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NEWS
Audi to buy Ducati?
German prestige auto marque Audi is considering the purchase of its motorcycle equivalent, Ducati, and apparently has first dibs on the iconic brandGerman luxury car-maker Audi has inked an agreement that’s the first step to buying Italian luxury bike-maker Ducati. Audi has until mid-April to make a final decision.
Ducati's liabilities are said to be around €200 million (A$250m) and a total purchase price of about €250m-€300m (A$312m to 375m) has been suggested. Ducati builds about 40,000 motorcycles a year, but is on the market since it reportedly owes more than it makes in revenue.
The deal, which would put Audi up with its arch-rival, BMW -- as well as Honda and Suzuki as volume manufacturers of cars and bikes -- is part of Project Eagle, an idea from Volkswagen Group maestro Ferdinand Piech. He has been interested in acquiring a prestigious motorcycle brand for some time, and looked at the reborn Horex, a German company which made single- and twin-cylinder bikes from 1936 to 1956.
However, Horex doesn't have enough brand recognition, even if it’s using a narrow-angle V6 engine very similar to the narrow-angle V6 found in some Volkswagen cars. But when Bologna-based Ducati came up for sale the VW Group was very interested – all the more so since the Italians had recently inked a cross-promotional deal with German rival Mercedes-Benz.
India's Mahindra and Hero (click here to read the news story linking Ducati with the latter), Daimler and Audi’s parent Volkswagen are all reportedly interested in acquiring Ducati but Audi has an exclusivity deal, giving it first dibs on the iconic biking firm.
Both companies are small, prestige brands with illustrious histories – and both have a long-running DNA of competition success: Audi has conquered various road and rally championships, including the Le Mans 24 Hour, while Ducati’s recent championships have all been in MotoGP and World Superbikes – most notably in the hands of Australian riders Casey Stoner, Troy Bayliss and Troy Corser.
Also, both companies have quirky engineering solutions which have set them apart – Audi mastering Quattro all-wheel drive for all applications and Ducati’s use of desmodromic valve timing.
Audi will almost certainly not pay the asking price and will probably offer up only €50m to €100m (A$62m to $125m) in cash, but will take on Ducati's existing debt and liabilities. Ducati chairman Andrea Bonomi has said that he views Ducati as “the two-wheeled equal of Audi”, a view that Ferdinand Piech would probably agree with. Back in 2008, Piech admitted he made a mistake not to have bought Ducati when the company was on the edge of bankruptcy.
Now, Audi is looking likely to correct that situation.
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Written bySteve Kealy
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Please see our Editorial Guidelines & Code of Ethics (including for more information about sponsored content and paid events). The information published on this website is of a general nature only and doesn’t consider your particular circumstances or needs.
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