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Ducati is not for sale according to VW supervisory board

Volkswagen's planned sale of motorcycle brand Ducati and transmission maker Renk currently has no majority backing on the carmaker's supervisory board, with opponents to asset sales feeling invigorated by the group's strong results. Europe's largest automaker has tasked banks to evaluate options for Ducati and Renk including divesting the two divisions as it aims to streamline operations to help fund a post-dieselgate strategic overhaul. Volkswagen has been reviewing its portfolio of assets and brands since announcing in June 2016 a multi-billion-euro shift to electric cars and new mobility services as part of its so-called Strategy 2025. Five bidders have been shortlisted to buy Ducati, including Italy's Benetton family, with offers received valuing the brand at 1.3 billion-1.5 billion euros ($1.76 billion), a source said on Saturday. But VW's labour leaders, occupying half the seats on the 20-member supervisory board which decides on asset sales, resist a sale of Ducati and Renk without compelling financial reasons. "The employee representatives on Volkswagen's supervisory board will neither approve a sale of Ducati, nor one of Renk or MAN Diesel & Turbo," a spokesman for VW group's works council told Reuters late on Saturday. "Everyone who can read the VW half-year results should know: We don't need money and our subsidiaries are not up for grabs by bargain hunters." Six-month operating profit at VW group jumped 19 percent to 8.9 billion euros, the carmaker said on Thursday, as cost cuts and R&D improvements at the core namesake brand earned VW a respite from the billions of euros in costs for fines, vehicle refits and compensation related to its dieselgate scandal. One source at VW said that given strong union opposition, VW is now reviewing the plan to sell Ducati as it doesn't want to risk working with labour on implementing a hard-fought turnaround plan for the VW brand, seen as crucial by investors. Though Ducati is owned by VW's luxury brand Audi, the VW group's supervisory board has to approve a possible sale. Audi declined comment. The billionaire Porsche and Piech families, controlling 52 percent of voting shares in VW and holding four supervisory board seats, do not support selling Ducati or Renk, two other sources at VW group said. A spokesman for Porsche SE, the family's holding company, declined comment.

VW may move production because of Russia's cutoff of natural gas

Volkswagen AG is exploring ways to counter a shortage in natural gas, including shifting production around its network of global facilities, signaling how the energy crisis unleashed by Russia’s invasion of Ukraine threatens to upend EuropeÂ’s industrial landscape. Volkswagen, EuropeÂ’s biggest carmaker, said Thursday that reallocating some of its production was one of the options available in the medium term if gas shortages last much beyond this winter. The company has major factories in Germany, the Czech Republic and Slovakia, which are among European countries most reliant on Russian gas, as well as facilities in southern Europe that source energy from elsewhere. “As mid-term alternatives, we are focusing on greater localization, relocation of manufacturing capacity, or technical alternatives, similar to what is already common practice in the context of challenges related to semiconductor shortages and other recent supply chain disruptions,” Geng Wu, VolkswagenÂ’s head of purchasing, said in a statement.  RussiaÂ’s decision to throttle gas supplies to Europe has raised concerns that Germany might be forced to ration its fuel. Recent news that gas storage levels hit 90% ahead of schedule has soothed fears of acute shortages this winter, but Germany faces a challenge in replenishing depleted reserves next summer without contributions from Russia. Southwestern Europe or coastal zones of northern Europe, both of which have better access to seaborne liquefied natural gas cargoes, could be the beneficiaries of any production shift, a Volkswagen spokesman said by phone. The Volkswagen group already operates car factories in Portugal, Spain and Belgium, countries that host LNG terminals. Labor hurdles To be sure, any major production shift away from EuropeÂ’s biggest economy would face significant hurdles. VW has some 295,000 employees in Germany and worker representatives account for around half the companyÂ’s 20-member supervisory board. Any shift in production would likely involve a limited number of vehicles rather than wholesale factory shutdowns. While gas supplies for VWÂ’s plants are currently secured, the company has identified potential savings at its European sites to cut gas consumption by a “mid-double-digit percentage,” said Michael Heinemann, managing director of VWÂ’s power-plant unit. Still, the carmaker said it was concerned about the effect high gas prices could have on its suppliers.

Audi confirms new Q1 to cross over into smaller territory

The latest Q3 is smaller in every dimension than the Q7 that launched Audi into the crossover back in 2006. It's over two feet shorter, four inches narrower, five inches lower and rides on a wheelbase that's nearly a foot and a half shorter. But in Audi's eyes, it's still not small enough.
That's why the German automaker has just confirmed that it will proceed with production of the oft-rumored Q1 crossover. The new line will form just one of 11 new models which Audi aims to launch by the end of the decade, and will be built starting in 2016 at the main plant in Ingolstadt where Audi currently makes the A3, A4 and A5.
Audi isn't saying much else about the Q1, confirming only that it will be based on a modular transverse-engine platform. But contrary to the brand's Quattro-centric image, it has been rumored to be offered in front-drive form only. One way or another, the business case for expanding Audi's crossover range is as suitably rock solid: The Q family accounts for over a quarter of Audis sold worldwide, with the Q5 accounting for over half of that to stand as the most popular in the range.