audi acquires ducati mav

AUDI ACQUIRES DUCATI

Introduction• is defined as Vorsprung Durch Technik, which means

PROGRESS TO TECHNOLOGY.

• Founded by August Horsh on the 16th day of July, 1909 in Zwickay, Germany.

• Its headquarters is situated in Ingolstadt, Bavaria, Germany.

• It is currently a subsidiary of Volkswagen AG which holds 99.55%  of the total stakes of Audi.

• Audi is represented in 110 countries worldwide.

The Categories

           manufactures automobiles in 3 categories, which are-

1. Car)

The Executive Class Sports class- Sport Utility Vehicle (SUV)

Ensuring Sales

           has maintained enormous sales after being aquired by Volkswagen Aktiengesellschaft (AG).

Audi ensures its sales by promoting its brand and its cars through-

1. Promoting the brand in Rallies and Races.

2. Audi is the major car which is used in major movies.

3. Sponsoring major soccer clubs, baseball and basketball teams.

4. The Audi Mileage Marathon and Audi e-tron.

5. Promotes through video games

Introduction

•Ducati was founded in italy in 1926,and has established itself as a high end desirable lifestyle brand.

•All of its attributes are as individual as their clientele : 1.Signature Red

2.Dry Clutch.

3.Distinguished lines.

COMPANY KEY FACTORS•Global Brand recognition :

-Race Winner in world Champions

-15 models in 4 Motorcycle families

•Efficient Productions:

-85% of Components are outsourced

-High Level of standardisation

•Delivering High Margins:-EBITDA Margin is 21%.-ROA is 30%

•Competitive Landscape:-4% Share in World-5% Share in Europe.-30% Share in tour Motorcycle

•Company is in Financial Distress: -32.7% decrease in volume growth.

-31.7% Decrease in revenue.

-102% Decrease in EBIT.

-Debt/Equity is 100%.

Key Factor Analysis• Premium competition

• Unique patented technology

• New line of business

• Future mobility

• Image boost

• Corporate Ego

• Complexity

• High cost

• Co-branding

• Shareholders

Key Factor Analysis Contd...

Current Financial Position

Current Financial Position

Forecasting

•Tight supplies cost Audi of America sales of several thousand units last year.

•Weakened Euro & struggling European economy could free up additional capacity this year

•In 2010 Audi is forecasting industry sales to swell to 13.7 million units, and 7.3% gain.

•Audi has been averaging about 30days supply over past 18months.

Forecasting Contd…

•Audi used car business also grew quite dramatically, by 7000units.

•With the recent introduction of the new A8,A6&A7. Audi has been to year old strategy to move up market.

•In 2006 Audi was ranked 7th among the brands cross-shopped by BMW buyers prior purchasing.

Sales volume forecast Sales volume Nov-13

ForecastNov-12 Oct-13 Change from

Nov2012Change from Oct 2013

Ford 182451 177092 191267 3.0% -4.6%

Toyota 173794 161695 168976 7.5% 2.9%

Honda 114687 116580 114538 -1.6% 0.1%

Nissan 99589 96197 91018 3.5% 9.4%

Hyundai 93493 94542 93309 -1.1% 0.2%

Audi 45571 48795 41130 -6.6% 10.8%

Industry 1196663 1143205 1204906 4.7% -0.7%

Other Acquisitions..

Current Market Analysis

•In 2009 Audi had made a sale of 9.5 Lakh Vehicles having a turnover of 29.8 billion.

•2012- A Record breaking Year.

•Audi Sold 14.5 Lakh Premium automobiles , having 117% market growth rate compared to 2011.

•AUDI, India registers 21% growth rate in first half of 2013.

•Audi is the No.1 car player in Indian luxury car space.

Current Market AnalysisAUDI SALES(GLOBALLY) AFTER ACQUISITION OF

DUCATI(actuals)BEFORE ACQUISITION OF DUCATI(actulas)

Europe 1,10,400.00 1,09,556.00

German 45,200.00 55,988.00

United Kingdom 16,913.00 21,588.00

France 5,193.00 4,958.00

Italy 3,791.00 4,770.00

USA 14,841.00 12,655.00

India 931.00 394.00

AUDI CONTINUED DYNAMIC GROWTH IN THE ASIA PACIFIC.

What Volkswagen Can Hope to Gain?

•To enable Audi to better compete with BMW by adding Ducati to its stable?

• VW Group chairman Ferdinand Piech passed on a chance to purchase Ducati.

•“Strategically it’s insignificant for Volkswagen,”

•BMW has a successful motorcycle division. Audi wants one, too.