Volkswagen Group is mulling over options for supercar maker Lamborghini, including sale or stock listing, according to a Bloomberg report. Lamborghini Chief Executive Officer Herbert Diess had said in March this year that the group was reviewing its brand portfolio to decide whether to divest some non-core businesses. Just last month, Diess was also quoted saying that the company is working to free up space to develop and mass-produce electric vehicles. Also, Lamborghini has been doing well lately especially after the launch of its first SUV Urus and is now valued at $11 billion, making it a viable candidate for an initial public offering.
Volkswagen is readying to fold Lamborghini into a separate legal entity, in a process that may wind up toward the end of next year, Bloomberg reported, citing sources.
Diess plans to focus future expansion on the group’s main global brands -- VW, Porsche and Audi -- in a push to channel resources more efficiently and avoid duplicated efforts.
The 60-year-old CEO often emphasizes the urgency of maximizing VW’s value as it contends with a costly technology transition, and recently key members of VW’s founding Porsche-Piech clan have voiced support. He’s targeting a market value for Volkswagen of $220 billion, the people said, from about 81 billion euros now. His efforts are aimed at helping VW defy the auto industry’s current gloom and keep both existing peers and new rivals from the technology industry at bay.
The Bloomberg report further adds that in intense debates earlier this year, VW’s top management decided against pursuing the sale of units like Bugatti for now, partly because it was unclear if sub-scale assets could be divested without paying cash on top, according to one person. Still, smaller nameplates might face reshuffling going forward.
Volkswagen had aggressively expanded under the leadership of Ferdinand Piech, who was chief executive and chairman between 1993 and 2015, acquiring Bentley, Bugatti, and Lamborghini in a single year.