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.