The final rubber stamp of approval to Audi AG’s acquisition of Ducati Motor Holding, the European Commission has cleared the transaction of any antitrust red tape. A deal that was over a year in the making, the German automaker bought the Italian motorcycle company for a cool €860 million, including debt. Positioning Audi, and its parent-company Volkswagen, to take-on the likes of the BMW Group, the deal was met with mixed-emotions in the automotive and motorcycling communities during its announcement.
We have already shown you Julien Dupont playing around on the Audi e-bike Wörthersee, but now we have got some more details about the German brand’s electric bicycle. Designed to be a fun and sporty urban two-wheeler, the Audi e-bike Wörthersee resides somewhere between the growing electric motorcycle trend and a moped, but boasts some impressive technology no matter what segment you think it hails from.
At the heart of the electric drivetrain is a synchronous permanent magnet motor that puts out 3 hp, and a 48-volt .53 kWh lithium-ion battery pack. With the whole cycle weighing 46 lbs (21 kg), the package is heavy by bicycling standards, though very light in practical application. Charging in 2.5 hours off European electricity, the pack itself being detachable from the e-bike for charging (presumably allowing for pack swapping).
While electric bike/mopeds are nothing new, the Audi e-bike Wörthersee certainly brings a level of build and spec to the space that has never been seen before, but the real secret sauce is the electronics package the German automaker has included with its design, and how it has adapted the two-wheeler to fit our daily lifestyles.
Stunting motorcycles, bicycles, tricycles, and sisters-in-law, the name of French trials rider Julien Dupont should be a familiar one to A&R readers by now. Similarly, the name of German car manufacturer Audi should also ring a bell, as the Auto Union’s recent $1.1 billion acquisition of Ducati Motor Holdings is certainly still fresh in every motorcyclist’s mind. A sign of maybe things to come, auto manufacturers have been working on something they call “last-mile transportation” which focuses on the use of short-distance urban transportation.
Cities like London are starting to impose congestion taxes, in an effort to curb road congestion in dense urban areas, as well as boost funding for roadway infrastructure. Despite the “drill at home” effort here in the US, the price of gas is surely only going to increase over the coming decade. Putting all this together, the long-term prospect of personal transportation is going to have to change dramatically over the next few generations, and car manufacturers know it.
Hoping to change with the times, we have seen car manufacturers and even motorcycle manufacturers dabble with the concept of branded motorcycles, scooters, and other sorts of low-impact transportation devices. One such endeavor from that train of thought is the Audi E-Bike. An exceptionally good looking piece of kit, the bike features a moped-like electric drivetrain, in addition to the traditional human-powered system. Carbon everything, LED headlight & taillight, frame-embeded dashboard, etc.
Oh, and that Dupont fellow? Well, someone has to make riding an electric bicycle look cool, right?
Ever since Audi’s acquisition of Ducati, the following video was begging to be made. Keeping with the classic car vs. motorcycle motif, the intrepid Germans at Auto Bild have pitted Audi’s fastest track car: the Audi TT RS, against Ducati’s finest steed: the Ducati 1199 Panigale S. For those who just raised an eyebrow over that last statement, yes the Audi TT RS is widely regarded as being faster around a track than the V10 powered Audi R8 super car.
This news shouldn’t surprise Ducatisti though, as a similar finding was shown when the MotoGP inspired Ducati Desmosedici RR was trumped by the sold-only-to-race-teams Ducati 1098RS. Like all these videos, there is are a number of rider/drive, weather, track layout, & zombie apocalypse arguments to be weighed into the actual result. That being said, this video does not require a working knowledge of German to understand the “term” blowout, as it applies to the results of this shootout.
With the Volkswagen Group’s Board of Directors meeting done, ahead of the company’s shareholder meeting which is also now complete, details of Audi’s acquisition of Ducati are starting to emerge.
Paying €860 million ($1.1 billion) for the Italian motorcycle company, perhaps the biggest shocker to come from Audi’s acquisition is not the price, but the unconfirmed reports that Audi AG has bought 100% of the Ducati’s stock, meaning Borgo Panigale will now come under complete German control.
This news means that Audi not only bought out the 70% ownership of Investindustrial, but also the 30% remainder that was held by private equity fund BS, the Hospitals of Ontario Pension Plan, and other minority shareholders.
The writing was on the wall with this piece of news, as after Audi’s acquisition of Ducati Motor Holdings, AMG has terminated its marketing partnership with Ducati. The announcement should not surprise anyone, as AMG & Ducati were certain to sever ties as soon as Mercedes-Benz bowed out of acquiring Ducati Motor Holding, and Audi was rumored to have picked up the ball.
Marketing with “the other team” surely neither Audi nor AMG wanted Ducati to be associated with the other, and all that remained was some fancy foot-work from the lawyers to end the partnership amicably and swiftly. Needing only a day to do so, we think the language in AMG’s statement after the jump has interesting spin to suggest the suits could have done a better job.
As expected from yesterday’s news, Audi’s Board of Directors has approved the German car company’s acquisition of Ducati Motor Holding. While the grumblings from Ducati owners have already emerged over the news breaking yesterday, in reality the move is a boon for Ducati, which will receive access to an almost limitless bank account, global business expertise, and advanced manufacturing techniques.
Selling 42,000 motorcycles last year, Ducati has typically struggled to sell more than 30,000 units annually, a figure which is highly regarded as the Italian company’s break-even point. Historically selling under that amount, Ducati has racked up considerable debt from its operation, hence why nearly a quarter of the company’s purchase price is going to its outstanding financial liabilities.
For Ducati owners and Ducati fans around the world, the acquisition by Audi and the Volkswagen Group should be met with more resounding praise, as it means an increased layer of stability has been added to the Italian brand. While the hyperbole has been flowing online, we imagine that the first motorcycles sales success to come from the company post-acquisition will silence any resistance to the company’s new German ownership.
As irrelevant as that metric actually is in business terms, the reality is that Audi’s influence over Ducati will take several years to be fully realized, as it takes a considerable amount of time for new products to come to market, and business plans to be implemented. Press releases from both Investindustrial and Audi are after the jump.
According to reports, Audi has finished its acquisition of Ducati Motor Holdings, to the tune of €860 million ($1.128 billion), and will announce the purchase tomorrow at is annual shareholders meeting. The deal reportedly sees Audi, through its parent company the Volkswagen Group, acquiring Ducati for roughly seven times what it earned in revenue last year, but Audi is also assuming all of Ducati’s debt, which has been rumored as high as €200 million, making the revenue multiple significantly smaller.
Reports are coming in that Audi’s acquisition of Ducati is all but done, and just needs to the ink to dry. With the announcement of the purchase expected to come next week (Wednesday if you believe some reports), the German manufacturer has reportedly finished its due diligence on the acquisition, and found no major obstacles to the purchase.
With previous reports going back and forth as to whether Audi (read: the Volkswagen Group) would purchase only a controlling interest in Ducati Motor Holding, or would completely buyout Investindustrial’s 70% stake in the Italian motorcycle manufacturer, other reports are now saying that Investindustrial is only interested in talking to Audi about the acquisition.
More reports are starting to surface about Audi’s pending purchase of Ducati Motor Holding from Investindustrial. Said last month to have offered the private equity firm somewhere in the neighborhood of €750 million, Reuters is now reporting the figure to have been closer to the €870 million to €875 million range, which is closer to the original rumored offer of €850 million by the German automaker. What is most interesting in the report by Reuters is the notion that Audi is not making an offer to buy all of Investindustrial’s financial position in Ducati Motor Holding, which accounts for about 70% of the company.