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Dieselgate Scandal - VW may shed Ducati, Scania & MAN

Snapshot: Due to the ongoing dieselgate ordeals, Volkswagen might shed Ducati, Scania & MAN.

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The dieselgate scandal is till not over and it seems Volkswagen is preparing to sell off some of its brands to help cover the rising costs. And, according to the The Detroit Bureau, a VW official has confirmed that the company is considering various other options, including the possibility of a sale or IPO of Scania and MAN. Further, explaining they emphasized, “We’re keeping all options open in regards to expanding overseas, about a possible takeover as well as about a stock market listing."

Though, the decision cannot be expected, so soon, but as the reports suggests the company was considering the possibility of selling off its truck division before the Dieselgate scandal occurred. According to Citi analysts, the company could be worth over $13.5 billion and this would definitely help Volkswagen cover the costs associated with the Dieselgate scandals. The final cost is still to be calculated, but some estimates have put it approximately $55 billion.

In this context, Mr Christian Stadler, a professor of strategic management at the Warwick Business School said, “This is an interesting decision for Volkswagen as keeping hold of the truck business might help it smooth out what is a tough period on the car front following the emissions scandal.”Adding to this he said, “But from the perspective of the truck division it will probably find it hard to get any extra capital to grow because the group’s focus is on the emissions scandal, even though this is a good period to for the truck division to grow. “The truck market is going through a difficult period, so acquisitions would be cheaper.”

Furthermore, if the costs are much greater than VW expects, reportedly this German automajor could sell Ducati if needed.

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