Sometimes you don’t know what to believe but this story has popped up almost everywhere in the past few days, which means very little on the Internet, of course, but according to the reports, “Ducati Motor Holding … would consider a merger with US-based Harley-Davidson “anytimeâ€, said Enrico D’Onofrio, CFO.”
If you read the reports carefully, you see this potential merger was one of many scenarios discussed but the Harley merger was considered the best of the possible combinations.
A merger with Harley-Davidson would be “totally complementaryâ€, 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. “People want to buy a dream.†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 US also own a Harley, D’Onofrio added.(emphasis added)
The cross ownership statistic is interesting and may bring a few Harley Davidson critics down to earth. I guess the Ducatisti must change dramatically when they fire up the Harley, either that, or Harleys fill a spot in the market for people that ride all kinds of bikes, and if they feel like corner carving one day they throw a leg over the Ducati but when they want to cruise around with a few friends they light up the Hog.
Will this merger take place sometime in the future? Only company insiders would know for sure and at this point, it’s way too early even for them to know. The motorcycle market is definitely changing and we’ll probably see many interesting company combinations proposed. Ducati and Harley Davidson, … Hmm, …
Just a further thought: Maybe someone at Ducati was looking at this and thought “Hey, not a bad idea!”
Link: Financial Times
RY says
I myself own a Harley and Ducati. I wonder if a merger like this would seed a new Buell that would make a mark on the superbike scene. I think the merger would do wonders for Harley but I fail to see the benefit for Ducati.
chappy says
I wonder if this would be the end of Buell? It is been fairly obvious over the years that Harley has not put its heart completely into the Buell bikes, dealers treat them like stepchildren, they are such a small percentage of the motorcycle market, and I would think that Ducati would say that there is only room for one v-twin sportbike around here. That sounds like a recipe for disaster, but if Buell can get the money together though to buy complete ownership back and put the rotax twin that Aprillia uses in his present frame (if it would even fit) he would have a really nice bike.
I also think the half of Ducati owners have Harleys estimate is a bit optimistic. Almost every Ducati owner I know has multiple Ducatis and hates everything HD stands for. I think that is marketing speak from Ducati’s new owners that amounts to, “hey Harley wanna get in on this ship, cuz we sure could use some flotation”
Prester John says
“If you see it on the internet, it must be true.”
Doesn’t HD sell something like 20X as many machines as Ducati? I think this would be the kind of “merger” where everybody in Bologna would began to report to HD’s vice president in charge of the Ducati division.
Free advice, and priced right: Harley – buy Royal Enfield instead.
Tom
todd says
I would have never guessed. I know about 8 Ducatisti and none of them own a Harley or have ever admitted they want one. Buell maybe but Harley, no. This is a major sell-out for Ducati if it ever comes to pass, quite the shame if it begins to affect their product or brand identity in any way. Hopefully this is just a way for Harley to get an additional V-twin engineering talent resource.
-todd
Richard says
So, this is how we make “news” these days: rumors float around the internet for a while (2 months in this case), then when a certain critical mass is reached, a “respectable” journalistic outlet (FT, this time) picks up the story and runs with it.
This doesn’t mean they couldn’t merge, but it seems unlikely. Stranger things have happened. But, if it does come to pass, the grazing herds will be quite unsettled by the change.
Gary Sacry says
I just don’t see it happening
Matt Fisher says
I’d guess it would be a “merger” much like the Mercedes/Chrysler “merger” a decade ago. After all the upper management in Chrysler were occupied by Hans and Frans, it was pretty obvious it was a buyout, not a merger, and the 3 pointed star was running the show.
Although the influx of funds would be great for Ducati, I don’t see the major benefit for Harley, unless they’ve given up on Buell and really do want to move into the performance market without alienating the HD faithful (which is exactly what would likely happen with the Duck faithful).
Long term I can’t see 2 brands built on nationalistic pride, years of history, and brand name putting aside their ego’s and working to each other’s benefit.
bob says
“If you see it on the internet, it must be true.â€
I agree with Prester John (except for the Royal Enfield part 🙂 ); according to TD Ameritrade, Ducati’s revenue in ’05 was $430,000,000. H-D’s was $6,186,000,000. That’s about a 14:1 ratio. “Merger” ? Unlikely. Buyout? That might be a more accurate description, but I don’t see H-D doing it. H-D makes money hand over fist & Ducati flirts with bancruptcy nearly every year. If H-D really wanted to buy some engineering horsepower they could probably more economically buy a pure engineering firm like Ricardo or Cosworth.
rangeroger says
Makes sense to me as there are already a number of Harley dealers that also sell Ducati’s.
I would like to know,what makes a Ducati owner “hate everything H-D stands for”?
Trey says
I call BS – the only thing both companies have in common is the V-twin engine…
Trey
chris says
Ducati = sexy Italian mistress with beautiful curves and a red hot wild side.
Harley Davidson = overweight braggart with a bigger bark than bite and more bling than substance.
do you see these two getting married? let’s hope not, the children would be hideous freaks of nature.
Brian says
I think this is one of those “market share” things. One goliath company wants to extend it’s product range and capture more of the overall market, while gaining better access to countries in which the smaller company may have a better presence in.
The problem I see when it comes to motorcycles, is how passionate a sport it is. Now that PEPSI has “merged” with Quaker Oats, nobody cares that the same company who gives you the Dew also gives you Aunt Jemima’s Buttermilk Pancakes. But, Pepsico is the world’s fifth largest food and bev company, and growing.
Motorcycle companies merging, however, like car companies, messes with people’s emotions. I think it matters a lot more to the average customer what those companies stand for. At the very least, when two motorcycle brands come together, you can count on it being discussed a whole lot more than when you find out two completely different potato chip brands are made under the same roof.
If Harley bought a very small-batch luxury motorcycle brand, a “halo” product if you will, now that would be a great idea. I could be slightly biased on that one though.
Brian says
Also, not sure if it was mentioned, but Harley tried the Italian market before with Aermacchi. They even made a few cool looking racers.
therock says
can someone please answer me this, why does ducati claim that the monster is the “original naked” if i’m correct, triumph were making “naked bikes” in the 19th century, so how can someone say “original” when the monster only came out in the 1990s. That’s not even counting all the cool japanese 70s muscle bikes.
http://www.ducati.com.au/07Monster.php
Am i missing something?
As for ducati and harley merging, well to be honest who cares. both companies do not have that magic spark i don’t think anymore.
However if they did merge and decide to kill off Buell, as much as I hate to say it, I think Buells have that certain “je ne sais quoi” and i think it would be a great shame. I think buell is in it’s infancy with it’s concepts and i think the best is yet to come. Let harley and ducati churn out classic this and classic that models, they have enough customers i’m sure, but don’t kill off something truly original and unique.
Harley and Ducati merging doesn’t sound that crazy to me. They could help each other financially without getting in each other’s hair.
Motorcycles are indeed a very emotional thing and all these brands have contributed something whether you like them or not. I think the main issue here has got nothing to do with bikes as such, it’s more a globalisation issue.
when is enough enough? How big can a company get?
How much is a customer willing to pay?
Ducati’s 999 was great, won heaps of races but the cost of ownership to keep running well was also great. the 1098 is only slightly better, however it’s cheaper to own and run and that is the bottom line, now all of a sudden every journo that secretly wants one is singing its praises, I say emotional response. The bike is within grasp.
If harley can help somehow with cash injections, why not? if ducati can help harley redesign some cool classic lines into some retro thing, why not? if they both sell more as a result, great.
ok now i’m rambling…
(secretly awaiting the triumph street triple 675)
Chris says
If this happens than I wouldn’t be surprised to see Tampax merging with Microsoft
mobilus says
It sounds to me Ducati is in trouble and looking for a buyer. Personally, I hope it doesn’t happen. I’d hate to see an overweight Monster with a single brake up front and third tier suspension components. Harley is king of the “upgrade” strategy… their parts and accessories sales pretty much equal their bike sales.
craig says
Ducatis for sale at a Harley dealership! I would have found this hard to believe until I saw it with my own eyes. Yes thats right you can already buy Ducatis at a Harley Dealership. The dealership is located in Missoula Montana of all places. You go in the front door and check out all the Harley stuff then over in the right corner is the Ducatis.
Matt in NC says
Personally I’d rather see a sales partnership that put Ducatis in HD showrooms. I don’t see why it needs to be a merger, just an agreement that could benefit both companies. If there’s one more thing Ducati and HD have in common it’s the attitude of a number of their customers. I’m not saying all of their buyers are like this, but there are enough Harley and Ducati riders out there who chose the bike they ride simply to show they can afford one. They buy the most expensive leathers with the company logo, are perfectly happy to drop $20k on a bike because of it’s exclusivity, and the fact that it’s not going to get ridden more than 1500 miles in a year anyways. The HD guys ride their’s about 20 miles a weekend to the closest HD type dive bar, and the Duc guys look for the nearest pose up coffee shop or dealer party.
Of course unlike Duc dealers, the HD dealers are willing to let you actually test ride the machines. HD dealers usually have the part you need in stock, and aftermarket parts are almost too easy to get for the HD as well.
All that said there’s bikes from each company I’d love to own, and ride.
Sean says
A dealership selling Harleys and Ducs? Try a dealership selling not only those two, but Guzzis, Aprilias, and Buells. It’s interesting to see a 999R next to a Buell, those Buells are toylike next to a full size Ducati. I think this won’t go down too well with the HD/Ducati faithful. Four wheels moves the body, two wheels moves the soul, as I read somewhere. I don’t care who built my car, but I know that I want a bike with a bit of soul. A bit of love put in somewhere. Kawasaki’s are nice, Yamaha do well on the track, but the only Jap bike I find myself attracted to? Honda. Because there was a Mr Honda there who wanted to build a high quality, low price vehicle to move the masses. I love Guzzi because they were built by those who cared, and remain being built and owned by those who care. The motorcycle division is not just another column on the Plofit and Ross columns.
Clive M Sanders says
I am so sick of hearing about this, as i own a Ducati and everyone on the message board for my monster is in an uproar about it. I think its childish and melodramatic for 2 reasons…
1) its an unsubstantiated rumor.. speculation..
2) get over it. ducati and harley are in fact… quite similar. Despite the technicial similarity of the tiwn engine (which isnt very similar at all actually) they are both highly coveted bikes, with stubborn technology, inflated name driven price tags, rich heritage, patriotic appeal, and lets face it… RELIABLITY ISSUES! (sorry ducatisti).
I know many harley guys who respect ducatis.. the vice president of thebooze fighters LOVES my bike. Its time for everyone to get over themselves and drop it until some hard evidence is presented.
Chris Barber says
Perhaps it will look like this: http://home.earthlink.net/~desmohd/index.html
I’ll have this done in two weeks, I’m sorry my website is so out of date.
Sean says
Perhaps the finished bike will look like this: http://img140.imageshack.us/img140/397/hdwhyglidetq8.jpg
Apologies for the poor photoshop, I’m off work and school with whiplash after a “Sorry mate, I didn’t see you!” incident with a VW, so I’m not entirely with it.
BiZ says
Some of you are missing the point. Harley would have access to more European dealerships. That means they get to sell more product. And Ducati would now have Harley’s huge buying power to buy their raw materials for them at a much cheaper cost. That means higher profit margins for Ducati. ‘Nuff said.
Frank R says
Interesting posts. My eighth bike, a Victory Vegas Jackpot, gets more looks and smokes any Harley. I am looking for an ST3 now for a weekend tripper. My Vegas is great for trips within a couple of hours. I loathe the idea of purchasing anything Japanese, so (Having an Italian Heritage anyway) the Ducati is logical for me.
I didn’t know of the possible merger with HD and the demise of the ST3. That seals it – I’ll grab a 2007 ST3.
BTW – I must agree with most posters. A Ducati/HD merger would only benefit HD (utilizing Ducati’s technology). The Ducati brand may suffer. Sure, I know of the business model – I’m a business man too. But bikes are not shoes, computers or even cars. They are bikes – the last vestige of freedom for many of us. The idea of two very divergent companies, philosophies, and brands merging would be bad.
I think of what happened when Compaq bought DEC. DEC had the ALPHA chip – arguably one of the best chips ever made – smoking any Intel or Motorola. Compaq discontinued it they killed a great technology.
I am afraid of just that again.
Frank
Mike Rodgers says
I’ve been riding bikes for 36 years , Ducatis for the last four and don’t understand why Ducati and Harley would want to merge.
I have many friends that ride both brands but we never ride together, there is very little commonality there.The only thing they share is that they are both twins and one is a “V” , the other an “L”.
As to the comment that half the Ducati riders own Harleys I personnally don’t know any.