Audi buys Ducati for 1.12 Billion Dollars

The giant Auto manufacture Audi or the parent company Audi finally announced the purchase of Ducati.  The rumor mill has burning red hot the last few weeks about the sale of Ducati.  Well 1.12 Billion Dollars later and VW is now the proud owner of a tiny motorcycle company.  Does this make sense to you?  Well we will break down some of the reasoning why VW purchased Ducati.

First and foremost the Chairman of VW Ferdinand Piech wanted to purchase Ducati back in 2008 before current now former owner Performance Motorcycle bought them according to Bloomberg.  So the Chairman has kept his eye on Ducati all this time waiting for the perfect time to buy them unfortunately for him a much higher price.  Mr. Piech said he knew Ducati has a strong brand influence and could significantly help the Audi brand.

Second Audi already has a track record of buying exotic manufactures and turning them into successful businesses.  Previously Audi purchased Ducati’s neighbor Lamborghini  turning the company around from making  a huge turnaround for the company.  In 1997 a year before they purchased Lamborghini they sold 209 cars and right before the financial crisis struck they sold 2,950 cars.  Not saying Ducati is in trouble or is not successful but Audi will take Ducati to the next level both at the race track and on the showroom.

Finally Audi may “borrow” some Italian design and technology for their car line.  This is far reaching we know but the Audi Chief Executive Officer Rupert Stadler said in the statement. “Ducati is known worldwide as a premium brand among motorcycle manufacturers and has a long tradition of building sport motorcycles,”  “It has great expertise in high- performance engines and lightweight construction.”  That sounds to us as “We would like to stick a Ducati 1199 Panigale engine into a VW Golf”.  Are we reading to far into this?

We can only wait and see how and what Audi will do with Ducati.  But this is a great purchase by Audi to compete with it’s main German rival BMW and their motorcycle line.   If we were betting our bet would be on Ducati growing market share versus the Japanese rivals in years to come.