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#11 Re: India's Hero considers acquisition of Ducati
03-08-2012, 03:50 PM
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.
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