Volkswagen Group Addresses Speculation on Brand Divestitures Amidst Restructuring

Volkswagen Group: Navigating a New Era of Transformation and Strategic Shifts

Uncertainty Surrounds Key Volkswagen Group Brands

Following Porsche's departure from Bugatti Rimac, which effectively ended Bugatti's long-standing association with the Volkswagen Group, new speculation has arisen concerning the future of other prominent brands within the conglomerate. A recent publication, The Financial Times, reported that advisors are advocating for the sale of additional assets, explicitly mentioning the motorcycle manufacturer Ducati. Furthermore, there are calls for Lamborghini to transition from its current privately held status to a publicly traded entity, a move that would allow the Volkswagen Group to retain control via its Audi subsidiary while simultaneously generating substantial capital through share offerings.

Volkswagen Group Responds to Divestiture Rumors

In response to inquiries regarding these swirling rumors, particularly concerning Ducati, a spokesperson for the Volkswagen Group refrained from outright dismissal. Instead, the company's statement underscored the necessity for all its affiliated brands and subsidiaries to undergo a "profound transformation." This candid admission highlights that the established "business model no longer works," especially the practice of developing vehicles in Germany for global export. This sentiment echoes previous warnings from former Porsche CEO Oliver Blume in July 2025, who had noted the unsustainability of the traditional business model, before he assumed leadership of the wider Volkswagen Group.

Strategic Downsizing and Organizational Reshaping Underway

The Volkswagen Group's organizational restructuring extends beyond mere speculation. The company has already commenced shedding assets, including the sale of a majority stake in its Everllence marine diesel engine business, which generated approximately €7.4 billion (around $8.4 billion). Reports also indicate the potential termination of a significant partnership between the software unit CARIAD and Bosch, despite a substantial €1.5 billion ($1.7 billion) investment. Furthermore, German business publications have suggested that the overhaul could involve the closure of four factories and a drastic reduction of up to 100,000 jobs. While the Volkswagen Group had previously announced plans to cut over 35,000 jobs in Germany by the end of the decade, a reduction of 100,000 would represent an unprecedented move within the automotive sector, signaling the severe challenges confronting the German automotive titan.