India's Hero considers acquisition of Ducati

The world's largest motorcycle manufacturer considers Ducati purchase
By Mike Hanlon


08:39 March 6, 2012


If you've been having trouble comfortably wrapping your brain cells around the concept of what were once proud national symbols of excellence changing countries, such as the Malaysian-owned Lotus, the Chinese-owned Saab and MG or the Indian Jaguar and Range Rover, then please be seated before reading further. It seems that India's Hero MotoCorp, the world's largest manufacturer of both bicycles and motorcycles is considering the purchase of Italy's deeply loved manufacturer of sports motorcycles, Ducati.




To think that a brand that so closely aligns with Italian excellence and pride might become a symbol of India's rise to power is possibly unthinkable to the Ducati faithful, but the cold hard facts are that Ducati is up for sale, with a reported price tag of around a billion dollars, and with its own MotoGP programme, superbike heritage, technology and design, it's the perfect fit for a company like Hero that has 3,000 dealerships and needs a new non-Honda range of motorcycles just a few years from now.


Hero has grown rapidly as India has motorised, and recently ended its 25 year association with Honda Motor Corp. With cash reserves believed to be in the vicinity of US$1,000 million dollars, the company is now in acquisition mode as it seeks to replace Honda's technology with its own.


Most major automotive and motorcycle manufacturers have built their company on the home market initially, and Hero already has built itself a sizeable fortune selling low-priced scooters and motorcycles to the world's second largest country.


Just as automotive manufacturers are lining up for a crack at the burgeoning Chinese automotive market, the opportunity in India may be trailing the Chinese market penetration of the automobile, but the opportunity is even greater.


In 2009, China had a per capita vehicle ownership of 128 per thousand people (0.128). If it had the same per capita car ownership figure as the US currently has, there's be double the number of cars on the planet. Remarkably, China's per capita vehicle ownership levels are the same as America's were in 1923.


India's population will be the largest of any country 30 years from now - 1.5 billion human beings.


India's vehicle ownership ratios are currently the same as America's were in 1912 - when the Model T Ford was top seller.


Between now and when the Indian population can afford to buy cars, they will buy motorcycles. Last year just shy of 10 million motorcycles were sold in India, and Hero MotoCorp is planning to sell that many of its own brand just four years from now.


Hero famously got its start manufacturing bicycles for the home market in 1956, evolving from a family-owned bicycle parts business established in post-ww2 Amritsar. As India's massive population needed transport the company's bicycle manufacturing business grew every year, becoming the largest bicycle manufacturer in the world during the 1980s.


Using the cash generated by the bicycle business, Hero diversified and in 1984, partnered with Honda to create Hero Honda. The company's success has been astounding since.


By 2004, Hero Honda had become the world' largest manufacturer of two-wheelers, driven by its dominant 50% share of the Indian market.


The high standards of the company's manufacturing capability need little validating other than a list of clients for which it manufactures a comprehensive array of high tech parts, from engines to entire vehicles - Toyota, Nissan, General Motors, Rotax, BMW, Bosch and LG.


In 2010, Honda sold its shares in Hero Honda to the Munjal family and has set up in India to produce its own motorcycles independently, while Hero Honda has become Hero MotoCorp and intends to go it alone. The upside of owning its own technology is that it can apply its massive manufacturing scale to supply motorcycles worldwide, and obviously, Ducati's global network provides another opportunity for expansion.


The contract with Honda involves the continued supply of Honda models and technology until 2014 - after that, all Hero's designs and technology will need to be licensed, purchased or developed.




Acquisitions is the route the company has decided to take and it recently entered into a partnership with Erik Buell which might well see Erik one day given the opportunity to design whole motorcycles without needing a legacy powerplant. That's exciting in its own right.


As I write this, I am wondering just what the general reaction of Ducati fans might be. If Ferrari, a company so closely aligned with Ducati that they share race sponsors and even press events, were to be offered for sale to any foreign company, I suspect there might be government intervention.




That's unlikely to happen with Ducati - it's clearly for sale and money talks all languages, so unless an Italian buyer emerges, Hero MotoCorp might well become the proud owner of one of Italy's most visibly successful companies.


It's far too soon for any indications on what Hero might do with the Ducati brand and its technologies but anything is possible. If you have fears that the Ducati name will be discontinued, fear not - there's plenty of life in the company yet, just maybe not in Italy.


Iconic national symbols have been treated well by India in the past, with Range Rover and Jaguar strengthening their positions under Tata, and even the Royal Enfield Bullet is still manufactured and sold in India.


It's also quite ironic that Hero's main local competitor, Bajaj Motors, owns 40% of another iconic national motorcycle manufacturer - Austria's KTM. Bajaj recently opened 34 KTM stores in India and is heavily promoting the Duke 200 sports bike to the growing sports bike market.


One of the strongest possibilities if the Ducati sale goes through to Honda, is that we are almost certain to see small capacity Ducati sports bikes again.

G'Day,

Few rumours around, during the last two days the grapevine says VW (Audi) acquired Ducati already, time will tell.

The Indian stories are all over the place.
http://www.ducatinewstoday.com/2012/...ducati-suitor/

Better Hero than Jialing!!!!!

Cheers

Ducati was removed from the Milan stock exchange in 2008,then acquired by a private equity group, it is very heavy in debt.

This rumor actually made Hero stocks fall in value, that is because acquiring a manufacturer that is not profitable will drag down earnings per share.

There is really no value in Ducati to AMG or Volkswagen, the company would only have value in that of the emerging markets. Markets that can capitalize on the brand by introducing domestically made models under it. Then also in selling those internationally as well. The core Italian operations cannot be dismantled or moved it would destroy the brand name, they do know that. For example Qianjiang did not believe that they could get away with moving the Benelli operations to China. They do not buy the intrinsic value to destroy it

If you are a Ducati fan and believe that them being acquired and then subsequently capitalized by an Indian corporation is bad and believe that a German auto company would be a better suitor, could not be any more wrong.

If Ducati goes up for auction, they will sell to the highest or only bidder, the Chinese are likely to come to the table

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Originally Posted by MJH

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This rumor actually made Hero stocks fall in value, that is because acquiring a manufacturer that is not profitable will drag down earnings per share.

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This shortterm shareholder thinking in quarter of a year reports got us in this mess first hand.
I'm happy that Volkswagen and most of the German economy is not following this. Strategic investors that are interested in longterm longterm prospects help a lot.
Check who are the big car manufacturers in developing marktes, I see VW in China & Brasil all the times...

A German company buying an Italian company has nothing to do with emerging markets. They get no additional access to those markets with that type of merger, the ideal partner has to have capital and also access to growing markets from within. Selling into emerging market can be profitable but only limited because of trade restrictions and high tariffs.

Hero is the likely candidate, but they have a huge gap between offerings, but certainly have all the capital they need to make it work, it would take time to do that. Their ability to do that or the actual real world probability of failure to do that lowered the stock value.

India is the place to manufacture motorcycles, they allow foreign investor as wholly owned operations. Honda operates HMSI independently in India.

When a company is removed from the stock market, it is being downgraded to what is referred to as Junk Bonds. It’s actual real stock value lost all value because the actual company is not showing worth on paper it leverages capital through borrowing to keep operating. So those that held Ducati stock got nothing for their investment they likely lost money.

So buying them means you better have a real good plan or nobody will invest and your stocks will drop in value. Means that you better have a plan on how to make money and in that increase sales and profit on the sales.
That would be a line that is made in India and sold in India.

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Originally Posted by MJH

A German company buying an Italian company has nothing to do with emerging markets. They get no additional access to those markets with that type of merger, the ideal partner has to have capital and also access to growing markets from within. Selling into emerging market can be profitable but only limited because of trade restrictions and high tariffs.

Hero is the likely candidate, but they have a huge gap between offerings, but certainly have all the capital they need to make it work, it would take time to do that. Their ability to do that or the actual real world probability of failure to do that lowered the stock value.

India is the place to manufacture motorcycles, they allow foreign investor as wholly owned operations. Honda operates HMSI independently in India.

When a company is removed from the stock market, it is being downgraded to what is referred to as Junk Bonds. It’s actual real stock value lost all value because the actual company is not showing worth on paper it leverages capital through borrowing to keep operating. So those that held Ducati stock got nothing for their investment they likely lost money.

So buying them means you better have a real good plan or nobody will invest and your stocks will drop in value. Means that you better have a plan on how to make money and in that increase sales and profit on the sales.
That would be a line that is made in India and sold in India.

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Didn't we see a Ducati model announced in India just a few months ago? People scratched their heads at the time....

cheers!

AMG and VW bring in what, mangers, engineers and designers the Italians would take offense to that. In the interest of Hero the Italians would be flattered because their value is prized. In the instance of German buying them, its then considered a matter of failed operations and not economics, the later of which they cannot really control, only are subjected to.

Ducati needs capital and access to growing market, then the economic problems are gone. They then can create and develop and in that continue.

Alternatively VW could build the largest manufacturer of motorcycle in India and all the real stuf that comes with that and use the Ducati name to sell them.

If Ducati had great value their stock would not have been removed from the Milan exchange, the most prized companies are often taken over aggressively through stock purchases, Bajaj paid for its share in KTM on the open markets and also disclosed no interest in a majority holding, that is smart diplomacy. .

http://epaper.livemint.com/ArticleIm...006_005&mode=1

Actually Bajaj capitalized KTM and in exchange for technology and market access That is what investing is for, it offers capital as a reward for performing well and with expectations of increased performance in the markets. If the exchange comes with additional opportunities it becomes very positive, it benefits everyone.

Should not be a bad move if VW takes over.
Bentley, Bugatti & Lamborghini have been left alone on their marketing and brand awarness, and have improved on their financial and technical level.

This from Autoblog on the matter:

Rumors of a possible motorcycle brand for Volkswagen aren't anything new. It's a well-known fact that Ferdinand Piëch, Chairman of Volkswagen's Board, wishes that the German automaker had purchased Ducati back in 1985 when the Italian bike manufacturer was in dire financial shape.

As recently as last year, Piëch – himself a Ducati rider even at age 72 – commented that Volkswagen could still purchase an unnamed motorcycle manufacturer if the conditions were right. Strike up the rumormill again, boys and girls. The Italian motoring press is reportedly signaling that Volkswagen is making renewed overtures toward Ducati, which, like pretty much all other motorcycle manufacturers these days, is seeing sales and profits take a dive due to the sorry state of the global economy.

Just a few weeks back at the Frankfurt Motor Show, Piëch indicated that the Volkswagen Group was looking to expand, and some took that to mean it would procure a sizable stake in Suziki, another long-rumored target of the German automaker. KTM, maker of the bonkers X-Bow roadster, has also been bandied about as a potential partner. So, is there any truth to the two-wheeled VW rumors? We'll see how it all pans out soon enough, but we're not exactly holding our breath.

Yeah and VW is real good at partnerships…. They are in arbitration with Suzuki who ended the partnership in September of 2011.

If VW buys Ducati they have to pony up a billion dollars, then what is the plan? The plan that would make Ducati profitable enough to recover the billion and also pay off the Ducati debts. That is the realty of it currently the Ducati operations are covering its heavy dept payments and would need to keep doing that and also present also an opportunity to recover the billion invested.

I really cannot see it happening, sure they can expand sales into emerging markets with very high priced imported offerings but that’s a limited segment and they are already doing that, so its nothing new and in that presents no new revenue.

The high priced imports are growing in emerging markets, but inevitably will be cut by internal domestically made offerings.

Hero could pony up the billion and also set up operations internally that could generate huge revenue streams within India and subsequently pay off the dept and return the operations at Ducati to profitability.

The emerging market have the capital and that capital needs to be returned to developing markets, it needs to be used to reset the developed side. But it has to be done intelligently and not to destroy the developed markets that emerging market depend on in the capital cycling global economy.

Resetting is not uncommon, but has to come with lessons and austerity measures or the idiots that got them into the predicament will remain fat and complacent.

The US government just reset the auto industry in the USA and in that they partnered with the Italians in one venture. Nothing was destroyed in that it merely all was reset and the capital is now being recovered though better operations and positive cash flows.

The Germans resetting Italians is unwise it hurts them both, the developing nations need to be the source of the revenue and in exchange for technology.

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Originally Posted by MJH

The US government just reset the auto industry in the USA and in that they partnered with the Italians in one venture. Nothing was destroyed in that it merely all was reset and the capital is now being recovered though better operations and positive cash flows.

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Quote:

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Originally Posted by MJH

The Germans resetting Italians is unwise it hurts them both, the developing nations need to be the source of the revenue and in exchange for technology.

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Are you now suggesting that Italy is a developing nation :icon10:?

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Originally Posted by 998S

Are you now suggesting that Italy is a developing nation :icon10:?

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No I used that only as an example of meeting needs for capitalization, without creating losers. Fiat brought needed technology in that of small displacement engines. The actual capital was initially sourced from the US treasury and that in part is backed in china holding treasury bonds.

Shouldn't; these motorcycles be sitting in showrooms throughout Asia with the Ducati name on them?
http://i784.photobucket.com/albums/y.../Lifan250V.jpg
http://www.mychinamoto.com/forums/at...354808&thumb=1http://www.webbikeworld.com/ducati-m...ypermotard.jpg
I like things to match, I really would be tickled to see a mini Hypermotard and mini Monster, I really wonder if the L engine layout could be shrunk down into a 250cc? Made in India it would all be or could be affordable/feasible. I would think that it could or would be comparable to the Honda VTR twin that offers 30hp @10,500 rpm.

That makes sense to me, to offer that to the India market as a Ducati and gets back at Honda for making a copy of the monster in the first place.

The issue would be that of efficiency, the 250 would have to be lean and mean and meet all global standards.

Of all my rambling posts and linked images, it is the VTR250 that rates the highest its images get the highest hit counts and from all over the globe.

http://www.indiapricebuzz.in/bikes/w...da-VTR2501.jpg
http://4.bp.blogspot.com/_5_ewoocjMX...onster_696.jpg

What the Hell is a Hero...

Thanks for that Visordown link, MJH. Interesting enough that I'm cutting and pasting it in here.

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What the hell is Hero?

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It wants to buy Ducati, but where has Hero come from?


Tweet Posted: 9 March 2012
by Visordown News


UNLESS you've spent time in India, as a motorcycle brand Hero probably doesn't mean much to you. But now it wants to buy Ducati and everyone's ears have pricked up. Is this a safe set of hands? Does it really have the money? What, in short, is Hero all about?


Until a year or so ago, Hero was a joint venture with Honda, effectively acting as the firm's arm in India as Hero Honda, with its own range of bikes, production facilties and everything else. But during 2010, with Honda keen to take full control of its own Indian operation, the firms split, leaving Hero as a stand-alone brand.


Here in the west, we tend to see Honda as being all-powerful when it comes to bikes, but the reality is that in terms of pure numbers of bikes made, Hero is actually bigger. And its rate of growth has been beyond belief.


Created in 1983, it's first bike didn't appear until 1985. Starting small – around the size of Triumph today – the firm took until 1987 to make its first 100,000 machines. By '91 it had made 500,000. It passed the million mark in terms of total production in '94. Still pretty low-key stuff, really.


But since then its growth has gone off the chart. It took a decade to make its first million bikes, but only four years for its second million, passing the mark in '98. Two years later, in 2000, it had doubled again, with total production passing the four million mark. A year later, in 2001, it became the world's biggest bike maker in terms of volume. Sales passed seven million in 2003, and by 2004 it was making more than two million per year, passing the 10 million total in the process. It now makes more than five million bikes every 12 months, its total production since the firm's inception somewhere north of the 40 million mark.


More than that, its earnings just seem to keep rising. The firm's most recent annual report puts its sales up 12.5%, income up 17.3%, profits up 14.7%... All this while the most of the world's bike industry is trying to keep its head above water. Can it afford Ducati? Yes.


OK, so presuming you've been brought up on a diet of western or Japanese bikes, you're probably not going to be too excited about any of Hero's products. We're talking small, air-cooled, single-cylinder machines, mostly with drum brakes and primitive styling compared to the sophisticated machines we're used to. But when you look at how fast Hero has moved in terms of ramping up production, it becomes easy to see that in a few years it could easily be challenging the established brands in terms of technology, too.


While it still has some technical co-operation with Honda, Hero's recent moves have been all about building a base of technical knowledge to draw upon. In the last couple of weeks, as well as throwing its hat into the ring when it comes to wanting to buy Ducati, the firm has hooked up with Erik Buell, sponsoring his firm's race efforts and getting technical and design help in return. Ducati, with its expertise in chassis, engine and electronics, would be a way to get instant access to the latest technology once Honda has gone its separate way.


Would Indian ownership harm Ducati. Some would be sure to baulk at the link between Hero's budget bikes and Ducati's thoroughbreds, but fellow Indian firm Tata – owner of Jaguar and Land Rover since 2008 – has shown that with a light touch and plenty of investment it's been more than able to do justice to the heritage and appeal of the cars made under those brands, seeing a big growth in sales and profits as a result.






Read more: http://www.visordown.com/motorcycle-...#ixzz1osyV6him

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CAR 12/march:

Audi has struck an exclusive deal giving it first rights to buy Italian superbike manufacturer Ducati, CAR can reveal.

The exclusivity deal gives Audi until mid April when the deal will likely be finalised, according to high-ranking sources contact by CAR.
Ducati's liabilities are around €200 million [earlier report said €800 million, this has been corrected], and our sources suggest the total purchase price is about €250m-€300m.
This is a bold move by Audi, which sees the long-term advantage in moving into two wheels as well as four.
Why is Audi buying Ducati?

It's all part of Project Eagle, another brainchild of Volkswagen group scion Ferdinand Piech. He has been eyeing up the opportunity of buying a prestigious motorcycle brand for some time, and considered reviving Horex, a German motorbike firm which made single- and twin-cylinder bikes from 1936 to 1956.
But Horex doesn't have enough brand recognition, so when Bologna-based Ducati came up for sale the VW Group paid close attention. Especially since Mercedes-Benz recently entered into a cross-promotional deal with Ducati.
Ducati, which makes around 40,000 motorcycles a year, is on the market since its debt burden is reportedly higher than its revenues.
Who else might buy Ducati?

India's Mahindra and Hero, Daimler and Volkswagen are said to be among the leading suitors, but CAR can reveal that Audi has struck an exclusivity deal giving it first dibs on Ducati.
A small team of advisors has been formed in Ingolstadt under the Project Eagle name and they're currently doing due diligence on the Ducati deal. According to our insiders, there is no way Audi will pay telephone numbers for Ducati. Instead, the Germans will probably put no more than €50m to €100m on the table - but absorb the new partner's substantial liabilities.
Ducati chairman Andrea Bonomi has in the past pointed out that he views 'Ducati as the two-wheel equivalent of Audi', a perception Ferdinand Piech would likely agree with. In 2008, Piech said it was a mistake not to have bought Ducati when the company was on the brink of brankruptcy before. Four years later, Volkswagen is now closer then ever to making the chairman's vision complete.
But first of all, the Audi delegation must take a deep dive into the Ducati R&D department and check out the Borgo Panigale production facility. After all, it takes more than a strong name to make Project Eagle fly.

Like MJH, my hero in this battle is Hero.

cheers!

G'Day,

All the Ducati boards are abuzz with rumours, news, etc........

Audi to Buy Ducati?

MON, MARCH 12TH, 2012

It has been almost a year now since we broke the news that Ducati Motor Holding was up for sale, and I still can’t tell if the appropriate metaphor for the ongoing acquisition is a game of musical chairs or Russian roulette. Vying for a seat or putting the chamber to its temple, our latest contestant in “Who Wants to Buy Ducati” is Audi, the four-ringed German car manufacturer. Reported to have a right of first refusal, Audi allegedly has until mid-April to finalize a deal with Investindustrial (Ducati’s main investor) to buy Ducati from the Italian investment group.


Though Ducati sold over 40,000 motorcycles in 2011, the Italian company has roughly €800 million in debt on its books. This means that any company interested in buying Ducati would have to assume the Italian company’s debt onto its own books, which changes the actual purchase price of Ducati dramatically. For its part, Audi is rumored to be making an offer in the €850 million range, which would put the actual purchase value of Ducati at over €50 million, and could put as much as €100 million on the table for Investindustrial to take.


For a bit of history, Ducati’s first suitor was AMG (read: Mercedes-Benz), and while Ducati was keen to sell to the german sport car manufacturer, the Stuttgart natives were reportedly less enthusiastic about the idea. Though AMG and Ducati didn’t enter into a shotgun wedding, the two parties did have a quick torrid affair that resulted in the two companies sharing their marketing efforts, which included the creation of the Ducati Diavel AMG. With the romance reportedly ending late last year, Ducati continued to flirt across the bar with several other brands, and even sent some very ouvert signals with the mention of a private offering and the rumor of a public listing on the Hong Kong stock index.


Since that time (and likely to some extent before it), investment bankers have been trying to line up potential buyers for the brand, with prices in the €800 million to €1 billion range being bandied about by the media, all with a sliding scale of accuracy that can only be found in motorcycle journalism. While companies like VW and BMW have long been linked to buying Ducati, the ah-ha moment in this whole process has been the idea of an Indian suitor.


This has lead to companies like Mahindra and Hero MotoCorp being brought into the rumor fold, which has almost certainly been a complete fabrication by the motorcycle media. The Mahindra component in these reports appears to be caused from pure speculation by some India-based news sources, while Hero’s involvement has been twisted around to make the India’s largest motorcycle-maker more involved than it actually is. With investment bankers approaching Hero, not the other way around, the Indian company confirmed that it had looked into buying Ducati, as it does with all credible offers that are brought to it its table — nothing more, nothing less.


This chain of events brings us to the present, where now reports are circling that Audi could be the new home of Ducati motorcycles. Though spreading over the internet like wildfire, the news comes from a solitary article onCar Magazine, which has been reprinted by several of the magazine’s other sister publications. According toCar, this news dovetails nicely with VW Chairman Ferdinand Piech’s desire to have a motorcycle brand in its wings.


Linked first to Horex, the idea of reviving the aged brand was deemed less appealing by Volkswagen than purchasing a turn-key operation. The purchase would also give VW something to rival BMW Motorrad, though perhaps most importantly, Ducati’s lower carbon emissions could help offset the large touring cars that Audi builds, as emissions standards in Europe continue to get more stringent. Should Zie Germans like what they see as they go through Ducati’s books and operations, it would prove to be a pivotal point in time for the Italian brand. A company like Audi would have the kind of resources Ducati would need to mount a larger global operation, which would help take Ducati to its next mile-marker on its goal sheet.

Source: http://www.asphaltandrubber.com/news...ti/#more-28784

Interesting how one journalist can glean the truth from all the others rumors?

If a company is heavy in debt that is a very big concern, and since Ducati is held by a private equity company it does not offer detailed financials publicly.

How did Ducati mount that debt, what are the unit margins, what are the operating ratios. What again can VW do for Ducati, they assisted in the development of a six cylinder for Horex a bike that is hand made and sells for over 21,000 Euros. Is that what can be expected from a VW empowered Ducati?

Ducati has to be turned around or so it seems, spending more or investing in new designs to be sold to who and were? What is the biggest seller in the line isn’t it the Monster, it is not the AMG model is it? Not all the ultra rich buy motorcycles, it is a limited market. Not to say it should not be covered but it really should coexist with a wider offering and in that increased access through greater affordability.

It is not to say that VW cannot get Ducati there, but its not going to come cheap they have to offer more to more. They basically have to increase the unit sales and also improve the margins on all models offered.

I see Hero/Ducati as a Qianjiang/Benelli but just way better.

Ducati is it not high end enough? Is there something missing in the Ducati line beyond the top model? Is the existing line not refined enough? It is always a mater of investing to improve offerings and if higher then the sales in units fall proportionally, then it’s a matter of efficiency and cost control mass producings and high end do not go well together, that is because there is no masses to supply to.

I would say that the Ducati sales could be increased by 25% in the time it would take them to get a 250 version into the Indian market. However that engine development would be key and also with a shared 125cc head that could be configured horizontally or vertically on other offerings, a 125 would need to offer at least 15 hp. That is what Hero needs it needs the single that would stem off an L twin 250.

So the call would be for a small engine development team to be set up and operate in Italy and also in India. That would be eventually linked into existing operations of Hero.

Just now on Bloomberg:

BREAKING NEWS
Audi Said Poised to Buy Motorcycle-Maker Ducati for $1.1 Billion

By Chad Thomas - Apr 17, 2012 5:18 PM GMT+0800

Volkswagen AG (VOW)’s Audi is poised to purchase Italian motorcycle maker Ducati Motor Holding SpA from owner Investindustrial SpA for about 860 million euros ($1.1 billion), a person familiar with the matter said.Audi has reached an agreement with Investindustrial to buy the Bologna, Italy-based maker of luxury motorbikes, with VW’s supervisory board set to approve the deal tomorrow, said the person, who declined to be identified discussing the private negotiations. Audi and Investindustrial declined to comment.

VW annual meeting this week and they will make an announcement just before the meeting, wait and see....

Yeah that is how it works, a first right to purchase is the same as purchasing unless another party come in and offers more…which is not likely to happen. VW basically set the initial offer so high that no others are willing to bid, they avoided a bidding war by doing that.


The wait and see time line is long…..the results of the investment will take years to play out.

Me wonders if they will keep the motogp effort going.Rossi better pull his finger out.

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Originally Posted by bigdamo

Me wonders if they will keep the motogp effort going.Rossi better pull his finger out.

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Valentino Rossi Races Ferrari at Monza

By Bart Madson

Monday, April 16, 2012

Attachment 6953

Valentino Rossi

completed his Ferrari GT racing debut, the

MotoGP

superstar competing in the Blancpain Endurance Series season opener at Monza. Rossi teammed with his friend and compatriot Allessio (aka Uccio) Salucci to campaign the Kessel Racing Ferrari 458. The Italian duo finished 18th overall and eighth in the Pro Am ranks.
Having qualified 10th out of 55 entries, Rossi and Salucci were running up in ninth during the three-hour event when a collision with a backmarker set them back. Despite the holdup, which dropped the team to mid-pack, Rossi was able to claw the number 46 Monster Energy-liveried Ferrari back to 18th overall at the Italian circuit.

Rossi has dipped his toe into four-wheeled racing on numerous occasions. A frequent rally car competitor, Rossi was linked to possible jump to Formula 1 in 2006. The MotoGP GOAT tested F1 for Ferrari before going on to ink an extension with Yamaha to stay in MotoGP – later earning his eighth and ninth world titles in 2008 and 2009.

The nine-time world champion’s latest foray into auto racing comes amidst controversy surrounding his hapless Ducati tenure in MotoGP. In 2011, his first season with Ducati, Rossi was held win-less for the first time in his Grand Prix career. After the 2012 MotoGP opener at Qatar, where he struggled in qualifying and finished 10th in the 22-lap race, Rossi vented his frustration openly to the Italian media.

The comments have led to much speculation on Rossi’s future plans – including one report in the Spanish media that he may try to wriggle out of his Ducati contract during the 2012 season. At the BES race at Monza Rossi, again speaking to the Italian media, denied he would leave Ducati mid-season.

Round 2 of the 2012 MotoGP series will take place in Jerez on April 29th.

it is done.http://www.bbc.co.uk/news/business-17763547

I guess even "lifestyle" companies follow corporate "rules" but I lost respect for Lamborghini when they got bought up by VW, and now Ducati. Those small motorcycle companies getting scooped up by BMW (i.e. Husaberg and someone else I think) were along the same line. They lose identity, in my opinion. I know that the car magazines, at least the US magazines, gave much praise to the Lamborghini deal when that happened due to the spotty quality issues that Lamborghinis apparently had (funny, my scale model Lambos never had any problems, LOL) before the buyout, but I don't recall Ducati having quality-control issues. They seemed like they were doing fine on their own, even through the global economic recession. I know, I know, VW group, especially Audi, are state of the art and have seemingly unlimited resources, but it does make companies, like Lambo and Ducati, lose some of their identity. At least the owners are headquartered in Europe and not from an emerging market such as India or China as some recent auto company acquisitions show...but it's Ducati we are talking about, not Volvo!

About Audi
The Audi Group delivered 1,302,659 cars of the Audi brand to customers in 2011. In 2011 the Company posted revenue of €44.1 billion and an operating profit of €5.3 billion. Audi produces vehicles in Ingolstadt and Neckarsulm (Germany), Gyoer (Hungary), Changchun (China) and Brussels (Belgium). The Audi Q7 is built in Bratislava (Slovakia). In July 2010, CKD production of the Audi Q5 was added to the existing Audi A4 and A6 manufacturing operations in Aurangabad (India). At the Brussels plant, production of the Audi A1 has been running since May 2010, while production of the new A1 Sportback began in 2012. The Audi Q3 has been built in Martorell (Spain) since June 2011. The Company is active in more than 100 markets worldwide. AUDI AG's wholly owned subsidiaries include AUDI HUNGARIA MOTOR Kft., Automobili Lamborghini S.p.A. in Sant'Agata Bolognese (Italy), AUDI BRUSSELS S.A./N.V. in Brussels (Belgium) and quattro GmbH in Neckarsulm. Subject to a positive decision by the responsible competition authorities, the Italian sports motorcycle manufacturer Ducati Motor Holding S.p.A. will also belong to the Audi Group. Audi currently employs around 64,000 people worldwide, including around 48,000 in Germany. Between 2012 and 2016 the brand with the four rings is planning to invest a total of €13 billion - mainly in new products and the extension of production capacities - in order to sustain the Company's technological lead embodied in its "Vorsprung durch Technik" slogan. Audi is currently expanding its site in Gyoer (Hungary) and will start production in Foshan (China) in late 2013 and in Mexico from 2016.

I would say that they will likely up market the bikes and whore out the brand, making it more exclusive and also in that more “prestigious”. There is huge market, particularly in China, for brand whores and that makes a recognized Italian brand like Ducati valuable.

http://www.lamborghinistore.com/en/v...t-carrier.html

Look at the price of the bag….I would rather have a Vespa.

Funny VW Commercial
http://www.youtube.com/watch?v=TfZs9W2RXog

Audi CEO Says Willkommen to DucatiMr. Rupert Stadler, CEO of AUDI AG, accompanied by Mr.Thomas Sigi, responsible for AUDI AG Human Resources, visited the Ducati factory in Borgo Panigale , Bologna, Italy today, received by Ducati’s President and CEO, Gabriele Del Torchio and Ducati Management. Mr. Stadler addressed the entire Ducati workforce of approximately 1,000 people with a motivational speech that underlined Audi’s passion for the iconic Italian motorcycle manufacturer.Mr Stadler emphasized the iconic history of Ducati in his remarks and tried to draw a connection between the premium car manufacturer and the Bologna concern even if that connection remains somewhat elusive to many market analysts.“What is true in every romance also applies to two companies – a good start is half the battle,” said Mr. Stadler from a special stage built inside the Ducati factory. “You’ve probably wondered why we were interested in Ducati, a car manufacturer with no apparent ties to Ducati at first glance. But that’s only at first glance. Ducati stands for extraordinary engineering artistry, passion, precision, performance and the sheer joy of living. We’re impressed by these achievements.”After antitrust clearance, Ducati will officially become a part of Audi within days.“There are many joint opportunities with high-performance engines, light-weight manufacturing and the skilled interplay between two strong brands on the global stage. Both companies, each with an eventful history of ‘ups’ and ‘downs’, can now benefit from being part of one big family – the Volkswagen Group. I am very pleased to report that the antitrust authorities approved the deal at the beginning of July and that eliminated the final obstacle en route to the start of our shared future. Ducati will officially be part of the Audi family by next week!”The Audi CEO’s final remarks are undoubtedly what the audience and ducatisti want to hear but are often part of the opening wooing speech of new owners. Only time will tell if the words ring true.“This brings me to an important message that I would like to leave with you today. A message that is certainly uppermost in your minds. Ladies and gentlemen, this message consists of three words and you have my guarantee: Ducati remains Ducati.”http://www.ducatinewstoday.com/2012/...ti/#more-15429