The writing was on the wall with this piece of news, as after Audi’s acquisition of Ducati Motor Holdings, AMG has terminated its marketing partnership with Ducati. The announcement should not surprise anyone, as AMG & Ducati were certain to sever ties as soon as Mercedes-Benz bowed out of acquiring Ducati Motor Holding, and Audi was rumored to have picked up the ball.
Marketing with “the other team” surely neither Audi nor AMG wanted Ducati to be associated with the other, and all that remained was some fancy foot-work from the lawyers to end the partnership amicably and swiftly. Needing only a day to do so, we think the language in AMG’s statement after the jump has interesting spin to suggest the suits could have done a better job.
Seeing its 27-year-long joint-venture with Honda come to an end last year, Hero MotoCorp has been picking up technology partners with an intense pace. With its 2014 rapidly approaching, Hero already counts Erik Buell Racing as one of its technical partners (as well as a potential acquisition target), and now Hero has now announced that the Austrian engineering design firm AVL will help the Indian company with a new range of larger-dipslacement motorcycle motors.
The move towards larger displacement engines is surely a sign that Hero MotoCorp has its eye on the export market, as it already accounts one of every two motorcycles sold in India. Surely seeing the work that rival Bajaj has done with KTM and the Duke series of motorcycle, we can expect Hero to go after a similar position in Europe, with even larger models for the American market.
While we have been expecting Erik Buell Racing to join forces with a larger company at some point this year, today it comes as a bit of surprise to learn that EBR has partnered with Hero MotoCorp. The deal sees Hero becoming the title sponsor for two teams in the AMA Pro Racing National Guard Superbikes Championship — Team Hero and AMSOIL Hero, while Erik Buell Racing will give Hero design and technology inputs for bikes destined for the Indian market.
In practicality, this partnership would seem to suggest that Erik Buell Racing will help Hero MotoCorp, a company recently freed/dumped from its partnership with Honda, build sporty two-wheelers for the Indian motorcycle market, while the cash-infused Indian manufacturer will help the boutique American sport bike maker continue to go racing in the United States. This news also puts Danny Eslick on the Team Hero EBR 1190RS for the 2012 season, while Geoff May will continue with the AMSOIL Hero EBR 1190RS. Thanks for the tip Kevin!
Back in 2009 Suzuki and Volkswagen made some headlines, as the German automaker took a 19.9% stake in the Japanese manufacturer. The basic points of the agreement were that Volkswagen would get access to Suzuki’s small-displacement motors and Indian presence, while the latter would benefit from Volkswagen’s larger-vehicle technologies, etc.
Seemingly however doomed from the start, the partnership in motorcycle circles erroneously spurred some interesting thoughts of a Volkswagen motorcycle coming to fruition. While industry journalists spun gold out of hay, the two behemoth manufacturers failed to come to terms on any of their proposed partnership goals, leaving both parties to wonder why they were interested in each other, let alone financially intwined.
When Ducati Corse announced that it had “partnered” with Mercedes-Benz’s in-house tuning brand AMG at the LA Auto Show, the deal raised a few eyebrows and sent shock waves across the keyboards of journalists as everyone asked themselves “what could this all mean?!” At the time it was obvious that the AMG brand would be featured on the Desmosedici GP11 race bikes of Nicky Hayden and Valentino Rossi, and that the sponsorship was just one of many that Ducati had secured, likely having something to do with a certain nine-time World Champion.
However the deal still stuck out as more than a straight advertisement transaction, with Ducati even saying that the relationship would be reciprocal, with the Bologna Brand helping hock a few Stuttgart Sleds in Mercedes-Benz’s ad campaigns. We got our first taste of how that cross-pollination of a partnership would look almost immediately after the announcement, with the two brands engaging in a sort of teaser video of what was to come further down the road (road…get it? ha!).
Then of course more recently we got another taste as the Ducati Superbike 848 EVO made a cameo appearance in a commercial that pitted it against a Mercedes-Benz C63 AMG Coupe. A lesser known fact to the public, but one readily apparent to journalists who attended the Ducati Diavel launch in Los Angeles, was that Mercedes-Benz has been supplying AMG-tuned vehicles to Ducati to use at press, media, and public events.
While it would seem that the two premium brands are exploring the limits of their marketing synergy, and how two wheels can compliment four wheels, and vice versa, reliable sources close to Asphalt & Rubber have revealed that the partnership goes deeper than just a joint-marketing campaign, and is in fact a part of an elaborate purchasing agreement that sees Mercedes-Benz acquiring Ducati Motor Holdings should certain criteria be met.
It seems Ducati is willing to put its label on just about anything these days, boats being no exception. And when this press release hit our inbox this morning phrases like “you’ve gotta be f*ing kidding me!” echoed off the walls of our still unfurnished office. But in all honesty when we opened the email and saw pictures of the red & white Cigarette Racing boat, we perhaps regretted our initial impression.
Straight out of a Miami Vice episode, the 42′ hull of the Cigarette Racing 42X Ducati Edition Racing Boat is pure white with red accents and Ducati logos. We’re not that into the ocean boat racing thing, but boy have they come a long way from what little of the 1980’s we remember. While we’d probably never own such an impractical machine (motorboats are cheating anyways), we certainly wouldn’t turn down a chance to romp around for a day in this 42X Ducati Edition speed machine, what with its dual 1,100hp Mercury Racing engines (that’s 2,200hp for the mathematically challenged).
Ducati Corse is slowly becoming the Lord of the Rings in MotoGP — bringing together some of the largest brands outside of the industry into the pinnacle of motorcycle racing. Already announcing Mercedes Benz’s tuning house AMG as its official car sponsor to the Marlboro Ducati MotoGP team, Ducati announced ahead of today’s start to the Wrooom event that apparel company Diesel would be added to the team’s rostrum of sponsors.
The maker of tight skinny jeans and other fashionable items, Diesel will be adding its “Made in Italy” brand to Ducati’s Italian bikes, and will also supply the Ducati Corse team with apparel for the 2011 season, which we can also only imagine will be made available to the public as well with a modest mark up on the not so modest base prices. Still say what you will about Italians and their fashion, one thing remains impressively true: Ducati is crushing it right now when it comes to finding dollars to go race in MotoGP.
Announced last night at the L.A. Auto Show, Ducati and AMG (Mercedes-Benz’s tuning house) have formed a partnership between the two brands the will first manifest itself by having the German car tuner sponsoring the Italian company’s MotoGP team. Rumored for over a month now, this announcement finally puts to bed the speculation that Fiat would sponsor Ducati now that Valentino Rossi has joined the Rosso Corse team, and is also the first official sponsorship announcement for Ducati Corse’s 2011 season.
With Rossi healing his wounds back in Italy, Nicky Hayden was on hand for the event with a Ducati Diavel and Mercedes-Benz CLS 63 AMG on stage with him. Asked what he thought about the partnership, Hayden replied, “Well, if this is my company bike and this is my company car, I’d say I’m doing pretty well.” We’d tend to agree.
According to Indian publication Bike Advice, Bajaj is looking to cultivate its relationships with KTM & Kawasaki further, hoping to create a three-way alliance that would build off the strengths of each company. Since 1986 Bajaj has had technical ties to Japanese manufacturer Kawasaki, with Bajaj paying royalties to Kawasaki for basing its creations off Kawasaki designs. Bajaj and Kawasaki also share distribution channels, with Bajaj motorcycles being sold at Kawasaki dealerships, and vice versa.
In 2007 the Indian manufacturer bought a 17% stake in KTM (Bajaj has since increased its stake in the Austrian company to 35% in 2008, with further investment plans rumored), which allowed Bajaj access to Europe and KTM access to India. Bajaj has also gained some of KTM’s knowledge on two-stroke motors, while KTM has seen the small-bike specialist help them with its soon-to-be released KTM 125 Duke project.
With all these relationships being fostered, and obvious synergies existing, Bajaj wants to take its relationship with each company to the next level (in America we call that Third Base), and change the level of collaboration so it goes three-ways. The affect would be a merger, without the merger.
It’s hard to make strategic business partnership announcements sound sexy. Between all the hyperbole about how two companies are going to shift the industry paradigm and synergize the supply chain matrix, the average consumer’s eyes glaze over, and drool starts seeping out from the corners of their mouths. So bear with us on this one, because the announcement (or is the term Brammouncement?) of Brammo and Flextronics is an important one not only for the Ashland based company, but also for the electric motorcycle industry as a whole.
Some of the biggest problems facing any startup in the motorcycle industry are distribution and assembly. With the demand for electric motorcycles being a global issue, electric motorcycle startups, which are based primarily in the United States, have to not only grow their businesses domestically, but perhaps more importantly they need to foster a presence abroad in foreign markets.
With Europe and Asia easily out-pacing the demand in the US for electric transportation, an issue of contention for cash-strapped startups like Brammo has been how to grow globally and effectively with their limited budgets. The solution in this case for Brammo, is partnering with Flextronics, and using their scalable global production facilities.
Oklahoma powersports startup US Highland recently announced they have one or two deals in the works. First they have a “tentative agreement” with a “global OEM” to license their motor technology. They are also discussing a deal to build bikes for a company to rebrand. It is unclear if the “global OEM” interested in their engines is the same one looking to rebrand the Highland machines.
However, both deals could bring US Highland from it’s original plan of building 700 motorcycles in 2010 and 1500 motorcycles next year to 20,000 units per year by 2012. To accommodate this growth US Highland will hire 200 to 300 people at their Oklahoma headquarters by the end of 2010. Hear more about US Highland and see the full press release after the break.