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.
The Volkswagen Group got a new CEO last week, and in less than seven days, that news has already sparked renewed rumors in the German automobile conglomerate divesting itself of Ducati Motor Holdings. For those who have been following Ducati’s saga, there was much talk last year of Volkswagen selling off a number of its other brands, all under the reasoning that the German company would need to raise capital to cover its mounting Dieselgate liabilities. The logic for that reasoning wasn’t sound, but the actions were certainly there, with Volkswagen tendering offers from a number of would-be suitors. There was a fly in the ointment though: Volkswagen’s labor unions, who control half of the VW Group’s board seats, and were vehemently opposed to any brand divestitures.
EBR Motorcycles is set for another go at this liquidation thing, with its owners Liquid Asset Partners having put the company and its assets on the auctioning block once again. Loyal readers will remember that Liquid Asset Partners bought Erik Buell Racing last year, with public plans to restart the brand. That activity never really moved beyond assembling a few motorcycles that were still languishing on the production line, while LAP looked for other investors in the company. Now confirming what we long expected to be the final outcome, Liquid Asset Partners is chopping up EBR Motorcycles once again – looking to sell the brand’s remaining assets, including the brand itself.
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.
Calling it a “strategic realignment” for BMW Motorrad, the BMW Group has confirmed the rumors and sold Husqvarna Motorcycles to Pierer Industrie AG, the holding company of KTM CEO Stefan Pierer. Saying the parties would not disclose the terms or purchase price of the transaction, the press release from BMW Motorrad was surprisingly light on any actual information. Touting BMW’s commitment to urban mobility and electric vehicles, the German company will now focus solely on the BMW Motorrad brand. With reports saying that BMW Motorrad will not venture back into the dirt bike market, the company will maintain its on-road focus for the foreseeable future.
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.
There has to be a bevy of high-fives going on in Milwaukee right now, as Harley-Davidson has finally unloaded MV Agusta from its holdings (we broke the news on the purchase earlier this morning). Harley-Davidson bought MV Agusta for $109 million back in 2008 (most of which was bad debt), and now just a little over two years later is making a tidy profit of…well, nothing. After wiping the books clean, investing in new infrastructre, and getting MV Agusta back on track with an all new model line-up (with a bike on the way), Harley-Davidson saw a paltry sum of €1 cross its desks. Harley-Davidson shares are down 3.5% as of this writing.
UPDATE: Moto Morini’s liquidator has now announced that all the available units have been sold.
As the dust continues to settle around Moto Morini, the Italian marque sees an expiration date looming in its future. Pushing its final days into September of this year, as the company looks for a new potential buyer, assets of this motorcycling misadventure continue to be sold. While many were upset at Moto Morini closing its doors, the good news is that the company has an ample stock of bikes, which it is now selling for severely discounted prices.
Our friends from over at RareSportBikesForSale.com have tipped us off that Motorrad Hertrampf in Northern Germany, a Bimota, MV Agusta, and Cagiva dealer, has just posted a for sale ad on Jameslist (yes, the German rip-off of Craigslist), where they are offering a 2010 Bimota HB4 for sale. That’s right for €169,000 (without VAT), you too can own your very own Moto2 race bike complete with 145hp Honda 600cc power plant, and all the Italian goodness you’d expect from Bimota. You’ll just have to wait 10 weeks for the Italian firm to build it from the time you pay your deposit.
Paolo Berlusconi, brother to Italian Prime Minister Silvio Berlusconi, is rumored to be making a play for MV Agusta as Harley-Davidson continues to look for a purchases of the iconic Italian brand. According to Motociclismo, Berlusconi’s name continues to be mentioned in the same sentence as the Italian company, as the purchase would play well into Belusconi’s holdings in scooter manufacturer Garelli.