Showing posts with label ducati and hero. Show all posts
Showing posts with label ducati and hero. Show all posts

Tuesday, 27 March 2012

Audi in talks to buy Italy’s Ducati


Just a couple of weeks ago, we had informed you that Iconic Italian motorcycle maker Ducati is up for sale , possibly considering Volkswagen and BMW as potential suitors. Hero Motocorp and Mahindra from our Indian contingent were also showing intentions to take their brand to the next level and to think beyond the small displacement motorcycles they're currently known for. But as of now as per our sources the current interested suitors include Volkswagen's Audi brand and BMW in the forefront not that Hero Motocorp and Mahindra are out of the race .

Volkswagen's Audi brand is in full force to include Ducati in their stable of brands and triumph over their arch rival BMW .
Audi the premium cars arm of Europe's top car maker Volkswagen  was in discussions with the private equity group that controls the Italian firm about a purchase.

A successful deal would extend Audi's long-standing rivalry with BMW  to superbikes, and add expertise about high-revving light engines to VW's engineering portfolio, which ranges from cars through heavy trucks to ship engines.
Basically VW wants to extend its legacy in the biking sector as well since it is the only department in which VW hasn't featured yet  .

For Audi, whose Ingolstadt headquarters has become a key research and development center for lightweight fuel saving technologies, Ducati's engine technology could add a new development dimension.

If rumors are correct, Ducati is hoping for a total purchase price of 850 million euros, or about 1.1 billion dollars – but that figure includes 800 million euros of debt, meaning the actual sale price of the brand itself would be just $65 million and currently Volkswagen's Audi brand is int forefront

Ducati has, in the past, positioned itself as the two-wheeled equivalent to Audi, whatever that means. And finally, having Ducati as its two-wheeled partner would give Audi yet another talking point in its longstanding rivalry with BMW.

Audi isn't the only serious suitor for Ducati. There's talk of potential ownership by India's Mahindra and Germany's Mercedes-Benz, who's own AMG performance division is a strategic marketing partner with Ducati as it is. Audi parent Volkswagen, too, is said to be in the running for a bid to own the famed Italian motorcycle marque.

Ducati currently sells a range of motorcycles in India including the Ducati Monster, the Ducati Hypermotard, the Ducati 848, the Ducati 1098 and the Ducati Diavel. Ducati sells over 40,000 motorcycles across the globe and has been in existence for over  86 years. Bologna headquartered Ducati has had a series of owners in the past.
We'll keep you up to date with any more information on Ducati's future ownership as time goes on.

Sunday, 4 March 2012

Hero MotoCorp in Talks on Possible Ducati Acquisition.



Just a couple of weeks ago, we had informed you that Iconic Italian motorcycle maker Ducati is up for sale , possibly considering Volkswagen and BMW as potential suitors. Then a week ago, up pops Hero MotoCorp in a deal with Erik Buell Racing, showing they have intentions beyond the small displacement motorcycles they're currently known for. Now, in what has to be one of the more surprising developments in all of this, word is out that Hero MotoCorp is talking to bankers about a possible acquisition of Ducati. Wow! I guess they really are trying to expand into another market.
"We’ve been seen as a utility-bike maker, fuel-efficient bikes, and somebody who’s at the lower level of the market, who’s more small-town and rural-market focused," said Munjal. "So our ambition is to become one of the biggest global two- wheeler players and to do that, you cannot only be in one small segment"
This may be very preliminary and no one is going to be talking about it outside the boardrooms where the discussions are taking place, but what is becoming clear is many more buyers may be getting into this game than everyone initially thought.

Ducati currently sells a range of motorcycles in India including the Ducati Monster, the Ducati Hypermotard, the Ducati 848, the Ducati 1098 and the Ducati Diavel. Ducati sells over 40,000 motorcycles across the globe and has been in existence for over  86 years. Bologna headquartered Ducati has had a series of owners in the past. Meanwhile, here is official word regarding this development from Andrea Bonomi, Invest industrial’s chairman,
Ducati is now a perfect company but the further growth it requires needs the support of a world-class industrial partner. This year, we will work towards that partner. A handful of industrial groups in Asia, Europe and the US were interested in Ducati
 Let's see, a company manufacturing motorcycles in Italy, with its largest market in the USA and owned by a company in India. Would it be any different if they were owned by a company in Germany? Does any of this even matter any more? Hero MotoCorp certainly wouldn't be the first name to pop up when you think of a Ducati sale, but it does make you wonder who else may be interested in the Italian manufacturer.
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