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VW AG's Audi To Buy Ducati For $1.1 Billion
Audi has announced it will be buying Italian motorcycle brand Ducati Motor Holding SpA for $1,1 Billion ( 860 million Euros) bringing to an end the mystery around who will buy Ducati. The motorcycle brand will join ten other car brands under German car giant Volkswagen AG.
Ducati's owner Investindustrial SpA had put the brand on sale earlier this year. There were many auto firms reportedly interested to buy Ducati including India's very own Mahindra and Hero MotoCorp. But eventually, the Volkswagen AG's premium car brand has announced its decision to purchase Ducati.
Audi in its statement to the media has stated that the supervisory boards of Audi as well as Volkswagen had approved the purchase and the deal could be finalized as soon as possible. Audi Chief Executive Officer Rupert Stadler in his statement said: “Ducati is known worldwide as a premium brand among motorcycle manufacturers and has a long tradition of building sport motorcycles. It has great expertise in high- performance engines and lightweight construction.”
Audi's decision to buy Ducati will help it compete against rival Bawarian Motor Works AG (BMW). BMW a well known premium car brand also sells premium motorcycles.
Volkswagen Ag has finally added a 11th brand to its portfolio. VW Group chairman Ferdinand Peich had expressed his interest to buy Ducati in 2008 itself but Investindustrial was successful in taking over the Italian Motorcycle brand.
Volkswagen Ag is aiming to become the world's largest vehicle maker by 2018 and its acquisition of Ducati is another step towards its goal. This is the first time Volkswagen is getting involved in the motorcycle business. Ducati is a 87 year old company renowned for building super bikes such as the Monster, Diavel, Street Fighter and Hypermotard.
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