View Full Version : Ducati would consider Harley-Davidson merger ‘anytime,’ CFO says
chrishajer 12th June 2007, 20:23 From http://www.powersportsbusiness.com/output.cfm?ID=1252963
Powersports Business
Tuesday June 12, 2007
Ducati Motor Holding, the Italian motorcycle manufacturer, would consider a merger with U.S.-based Harley-Davidson “anytime,” said Enrico D’Onofrio, CFO.
A merger with Harley-Davidson would be “totally complementary,” he said, responding to speculation in the market that the two firms had been in talks. And while he declined to comment on the speculation, he did say that the two companies are similar in that they create recreational bikes that consumers fantasize about. Harley-Davidson has an older consumer profile, with an average age of 55, while Ducati owners are about 35, on average. Half of all Ducati owners in the United States also own a Harley.
A potential combination with the U.S. company could also help Ducati with procurement, as Harley is a larger company that is able to get better quality products at lower prices. A marriage would also increase distribution opportunities for Ducati, which is a relatively small manufacturer.
D’Onofrio said Harley could also stand to benefit, as it could be interested in expanding internationally.
Also mentioned here (Financial Times) (http://www.ft.com/cms/s/209fe0b8-18a6-11dc-a961-000b5df10621,dwp_uuid=e8477cc4-c820-11db-b0dc-000b5df10621.html) and here (Blogging Stocks) (http://www.bloggingstocks.com/2007/06/12/harley-davidson-courting-ducati/).
--Chris
raysheen 12th June 2007, 20:37 hmmm...as long as they don't screw up Ducati and as long as they don't screw up HD then I guess it would be OK. not sure if I should be excited or scared.
lagerdrinker 12th June 2007, 20:46 The thought of having ducati and buell together must leave other manufacturers scratching their heads asking stuff like what would come of this union.
Detsuh 12th June 2007, 20:52 The merger sorta makes sense for both Ducati and HD would benifit (Ducati gets cheaper parts + increased U.S. distribution, HD gets wider international distribution), but what would this mean for Beull?
lagerdrinker 12th June 2007, 20:55 but what would this mean for Beull?
i would hope a serious world race effort
lagerdrinker 12th June 2007, 20:57 maybe a buell blast with two cylinders and priced below a 620dark
Notabiker 12th June 2007, 21:03 $ 1.82B EBITDA for Harley and $640 mill EBITDA for Ducati, with Foreign sales of HD doing well, what would HD have to gain by it. I believe Ducati gains more in the equation, so I say at this point why would HD do it? I have to read and do some digging, I think Ducati is hoping that their stock rises on the news. Also, if they were in play both stocks would be up today. I say Ducati was spurned already. Let me dig.
CBAS5 12th June 2007, 21:03 This is interesting. It seems like it's a good idea for both companies, but how it would work out in reality would be interesting to see. So would they just make Ducati's as Harley's sport bike with Harley-Davidson on the tank or start selling Ducati's at harley dealerships?
lagerdrinker 12th June 2007, 21:17 Btw, didnt harley already own one italian motorcycle company? If i remember correctly they had a string of world championships in small two stroke classes even though engines were made by rotax.
MagikalDragon 12th June 2007, 21:21 oh man dont tell my boyfriend... he wants a ducati.
Simon 12th June 2007, 21:50 Just so long as they don't let Pierre Terblanche anywhere near the HD design dept!
sportysrock 12th June 2007, 22:05 I think it would be really awesome. I do not imagine HD's line changing much from it except maybe Buell would get some technical bits. Imagine buying your new Ducati with your Harley card ...
rlutsey 13th June 2007, 00:51 Buell Lightnings with single sided swing arms? Could be fun???
Ivan 13th June 2007, 02:08 So would they just make Ducati's as Harley's sport bike with Harley-Davidson on the tank or start selling Ducati's at harley dealerships?
IMO, there is not a snowballs chance in hell that Ducati would allow an HD label to be placed on the tank of a Ducati, they would instantly lose 90% of their customer base. Ducati has a very strong brand identity, especially outside the US. They have been following in HDs footsteps building up their identity, marketing things like branded clothing (made by Dainese) and "lifestyle" merchandise.
Keep in mind that Italy has very strict laws about foreign ownership of businesses, I think that it would be more a marriage of convenience than anything. Ducati would benefit from the deep pockets of HD, which could fund some R&D that could be used to reduce production costs, and make them more profitable. Not sure what HD would get out of this... maybe they would sell their stake in Buell?
Ivan 13th June 2007, 02:12 Just so long as they don't let Pierre Terblanche anywhere near the HD design dept!
You should see the comments that the Ducatisti are making about keeping the HD factory folks away from Bologna
GOTWA 13th June 2007, 05:13 Buell will build Rotax-based water-cooled bikes to suppliment their line. No way they partner with Ducati.
chrishajer 13th June 2007, 05:20 Btw, didnt harley already own one italian motorcycle company? If i remember correctly they had a string of world championships in small two stroke classes even though engines were made by rotax.
Aermacchi
http://www.chrishajer.com/bike/XLF/HD-SprintCRS-1966.jpg
And the motors were not made by Rotax, they were made by Aermacchi :doh
They use a Rotax motor in the current MT500 military bike.
http://www.chrishajer.com/bike/XLF/MT500.jpg
--Chris
smackie 13th June 2007, 07:53 maybe ducati can give harley some usuable performance help...god knows they need it.
Notabiker 13th June 2007, 13:28 ...Not sure what HD would get out of this... maybe they would sell their stake in Buell?
Exactly, what is in it for HD, they already have a European market share, Buyout is a definite no, but joint venture? Spin off of Buell??? Buell doesn't make money, but doesn't lose money. Ducati was just putting itself in play, maybe the CEO wants the japs to bite or some one else?
Sleeper 13th June 2007, 13:49 I loved to see it happen, my local Ducati shop went out of business years ago.
I work on my own bikes, but it's a little scary imaging some of the local HD techs working on a Ducati. Desmos aren't for everyone.
GOTWA 14th June 2007, 03:18 maybe ducati can give harley some usuable performance help...god knows they need it.
No they don't. They know exactly how to achieve performance, they just don't need to. You bought one right?
woody 14th June 2007, 03:26 MONSTERSPORTY CAN'T WAIT!!!!!!!!!!!:tour
shameless 14th June 2007, 03:28 What does Harley stand to gain from a merger with Ducati?
Spending money. H-D does absolutely nothing that they can't or won't profit from. I would not be surprised if they made profits from Ducati sales and merchandising.
lincoln1975 14th June 2007, 03:31 I dont know what to think about it, it could go both ways. I am up in the air with the idea
Rigpa 7th August 2007, 02:45 How's this :laugh
Cool idea ... would still have the Harley sound though can't she why Ducati doesn't get better performance numbers from their aircooled engines...desmo overhead cams and all..
http://thekneeslider.com/images/desmoharleyengine.jpg
Desmo Harley (http://thekneeslider.com/archives/2007/07/12/desmoharley-italian-american-v-twin-completed/)
langner91 7th August 2007, 02:55 :tour I will be the first guy in town to own a new Ultra Classic HyperMotard.
Actually, I just like saying "HyperMotard".
Hypermotard. :banana
ReddTigger 7th August 2007, 03:13 Hmm, Kinda funny that this came out of the Ducati Camp.
I Have to agree that this is probably a little fluff to stir some stocks.
I don't see the benefit for Harley to merge/partner with Ducati, unless it's to promote a SuperMoto GP bike.
As for performance.... Here's a little tidbit of info.
Harley was beating everyone in the drags so the sanctioning body made HD add 100 Lbs of ballast to the bikes.. This evened up the score a little.
Now they're winning again, and beating everyone.
Example--- NHRA 2006 Pro Stock Motorcycle Champion Andrew Hines-Harley Davidson.
2007 points standings...
1.Matt Smith-Buell 847
2. Angelle Sampey-Suzuki 668
3. Andrew Hines-Harley Davidson -602
4 Suzuki-543
5.Buell -518
6.Suzuki -481
7.Suzuki-444
8.Buell-436
9.Buell-414
10.Harley Davidson-407
sportsterideragogo 7th August 2007, 03:59 Seen this direction for the MOCO before-next thing you know, they'll be building snowmobiles and RV's! HD does have a history dealing with Italian manufacturers though......
gwcrim 7th August 2007, 03:59 Harley in the NHRA. Oh yes, those are real Harleys. I just bought one off the show room floor. ROFLMAO!!!
Now Ducatis racing what you can buy? Well now that's another story.
ReddTigger 7th August 2007, 04:19 Harley in the NHRA. Oh yes, those are real Harleys. I just bought one off the show room floor. ROFLMAO!!!
Now Ducatis racing what you can buy? Well now that's another story.
Actually there are quite a few of the V-Rod Destroyers around tearing up the pavement, not to shabby to have a 10 second bike delivered by the manufacturer.
As you know the Ducati's you see on TV racing aren't exactly the same thing sitting in the showroom.
Cameron 7th August 2007, 06:38 I thought you never ask.
I saw this one at Monterey GP 2006.
I do not know how to insert an image so you have to go to members photos and look for Cameron.
Old news? They may already have merged.
Cameron, 05 XL 883 SS (standard stock)
biknut 7th August 2007, 06:49 Why would Harley want to do that. Ducati is a tiny little pimple on a nat's butt next to Harleys huge enormous elephant ass.
Duane Wood 10th August 2007, 06:21 The CFO of Ducati is a dork prone to wild comments. Ducati doesn't have enough capital to buy the Sportster line, let alone conduct a full merger. He seems to enjoy stirring the media up just for fun.
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