10 Reasons Why the Audi/Ducati Marriage Made Cents
The VW Group's 2012 purchase of motorcycle outfit Ducati under the Audi brand has meant great things for all involved.
1. Audi represented a huge auto conglomerate.
Since the Second World War, Ducati has been a name for themselves that represents quality and expertise in motorcycles. Audi itself is owned by the Volkswagen Group. The marriage between the two brands has meant that Ducati now has all of the support and exposure it needs in reaching its max potential.
2. Both companies were known for their quality.
Anyone vaguely aware of Ducati will also know of the incredible reputation they have as a motorcycle manufacturer. The Ducati name is virtually analogous with a certain level of quality for enthusiasts. Meanwhile, Audi is arguably matched only by Mercedes and BMW for prestige when it comes to German automakers. Audi and Ducati have similarly polished reputations, so joining forces made perfect sense for both of these two giants.
3. Ducati's bike manufacture has allowed Audi to compete with BMW.
Audi's greatest competition, BMW, have their own in-house brand of motorcycles. By bringing Ducati into the fold as such, Audi has evened the odds with their rival. Considering how highly-regarded Ducati's name is in the biking community, it made infinitely more sense than Audi starting a bike division of their own.
4. Both brands were highly involved in motorsports.
Ducati sponsors racers and is practically a ubiquitous name in the motorcycle racing scene. Likewise, Audi has done a lot of work involving itself with American and European race tours, even having been offered ties with the world-class F1 circuit. Motorsports fans already respected both brands, and their dedication to racing proved they're both dedicated to making the finest machines they can.
5. The VW Group had a proven record of galvanizing small Italian companies.
Lamborghini is known for fulfilling a very extravagant niche, offering extremely fast and expensive vehicles known for their wealth signaling before necessarily exceptional tech specifications. VW Group purchased Lamborghini years ago to see if they could broaden sales. Although Lamborghini is still known for that same decadent extravagance, there's no doubt that the VW Group radically improved the brand's sales, from the low hundreds to thousands annually.
6. The shared technology improved both brands.
Audi expressed interest in Ducati's lightweight materials technology. Conversely, the techniques the VW Group used to galvanize factory production with the Lamborghini brand seemed like a no-brainer for the Ducati factory. The purchase of Ducati was expected to precipitate a cross-pollination of innovations that might improve products on both sides.
7. The VW Group had an opening for a motorcycle brand.
Audi needed a motorcycle brand to compete with BMW's well-regarded bike line. Mercedes had a partnership with Ducati prior to the Audi purchase. With Ducati now in Audi's yard, this strengthens Audi by indirectly hurting their main competitors. Moreover, the VW Group's previous motorcycle partner Suzuki has become distant in recent years. In other words, there was an opening for a quality bike company to move in. We can't think of a better choice than Ducati.
8. Ducati's debt would be assumed by a large conglomerate.
The debt of Ducati was estimated to be somewhere between 200 and 800 million euros. Although this is a ton of money by pretty much anyone's standards, it's an allowable write-off for one of the largest auto conglomerates on the planet.
9. Ducati would enjoy a significant image boost.
Ducati has never needed help when it came to refining their public image. While they're already known for quality bikes, there's no denying the prestige that comes with being part of a major conglomerate. The VW Group knew they would doubt capitalize on Ducati's existing reputation, and the brand's reach was expected to expand significantly.
10. Motorcycle sales has increased over time.
The VW Group got itself into hot water recently with the emissions scandal, but the prestigious motorcycle brand continued to be a safe investment for them. With gas prices rising, people want a stylish way to move around that doesn't entail the same fuel expense as a car. Whichever way you cut it, the future is Audi and Ducati's for the taking and in 2015, Ducati North America increased unit sales by +14.1%, based on 12,132 total motorcycles sold in the United States, Canada and Mexico.