Volkswagen’s “not-for-sale subsidiary” receives $9.2bn bid: Report

By Sayujya S, Desk Reporter
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Volkswagen (VW), the German automotive manufacturer, has received a $9.2 billion offer for its subsidiary Lamborghini, even though VW’s Audi said the supercar brand was not for sale, according to reports.

The reports said that Switzerland’s Quantum Group, which has formed a consortium with London-based investment firm Centricus Asset Management, has put forward a non-binding offer to set out terms for the purchase of Automobili Lamborghini. The consortium would include job assurances for existing Lamborghini employees for up to five years and the creation of 850 new jobs, the report said, citing offer documents.

According to the company website, Quantum Group founding partner Rea Stark is also co-founder of Piech Automobile with Toni Piech, the son of former Volkswagen Chairman Ferdinand Piech.

“Lamborghini is not for sale”

The reported offer for Lamborghini comes amid uncertainty over whether Volkswagen will keep a sprawling structure that also includes brands such as Ducati, Audi, Porsche and Bugatti.

Volkswagen confirmed that there was agreement in the group that Lamborghini, which has been named repeatedly as a possible divestment candidate in the past, will remain part of Volkswagen. Asked to comment on the report, a spokesman for Volkswagen unit Audi, which is in charge of Lamborghini, said, “This is not the subject of any discussion within the group. No, Lamborghini is not for sale.” Representatives of Centricus and Quantum Group did not offer any comments.

Reports from October last year said that Volkswagen had drawn up plans to carve out Lamborghini to make it a more independent business within its stable of car brands and facilitate a potential initial public offering (IPO) at a later stage.

Recently, Lamborghini CEO Stephan Winkelmann said the brand planned to invest $1.5 billion to produce an entirely gas-electric hybrid line-up by 2024, adding that its first fully electric model will not appear until the second half of the decade.

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