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.




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