Hoovey689

iTrader: (16)

Audi deal to buy Ducati valued at $1.1B

Automotive News is reporting that Audi is set to lay down $1.1 billion to purchase Ducati from the motorcycle manufacturer's current owner, Investindustrial. The news comes courtesy of a source "familiar with the matter," though neither Audi nor Investindustrial have officially commented on whether that price is accurate. As Automotive News points out, the price is around seven times what Ducati earned last year before interest, taxes and depreciation – even after subtracting any debt Ducati holds. Currently, the motorcycle maker's liabilities are less than $262.6 million.

Most analysts view the purchase as a thinly veiled jab at rival BMW, itself a longtime motorcycle builder. Last year, the Italian firm sold somewhere in the neighborhood of 42,000 bikes with a revenue of $630 million. While that's technically more than either Bugatti or Lamborghini, both Volkswagen brands, adding a motorcycle manufacturer to the VW portfolio probably won't do much for the rest of the company's brands. Longtime industry watchers may remember that VW Chairman Ferdinand Piech tried to purchase Ducati once before in 2008 before loosing out to Investedindustrial.

http://www.autoblog.com/2012/04/17/a...alued-at-1-1b/

Hoovey689

iTrader: (16)

So Ducati and Instagram are almost worth the same 0_o

PhilipMSPT

iTrader: (5)

Honda has their empire of cars, motorcycles, boats, engines, planes, tools, and such. Suzuki has an accompanying car brand, just like BMW. Yamaha has ties to pianos and Toyota. Motorcycle companies need support from their more profitable counterparts.

What does Ducati have? Independence. However, this is very difficult to do when competition is getting hotter and hotter. Ducati needs a company that will (a) fund R&D, (b) provide investment, and (c) flourish the brand into bigger markets. VW/Audi can provide a financial backbone, but also expand their "portfolio" into the motorcycle market.

VW/Audi can do what they did to Lambo and Bugatti: keep the brands alive, even though it may not be the most profitable. Those brands continue to thrive with exclusivity and desirability. I expect Ducati to continue performing with a breath of exclusivity and desirability, if and when Audi decides to absorb them financially...



Obligatory Ducati pic:

bitkahuna

iTrader: (20)

so you feel ok about this phil?

JessePS

This should be an interesting mix. All the best to them, I can't wait to see what the VW Group has in store for future Ducati owners and present ones.

Jetfire

iTrader: (3)

Hope VW can bring good things to Ducati. Ducatis are the best looking bikes out there. Just hope they don't try to mess with the formula too much.

T0ked

iTrader: (2)

How many brands are now under the VW group? This is a bit insane. VW is the future GM of the past.

SargeISF

iTrader: (6)

Sick V10 Ducati coming soon!

PhilipMSPT

iTrader: (5)

Yeah.

I don't think Ducati much to worry about. They know how to pull it off independently, and they'll continue building bikes as before. They will benefit with a more stable financial support from VW/Audi. And I doubt VW/Audi will try to entangle their ideas with Ducati because they do have a good formula on making bikes.

On the other hand, I think VW/Audi have a lot to worry about. They will be investing on one of the more volatile motorcycle companies on the market, only because Ducati isn't a volume seller. Just like Lamborghini, Ducati's goal is performance figures, not sales figures.

Hoovey689

iTrader: (16)

It's official, Audi has just bought Ducati

There aren't a lot of automakers that also make motorcycles: Peugeot, Honda, Suzuki, and perhaps most pertinently, BMW. And now Audi is getting in the game – not with its own four-ringed motorbikes, but with today's acquisition of Ducati.

In the announcement just released, Audi confirmed the deal but stopped short of confirming the reported purchase price of $1.1B. Although Audi is, of course, part of the Volkswagen group, it is Audi AG itself that officially bought the motorcycle manufacturer, making Ducati the third Italian operation under its umbrella alongside Lamborghini and ItalDesign-Giugiaro.

Tellingly, Audi also points to certain technologies developed by Ducati – particularly their control systems, combustion chamber process and competence in lightweight construction – as particular assets that "offer great potential for AUDI AG and the Volkswagen Group."

http://www.autoblog.com/2012/04/18/audi-buys-ducati/

PhilipMSPT

iTrader: (5)

Let's post more pics of Ducs with R8s...

adamls2

<3 Ducatis Hope they will produce some great stuff together!!

jaseman

Hopefully Audi knows a good thing when they have it, and other than offering financial stability, leave Ducati to do what it does best - building world class bikes.