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Two weeks and two separate rumors about Hero MotoCorp’s acquisition warpath. Last week the Indian motorcycle manufacturer was said to be eyeing a minority equity stake in Erik Buell Racing. Having already hired the American sport bike maker to help innovate on some of Hero’s upcoming small displacement machines, the two companies sweetened the deal with Hero becoming the title sponsor to EBR’s AMA Pro Superbike racing effort.

This week the spotlight shines on Ducati Motor Holding, which has quietly been for sale for almost a year now. Originally wooing an acquisition from Mercedes-Benz, the Italian motorcycle manufacturer has been linked to a variety of other companies, as well as a public offering on an Asian stock index. With our sources telling us that Ducati has been trimming the fat from its books in order to make its earnings more attractive, Hero MotoCorp is the latest potential buyer to enter the fray and to talk to bankers about a Ducati acquisition.

We know it’s a cryptic headline, but there’s a big HUGE move happening today in India as far as motorcycles are concerned, and we couldn’t help being overly dramatic. Holding a 26% stake in Hero Honda, Honda announced that it will be selling its position in Indian joint-venture, the world’s largest two-wheel manufacturer, to the Hero Group’s founders, the Munjal family, and various investment funds.

Honda in turn will be pumping its resources into its own fully-owned subsidiary in India called Honda Motorcycles and Scooters India (HMSI). Buying its stock back at a discounted rate, the Honda will be selling the stock to Hero Honda for $1.2 billion, presumably in exchange for a larger percentage of the company’s early revenue (Honda currently takes home 2.5% of Hero Honda’s yearly revenue).

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Kawasaki, not be left out of the metric manufacturer meltdown, is offering a buyout package to 320 workers at its plant in Lincoln, Nebraska, which produces ATVs and personal water craft for Team Green. While, the buyout applies to only about 16% of the plants total 2,000 or so workers, if further costs reductions are not met then deeper cuts will likely be made.

According to Kawasaki, “rapidly declining sales” of recreational and utility products prompted the buyout, and if not enough of the employees excericse the option to have their contracts bought, then Kawasaki will “be forced to terminate some employees.” Workers at the Nebraska plant already have been working short weeks and will continue to do so for the next several months. No further comment from Kawasaki is expected until Friday, May 22. 

Source: PowerSports Business