Ducati cuts production

[bluemoco]

They're reducing production to keep inventories from swelling - U.S. sales are way down compared to last year.

This article was posted at FT.com:

http://www.ft.com/cms/s/0/effbe60c-8697-11de-9e8e-00144feabdc0.html

Quote from article:

"Gabriele Del Torchio, chief executive of Ducati, said in an interview with the Financial Times that the market for luxury bikes had probably shrunk by about 30 per cent in the six months to the end of June.

The decline was most evident in the US, where he estimated that sales had fallen roughly 50 per cent."

[Raux]

CAUSE THEY OVERPRICED THEMSELVES!

this is exactly what i've been saying about Ducati. They need to keep making some entry and midlevel bikes.

their ONLY bike below 10k is the 696. they can't compete against the japanese and now koreans for the entry level enthusiast.

they used to have the 600SS, the 750SS, 900SS, 400 Monster, 600 Monster, 750 Monster and 900 Monster all priced at or below 10k.

understandably the SS due to poor sales (not because of price, but because of performance vs comparable Japanese bikes) was killed

Ducati NEEDS a least two more bikes below the 10k mark.
Having the 696 at 9k and then having to go all the way to 12k for teh 1100 is too big of a jump.
Bring in a 900 at 10500. or better yet, lower the 696 to 8495, 900 to 9995 and the 1100 (nee 1200) to 11995.
THen introduce an SS model. using the same engine/frame with a 500 premium compared the monsters.
AND don't forget to produce a lower priced Strada Aperta for those not wanting to spend near 20k for a loaded  tourer

[Michael]

CAUSE THEY OVERPRICED THEMSELVES!

this is exactly what i've been saying about Ducati. They need to keep making some entry and midlevel bikes.

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. 

[Raux]

Ducati was SAVED by the Monster.

there wasn't a Monster priced higher than around 10k until the watercooled bikes.

Did they devalue the brand?

Making great bikes and keeping them within reason does not devalue a brand.

making bikes expensive does not add value to a brand it only makes them less obtainable.

Prestige is a philosophy, not a profit margin, and not a high pricetag.

Ducati racing heritage and top end bikes will always keep the value of the brand high. making bikes within the brand affordable for people to grow WITHIN the brand creates loyalty.

If Ducati only make highend bikes, then you would have new riders and young riders (and especially in nations with license limiting) riding other brands til they can afford or are able to ride a Ducati. those are all sales lost. and those are repeat customers.

Ducati is not Ferrari. and I personally hope they never are. Ferrari's are great works of art and machines, but for anyone other than the top echolon ofthe rich, unobtainable. that's great we all lust after them.. but it doesn't really  make a sale.

[NorDog]

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.

+1

Two words: Buell Blast

[NorDog]

+1

Two words: Buell Blast

Please note: I probably don't know what I'm talking about!

[Raux]

CANNOT compare a Buell Blast to a Ducati Monster.

wow.

are you serious?

[Raux]

I suppose the low priced Boxster has been a deathknell for Porsche... come on. a great company can make a low priced GREAT vehicle without it being a Buell Blast.

[Triple J]

I think Ducati should introduce an entry level Hyper...696 engine. That along with the Monster 696 is good enough for entry level Ducatis. Note: these bikes aren't cheap because of their displacement...they are cheap because of their crappy suspension and other items. A small engine costs as much as a large one to make.

The 848 is then their "cheap" SBK.

Producing a bike below $10K is very tough for a small producer like Ducati. They cannot compete against the big 4 due to their volume.

The SS market is dead. No one wants to pay for an underpowered, air cooled sport bike when the 600 Japanese bikes are so good and cheap. To keep it under $10K would make it worse, since they would have to cheap out on suspension and such making the bike a POS. The exception is if they made a super light, bare bones, SS with great suspension so the handling made up for the lack of power...that would bring the cost in a lot higher than $10K though.

...and you can't really compare Ducati offering bikes below $10K back in the early to mid nineties...inflation and all. The SBKs are already cheaper than their predecessors were!

[Bill in OKC]

I got the impression he is comparing the Buell Blast's role in cheapening the Buell brand - something I hope Ducati doesn't want to repeat.  It is sad that Ducati has had to cut production, hopefully the economy will pick back up and sales will increase.  If we are lucky the prices of new Ducatis might drop

edit: I'd guess the Porsche Cayenne and the new Panamera have a lot to do with Porsche's financial problems -

[ICON]

I have two Duc's but I think as of late Ducati has over priced their bikes. My S4RS with the 998 motor came out at $14,999 and that was the "S" model. Now........we have the Street Fighter with full Ohlins coming in at $18,995. Same thing with the 1100s. Too pricey, no thanks...

[Raux]

I'll go along with that. a HM 696.
and drop the SS.

but an aircooled motor in an 848 frame.. interesting idea!

[Triple J]

You guys also have to consider the US to Euro exchange rate. The dollar sucks right now. You can't expect Ducati not to raise our prices accordingly.

[Raux]

I got the impression he is comparing the Buell Blast's role in cheapening the Buell brand - something I hope Ducati doesn't want to repeat.  It is sad that Ducati has had to cut production, hopefully the economy will pick back up and sales will increase.  If we are lucky the prices of new Ducatis might drop

Maybe the Buell Blast was Buell's idea of a entry level Monster. Ducati did it right. Buell did it wrong.

[Bill in OKC]

I have two Duc's but I think as of late Ducati has over priced their bikes. My S4RS with the 998 motor came out at $14,999 and that was the "S" model. Now........we have the Street Fighter with full Ohlins coming in at $18,995. Same thing with the 1100s. Too pricey, no thanks...

The SF makes the S4Rs look like a bargain