The Italian’s are looking to do away with their decades old business, giving up the Ducati brand to some other company. The company has cited several reasons for pulling out of the business, though mainly it is financial. The Italian biking giants were finding themselves in rough waters time and again with their product. In the last few years, there has been an exponential growth spurt for sport bikes and sport biking manufacturers. With the auto making honcho’s looking to cash in on the biking industry, it has left the likes of Ducati in a tight spot. Ducati fared well, always, in the European markets but never had a stronghold outside the continent. Its weak dealership base and nonexistent distribution network has resulted in the company succumbing to the competitors. However, it would be wrong to say Ducati has been crashing out of the market, the financial burden along with many other factors determined the change. So the company is now looking for a change of hands to carry forward their legacy.
Now the company is looking at individual ownership to take over the mantle. They are not on the stock market so a shared ownership is out of the question. The top three prospective buyers for the product is Volkswagen, Mahindra and BMW. The current owners of the Ducati are estimating a collection of 1 billion Euros from the handover.
Let’s now look at the interested buyers of the company. First up is the BMW. The auto making giants already have a thriving bike segment and might not been too receptive of the Italian technology, but nothing can be ascertained as of yet. Next up is the Indian Mahindra. They have always wanted to entire the high end biking domain in its own country and elsewhere and this might just as well be the jump start that they had wished for. With the renowned brand of Ducati under their belt, they might not have a problem ousting other competitors in the biking world in India. And last up is the Volkswagen. The German automakers have long been the best when it comes to global product distribution and dealerships. With networking as their forte it wouldn’t take long before they begin to market and distribute the Ducati under their brand name, that is, if they lay claim on the Italian product. All three companies are very well equipped financially, so it is very hard to predict, who will eventually claim the spoils.