For Sale by Owner: A Look at Potential Ducati Buyers

Dennis Chung
by Dennis Chung

Last month, news broke that Ducati is once again up for sale, with its owner, private equity firm Investindustrial is looking for a “world-class industrial partner” for the noted Italian manufacturer. Since then, a number of potential suitors have popped up as being interested in acquiring Ducati.

Audi has reportedly cut to the front of the queue to negotiate with Investindustrial. Audi is reportedly offering somewhere in the area of 850 million euro (US$1.1 billion), which is below the 1 billion euros Investindustrial is said to be seeking. The 850 million euro however includes absorbing about 800 million euro in debt. Audi still has a month to finalize its offer though, and unless a deal is struck, Ducati may still be on the market.

Here now is a look at some of the companies whose names have been linked to the Bolognese brand. Some of these companies have expressed some interest in buying Ducati, some have denied any interest, and some were only named because, and let’s face it folks, rumors are fun.

Related Reading
Investindustrial to Sell Ducati
Audi Poised to Buy Ducati

Farbe: Misanorot

German automaker Audi has reportedly won first dibs to bid for Ducati. If a deal is reached, Ducati will be the latest member of a larger family known as the Volkswagen Group. In addition to Audi and the core Volkswagen brand, the Group also owns the brands Bentley, Bugatti, Lamborghini, Scania, Seat and Škoda.

The Volkswagen Group has long been associated with rumors of acquiring Ducati. VW Chairman Ferdinand Piech is reputedly a big Ducatisti with several Ducs in his garage, and Ducati fits nicely into the Group’s other properties. Rumor has it Piech once had the chance to purchase Ducati for just 1 euro (while assuming its debts in the process).

Volkswagen and Suzuki recently ended their partnership after a dispute over the sharing of technology. At the time, Volkswagen’s 20% stake in Suzuki created speculation over the automaker entering the motorcycle business, but nothing ever emerged from that partnership.

Pros:
Chairman of VW is a big Ducati fan
Ducati would fit in nicely with the Volkswagen Group’s other brands

Cons:
Piech’s passion aside, it’s not clear how well Ducati would fit into Volkswagen’s overall business strategy

Related Reading
Ex-Ducati CEO Michael Lock Lands at Lamborghini

India’s Hero MotoCorp was a late addition to the Ducati rumor mill. The former Honda partner was not one of the companies initially rumored to be interested in acquiring Ducati.

Bloomberg reports Hero, the world’s largest motorcycle manufacturer in terms of sales volume, has been speaking with bankers about potentially acquiring Ducati.

Since the dissolution of its joint venture with Honda, Hero has been looking for a replacement to provide some research and development prowess to supplement its already well-established infrastructure.

Hero may have found such a partner in Erik Buell, reaching an agreement with Erik Buell Racing to develop new models. Ducati could be another feather in Hero’s cap, helping further expand the company’s reach outside India. Hero’s ownership of Ducati could also alleviate the huge import tariffs for the Italian brand in India.

Hero is already preparing for expansion outside of India in the next few years, a move it was restricted from making when it was working with Honda.

Pros:
Hero has the funds to acquire Ducati
Hero is ready to expand its reach outside India
May lead to introduction of smaller-displacement Ducati models for India and other markets

Cons:
Ducati’s high-end exotic sportbikes may seem an odd mix to Hero’s low-cost, small-displacement models

Related Reading
Erik Buell Racing Teams with Hero MotoCorp


Yes, we know BMW already has a very successful motorcycle business, but that hasn’t stopped the Bavarian company from being linked to Ducati.

There is precedent however. BMW purchased Husqvarna from MV Agusta in 2007, so the company clearly doesn’t have a problem with owning another established marque. But Husqvarna filled a hole in BMW’s two-wheeled lineup with its off-road models, while BMW technology has filtered down to Husqvarna‘s new streetbikes such as the Nuda 900.

Such synergy would not exist between BMW and Ducati however. Many of Ducati’s models compete directly against BMW models, so such an acquisition would not make much sense for either company. BMW doesn’t need Ducati.

For its part, BMW has denied any interest in Ducati, but that hasn’t stop the spread of speculation.

Pros:
BMW has the clout as well as experience

Cons:
Too much overlap
BMW doesn’t need Ducati

While BMW might not be a good fit for Ducati, its German rival Mercedes-Benz might.

Ducati and Mercedes already have a working relationship through the automaker’s AMG performance arm. AMG sponsors Ducati’s MotoGP team and the two companies have already collaborated on a special edition Diavel, as well as the Streetfighter-inspired version of the Mercedes-Benz SLK 55 AMG pictured above.

Pros:
Ducati and Mercedes-Benz already have a working relationship through AMG
Both brands share a strong racing heritage
Ducati would add a new front to the battle between rivals Mercedes-Benz and BMW

Cons:
Mercedes-Benz acquiring Ducati would have made sense when they teamed up a year ago. If there were interest on Mercedes’ end, a deal would have likely developed by now

Related Reading
Ducati Diavel AMG Special Edition Live at the 2011 Frankfurt Auto Show


In the U.S., the name Mahindra is best associated with tractors. Over in its native India however, the Mahindra Group has its fingers in a lot of different industries, from aerospace to agriculture to tourism. Mahindra is kind of like India’s Kawasaki in that way. Mahindra is also heavily involved in the automotive industry, producing cars, trucks and its own motorcycle and scooter brand, Mahidnra 2 Wheelers.

Mahindra’s two-wheeled lineup currently consists of just one motorcycle and five scooters, however, and acquiring Ducati would better position the company against rivals Hero MotoCorp (which owns the largest share of India’s motorcycle market) and Bajaj (which owns a stake in KTM).

Reports out of India however say Mahindra is not interested in making a play for Ducati.

Pros:
Mahindra has the economic weight to support Ducati
Ducati would help Mahindra compete against its rivals

Cons:
Mahindra’s own motorcycle business has not been doing very well

That sound you hear is the roar of millions of HOG members howling in outrage. Yes, Harley-Davidson has been mentioned as a possible buyer for Ducati, but realistically, The Motor Company is probably not a player in this sweepstake.

The memory of Harley-Davidson’s purchase and eventual sale of MV Agusta is still fresh on many Harley owners’ minds. While Ducati is in a massively better position than MV Agusta was, Harley-Davidson’s current position is to focus on its core market. That’s why H-D unloaded MV Agusta and shuttered Buell in the recent years.

Harley-Davidson does have the funds and a strong brand name to have a go with Ducati, but it’s highly unlikely Harley-Davidson will want to pick up another exotic Italian marque.

Pros:
Harley-Davidson is one of the world’s biggest brands
Strong dealer support across the U.S. and around the world

Cons:
MV Agusta. ‘Nuff said.

Would you like to own Ducati? Chances are you don’t have a billion euros stuffed in your couch cushions, but there’s still a chance you could own at least a piece of Ducati.

Last year, Investindustrial considered holding an initial public offering for Ducati on the Hong Kong stock exchange. Those plans appeared to have changed however, as Ducati’s current owners are now looking for a “world-class industrial partner”.

Things may still change however. If Investindustrial cannot find an outright buyer to pick up Ducati, there’s always the IPO route for a quick influx of investors.

Pros:
Immediate influx of cash
Anyone could own a share

Cons:
Anyone could own a share
Decisions would be based on their effect on the bottom line

Dennis Chung
Dennis Chung

Dennis has been a part of the Motorcycle.com team since 2008, and through his tenure, has developed a firm grasp of industry trends, and a solid sense of what's to come. A bloodhound when it comes to tracking information on new motorcycles, if there's a new model on the horizon, you'll probably hear about it from him first.

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