Audi Buys Ducati, Deal Panned by Analysts

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Analysts are likening Audi’s purchase of Ducati to that of an older man taking a trophy bride as Reuters and others are calling the deal done with an official announcement soon.  VW Chairman Ferdinand Piech seems to like Ducati so much he bought the company.

“The Ducati purchase is driven by VW’s passion for nameplates rather than industrial or financial logic,” said Arndt Ellinghorst, analyst at London-based Credit Suisse. “It’s an unnecessary sideshow to VW’s main challenges of integrating sports-car maker Porsche and merging truck operations at MAN and Scania.”

For all its importance in the motorcycling world as an brand icon and technology leader Ducati’s modest sales of ~€390 million and earnings (EBITDA) of €71 million in 2010 are immaterial to VW group which generates €8 billion in free cash each year.

As we predicted, the supposed synergies in small engine design are mostly PR speak and the analyst community aren’t having a bar of it.  David Arnold in specialist sales at Credit Suisse doesn’t see the logic of the deal.

“VW would likely say that cylinder head design in the motorcycle industry is much more advanced than in passenger cars, a common argument, but that sounds a little bit far fetched to me,” he said.

UPDATE: The acquisition of Ducati by Audi is now official.

Source: ReutersPhoto CreditThe Daily Star

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14 Responses to “Audi Buys Ducati, Deal Panned by Analysts”

  1. Like this.

  2. Things like this never end well. Ducati was doing fine just the way they were.

  3. keith, if they were doing fine, they wouldn’t be on sale.

  4. monopoli….

  5. Debt is huge, good on the end

  6. NO NO NO…I don’t want my Ducati to be infected with Farfegnugen! I only want it to have prestazioni con passione.

  7. So now that that is done, where does it leave the MotoGP AMG sponsorship? VW/Audi VS AMG Merc…..

  8. disgusting!

  9. If audi buying other company i’m happy with that but DUCATI? Hell no,

  10. Ducati über alles?

  11. Why?

  12. Don’t forget that Audi began life as auto union hence the 4 circles on the name badge. The 4 circles represent 4 manufacturers among them DKW a very fine motorcycle manufacturer. In a way its a return back to those roots.

  13. Much much better than Mahindra, or “Harley Davidson-103 years of converting fuel into noise, without the side harmful effect of horsepower”! :) No offense to Harley riders :)

  14. There’s a picture of the devil himself……….I hope they feel the back lash of this purchase in the next year……. there are alot of upset ducati owners….. alot…… I bet the ducati employees are wondering now what………