More doom and gloom for the motorcycle industry, as Ducati Motor Holdings sales are slumping for the 2018 model year. Selling 32,250 motorcycles so far this year, the Italian brand is short 7.4% the volume it sold this time last year. To translate unit sales into fiat currency, the 32,250 motorcycles sold equals €448 million in revenue going into Audi’s coffers. Of note, Ducati’s revenue contribution to Audi AG accounts for 1.4% of the automaker’s total revenue. For the second quarter of this year, Ducati sales were down 8.9% compared to Q2 2017. This means that 20,319 Ducati motorcycles were sold in Q2 2018, compared to the 22,300 sold in Q2 2017. All segments for Ducati are down, except for its “Sport” category (SuperSport and Superbike models), which is up 29%.
Reports out of Italy are confirming the news that Ducati will remain as a part of the Volkswagen Group, with the German company ceasing its pursuits of divesting the Italian motorcycle company from its ranks. This shouldn’t come as a surprise to anyone following Ducati’s business situation, as reports of the divestiture stalling out were circulating this time last month. The news seems to come with a bonus, with Ducati CEO Claudio Domenicali reportedly confirming the news internally (other reports quote Audi CEO Rupert Stadler doing the same as well). With that, Evercore Partners – the investment bank that was hired to solicit bids on Ducati Motor Holding – will stop pursuing brands that may want to see Ducati within their corporate holdings.
Rumors and reports continue to swirl around Ducati, as the Italian manufacturer is linked to one brand or another for a potential divestiture from the Volkswagen Group. And now, the latest name being thrown into the hat is none other than iconic American brand Harley-Davidson. In a report by Reuters, Harley-Davidson is linked to buying Ducati by unnamed sources, with a purchase price that is pegged around €1.5 billion, a number that has been put together by the bean-counting minds at Goldman Sachs. Volkswagen is said to be taking bids on Ducati this July, which means the fate of the Italian motorcycle brand could be decided by the end of this year.
After much buzz and fanfare regarding the future of Volkswagen, which in-turn called into question the future of Ducati, today we finally get a glimpse into how VW is going to soldier forth from the fallout of its “Dieselgate” scandal. Instead of announcing how the company was going to restructure itself, and review its current business holdings and ventures, as was reportedly widely in financial circles, instead today saw Volkswagen strongly staking its future in electric and autonomous cars. For Ducatisti, some good news does emerge, as Ducati certainly won’t be leaving its home in the Volkswagen Group. To drive that point further, a Ducati representative confirmed to A&R the words of Audi Chairman Rupert Stadler, who said emphatically that “Ducati is NOT FOR SALE”.
It seems to come in waves, every time the news cycle picks up Volkswagen’s plight in dealing with “Dieselgate” that talk then shifts to the German powerhouse unloading its smaller holdings, one of which being Ducati Motor Holding.
This latest go-around comes courtesy of Bloomberg, which has Volkswagen CEO Matthias Mueller saying that the automaker’s current portfolio of companies and its overall corporate plan will be re-evaluated over the coming weeks and months.
Tomorrow (Thursday), Volkswagen is slated to make public what this new business plan looks like, but sources say that VW will put all its assets under review, which includes Ducati.
Could this lead to Ducati being divested from Volkswagen’s holdings? The answer is of course murky, but we would be very surprised by the news.
As expected from earlier sales reports, Ducati Motor Holding is posting a banner year for 2015. The Italian motorcycle maker says that it sold 54,800 bikes last year, a 9,683 unit (+22%) increase over the number of bikes sold in 2014. Helping break the 50,000 units barrier, the Ducati Scrambler line accounted for virtually all of Ducati’s sales growth in 2015, with over 16,000 Scrambler models sold worldwide. As we have reported before, this paints an interesting picture of what is going on behind Borgo Panigale’s walls. At a national level, we already saw the report that Ducati was on track for strong growth in the USA last year. Ducati now reports that Ducati grew by 14% in the USA for 2015. In Europe though, sales were even stronger, with the Italian market up 53%, the UK up 37%, Germany up 24%, and France up 22%.
Ducati Motor Holding is reporting that it has sold over 50,000 units to customers, for the first time ever. This is a substantial improvement over the 40,650 units that Ducati delivered at this time last year, and the 45,100 units the company sold to customers in 2015.
This news is a bit of a red herring though, as the sales increase comes due almost solely because of the addition of the Ducati Scrambler line, which in the first three quarters of the year was at 13,609 units sold.
As we have reported before on Asphalt & Rubber, the sales increase being posted by Ducati is a bit of red herring with the brand. While the Scrambler line has shown strong growth for Ducati, the rest of the model lines have been weak for the year.
The saying goes that one time is a fluke, two times is a coincidence, but three times…three times is a trend. Looking at Ducati’s last three years of sales (2012-2014), which spans only a 2% margin of growth, by definition one has to conclude that the Italian company is experiencing sales stagnation. Granted each of the last three years have been record years for the Italian motorcycle company’s sales figures, but each year has been a nudging over the last. Is all of this a sign that Ducati has lost its magic, seemingly during the leadership transition from Gabriele del Torchio to Claudio Domenicali? Or is there growth to be had from the Italian brand, now that it is owned by Audi AG? We examine that thought in more detail, after the jump.
If there is a common thread for Ducati’s upcoming EICMA reveal, it is the influence and benefits of owner Audi AG. We have already seen the German car manufacturer’s variable valve timing technology find its way into the Testastretta engine, in the form of Desmodromic Variable Timing (DVT). Our sources say that the all-new Ducati Multistrada, which will debut in just a few weeks’ time, will be the first model equipped with DVT. While Ducati ups its ante in the ADV market, our Bothan spies have tipped us off to another piece of Audi tech that will find its way onto a Ducati motorcycle, as the 1299 will received a “Tiptronic-like” gearbox that allows for touch-button upshifts and downshifts.
Ducatisti: do you want the good news or the bad news first? The bad news is that the market for motorcycles 500cc and up is down 17% worldwide for the first quarter of this year, which means the “good” news is that Ducati is only down 5% for Q1 2013. Not exactly the start out of the gate that Audi was hoping for its newly acquired two-wheeled brand, but what are you going to do? Western Europe is a mess, with Spain and Italy continuing to go down like a…well, you know. While we don’t enjoy the misery of motorcycle brands, the fact that Ducati Motor Holding is now under the Audi AG umbrella means that we get far more detailed quarterly and yearly reports from the two-wheeled marque, and we’ve got the digits after the jump.
Although Ducati hasn’t closed out the year yet, CEO of Ducati Motor Holding Gabriele Del Torchio was confident when speaking to the press at EICMA that the company would top last year’s record numbers, with a solid 20% grow margin. Expected to take the company to 44,000 units sold worldwide, 2012 is the best sales year by volume in the history of the company, and comes just after the company’s acquisition by Audi AG.
Doubling its marketshare worldwide, the Bologna Brand says it has made a 10% increase in what it calls its “Ducati Relevant Market” – the company’s core demographic of buyers (or what Mitt Romney would call, the brand’s 53%). For fun facts, nine out of ten Ducatis made in Borgo Panigale are destined for foreign markets (read: Italy now accounts for 10% of Ducati’s sales). We already knew that the US is Ducati’s top stronghold, with the American market growing by double-digits this year.