Ducati has announced today that is has created a wholly-owned subsidiary for the Brazilian market, following the news that its current importer, the Izzo Group, has shutdown its business due to current economic situation. Part of a larger issue in Brazil with the Izzo Group, which was the country’s largest motorcycle importer, Ducati‘s move ensures the Italian brand’s ability to sell in the growing South American economy.
Headquartered in São Paulo, Ducati Brazil will be the Bologna brand’s base in Brazil, which has extremely high tariffs on foreign goods. Importing complete knock-down (CKD) kits to Ducati Brazil, Ducati will have a minimal manufacturing presence in the South American country, and will be essentially assembling its motorcycles within Brazilian borders in order to side-step loopholes in the Brazil import regulations.
For Ducati owners in Brazil, the move will likely mean a better customer service experience, which was one of the main reasons Harley-Davidson left the Izzo Group, and in-turn was contributing factor to the import company’s demise. It is conceivable too that prices on Ducati motorcycles could come down as well, though don’t hold your breath on that just quite yet. Heading Ducati‘s Brazilian operations will be Ricardo Susini.
“The Brazilian motorcycle market is one of the most interesting and the third biggest in the world,” says Ducati CEO Gabriele Del Torchio. “Ducati has a very strong image in this country and we have the enthusiastic support of many Ducatisti, motorcyclists and fans in general.”
“The opening of this new subsidiary and the fact that our motorcycles will be assembled in the Manaus plant is evidence of our focus on the Brazilian market. We wish to offer our customers here the best possible sale and after-sales service, and confirm the strategic importance assigned to this market by Ducati.”
Source: Ducati
Nice move. No more depending on someone else to sell your products is PRICELESS.
Not to mention having a piece of the Pie everyone wants.
Gotta make those $$$.
Ducati Forms a Brazilian Subsidiary – http://t.co/2o8PRYZ6 #motorcycle
Why is this news? Ducati probably sells something like 4 motorcycles a year there…….lol
I spent a month driving around South America and the vehicle of choice is either a donkey cart or some old cheap mini car junker. I never saw any vehicle/motorcycle worth a second look. Unless you count the vehicles overloaded with people and animals hanging all over it.
I guess out of the 10 wealthy people in South America, 4 of them might buy Ducati.
It’s a strange and wild continent.
errr…. speaking as a Brazillian…
Ducati here costs to much. The simplest Duc Monster have the price of a Hornet. Panigale is the most expensive “race” bike. Ducs only can have maintenance on the Duc vendors, and here, most people has a “trusted mechanic”, who don’t know 90% of time how to fix a Ducati.
Brazil is growing up, but here, 75% a 90% of the people are poor. The first use of motorcycle here are daily commuting, and the small bikes (< 400cc) are the best-sellers. For information, this year BMW didn't sell a single unit of S100RR and R1200, for example. (real data from ABRACICLO, a Brazillian syndicate of motorcycle factories). Honda selled 215.760 CG Fan 150 Flex Fuel.
I have myself on the "mid class", and have a Yamaha 250cc "Fazer", knowed in Europe as YBR250. It's a 12k BRL (Brazillian Reals). Converting to USDollars, the price is around 6k. For a 250cc, without any technology. My main use are daily commuting (me and wife work, university, church…) and sometimes a mid range travel (400 KM for the granpas family)
In resume…i don't think Duc will make a lot o success here. They can sell a little, but i'dont think here will be a "key market". The other factor is the Ducs will be CKDed on Dafra facility, a knowed brand of failed motorcycles. Purists (the richer people here) will prefer import from EU or USA.
David, calm down with your prejudgement…
you stayed in Brazil? In a mid, or a larger city or capitals?
Sorry man, but your comment sucks. Our first impression of the americans (if you are one of them) is they are dumb, fat and don’t know nothing about the rest of the world. In your way of thinking, we’re right, right?
Don’t compare El Salvador, Colombia or Ecuador with Brazil. We don’t compare USA with Mexico.
Good for Brazil, hopefully it works out and good things come from it, with more to follow.
So my next Ducati will come pre-waxed? Dead sexy.
In all seriousness, good on them.
Brazil is an honda-Yamaha stronghold, with the prices of fuel in some places, it’s better having a good, loyal and durable 125, 150, 250cc than an exotic model, of course than in europe it’s more common saw panigales, r1, s1000, cbr1000, but markets like brazil, argentina, well south america and mexico have a different bike approach.
example, a Honda CG125 cargo 2009 in méxico know as the “indestructible” is the most efficient bike, you have spares everywhere and the motor for be of 125 is good. theres chinese copies but that bike is a legend, same for the CG150 Titan, Twister 250 can be considered a luxury bike for some people.
Am think than that ducati move is alot risky but, hey if there’s no risk then no victory,
I didn’t mean for my post to sound judgemental about South America.
I loved it down there. The best place I have ever driven a vehicle.
I would love to go back and spend some time on a dirt/enduro bike.
There’s always a market for luxury goods, as long as there’s people to buy them. While Brazil has a large lower class which dominates the country it’s in an economic boom, which is seeing an emergence of a very strong middle class, and pushing those already there into the upper middle class. Truth is these customers by nice things, and last time I checked Ducati is in the business of selling nice bikes. Bologna knows all to well that they want a piece of this action as it has luxury goods to move. While in America Ducati try to compete within all market segments in motorcycling, in South America they cater to a niche profile of buyers that still see a Ducati as an exclusive luxury product, with a premium price.
While a 125-250cc motorcycle is still the most chosen form of mc, it’s more because of function. In Brazil, motorcycles are still used for hard labor due to it’s frugalness and ability to cut through traffic.
If Ducati are aggressive with they’re marketing, and fix the horrible customer support issues from the Izzo Group (douches) then there is no reason why they cant succeed.
By the way, I have been currently living in Rio De Janeiro for the past 2 years…
@el papa de tu papa: David’s comment may be not 100% politically correct but don’t play the racism violine …..
David, sorry for my violent response. I think i’m very weak for racist comments, and i’ve seen to much on motorcycle forums/blog/sites.
my apologies.
No offense taken everybody.
My post was not intended to be derogatory towards South America. After reading my original post I can easily see how it can be understood to be derogatory.
Sorry about that.
I should explain why/where I went in South America.
I (as well as everyone involved) was lied to by the organizers of the 1988 Trans Amazon Rallye. My vehicle (an old Toyota Landcruiser)was to used for transportation of reporters with me as the driver. I flew into Barranquilla Colombia, rode a cab to Cartagena, was pulled out of cab by armed military and searched. This turned out to be great as the military and I laughed and shook hands and I went on my way.
I then drove through Colombia, Ecuador,Peru,Chile and finished in Buenos Aires.
Keep in mind I was an unemployed American and took a chance on an adventure of a lifetime(for me) and paid for this on my credit cards ( me stupid..lol).
I never went to Brazil. I just it assumed it was the same as everywhere else I went. My huge mistake for assuming. Sorry for that.
I loved my experience down there. Everywhere I went I met extremely nice, kind and helpful people.
I would love to go back.
I’m sure things have changed since 1988. I was implying in my original post that I did not see a huge market for Ducati in the countries I visited. I did not mean for that to imply the Continent was a bad place.
I wish only good things and bright future for the wonderful people of South America.
David
I’ve always wanted to do a Enduro/Rally adventure on Amazonia… There and the Jalapao Desert ( https://www.google.com.br/search?q=deserto+jalapao&sugexp=chrome,mod%3D0&um=1&ie=UTF-8&hl=pt-BR&tbm=isch&source=og&sa=N&tab=wi&ei=OgKIUL-LEaf20gHUwIHIBQ&biw=1567&bih=1008&sei=PQKIUIOSO7O10AGOhIFY )
My next step is buy an adventure sport, like a XT660R or a BMW 650 to do these things before i turn a family dad
Panigale Price in Brazil – 60.000 USD$… Yes… That’s it…
Monster 696 – 15.000 USD$…..
Ducati wants the brazilian money…. Because here, we buy anything at the higher price…
Brazil… Saving Europe since 1500…..
@Rods:
ROTFLMAO. That last sentence.
MikeD says:
October 25, 2012 at 1:09 PM
@Rods:
ROTFLMAO. That last sentence.
———–
I didn’t get it….
@rods – rolling on the floor laughing my @ss out.
Low profit margins all around except here in Brazil, besides the usual tons of taxes we have to pay. That leads GM to sell its Camaro by USD 35k in US and “only” BRL 200k here.
-h.