A couple of months back, the news of Ducati being sold to an Indian brand broke out and the name of Hero MotoCorp appeared as the first potential buyer of Ducati. A few days later, Royal Enfield too, joined the list of potential buyers that can buy the aforementioned Italian brand. Now, a couple of more manufacturers are into headlines as possible future buyers of the said name. The two companies in question are Bajaj Auto and the renowned American bike manufacturer Harley-Davidson.
The parent company of Ducati, Volkswagen Group has been into deep controversy after getting involved in the Diesel Gate scandal that took place in the year 2015. For this reason, the company will have to pay billions of dollars as fines and recall costs for the famous scandal. As a result, Volkswagen Group is into talks to sell its non core assets and Ducati is one of them.
To start off with Bajaj Auto, if you really ask us, it doesn’t really make any sense for the Pune-based manufacturer to buy a premium brand when it already has KTM at its disposal. At present, Bajaj Auto holds 49 percent stake in KTM and the joint venture has indeed turned out quite fruitful for Bajaj. So, acquiring a similar brand by spending loads of money does not seem very possible with Bajaj Auto especially when things are going in a good flow with the existing tie up.
Now, coming to Harley Davidson, this one indeed seems to be happening in future. The reason being, Harley Davidson is such a brand that is well known for acquiring other brands. Also, one more big fat reason why Harley Davidson can acquire a brand like Ducati is that the former is currently going through a constant dip in sales. The only intact followers and admirers are only those who value the cultural heritage generated by the brand. Also, in terms of value possession, the Harley Davidson motorcycles are gradually getting faded away in front of the fierce rivalry. For instance, a brand like Triumph Motorcycles is offering a better electronics package and more safety equipment at the same price at which Harley Davidson is offering a machine with a few basic essentials.
There have been reports that Volkswagen group has been working with an investment banking advisory firm that goes by the name Evercore to finalize the deal from its side. On the other hand, Harley Davidson is also said to be in talks with Goldman Sachs to get the matter sorted at its end. Now it will be interesting to see that out of the numerous potential buyers, which brand finally manages to gain the possession of this famed Italian name.