Ducati CEO Claudio Domenicali says Chinese motorcycle brands are forcing Europe to rethink
The Ducati CEO, Claudio Domenicali, says Chinese manufacturers are moving too quickly for Europe to take success for granted.
Ducati CEO Claudio Domenicali says Chinese motorcycle brands are forcing Europe to rethink
- Thread starter Noobie
- Start date
Oh look, industry has competition from somewhere cheaperView attachment 167201
Ducati CEO Claudio Domenicali says Chinese motorcycle brands are forcing Europe to rethink
The Ducati CEO, Claudio Domenicali, says Chinese manufacturers are moving too quickly for Europe to take success for granted.www.visordown.com
I thought he’d cheapened the manufacturing costs already, used to be you bought an S and a carbon hugger was the norm, now it’s an extra.
Biggest problem is the same for all, getting yoofs into biking is the only way to survive long-term, old codgers with rose tinted specs and loads of cash are dying off and there hasn't been another 'born again biker' episode since the '90's. Ducati have done lots of good things; constantly winning motoGP and selling near race bikes to' older' blokes with loads of cash but yoofs with no cash can't afford them so will choose Chinese cheap and cheerful models and never need to hanker after Italian exotica. There was a reason the monster saved ducati in the 90's
Maybe release an Aldi or Lidl V4Rby what ?? Releasing special edition after special edition at stupid money ? with all respect Claudio go fuck yourself and pipe down
Follow me for more marketing genius ideas
Brilliant marketing strategy.Maybe release an Aldi or Lidl V4R
Follow me for more marketing genius ideas
And the weekly accessory catalogues will themselves become collectors items...
Featuring:-
Safety gear
Touring luggage
Wet weather gear.
Plenty more opportunities, the ‘B&M Diavel’, and the ‘Wetherspoon’s Multistrada’
Last edited:
Taken from Facebook
VW group don't deny they might sell-off Ducati
Volkswagen is facing one of the most serious restructuring phases in its history and just weeks after CEO Oliver Blume signalled over 100,000 job cuts, the Financial Times reports that both internal and external advisers have urged the company to sell off more of its global portfolio. This comes after VW offloaded both its marine engine division and Bugatti, transactions widely seen as stabilising moves for the financially stressed group.
So now eyes are turning towards Ducati.
When asked for comment, Volkswagen issued a carefully worded, non‑committal statement that didn't deny the idea that Ducati could be on the table.
If Ducati were sold, the implications for the brand could be significant.
The broad strategic risk is simple; Ducati has deliberately avoided entry‑level, high‑volume bikes, choosing instead to operate almost entirely in the £12k–£25k (and more!) aspirational segment.
This high‑spec, high‑cost business model has worked reasonably well, when demand stayed strong from an aging yet affluent buyer segment, particularly when backed by a parent company with deep pockets and long investment horizons.
But right now, premium motorcycle sales are flat or declining, squeezed by cost‑of‑living pressures and younger riders choosing cheaper, lighter machines. At the same time, increasing manufacturing costs have resulted in contracting margins. Despite bullish statements by CEO Claudio Domenicalli, the result has been static sales and declining revenue and profits, and no machine to encourage fresh riders towards the brand.
If Volkswagen sells Ducati, then this aspirational‑only strategy becomes a real vulnerability and the lack of any kind of 'bread‑and‑butter' entry machine becomes a structural weakness in the model range. This is exactly the problem Harley‑Davidson has recently recognised, prompting the return of a pair of less‑expensive ICE machines to fill in the gaping hole at the bottom of their own range.
Then there's another question. Just who might be prepared to maintain the current level of MotoGP investment?
Competing in MotoGP is costly enough, but maintaining the R&D to maintain Ducati’s dominance is extremely expensive, not just in terms of a year's expenditure to run a team each season but in terms of multi‑year engineering cycles. Ducati's MotoGP involvement is built on VW‑level capital, and if Ducati suddenly has to fend for itself, the absence of a stable, high‑volume base becomes a major vulnerability.
A new owner might continue the racing strategy but it's unlikely to be a commitment that doesn't think very hard about the return on that investment. At best, they might tighten budgets and reduce factory‑team spending. They might even shelve MotoGP entirely in favour of focusing on the road bikes.
Of course, this assumes that Ducati find a buyer. So just who might buy Ducati?
Ten years ago, the KTM/Pierer Mobility group tried to buy Ducati, but as we've seen over the last couple of years, their own finances were built largely on sand, resulting in their financial collapse and the subsequent buy-out by Bajaj. With KTM in their stable Bajaj would be unlikely to want Ducati as well.
Of the other big Indian brands, TVS already own Norton so would be unlikely to want a second premium brand, particularly as Norton themselves are working on a range of more affordable machines in the Ducati price range.
It's possible that one of the Chinese groups like Loncin, Qianjiang or CFMoto might step up. They likely have the capital, and may want to acquire more Western brands, but for the Ducatisti this would very likely raise questions about brand identity.
Private equity investment is possible, but Ducati have unhappy memories of this in the past. What usually follows is cost-cutting and asset sell off. It's highly unlikely to deliver the kind of long-term investment required to maintain MotoGP dominance.
So, lots of questions, nothing obvious in the way of answers.
Just to remind you, right now the story is that VW have not denied reports they might be preparing to sell-off Ducati, there's no confirmation that the process is under consideration.
But we might just be seeing the very first wisps of smoke as VW's fire sale continues. Watch this space.
VW group don't deny they might sell-off Ducati
Volkswagen is facing one of the most serious restructuring phases in its history and just weeks after CEO Oliver Blume signalled over 100,000 job cuts, the Financial Times reports that both internal and external advisers have urged the company to sell off more of its global portfolio. This comes after VW offloaded both its marine engine division and Bugatti, transactions widely seen as stabilising moves for the financially stressed group.
So now eyes are turning towards Ducati.
When asked for comment, Volkswagen issued a carefully worded, non‑committal statement that didn't deny the idea that Ducati could be on the table.
If Ducati were sold, the implications for the brand could be significant.
The broad strategic risk is simple; Ducati has deliberately avoided entry‑level, high‑volume bikes, choosing instead to operate almost entirely in the £12k–£25k (and more!) aspirational segment.
This high‑spec, high‑cost business model has worked reasonably well, when demand stayed strong from an aging yet affluent buyer segment, particularly when backed by a parent company with deep pockets and long investment horizons.
But right now, premium motorcycle sales are flat or declining, squeezed by cost‑of‑living pressures and younger riders choosing cheaper, lighter machines. At the same time, increasing manufacturing costs have resulted in contracting margins. Despite bullish statements by CEO Claudio Domenicalli, the result has been static sales and declining revenue and profits, and no machine to encourage fresh riders towards the brand.
If Volkswagen sells Ducati, then this aspirational‑only strategy becomes a real vulnerability and the lack of any kind of 'bread‑and‑butter' entry machine becomes a structural weakness in the model range. This is exactly the problem Harley‑Davidson has recently recognised, prompting the return of a pair of less‑expensive ICE machines to fill in the gaping hole at the bottom of their own range.
Then there's another question. Just who might be prepared to maintain the current level of MotoGP investment?
Competing in MotoGP is costly enough, but maintaining the R&D to maintain Ducati’s dominance is extremely expensive, not just in terms of a year's expenditure to run a team each season but in terms of multi‑year engineering cycles. Ducati's MotoGP involvement is built on VW‑level capital, and if Ducati suddenly has to fend for itself, the absence of a stable, high‑volume base becomes a major vulnerability.
A new owner might continue the racing strategy but it's unlikely to be a commitment that doesn't think very hard about the return on that investment. At best, they might tighten budgets and reduce factory‑team spending. They might even shelve MotoGP entirely in favour of focusing on the road bikes.
Of course, this assumes that Ducati find a buyer. So just who might buy Ducati?
Ten years ago, the KTM/Pierer Mobility group tried to buy Ducati, but as we've seen over the last couple of years, their own finances were built largely on sand, resulting in their financial collapse and the subsequent buy-out by Bajaj. With KTM in their stable Bajaj would be unlikely to want Ducati as well.
Of the other big Indian brands, TVS already own Norton so would be unlikely to want a second premium brand, particularly as Norton themselves are working on a range of more affordable machines in the Ducati price range.
It's possible that one of the Chinese groups like Loncin, Qianjiang or CFMoto might step up. They likely have the capital, and may want to acquire more Western brands, but for the Ducatisti this would very likely raise questions about brand identity.
Private equity investment is possible, but Ducati have unhappy memories of this in the past. What usually follows is cost-cutting and asset sell off. It's highly unlikely to deliver the kind of long-term investment required to maintain MotoGP dominance.
So, lots of questions, nothing obvious in the way of answers.
Just to remind you, right now the story is that VW have not denied reports they might be preparing to sell-off Ducati, there's no confirmation that the process is under consideration.
But we might just be seeing the very first wisps of smoke as VW's fire sale continues. Watch this space.
I am agreeing with you mostly. Back in the late 90's, I was 20 something on a clapped out 85 FZ750 but with dreams of owning a 916--- someday. Add another 20 years and I now have a couple Ducs and other bikes. This was possible with hard work, savings and learning how to fix/modify bikes along the way. Today, I truly think I would have failed with housing costs at 3 or 4 times higer and the pay has bearly increased. Not only does everything cost way more there are so many more things necessary to pay for like multiple cell phone plans, internet access and lets not talk about what insurace is like for young riders. The Ducati brand was the "affordable Exotic" but now the lower models are the same price as a car and some of the top models cost what a house cost. They have always been expensive but the modern pricing has me glad that I already own my bikes and will not be getting a new Ducati-- ever, I may pick up a used V2 or even a V4S if the price is low enough but I can get a brand new Subaru crosstrek for $299 a month and the Ducati dealer could not get my monthly payment below $400/month unless I either traded in my 999 +3500cash or dropped $5,000 -thats nearly 25% of the loan, that is on top of the $2000 I was originally going to put down at purchase.