Volkswagen could sell the Italian bike maker brand Ducati; India’s Hero MotoCorp and Chinese companies are rumoured to be in the hunt for purchase
Volkswagen owned Audi bought the Italian bike manufacturer Ducati nearly five years ago, but with a changed scenario the German automobile group is considering selling the Italian company in an attempt of cost cutting and streamlining operations. As the German brand is planning strategic overhaul after Dieselgate, it needs huge amount of fund and selling Ducati could bring the much needed money.
Despite nothing being confirmed yet, name of Hero MotoCorp and couple of Chinese brands are coming up as potential buyers. Hero MotoCorp is currently aiming towards its expansion globally and if the Indian two-wheeler manufacturer buys the Italian company and it will surely add more strength to Hero. Ducati could fetch a valuation of around 1.5 billion euros, which is 15 times their core earnings. Interestingly, Audi acquired Ducati for an amount of 860 million euros back in 2012.
Also read: 162 HP Ducati Diavel Diesel Launched in India at Rs. 19.92 Lakh
Ducati is known for making exclusive range of superbikes and its motorcycles have won the superbike racing competition a total of 17 times. Buying it would give the Hero MotoCorp an opportunity to share technology and components with the globally acclaimed brand. Also, in that case, we would see Hero striving towards premium models in future apart from the commuter model, for which the brand is currently known.
As the German automobile group is currently realigning its investment strategies and also going through cost cutting, it has employed investment banking boutique Evercore for evaluating possible options including sell of Ducati. It has already started reaching out to potential buyers, but no further decision has been made yet.
Also read: Ducati Won’t Manufacture Small Bikes in India
Apart from Hero MotoCorp and Chinese brands, investors like consortium which purchased British luxury sportscar manufacturer Aston Martin could also come up as potential buyer. Private equity firms are also on card. But, it is not clear if the large motorcycle manufacturers like Harley Davidson, Honda or Kawasaki will show interest or not.