The High Fives Heard in Milwaukee

There were high fives heard all over Milwaukee last week. Reading the headlines and stories that came from Harley-Davidson’s Mega Monday announcement, one could only conclude that the American icon was back. They did it. They were showing signs of life again. Boomshackalacka. No one saw an adventure-touring bike with knobby tires coming from the Bar & Shield brand, and the idea of a sport bike from Harley-Davidson seemed inconceivable just over a week ago as well. Milwaukee even impressed with its more “core” offerings, with the Harley-Davidson Custom being perhaps the first cruiser we would want sitting in our garage. It looks gorgeous, and is just sporty and modern enough to be “a real motorcycle” in our eyes…we think.

Ducati’s Project 1309 Reveals a New Diavel Coming

We didn’t hear too much about “Project 1309” from World Ducati Week 2018, which is surprising considering what the past has shown us about Ducati’s secret reveals, but the Bologna brand was once again giving a teaser to fans in Misano. In the past, World Ducati Week has been the place where Ducati showed us the first Scrambler model, and last year the event debuted the return of the Ducati SuperSport. This year, it is another new bike. A new Diavel, to be precise. Set to compliment the current XDiavel model, the new Diavel features the same 1,262cc DVT engine with variable valve timing, but puts it into the more sport Diavel riding platform. This means tucked in feet on rearsets, rather than the XDiavel’s foot-forward controls.

VW CEO Outlines Two Possible Futures for Ducati

The Clash’s hit song “Should I Stay, Or Should I Go” might perhaps perfectly fit the business situation for Ducati, within its parent company, Volkswagen AG. The Italian motorcycle brand’s status in the German conglomerate has for the past few years been held on a tenuous string. Rumor about its divestiture, its selling to another company, are constantly dogging the iconic brand. Talking to Bloomberg TV after Volkswagen’s quarterly earnings report, VW CEO Herbert Diess explained that there are two paths forward for Ducati, and one of them includes selling Ducati to the highest bidder. “We have to look which is the best ownership for Ducati,” said Diess to Bloomberg.

KTM’s Counter-Rotating MotoGP Engine Debuts at Brno

Ever since Jerez, when the Red Bull KTM Factory Racing Team debuted a new engine with a counter-rotating crankshaft, fans and journalists have been asking when factory riders Pol Espargaro and Bradley Smith would be able to use the new engine on a race weekend. KTM test rider Mika Kallio had been very positive about the engine during the Jerez weekend, and Smith and Espargaro had spoken in glowing terms about it after the Jerez test. KTM’s response was always that it would not be ready until at least after the summer break. Reversing the direction of crankshaft rotation is not as simple as sticking an intermediate gear between the crank and the clutch, to allow the crank to spin in the opposite direction while maintaining forward thrust.

Retro Livery Pops on the Suzuki GSX-R1000R Superbike

We are big fans of the creations that Team Classic Suzuki has been churning out. Stop what you’re doing right now, look at this Katana race bike, and try to disagree with our enthusiasm. It cannot be done. Taking their touch to the current Suzuki GSX-R1000R superbike, we see what this tire-shredder would look like in a retro-mod livery that is inspired by the bodywork found on the original GSX-R750. So far it sounds like the bike is a one-off, done by our friends across the pond, but we think Suzuki should seriously consider some throwback paint schemes in its lineup. Until then, items of note include a number of tasty Giles-made bits, straight from the Suzuki performance catalog, otherwise the bike shown here is pretty much stock.

BMW Plans To Launch Nine New Motorcycles

It might be still be summer, but our eyes are looking ahead to the new bike season in the fall and winter, where the major motorcycle manufacturers will debut their new motorcycles for the future. The big trade shows to watch are INTERMOT and EICMA, as these have traditionally been the venues of choice for new model unveils, prototype teasers, and concept debuts. One brand that is certainly going to be showing us some new motorcycles is BMW Motorrad, with the German company saying that it plans to launch nine new models in 2018. What those nine models will be is up for conjecture, though we have some good ideas, and some bad ideas, on what they could be. Let’s take a look.

Up-Close with the 2018 Yoshimura Suzuki GSX-R1000R Suzuka 8-Hours Race Bike

In all our coverage of the 2018 Suzuka 8-Hours endurance race, the name Suzuki has woefully not been in much of the conversation. This isn’t to say that the brand from Hamamatsu wasn’t present at this prestigious event, but its level of involvement and readiness certainly wasn’t on par with the other three Japanese brands. Fielding the Yoshimura Suzuki factory-backed team yet again, this year saw a big milestone take place, as Suzuki’s endurance efforts are now being conducted on the current-generation superbike. This has caused some issues in the paddock, most notably in the Suzuki Endurance Racing Team (SERT), which is Suzuki’s factory-backed team in the FIM World Endurance Championship.

Up-Close with the Kawasaki Team Green Suzuka Bike

The race-winner that could have been. Kawasaki Team Green was the Suzuka 8-Hours favorite coming out of Saturday’s Top 10 qualifying session, and the factory-backed Kawasaki team traded corners with Yamaha during the opening laps of Sunday’s endurance race. What looked like an upset in the making, turned out to be a fizzle, largely because of a poor fueling and pit stop strategy, which saw Jonathan Rea first run out of gas, and then stay out on slicks during a rain storm. As he tumbled down the asphalt, you have to wonder if the World Superbike champion saw his Suzuka fortunes tumbling with him.

Up-Close with the Suzuka-Winning Yamaha YZF-R1

This is it. This is the biggest, baddest, meanest superbike on the Suzuka 8-Hours grid. Setting the high-water mark in Japan FOUR YEARS IN A ROW now, the Yamaha YZF-R1 from the Yamaha Factory Racing Team is the pinnacle of the sport. And while the Yamaha YZF-R1 is a motorcycle that you can pick up at any dealership in the United States (so long as it isn’t for a Superbike Deathmatch), the machine on the Suzuka Circuit this past weekend is anything but ordinary. I sent our man Steve English down to the pits to get some shots of this mysterious machine, and the Japanese team was being “very Japanese” about letting us taking photos, as Steve puts it. That didn’t stop us from getting some photos though. Go ahead, go get a towel before you continue further. We’ll wait.

Harley-Davidson Outlines Its Future Electric Lineup

The biggest announcement from Harley-Davidson today wasn’t its adventure-touring motorcycle (though it looks interesting), and it wasn’t its new Streetfighter or Custom models either (one of these I like, the other not so much). The big news wasn’t the Livewire getting closer to production, though that is close to the mark, and where this story is ultimately headed. All of these announcement would have been worthy of their own day in the press cycle, but the real news from the Bar & Shield brand is a look at Harley-Davidson’s upcoming electric lineup, which is coming across as very robust, and shows a decisive plan for the future. I never thought I would see the day, but here it is. Harley-Davidson is going electric, in a big way.

Reuters continues to dish on Ducati’s possible divestiture from the Volkswagen Group, with news that several bids have been placed on the Italian motorcycle brand. Reuters says that amongst the bidders are several key brands like, Polaris, Bajaj, and Royal Enfield’s owners Eicher Motors.

Noticeably absent from the list of potential buyers however was the much talked-about Harley-Davidson, a name that the same Reuters reporters first offered as Ducati’s potential future owner.

Now Reuters offers us another name as the likely front-runner, pointing to Italy’s Benetton family (as in, the United Colors of Benetton), which has reportedly submitted a bid of $1.2 billion, through its investment arm Edizione Holding.

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Audi Bought 100% of Ducati’s Stock

04/19/2012 @ 2:48 pm, by Jensen Beeler19 COMMENTS

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.

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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.

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Audi Buys Ducati for $1.1 Billion

04/17/2012 @ 10:14 am, by Jensen Beeler14 COMMENTS

UPDATE: Audi’s Board of Directors has announced its approval of the acquisition of Ducati.

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.

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Audi to Announce Purchase of Ducati Next Week

04/11/2012 @ 11:40 am, by Jensen Beeler4 COMMENTS

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.

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Audi Buying Only Part of Ducati? Daimler Bows Out

04/03/2012 @ 6:05 am, by Jensen Beeler8 COMMENTS

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.

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Audi Offers €750 Million for Ducati

03/28/2012 @ 11:56 am, by Jensen Beeler34 COMMENTS

According to Italy’s Correrie di Bologna, the Volkswagen Group has made a €750 million bid on Ducati Motor Holdings. Just shy of Investindustrial’s reported €832 million asking price on the Italian motorcycle manufacturer. Reports are also saying that Volkswagen’s due diligence process has uncovered that Ducati has less debt on its books than previously thought (previously rumored to be in the €200 million range), and that the €750 million offer would nearly double  Investindustrial’s initial purchase price of the Italian company.

Said to have until the middle of April to make an offer, the Volkswagen Group’s current proposal is lower than the €850 million originally rumored earlier this month. Despite it being less than Investindustrial’s initial valuation of €1 billion, the deal is said to be close to finalization, with Italian politicians and union members weighing in on the prospect of German involvement with the Italian brand.

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Audi to Buy Ducati?

03/12/2012 @ 11:35 am, by Jensen Beeler17 COMMENTS

It has been almost a year now since we broke the news that Ducati Motor Holding was up for sale, and I still can’t tell if the appropriate metaphor for the ongoing acquisition is a game of musical chairs or Russian roulette. Vying for a seat or putting the chamber to its temple, our latest contestant in “Who Wants to Buy Ducati” is Audi, the four-ringed German car manufacturer. Reported to have a right of first refusal, Audi allegedly has until mid-April to finalize a deal with Investindustrial (Ducati’s main investor) to buy Ducati from the Italian investment group.

Though Ducati sold over 40,000 motorcycles in 2011, the Italian company has roughly €800 million in debt on its books. This means that any company interested in buying Ducati would have to assume the Italian company’s debt onto its own books, which changes the actual purchase price of Ducati dramatically. For its part, Audi is rumored to be making an offer in the €850 million range, which would put the actual purchase value of Ducati at over €50 million, and could put as much as €100 million on the table for Investindustrial to take.

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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.

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The big non-racing news today is that Ducati is reportedly up for sale, with a price tag of €1 billion. To be honest, I’m fairly amused by how many emails I found in my inbox on this topic, and by how far this news item is spreading in the motorcycle news sector today. The buzz of course is that Ducati may be purchased by any number of large manufacturing firms, with smart money on a European automaker.

Either asleep at the switch for the past year, or just grossly inept at understanding financial news (guys, there is a big difference between one billion euros and one billion pounds), collectively the motorcycle news industry is reporting on an story that we first published nine months ago like it is a shot out of the dark.

For those that missed our ongoing coverage of the topic, Investindustrial actively spent the better part of 2011 looking to divest its majority position in Ducati Motor Holdings, and was in serious talks with Mercedes-Benz over the acquisition. Our Bothan Spies told us back in April that Investindustrial was very eager to sell Ducati to Mercedes-Benz, while the zie Germans were being very, well German about the whole thing.

With nothing coming to fruition on the Mercedes deal, Ducati again made waves in August when it was reported that the company was interested in making a private stock offering in 2012. Today’s news of course is the logical extension of that announcement, as it is both 2012 and Investindustrial is rumored to be in talks with several possible private buyers for Ducati. While none of this news should surprise anyone, what is of note is the price tag being attached to Ducati is €1 billion.

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