Volkswagen AG’s (VW) plan to review options for its Lamborghini supercar division marks a further step in chief executive officer Herbert Diess’ campaign to transform the world’s biggest automaker and more than double its market value.
The German automaker is weighing a potential sale or stock listing for the Italian brand, according to people familiar with the matter, as Diess channels resources to the main VW, Porsche and Audi units.
No decision has been made and a plan to move Lamborghini from under the Audi umbrella to Porsche remains an option, they said.
Photo: AP
Volkswagen has started preparations to fold Lamborghini into a separate legal entity and the process might conclude toward the end of next year, the people said, asking not to be identified because the deliberations are confidential.
VW on Sunday signaled that any decision is likely a ways off, saying it has no plans for a Lamborghini sale or initial public offering (IPO).
Diess, 60, has been pushing an overhaul of Volkswagen since he became chief executive officer 18 months ago — investing billions in electrification, selling a stake in truckmaker Traton SE, and putting industrial-transmission and diesel-engine units up for sale.
He has also forged an alliance with Ford Motor Co to share the costs of developing commercial vans, electric vehicles and autonomous driving.
“We shouldn’t spread ourselves too thin,” Diess said in an interview published over the weekend in Germany’s Sueddeutsche Zeitung newspaper. “That might be hard in some cases, but it’s the only viable way.”
Analysts have urged VW to consider deep changes, including an IPO of Porsche, to unlock value.
The sports-car unit is VW Group’s most profitable division, while Audi contributes the biggest share of earnings.
A higher valuation would let Diess use VW’s stock as currency for partnerships and consolidation opportunities.
Despite robust operating results, VW shares are down by more than one-third from highs set before the 2015 diesel-cheating crisis. VW’s market value is about 81 billion euros (US$89.34 billion).
Progress in restructuring has been hampered by convoluted governance at Volkswagen. Unions, politicians and the powerful Porsche-Piech ownership clan each have a say in big decisions.
An asset review that began in 2016 has so far led to an aborted attempt to sell the Ducati motorcycle brand and the ill-timed Traton IPO, which was almost derailed by internal wrangling.
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