Ducati cuts production

[Triple J]

H-D is in a different fight for survival.  Other than the recent economic downturn, H-D is facing its target segment literally dying off.  Their struggle to find newer and younger customers will continue long after the economy recovers.  Currently, they only have one line targeting the younger crowd - the Sportster.  Even in that line, IMO, only a few models (ie Iron 883) would be appealling to a 20 something year old.  ANd I am not convinced that the purchase of Buell and MV Agusta is, or will ever, pay dividence...

True, but a different issue.

Yes, but the Cruiser market is 50% of the total motorcycle market. It's easier to sell into that market especially with the loyalty & brand name they have. Sportbikes have a much smaller market. If Ducati had a smaller more affordable bike they could use the increase in sales to offset some fixed costs and increase utilization of plant & equipment. Now, if utilization isn't a problem for Ducati then it wouldn't make sense. I'm assuming that Ducati could produce more bikes with little need for expansion and I think that's a fair assumption. I high quality low displacement could help with the brand image (think of what the Ninja 250 does for Kawi), open sales to lesser markets and increase revenues.

Ducati relies on brand loyalty as well. The utilization angle is a good point. It's hard to know without having more insight into the inner workings of Ducati.

The point is...volume isn't the only way to make money. Boutique is another way...and for the most part the one Ducati is following. Limited options to get into the brand...quite a wide range of options to keep you there.

I disagree on the high quality, low displacement. To be high quality it would be expensive...especially for it's power level, which would draw underpowered criticisms. If they keep the price low to compete with the Ninja250 and the like, then quality would also be low. Ducati isn't a large producer...they can't make very small margins on bikes, or break even/lose money on entry models to get people into the brand, because they don't sell enough of them...like the big 4.

[Mad Duc]

Boutique is an option, but not one I would prefer in that market. Yes, it is what Ducati appears to be doing. It leaves less room for error. If a major Ducati model were to fail it could hobble Ducati.  And there is less incentive for dealers. Dealers like volume. They make about the same % of margin on all brands so a low volume performer doesn't get the attention as a high volume performer. A little sweetener, like a lower cost model, can go a long way with dealers. The higher price models tend to sit longer and cost more on the floorplan. If they sell well then yeah, the dealer's golden.

Without knowing more about Duc's finances all my ideas are pure supposition. They could be doing fine without needing volume.

As for a low displacement high quality version look at Aprilla. The RS125, a US non street legal bike costs $5500 or so. They appear to be selling well as they change it very little and have been selling it or and variations (RS50, RS250) of it for nearly 20 years. I don't think a lower displacement model would be the savior of Ducati by any means, but it could help pay some bills for them. I think it would do very well in Europe for various reasons - gas prices, MPG, licensing laws, etc. It might be a drop in the bucket in the US though - we like our bikes 600cc or more. It's a different place so it makes more sense that we like bigger bikes. It's much cheaper here in the US so a small engine isn't a real selling point here.

[Nakedsuperbiker]

A lot of companies are doing the same, cutting production, locations, models offered, dealer network. Just a downturn in a recession with unemployment up, stock values down it's expected. I won't speculate or invest when things are tanked. Got my stock divident check today for $5.80 USD 

[kingbaby]

Boutique as in: Farrari (Owned now By Fiat)  ?
                      Lotus  (.................... Ford)  ?
                      MV      (...................  H-D)  ?

The list goes on. And that's sad.

R.P.M.  (if I have to explain, you wouldn't understand would puke) Tried to take control of the Ducati dealership where I was the GM.  Top 5 in the country...We decided to pass.

   

Not sure where most of you live, or what you do for a living, but how long do "Boutiques" survive in your town? ...Unless you live in So. Cal.  And that's questionable now. 

It's cool if you're already in "The Club", but it doesn't sell bikes.

[filter]

The economic downturn is hurting every bike company... most people just aren't buying bikes.  Reducing production is just smart business.

However, Ducati is still around because of bikes like the 916 and Monster, both of which were revolutionary upon introduction.  Their current lineup is fantastic, but nothing "revolutionary".

I know, releasing a revolutionary product is really difficult.  But you have to keep brilliant designers around, keep investing in R+D, and keep having a willingness to try completely new things to get there.

[Raux]

that's why i think an well style, superlightweight aircooled SS with around 100hp would be a great thing for Ducati. NOBODY else is doing this.

say <350 lbs with 100hp
killer looking body work derivitive of the D16
and a price no higher than 13k.

throw in a 696 (or stroked 800) version for 9995

For innovation, Ducati needs to think a different direction than this superhighhorsepower war that's going on. Not that they ever would, but if Ducati started a second brand of bikes that would compete in the under 10k bike range with engine from 250 singles to 600 twins with trick body work and great handling, they might create a new niche.

[tlloyd66]

<350 lbs with 100hp
killer looking body work derivitive of the D16
and a price no higher than 13k.

WANT

[tonkoshala]

I disagree.

If Ferrari started making a 4-door model that was priced like a Toyota Corolla, then Ferrari models everywhere would suddenly be lower in value. It would cheapen the brand altogether.

It sounds like Ducati is just doing what it needs to do to stay afloat.

And I think it's great that the Ducati executives are taking paycuts to help the company. 

+1

I also like the fact that everyone and their mother is not riding a Ducati. Keep them higher. Class has always cost more 

[jerryz]

A bigger threat than recession is the European goverments plans to kill off biking by stopping learners from progressing by huge costs of passing the test up to $1500 already in UK now ,delays for tests up to a year in Uk now....and learners being forced to ride with instructors on the back for up to 2 years from next year and a proposal to ban anyone below age 24  riding.slowly motorcycling will be strangled to death by bureaucracy and prejudice.

[Nakedsuperbiker]

I heard Boutique bike term first with the Bimota using Ducati engines. Still Italian.
Must not be an american term used in motorcycles or the V-twin crowd building choppers would all be running boutiques.
A friend just bought a BMW G650 and the motor is aparrently a rotax design built in China.

[Raux]

A bigger threat than recession is the European goverments plans to kill off biking by stopping learners from progressing by huge costs of passing the test up to $1500 already in UK now ,delays for tests up to a year in Uk now....and learners being forced to ride with instructors on the back for up to 2 years from next year and a proposal to ban anyone below age 24  riding.slowly motorcycling will be strangled to death by bureaucracy and prejudice.

gotta see that in writing. Europe has some of the best progression rules for riding and learning (even driving). Starting on small bikes with long term training (and they don't ride on the back, they have radio headsets and ride in a car behind) for lessons. The lessons cost and the tests cost but that's teh point. you tend to actually learn when you are paying for it and HAVE to pass.
Riding and driving are PRIVELAGES in Europe, not rights... it's the same in the states except we think we are born with the right. Despite what most Americans think the right to drive is NOT in the Constitution (kid's studying it so I threw that in there)

[jerryz]

gotta see that in writing. Europe has some of the best progression rules for riding and learning (even driving). Starting on small bikes with long term training (and they don't ride on the back, they have radio headsets and ride in a car behind) for lessons. The lessons cost and the tests cost but that's teh point. you tend to actually learn when you are paying for it and HAVE to pass.
Riding and driving are PRIVELAGES in Europe, not rights... it's the same in the states except we think we are born with the right. Despite what most Americans think the right to drive is NOT in the Constitution (kid's studying it so I threw that in there)

sure riding lessons and schools in EU have trained motorcyclists well but the bar is now being moved so much The nnew EU plan for instructor/passenger  only riding was published in all the news only a month ago and will be on statute by directive next year..the age related plans were also recently published by Brussels and UK wants to implement them even earlier..In Uk the Test centres are a shambles due to government mmistakes ..its good to train people but the longterm plan is death of motorcycling by bureaucratic strangulation. When no-one can ride in EU do you think Ducati,Triumph ,BMW will still be in business ?

[grandpa nate]

boogers re sticky