Audi buys Italian motorcycle maker Ducati for Volkswagen as the 12th brand addition to the famous German automotive brand’s business subsidiary list. Volkswagen’s 20-member supervisory board approved the purchase on 19th April, 2012 Wednesday. We are getting the report, to buy Ducati, Audi agreed to pay about $1.13 billion (860 million euros). Audi wants to purchase Ducati as quickly as possible, once it has received approval by the relevant regulators.
Profile of Ducati: Ducati, which was founded in 1926, sells the Superbike, Monster, Streetfighter, Hypermotard, Multistrada and the new Diavel models in 65 countries. 13 Rider’s Superbike World Championships winner title (since 1988) listed in the portfolio of Ducati. Ducati also brings in liabilities of well below 200 million euros with it. About 40,000 two-wheelers in shapes of cruiser, supermoto, adventure, naked and superbikes made by Ducati a year across.
Profile of Volkswagen: The “people’s car” or Volkswagen is a very known automotive brand over the global automotive industry as a Germany based international brand. Volkswagen Group is the parent to this iconic automobile brand. Volkswagen Group is the owner of world’s popular car brands as Audi, Bentley, Bugatti, Lamborghini, SEAT, Porsche, Giugiaro, and Skoda.
The deal: Audi stated the buying of Ducati solely reflects Volkswagen Chairman Ferdinand Piech’s passion for the Italian company’s expertise on design and light engines and bears no economic or industrial logic. The figure euro 860 million ($1.1 billion) includes debt, for the Bologna, Italy-based company.
India’s biggest motorcycle maker Hero MotoCorp Ltd had also expressed its interest in Ducati after Milan-based Investindustrial made it known in February that it planned to sell the company.
Lets see what are the changes coming after Volkswagen’s Ducati. It may give a teach to the VW to make high performance engines i.e. “VW’s 1.6L = 100 BHP” and “Ducati’s 1.2L = 195 BHP”. World’s most leading bike manufacturer Honda may having little bit worry about it as Volkswagen may gear-up the production and sells of Ducati products.
We may say Volkswagen that ‘All round success does not mean to be an all-rounder’, it’s my word on this deal.