A Sportbike Blog by Dylan Weiss
Say it ain’t so — Fresh off the Financial Times website:
Ducati Motor Holding, the listed Italian motorcycle manufacturer, would consider a merger with US-based Harley-Davidson “anytime”, said Enrico D’Onofrio, CFO.
A merger with Harley-Davidson would be “totally complementary”, he said, responding to speculation in the market that the two firms had been in talks. And while he declined to comment on the speculation, he did say that the two companies are similar in that they create recreational bikes that consumers fantasize about. “People want to buy a dream.” Harley-Davidson has an older consumer profile, with an average age of 55, while Ducati owners are about 35, on average. Half of all Ducati owners in the US also own a Harley, D’Onofrio added.
A potential combination with the US company could also help Ducati with procurement, as Harley is a larger company that is able to get better quality products at lower prices. A marriage would also increase distribution opportunities for Ducati, which is a relatively small manufacturer. “In the US, we do not have critical mass,” D’Onofrio said. “In this market, you must.”
You can read more here.
Honda, Part 6
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Dylan,
I have to admit that I thought of you immediately when I read that link from over on Mike Werner’s site.
Just a matter of time before you’ll be able to get some concho’d leather saddlebags and a sissy bar for your 1098.
And you can give up those hot, sweaty leathers and huge helmet for jeans, a black t-shirt, and a beanie helmet when you swoop through the canyons on your Duc.
I hear the next version of the 1098 will have a V-Rod engine in it to save money and increase profits.
(sorry, that last part was cruel)
Doug
I guess I’m lucky (and so are a lot of others) to currently own Ducatis unsullied by Harley’s corporate money grubbing mitts. Buy now, before the the free-fall begins. Consider it an investment!
Todd
I agree. Buy it now fefore the decline. I don’t even want to park next to a Harley let alone ride a bike made by the company. If Harley and ducati merge well Ducati riders will have to lower their IQ or pick another bike. Cruel, but true. But maybe like the shop in downtown Seattle, two bikes but lots of bikinis and shot glasses. count me out.
LOL! The above posters are too funny with their “Holier than Harley” attitudes. As Ducati and Harley run almost exactly the same business model a merger between them makes lots of sense. Out-dated valve trains developed decades ago, difficult (at best) maintanence issues, and a reliance the brand loyalty of established customers to buy everything from new bike to hats to pens to luggage (I recently saw a $500 Tumi carry-on bag, emblazoned with the Ducati logo, in an airport). Hell, they’ve even got loud pipes in common!
There is also one significant difference, Harley actually makes money!
From a business standpoint this merger makes real sense as each would bring a style of bike to the deal that is not currently represented by the other. Harley’s tried sport bikes and Ducati has tried cruisers and both have failed. This would also open a tremendous dealer and parts distribution network for Ducati. No more 10 day waits for parts!
I’m a Ducati lover, but realistically it is difficult to see long term success for a boutique manufacturer of motorcycles in today’s business climate. Ducati has existed on the brink for a long time. Now that they have some positive movement, this may be the best time to cut a deal that ensures they are around for a long time in the future.
I agree with MM. Becasue no one else rents, I rent Harleys in Norhern CA, several times a year, but would love to own a Red ST3.
I toured the Ducati Bologna factory in May and was wondering how this little company, that makes 33,000 bikes a year, can stay alive. The Italians have design down to a fine art. They suck at marketing the bikes I would love to own. Harley-Davidson knows how to make lots of money.
Merging with HD would keep me on an ST3 or S4Rs for decades.
While I personally have to admit to having a touch of the ‘holier then thou’ attitude when comparing Ducati bikes (or any other sportbike for that matter) to Harley Davidsons - the fact of the matter is that the motorcycle industry is simply one of the last corporate arenas to be touched by mergers and acquisitions. The automotive industry has been dealing with this sort of brand trading for years, some of it has been rather good for the associated brands such as Fiat’s ownership of Ferrari, BMW’s rebirth of Rolls Royce, or Ford’s use of Land Rover, while some of it has been rather horrific like Ford’s ownership in Aston Martin and the DiamlerChrysler merger. Given how things have played out in the automotive landscape, I think it’s hard to say whether or not an HD owned Ducati would succeed or not. These things seem to be 50/50 deals at best…
I was able to purchase and have been riding a 2008 Ducati 1098 for about 2 months now and have put 4000 miles ont it. Ducatis are a dreambike because you can leave your house and not expect to see a bike like yours no matter where you go. Sure they have minor problems, but basic maintenance is extremely easy to perform right in your own driveway. I guess I could say that I am concerned that any type of merger would detract from the exclusivity of owning a true superbike. I fear that if a merger happens, the same thing that hapened to Mongoose when Wal*Mart carried them will happen. Harley CEO’s will push for heavier and less exotic materials to build the bike to spike profits which will end up soiling Ducatis reputation and eventually making it a less than desireable bike as opposed to the fantasy that they have maintained now since WWII. The 1098 is a hit, breaking every Ducati sales record ever, it was even voted the most beautiful superbike in the Milan show. The price of Ducati’s have come down due to outsourcing on minor parts like brake fluid resivoirs. Also parts like the clutch cover are the same on all of Ducatis dry clutch systems which reduces design cost. With the decreased price of ownership and an absolutely gorgeous line of machines in the show rooms most under $15k, mere mortals can now own what they used to only fantasize about. Ducati can make it on thier own, thay have been right along and they should continue.
Think about this… HD stopped development on motors for the Buels, they are now sourced from Rotax… Not saying Rotax is bad, but if replace a Testratta with a Rotax you no longer have a Ducati.
If you don’t make the sandwich yourself you really don’t know what the secret sauce is made from.
Ducati should take a leaf out of Ferrari’s book and continue to develop and manufacture unique machines that appeal to their market. Any merger between the two companies would show they are driven by accountants and the bottom line, rather than a true understanding of their customer. You could not find a bigger difference between the Harley and Ducati customer. The statement quoted above by D’Onofrio shows he is product focused not customer focused (this is a big worry! . . .how can his thinking be permissable in this day and age?)
Ducati should realise that the have made their own bed and now need to lie in it. They are who they are because of their past and they cannot undo this. They make unique, high performance machines for a specific customer base. Ferrari understand their customer and this is why they do not make SUV’s. Look at the Porsche Cayenne; this vehicle did nothing but dilute the companies’ performance image, and its on a VW chassis as well!
A preoccupation with the bottom line at the expense of your customer is a sure way to begin a meandering path to product mediocrity.
TOO MANY ACCOUNTANTS!
Interesting posts. My eighth bike, a Victory Vegas Jackpot, gets more looks and smokes any Harley. I am looking for an ST3 now for a weekend tripper. My Vegas is great for trips within a couple of hours. I loathe the idea of purchasing anything Japanese, so (Having an Italian Heritage anyway) the Ducati is logical for me.
I didn’t know of the possible merger with HD and the demise of the ST3. That seals it - I’ll grab a 2007 ST3.
BTW - I must agree with most posters. A Ducati/HD merger would only benefit HD (utilizing Ducati’s technology). The Ducati brand may suffer. Sure, I know of the business model - I’m a business man too. But bikes are not shoes, computers or even cars. They are bikes - the last vestige of freedom for many of us. The idea of two very divergent companies, philosophies, and brands merging would be bad.
I think of what happened when Compaq bought DEC. DEC had the ALPHA chip - arguably one of the best chips ever made - smoking any Intel or Motorola. Compaq discontinued it they killed a great technology.
I am afraid of just that again.
Frank