VW's Audi Brand To Expand Into Motorcycle Business With Ducati Takeover
18 Aprile 2012 - 7:21PM
Dow Jones News
Volkswagen AG's (VOW.XE) Audi premium-car brand on Wednesday
confirmed the acquisition of a majority stake in Italian motorcycle
maker Ducati Motor Holding SpA from investment firm
Investindustrial Group, but didn't disclose financial details.
Ducati "has great expertise in high-performance engines and
lightweight construction, and is one of the world's most profitable
motorcycle manufacturers," Audi Chief Executive Rupert Stadler said
in a statement after the supervisory boards of Audi and VW approved
the deal.
Volkswagen wants to become the world's largest auto maker by
2018 and is investing heavily to boost its presence across the
globe. It posted record vehicle sales and profits last year and has
significant muscle to finance its expansion plan with EUR17 billion
in net liquidity as of Dec. 31, 2011.
The Wolfsburg-based auto maker took over truck makers Scania AB
and MAN SE in recent years to increase its footprint in commercial
vehicles and will now enter the high-performance motorcycle
business through the Ducati acquisition.
The move into trucks and motorcycles is widely seen as the
brainchild of VW's influential supervisory board Chairman and
former Chief Executive, Ferdinand Piech, who has voiced admiration
for Ducati in the past and reportedly owns one of its motor
bikes.
The rapid expansion, however, has sparked concerns about the
growing industrial complexity Volkswagen's management has to master
at a time when competition for its car business is heating up amid
a fragile economic environment.
-By Christoph Rauwald, Dow Jones Newswires; +49 69 29 725 512;
christoph.rauwald@dowjones.com
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