On one side Ducati has been introducing its newly developed vehicles and positioning itself in a favorable condition, but what is the twist faced by the automaker that it has now made its mind to sell it off. It has been clear that Ducati Motor Holding is on sale, and Harley Davidson might be a potential buyer for it.
America’s most iconic, Milwaukee-based motorcycle maker has recruited Goldman Sach to look into its financial operations. Ducati that was acquired by Volkswagen in 2012 for $1.13 Billion will start the bid from July.
The price that is estimated based on rumors is $1.67 Billion, which is almost 1.5 Billion Euros. At present, Ducati’s parent company Volkswagen is working along with Evercore, an investment administration company. The decision of Ducati sale came after Volkswagens emission scandal of Audi Division. The scandal led the company towards a billion loss.
Harley Davidson has witnessed a sour experience since the purchase of Italian motorcycle manufacturer, MV Agusta, for the price of $109 Million in the form of debt in 2008. Later, after clearing all the debts of MV Agusta, it was again purchased by Castiglioni family that at present stage owns MV Agusta. The purchase plans of Harley were also aligned in the initiatives taken by the company in the first quarter of 2017.
The automaker affirms that its future growth strategies are emphasized on its few goals.
- Create 2 Million Harley Davidson new riders in the United States.
- Boost the international business up to 50% of the yearly volume.
- Harley Davidson Motor Company invested capital should be returned with high return rates.
- Augment the business without affecting the environment.
Apart from Harley, players such as Bain Capital, Permira, KKR, are also among some interested buyers as well as Suzuki, BMW Motorrad, and Honda have also rolled out their bid on Ducati.
The motorcycle company has grown drastically under the ownership of Volkswagen. In the previous year, the motorcycle maker managed to sell over 55,000 motorcycles around the globe. America is the largest market of Ducati where nearly 8,800 bikes were sold. The company operates in 90 countries and has around 1,600 employees and it is planning to boost the numbers in 2017.