Ducati Forms a Brazilian Subsidiary

10/22/2012 @ 4:59 pm, by Jensen Beeler18 COMMENTS

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