Tuesday, April 24, 2012

Why Audi acquirer Ducati?



Many are generic some questions, such as why a large automobile corporations that wanted a smaller motorcycle manufacturers such as Ducati? Volkswagen, Audi's parent corporation, will do with Ducati? This affair and what for Ducati?

Ducati history

Would be very easy to understand false if only look at pictures of Ducati-producer of the fastest motorcycle, most modern, respectable dream world. In fact, it is only just get photos Ducati in short time recently. Before 1985, this brand is over 7 times at home and was never really successful. Barriers not at the level of engineering, which is capital shortages and limitations due to small scale companies.

Then, in 1985, Cagiva and Ducati to the group not long after the start of production the cars features operate high caliber world: 851, 888 and 916. Ducati 916 model, brand was determined stand in "the Golden table" eternity of the village during the explosion. That, along with success in the field of racing, was opened bringing the airline at the hands of Texas Pacific Group. Ducati to InvestIndustrial SpA then sold in 2005 and Performance Motorcycles SpA 2008. Quite strange is the Ontario pension plan hospital is one of the largest shareholders of Ducati.

"Ducati is a good motorcycle manufacturer, not a good business," industry analyst Michael Uhlarik explained. "A few dozen years, Ducati throughout almost no interest. Its suppliers often have to go to reclaim the debt. Debt increased while sales may not exceed 50,000 ".


Audi has just bought Ducati 860 million euros, with the equivalent of more than 1.1 billion. That number is more or less? With the individual, it can be a giant figure. But with large corporations, that number is nothing horrible.

Instagram newly Facebook buys 1 billion. Party worth more: 35 million users or apparatus to produce 40,000 cars per year? The total value of the property and trademarks of Instagram can faint in comparison with Ducati, but two companies are assessed equally.

1 billion dollars is not the amount of important to a business as large as Volkswagen. Last year, 11 brands of the Group (now including Ducati will be 12) achieved sales of 8.4 million vehicles, to bring about revenue 209.1 billion. "Consider the following corners of business activities of Volkswagen to nearly 8 billion euros cash is idle every year," expert analysis of Michael Tyndall of Barclays Capital told Reuters reporters. "Corporations must find investment categories to" beautify "the percentage of profit on capital use, or to increase the cash paid to shareholders.

Volkswagen can look forward to?

You may have heard more about Volkswagen wants to facilitate BMW Audi competition with better by having additional brand Ducati. That's nuts. Motorcycle BMW nor corresponds to the caliber of 40,000 cars like BMW sales year mean how to Volkswagen. In 2011, the BMW Group has a total turnover of about 90 billion; in particular, 1.8 billion USD as of Motorrad contributions. It's just "salt septic".

So does Volkswagen want the technology of Ducati, especially regarding small engine coolant? A reasonable speculation. Ducati engine capacity cc 1,199 195 horsepower. Meanwhile, Volkswagen produced 1.6 L engine for the capacity of 100 horsepower. Can not use this though is the technology for a small Volkswagen model cars like the Golf. A small company like Ducati, with sales of 40,000 vehicles per year, compared with a company has sales of over 8 million cars and trucks – simply cannot be what Ducati has technology that Volkswagen could not have.

Ducati also does not have the talent or know-how technologies what special novelties. Motor become automotive. It is true that they have higher capacity, but the cost of production is also higher (engine success rate during motorcycle products than in cars), higher emissions, the distance between the much shorter maintenance time, and life expectancy shortened so much. If you like to sell Golf carts with a maximum speed of about 280km/h, but there are 75,000 USD price, fuel consumption rates near 30 *, cost approximately 5,000 USD 6,500 km maintenance after each charge and damaged after running 32,000 km, then Volkswagen certainly big trouble. That's not to mention the problem of emissions.

Also what other benefits from Ducati that Volkswagen can expect? Marketing benefits from combining two well-known brands, or the contract of sponsorship activities racing ...? Again, the answer is ... "salt septic". All of these benefits is too small if you consider one of the world's largest businesses include a company worth only as an application of the iPhone.

Lesson Lamborghini?

This is not the first time Volkswagen bought a brand of properties "toxic" but there are too many values smaller than the values themselves. In 1998, Volkswagen purchased the Lamborghini cost 110 million. Within 14 years, Volkswagen has turned from Lamborghini is a producer hands across became the sports car manufacturer, expanded second product of the new Lamborghini to segment and reach new customers. In 1997, Lamborghini Diablo cars sold 209. In 2007, before the global financial crisis, the airline has sold the Murcielago and Gallardo 2,580. Perhaps, the most bright signs for Ducati when fate at the hands of Volkswagen Group brand Lamborghini all and its products are now being evaluated is the loss of quality. Under the ownership of Volkswagen, Lamborghini works better and produce more products more attractive than what founder Ferruccio could ever dream of.

So we can expect something good for Ducati? Analysts said that it was the Uhlarik issued shares to the public (IPO) and expand production. However, the problem is the Ducati should preserve brand image though produced with low cost, medium to ensure the economic advantages on the scale that does not cause a negative impact to the brand. The fact is that from any two-wheeled vehicle maker, not do that, "says Uhlarik said.
Said a short, Ducati are located in a safe pair of hands. The airline will be able to continue creative and producing the Super motorcycle anesthesia or other senior and rows. Model cars 1199 has promised to become the Super motorcycle "Superstar" on the market and the product life of Ducati can and push the success that go further. This is something that every faithful motorcycle are desirable, but less capable of getting owned by the Volkswagen Group will render Ducati production motorcycle with a larger number of people than or. Honda is nothing to worry.
The real reason?


In 1985, who now is Chairman of the Volkswagen Group, said Ferdinand Piech had missed an opportunity to buy Ducati with the price which he called "cheap as for". Since then, he has not abandoned the news still have desire to own a motorcycle manufacturer.

"The purchase of Ducati dominated by Volkswagen likes the famous brand, rather than under the financial arguments or industry generally," Arndt Ellinghorst expert analysis of Credit Suisse Group's financial Outlook.

"Strategically, it doesn't matter with Volkswagen Group," said Christoph Stuermer, Director product development consulting company's automobile HIS Automotive, told Business Week magazine. "Sales of Ducati's Lamborghini and Bugatti pooled, but compared to automotive activities then it only as a minor accessory jewelry."

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