Yes. You read that correctly.Ducati Motor Holding is on sale, and America’s most iconic company, Harley-Davidson, is interested.
The Milwaukee-Based brand known for its cruisers has hired Goldman Sachs to work on the financials. Bids for Ducati, which was bought by Volkswagen in 2012 for $1.13 billion, are expected in July.The price? A reported $1.67 billion (1.5 billion Euros).Volkswagen is currently working with investment management company Evercore. The sale of Ducati, which is controlled by VW’s Audi division, arrives after VW’s diesel emissions scandal that cost the company billions.Harley-Davidson had a sour experience in the past with Italian motorcycle manufacturers after it purchased MV Agusta for $109 million (mostly debt) in 2008. Two years later, after cleaning up MV Agusta’s debt, Harley sold the Italian manufacturer back to the Castiglioni family, which continue to own MV Agusta today.This news also aligns with Harley-Davidson’s bold initiatives, which were reported in Harley’s 2017 Q1 financial report.Harley says its 10-year growth strategy focuses on five objectives:
Build two million new Harley-Davidson riders in the U.S.
Grow international business to 50 percent of annual volume
Deliver superior return on invested capital for Harley-Davidson Motor Company (S&P 500 top 25%)
Grow the business without growing its environmental impact
Reuters reports that KKR, Bain Capital, and Permira are also interested in buying Ducati, and that BMW Motorrad, Suzuki and Honda passed up bids on Ducati.Ducati has grown steadily under Volkswagen ownership. The Borgo Panigale-based brand had a record-breaking year in 2016, selling over 55,000 motorcycles to customers worldwide. Growth was positive across all markets, including in America, which is Ducati’s largest market where nearly 8,800 bikes were sold.Ducati, which is present in 90 countries and employees around 1,600 employees, is looking to build upon those numbers in 2017 with the release of seven new models: the revised Monster 1200, Monster 797, Multistrada 950, SuperSport, 1299 Superleggera, Cafe Racer and Desert Sled.
Hello everyone and welcome once again to Motos and Friends, the weekly podcast brought to you by Ultimate Motorcycling. My name is Arthur Coldwells.
Motos and Friends is brought to you by Yamaha. You can check out the amazing YZF-R7 at your local Yamaha dealer, or of course at YamahaMotorsports.com. The YZF-R7 is an amazing supersport machine that is comfortable too!
In this week’s first segment, Editor Don Williams takes the smallest BMW ADV bike on an urban adventure in Los Angeles. The BMW G 310 GS is a full size motorcycle with a modest engine, so of course we wonder if it is a little too underpowered and might struggle. Don put it through its paces and gives us his take.
In the second segment, Neale Bayly and Kiran Ridley have returned from the Ukraine to Paris where Kiran is based.
Kiran is an award winning photojournalist, and as an accomplished documentarian, he has covered stories as diverse as drug smuggling around the Mexican border, to the devastation of the Australian Bush Fires, to the tragedy of the Mediterranean migration crisis. Neale and Kiran reminisce about their motorcycle adventure in the Ukraine, and their observations and experiences with the incredibly resilient people of Ukraine, who have been put through such brutal hardship.