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Is Harley-Davidson going to take control of Ducati?

Reuters UK sources claim Harley has ambitions to take control of Ducati

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Simon Greenacre's picture
Submitted by Simon Greenacre on Mon, 26/06/2017 - 13:09

Ducati HQ

THEY'RE TWO manufacturers operating at very opposite ends of the motorcycle spectrum, but according to Reuters, Harley-Davidson is in the running to buy Ducati and is lining up a bid to take over the Italian marque, which is currently controlled by Audi, part of the Volkswagen group.

Reuters’s unnamed sources say that Harley is preparing a takeover bid for Ducati, which is said to be offered for sale by Volkswagen as it scale back its operations in the wake of the 2015 diesel emissions scandal.

According to Reuters, Harley has called in Goldman Sachs to help with the deal, while Audi is working on its side of the sale with investment bank Evercore.

Ducati is said to be accepting bids from July.

According to Reuters’s sources, Volkswagen is looking to raise in the region of €1.5 billion from the sale of Ducati - nearly double the €860 million Audi paid for Ducati back in 2012. That’s a lot of money, – enough to dissuade India’s TVS and Hero MotoCorp from submitting a bid, although several private equity firms are said to be compiling bids.

So is a Harley takeover likely? With Harley’s falling revenue, sales and profits amid its struggling domestic performance, we’re not convinced.

As far as timescale is concerned, it’s unclear and Ducati’s future might not be decided by the time this year’s annual EICMA show rolls round in November.

 

Comments

sounds like a disaster. Ducati only came good with access to Audi research facilities and boffins.
With Harley it will just stagnate just like Harley itself.
Same with that US ducati dealers clubbing together wheeze. It would just milk and destroy all the value of Ducati as no way they would invest in it properly.
Only ray of light is that maybe HD would start bringing out heritage style bikes authentically styled like a 900ss or Darmah which should get some of the market that triumph have had to themselves but thats just short term as once that crowd of buyers shuffles out of the picture your are doomed.

Harley have a history of previous Italian jobs, don't forget Aermacchi, the little 70,s two strokes, and more recently MV. I do think its unlikely though now that the threat of more sporting bikes from Victory has gone.

Harley bought up Buell, supported them for a few years - and then threw them in the trash-heap.
I can't believe they would treat Ducati any better.

It's July now. Harley Davidson shouldn't be ruled out. If they are asking a premium then the buyer needs some extra value. Shared r and d, shared models, infrastructure etc all push towards a bike manufacturer that doesn't compete directly at the moment. Diavel is the only possibility but I don't think many cross shop it with HD.

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