its non-core assets, which contribute up to 20 percent of its annual revenue, as it restructures in the wake its costly diesel emissions cheating scandal. Citing The Wall Street Journal, Reuters reports that Volkswagen Group boss Matthias Mueller revealed that the automaker is working to sell divisions that it no longer sees as critical parts of its business.

Those familiar with the matter revealed to Reuters that the sale of Ducati has been put on hold because of German trade unions opposing the move, particularly labor leaders on the automaker’s board, which occupy half of the 20 seats. Mueller told The Wall Street Journal that selling Ducati will take time due to the amount of opposition to selling the motorcycle maker. “The list [of asset disposals] has not been put away on the shelf. But we’re not going to let anyone tell us which decision to make,” Mueller told The Wall Street Journal.

Mueller also revealed that any talk regarding Volkswagen merging with FCA is all speculation, stating that the German automaker is already large and doesn’t need to get “any more bloated.” FCA boss Sergio Marchionne previously attempted to start talks with General Motors regarding a merger but was brushed off after multiple attempts. More recently, it was rumored that Marchionne was looking into a merger with Volkswagen, though he later revealed that FCA wasn’t in talks with anyone.

Source: Reuters via The Wall Street Journal (Subscription required)

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