Ducati's Woes - Parts 1 - 16 (9/19/24)

PART 1 (October 19, 2017):

Evaluation, Analysis & Background
The third brand in our insanely popular Woes series is Ducati. We cover Ducati news practically in every issue at MOTO eMAG (along with BMW). It should come as no surprise by now that we have a lot of respect and admiration for Ducati. They are a hot brand and are doing a lot of things right. Also they're enjoying marginal global sales increases each year. So where is the "Woes" you might say. Our Woes series is about the very elusive US market. So no matter how hot a Euro brand might be in Europe, they're still lagging in sales in the US.

Just to paint you a clear picture of the state of Euro bikes sales in the US. BMW, Ducati and Triumph sales combined were only about 7% of total motorcycle sales in the US in 2016. Now that I have your attention, let's explain our Woes series for many new readers who would be viewing this issue for the first time.

Our Woe's series was launched with a real bang, an epic 5-part Harley's Woes article. It received tens of thousands of hits, new subscribers and many forwards of our MOTO eMAG. The Woes series is basically a direct, no-nonsense, industry focused analysis and report on popular moto brands for the all-important US market. This is what we, the marketing types, share with executives of major brands. You see, you can sell a basic scooter anywhere in the world but a $15K+ 1000cc+ bike can find home only in a few select countries and the US is one of the biggest markets. After Harley's Woes, we covered another favorite brand that used to be owned by H-D, MV's Woes. And now we're covering a brand that H-D actually was very hot on buying just a month ago, Ducati's Woes.

The Good News
There's a lot to celebrate at Ducati. Globally their sales are healthy. VW/Audi is no longer planning to sell the brand, and their entry level Scrambler seems to be gaining popularity. This is all good news. But growth in the US market is eluding them year after year and since our Woes series is exactly about US growth, let's dig in.

The Elusive US Market
The US moto market has idiosyncrasies that distinguish it from the European market and in fact any other country in the world, even Canada. And it is this unique rider attitude that few global brands grasp. You cannot market a Euro bike the same way in Europe as you do in the US. It's simply not possible. And no matter how often we share this fact with popular Euro brands it doesn't sink in.

• In the US we don't look at bikes as transportation, in Europe they do.
  
  
• In the US we don't have a large sport-touring culture, in Europe they do.
  
  
• US is basically an off-road/dual-sport and cruiser culture (75% of total sales) with other riding groups thrown in. Europe has no cruiser culture (except for tiny pockets here and there) and limited dirt bike market.
  
  
• Unlike Europe, in the US riders look for bikes with high masculinity image. This is the core reason why H-D has owned half of the US motorcycling market for such a long time and why Japanese brands combined own almost the other half. (We'll explore this point in detail in Part 2.)

The differences are vast and there is basically zero commonality between the US and foreign moto markets. Yet, the Euro brands continuously make the same mistake of trying to use European marketing methods for the very unique US territory.

Selling European Sports Cars vs Sportbikes in The US
It's much easier to sell exotic sports cars globally than sports motorcycles. Ferrari is so popular in UAE that they have Ferrari only massive rallies. Exotic cars are also very popular in California. Lamborghini, Maserati and Porsche enjoy brisk sales here.

Since there's such high interest in European sports cars in the US, why doesn't that translate to European sportbike sales? Let's break that down:

• US is not a major sportbike market anymore. US is by far a cruiser and dirt bike nation. Cruiser, off-highway and dual-sport cover about 75% of all bikes sales in the US.
  
  
• Driving today's high-end sports cars aren't very challenging.
  
  
• Riding high-powered sportbikes is extremely challenging.
  
  
• You don't have to be in shape to drive.
  
  
• You certainly have to be in pretty good shape to ride a top sportbike outside of just posing and boulevard cruising.
  
  
• Driving modern cars with various electronic ride assists is quite easy.
  
  
• Riding top sportbikes requires years of experience and high skill set.
  
  
• Most buyers of expensive vehicles are older men who wouldn't be able to handle the ergonomics of a sportbike.
  
  
• Most sportbike fans in the US are young men who couldn't afford expensive bikes anyway. And there's you dilemma.
  
  
• Although sportbikes offer the biggest speed/power per dollar of any vehicle out there, but due to the above challenges they simply aren't as popular in the US, where the population is getting older and more overweight by the year (according to CDC 40% are now obese) and the moto market is shrinking.
  

How to Gain Superbike Sales in The US

• US superbike riders are fickle.
  
  
• They go after the brand that wins all the shootouts and comparos.
  
  
• They don't care a bit for racing, at all. This is why BMW smartly pulled out of World Superbike (SBK) because racing no longer translates to sales.
  
  
• They don't care what brand participates in racing or whether it wins any race. Unfortunately Ducati's racing efforts don't translate to sales either in the US.
  
  
• They look only for bragging rights. Meaning which bike won the top magazines or hot websites shootouts.
  
  
• They would consider to buy and ride the latest superbike, only if the collective rider community believes that bike is the bomb (must have). And this is gained not from racing tradition, but strictly from comparos. They want the top dog.
  
  
• And if the bike's MSRP is about $15K. This is the magic number for a superbike in the US market.
  
  
• BMW's RR has relished in such attention since inception, since it practically won every shootout globally and also was priced very smartly at about $15K in the US.
  
  
• However the much more expensive Ducati Panigale hasn't enjoyed the same reception mainly due to not winning all the shootouts and being priced out of the reach of the US superbike community.
  
  
• Lastly there is a lot of anticipation for the upcoming Panigale V4 and we're eagerly looking forward to mag and website shootouts of the 2018 superbikes as the Pani V4 goes against the R1, BMW RR and other new bikes from the competition. All 4 Japanese brands have now updated offerings in that category so the competition is tough.

PART 2 (November 1, 2017):

Unique Obstacles to Growth & Stigmas + Specific Point by Point Suggestions & Solutions
Every motorcycle brand has a stigma that they need to face and ultimately overcome in order to become popular in the US. Ducati is not an exception to this rule. In order for Ducati to gain market share in this all-important region they need to face a certain reality about their image perception. Until these stigmas, and some are simply dated, are dealt with no amount of incentive and low monthly payment is going to increase their growth in this country in any tangible way. Let's explore these stigmas followed by a point-by-point suggestion.

Ducati Stigmas in the US
In order for a motorcycle brand to become more popular in the US it has to overcome various stigmas and negative perceptions. At BMW during the '00s we worked extremely hard to breakdown the negative stereotypes of BMW riders in the US. Back then BMWs were considered weird old man's bike, now they're highly regarded in the US. I'll cover BMW marketing transformation in detail for BMW's Woes in a future issue.

There are some old stigmas that still haunt Ducati in the US and until they are dealt with they'll dampen the US sales indefinitely.

Ducati Stigmas in the US

1. High price of entry. Ducati's are expensive to own.
   
   
2. High cost of maintenance. Ducati's are expensive to maintain compared to Japanese bikes.
   
   
3. Unreliable. Ducati's aren't as reliable as German or Japanese made bikes. Old stigma that's still hurting wider sales here.
   
   
4. Shortage of dealership network nationwide.
   
   
5. Not for me, it's too cliquey. It's a brand for the European types. You have to be a Ducatisti to ride a Ducati. The ideal Ducati rider is 5' 7" thin frame male, very unlike typical American riders. You have to look like that weird guy in Ducati XDiavel pics to ride a Ducati.
   
   
6. Ducati doesn't exude a high masculine image. Although it's a non-issue in Europe, but motorcycle brand masculinity perception is important for growth in the US.

Ducati Stigmas Point-by-Point Solutions

1. High price of entry.
To their credit they have been trying hard to fight this stigma by offering the Scrambler entry-level range, also the reasonably priced new SuperSport and Multistrada 950. In addition they introduced a balloon financing option called Premier, similar to BMW's 3asy Ride, which lowers monthly payments for the first set of financing. But the message in not getting through to the public because of the Panigale superbike, the Multistrada and XDiavel high base price.

Their superbike is priced out of reach of the American buyers. Yamaha for example is offering 3 flavors of the R1, starting at just $14,999 for the S model and up to $22,499 for the M. 2018 BMW RR has only a $15,995 MSRP which includes ABS (normally a $1000 option).

The US riding public doesn't look at a brand in segments. Meaning they don't just look at the Scrambler and say Duc's are cheap. They look at the brand's hottest bikes and decide from there. And all Ducati's top bikes basically start at around 20 grand, including the Panigale, the Multistrada ($18K), and XDiavel. Their pricing alone is restraining their sales.

And this is not at all the case with parent company VW's car brands. Audi, Bentley, Bugatti, Lamborghini and Porsche all enjoy a receptive nation here. US market loves expensive Euro cars, in fact it can't get enough of them but doesn't care for expensive Euro bikes.

2. High cost of maintenance.
This is an old stigma that just needs to be dealt with head on and made to go away fast with a US riding public education campaign. It started back when Ducatis needed frequent and pricey valve adjustments. Those days are gone, but the public has a very long street gossip memory. They still talk about brand stigmas from the 1970s and '80s in the US.

A good way to handle this stigma is not to be coy about it, but bluntly echo through the press and social media with advertising and promo videos that those days are gone. Ducatis now require very infrequent service intervals some every 18,000 miles for Desmo Service (valve check).

PRICELESS IDEA: Complementary Routine Maintenance for Life of Warranty
However the best way to combat this stigma head on is to borrow a page from BMW cars and other auto brands and offer complementary service for life of warranty. This will be a game changer and a first for any motorcycle brand. It will not only create a very positive vibe for Ducati in the US but also take away inhibitions about purchase due to service costs. And soon after Ducati initiates this groundbreaking concept for motorcycles, other brands such as BMW and Triumph will join in and we'll start a new resurgence for Euro moto brands in the US. Complimentary routine service is basically handled via new vehicle warranty system that is already in place with all new vehicles anyway. Meaning the same way that a new bike gets serviced at a dealer for bad transmission under warranty, that warranty system is extended to include oil changes and so on. It's not complicated and it will pay for itself with increased sales. Also complimentary maintenance offers bring the customers back to dealerships which is what every dealer wants.

3. Unreliable.
This is a stigma that has lingered from the 1970s and '80s. The stigma dictates that all Italian brands are unreliable, Germans are reliable and Japanese are cheap to run and maintain. Frankly for anyone who pays attention all vehicles get recalls today and that's regardless of where they are made. Ducatis do not get any more recall notices than any other brand. BMW motorcycles just had 5 recall notices in a row.

As with Point 2, start by educating the public about how reliable Ducatis are. Also sponsoring and promoting long distance rides and riders on Ducatis and showcasing recent Ducatis with high mileages. Or even offer awards for highest mileage Ducatis in the US. At BMW we used to offer a very popular program awarding high mileage riders.

But again as with Point 2, complementary service will also combat this stigma quite effectively. It sends the message that Ducati is so confident about their bikes that they'll cover all service charges on all new Ducatis. A message like this will not go unnoticed and the US riding public will respond.

4. Shortage of large dealership network nationwide.
This is a real issue that unfortunately only wider market penetration can resolve. The more Ducatis you sell in the US they more people want to open up Ducati dealerships or include you in their multi-brand shops. At BMW we used to have a manager tasked with increasing the number of dealerships. Of course you don't want to randomly give away rights to your name and brand but the more eager a brand is about expansion the more it will expand.

Growth vs Exclusivity
This point will gradually resolve itself if Ducati rethinks its approach to the US market based on this report and begins to focus on growth, rather than exclusivity.

The Ducati fortress at the moto shows sends a signal that they are only for the few.

5. Not for me, it's too cliquey.
Ducati needs an epiphany or a moment of clarity here, aka Aha Moment. Does the brand want to grow, or would like to remain a niche player in the US? The only logical way Ducati can grow is to welcome more riders and the only logical way Ducati can welcome new riders is to get out of its own way. Einstein would agree with this logic. Yet Ducati keeps playing hard-to-get and keeps doubling down on the not popular in the US Ducatisti image. It's time to put the unpopular Ducatisti image to bed for good.

BMW had the same image problem, except BMW people weren't Ducatisti types they where instead old college professors and square older engineers, who wore weird helmets that cracked open in half (now popular flip helmets). Why would anyone want to join that camp? Now they do, thanks to a massive but very successful campaign that was launched with the previous US marketing team, which I was a part of, with the most effective years being 2003-2008. By the time we launched the RR in 2009, the US market was primed and ready for BMW. Again, I'll cover BMW's marketing strategy and their current dilemmas in full detail with BMW's Woes in a future issue.

Ducati Should Avoid Above Male Models for US Promotion
In the US we don't get this guy in the XDiavel official promo images. He looks like he is suffering or perhaps ate bad antipasto ;). With the XDiavel, Ducati builds a bike solely for the US market, a gorgeous cruiser with foot forward and belt drive, and whom they have posing with it? That guy that we never take seriously. So basically all the hard work that their amazing designers and talented engineers put in is dampened due to poor marketing imagery.

Solution: Use region-friendly marketing images. Use real American riders to promote your bikes in the US. Or always use fullface helmets with dark tinted visors on the riders. This way you avoid viewer reaction to promo riders and instead the focus goes to the machine.

6. Ducati doesn't exude a masculine image.

Ducati is Not Patek Philippe
Ducati's US image needs a major overhaul. Currently it's being handled like an expensive Swiss watch that few can own--a unique and hard to get into club. That's the opposite of popular. And this private club mentality of course doesn't translate into wider sales. It's by its own definition limiting and counter popular.

European moto brands don't get the masculinity image concept in the US, because it doesn't really exist in Europe and they keep thinking that if something works in Europe it must therefore work in the US. This misplaced notion may work for Prada shoes but not for motorcycles.

The US Motorcycle Masculinity Perception Index
It should come as no surprise to anyone who understands American riders that the brand that enjoys the highest level of masculinity perception is also the market leader by a very wide margin. In fact H-D owns half of the market.

Among Euro bikes Triumph enjoys the highest rating in the US because Triumph is associated with two of the most popular and badass American male icons of all time, Steve McQueen and Marlon Brando. You can't buy nor bottle this grade of smart and masculine heritage. So Triumph has that in their line up. Although KTM is not being shown in the image above but they also enjoy a relative high masculinity perception rating, however they're primarily known as a dual-sport brand in the US.

The Motorcycle Brands Masculinity Index is brand indicator and not rider indicator. US riders are attracted to the brand with highest level of perception of masculinity.

Brand Awareness Solution:
Ducati unfortunately needs to overcome their softer image here and the best way to do that is a new major US marketing campaign focusing on real Americans who: 1. love and ride Ducatis; 2. wish they did; 3. are curious about the brand. A campaign about Ducati showcasing real Americans of all types test riding, checking out, talking about, riding solo and in groups, buying it, living with it, doing long distance rides, forming Ducati rallies, going on bike dates and so on. This campaign would involve TV spots, videos, online ads, billboards, social media, events, talent search, film and TV product placement, and engaging influencers and celebrities and more...

In order for this multi layer campaign to work it requires a healthy marketing budget. So heads up to VW/Audi for considering such a budget. As a side Audi can interject their cars as product placement in this campaign to recoup some of the high cost. However, the budget will be a fraction of what car companies typically spend on advertising, marketing and PR in the US. So it's totally doable.

This campaign will only work if people see it and in order for people to see it, it then must be shown everywhere. So a miniscule budget will not cut it. The only workable solution for miniscule budgets is to get a couple of influencers to talk about your brand and all that will get you is more Likes and followers on social media. You can't change a brand perception and shift away from stigmas with just banner ads either. It requires a major and sustained marketing push.

Complete Marketing Plans
We have complete concepts plus detailed marketing plans for the above ideas and for many more suggestions.

Ducati's Woes Conclusion
Ducati has come a long way from a small niche player to a true global force, but the US market is eluding them year after year due to needless stigmas that surround them and are in ways being maintained by Ducati. However, Ducati can turn the tables as early as 2018 if they break open the exclusivity club and welcome a more populist mindset.

PART 3 (August 8, 2018):

A Case for Harley-Ducatson
Ducati is ripe for picking again. VW is indicating that they'll let it go to the highest bidder under certain conditions. I am in support of the merger, in fact I believe that these two brands are made for each other.

The Blessed Union of Harley-Ducatson

• Both brands are cultish.
  
  
• They are worshipped and treated like holy statues in their respective countries and elsewhere.
  
  
• Both brands are seeking global growth outside of their respective countries.
  
  
• Ducati needs US marketshare growth and Harley needs their presence in Europe to expand.
  
  
• Ducati is the Harley of Italy, more so now that they have American style cruisers.
  
  
• Ducati's large European distribution can assist H-D to grow there. Harley's massive US distribution likewise can help Ducati to expand here.
  
  
• Harley's brief ownership of MV Agusta was just a warm up for Ducati ownership.
  
  
• Ducati is many times larger than MV and is much more suited for a merger. The MV was just a bad choice, even though the idea of Euro brand purchase was the right one.
  
  
• Harley needs Europe for their Livewire electric motorcycle. The US market slowdown is not related to method of propulsion, it's just a reject of bikes.
  
  
• Electric motorcycles are the future of riding in Europe and Harley can benefit a great deal by having a Euro partner like Ducati.
  
  
• I foresee two wedding receptions, in Borgo Panigale and Milwaukee, and wouldn't be surprised if the Pope attends this historic holly matrimony.

PART 4 (November 11, 2020):

VW Planning Total EV Fleet by 2030 - Ducati Not Part of that Vision
I've written extensively about our inevitable EV future. I'm sure most of you are aware that major car brands plan new models at least 5 years in advance. The 5-year+ incubation period is a must due to massive list of checks and tests that need to be done to finalize a new vehicle. 2020 is year one for EVs. It may not seem that way only because Tesla was way ahead of the pack. Other brands are just starting to crawl their way into an eventual full EV fleet. By 2025 EVs will become commonplace and by 2030 they'll dominate. So CA's mandate of EV only sales by 2035 is spot on. Soon VW will announce that they are planning to potentially part with 3 brands that do not fit their grand vision for a total EV lineup by 2030. These brands are Lamborghini, Bugatti and Ducati. All are famous and loved for their engines, in fact they are so dominant as engine makers that VW can't see a future for them without ICE. Ferrari is also in that lineup, although owned by FCA, they recently announced that they have no plans to go EV. VW wants a total streamlined EV platform for VW/Audi/Porsche/Bentley, which is a smart move. Once you eliminate the engine, making cars becomes a lot easier, like building computers.

There are 3 key possible scenarios for the next custodian of Ducati. We covered VW's past flirtation with a Ducati sale extensively. At that time I was rooting for H-D. I think Ducati is the lifeblood that H-D needs, but I don't think H-D can afford it anymore. There is always a possibility of an Indian brand scooping Duc. But at this early stage my bet is on KTM (owned by Pierer Mobility and Bajaj). KTM has made it very clear that they want Ducati and in fact Ducati would fit very well within their lineup. KTM has become quite successful but they badly need an awesome line of all-street bikes and Ducati is it. If KTM does buy Ducati, I hope they take that brand back to its core principals of prestigious and premium road-only performance bikes. Pierer/Bajaj has no need for a single more off-road vehicle and Ducati has no business getting mud all over it. Ducati shouldn't try to be another BMW with models catering to every whim. The world needs a purist on-road performance brand and with the right ownership Ducati could easily achieve that status.

PART 5 (January 13, 2021):

Not Enough Votes + Ducati NA FBI Raid
For the second time the VW chief couldn't get enough votes to make Ducati available for sale. For the time being both Duc and Lambo will remain with VW under Audi control. VW is not done with shedding some of its brands and I wouldn't be surprised if they try again by this November. Some bloggers referred to this story as a "rumor" of the sale of Ducati. This was no rumor, the attempt was made and it failed due to lack of support from the majority of VW board.

Just before Christmas, FBI raided Ducati NA's corporate offices and the homes of its top execs (in NorCal). The reason for this raid hasn't been made public by the Feds but seems to be financial. FBI on their website explain that they target white collar crime mainly in the areas of corporate fraud and falsification of financial information.

PART 6 (April 14, 2021):
Ducati in Damage Control
Why is Ducati sending out a press release congratulating themselves on last year's (-9%) sales report in late March of this year? That's called damage control, but why should it matter to Ducati. They are sitting pretty, within one of the world's largest automotive groups with infinitely deep pockets. VW already voted to keep the brand (for now) so what's the worry? Hold on to that thought, there is more to this story.

Ducati has announced a recall and full engine replacement on the brand new Multistrada V4 motorcycles, just launched in the US. Of course this begs the 2nd obvious question of why new Ducati motorcycles either catch fire or have serious engine issues that's discovered right after dealer delivery. Are these bikes untested? Do they just ride them around town for a couple of days and decide, "they are perfect, like everything that we do, no need to touch them further, let's ship them out." 3rd issue is the armed FBI raid on their HQ.

Jaguar Land Rover CEO recently made a shocking but very honest announcement, he said we could increase our production by 100K if we made more reliable cars. Imagine if Ducati CEO was that upfront. Here's an interesting twist, Ducati announced an uncharacteristically rather OK compensation package to the new Multi owners affected by the recall. This package involves $1500 in Ducati branded merchandise and free service for the life of warranty (2 years).

A seemingly generous recall compensation package, a sales report for the previous year in late March of the next year stating, it really wasn't that bad. Even though the year in question was during once in a hundred years global crisis, and a FBI raid. There are only 3 logical explanations: 1. Perhaps their top brass is attempting to save their jobs. 2. They're also trying not to give VW any more excuses to sell the brand. 3. An unlikely explanation could also be they are softening the blow for a less than stellar first quarter report. Time will tell.

PART 7 (May 12, 2021):
Ignore The 2021 COVID Slingshot Effect
2021 is enjoying a slingshot effect, as people are gradually coming out of the COVID hibernation. The '21 slingshot effect has managed to bring up the Q1 numbers on par with '19. As mentioned the '20 numbers should really be ignored considering what a hellish year it was. So many small businesses folded in the US last year. I would argue that the '21 numbers should also be ignored. There is a lot of free money going around (long term and very high UI compensations, PPP loans, plus various state and government grants, incentives and advances that don't require payback).

With all this free money floating about people have started to focus on their hobbies and pour serious money into either buying new toys, including fancy homes, high end cars and boats (some were caught by the Feds for doing so, as it was a clear violation of the PPP loans). On a smaller scale they also spent money on motorcycles and accessories. One US retailer and distributor of premium motorcycle accessories mentioned to us that their business increased by a whopping 40% and he attributes it to the Fed/State incentive packages. So, the real indicator of our market condition is going to be 2022.

Ducati announced their Q1 '21 to be about 2% above '19. That's very good, but again, we'll know better by Q1 of next year. Their US division is estimated to hit about 6,500 units this year (that's very low). This brand has so much potential in the US, if they only get out of their own way.

PART 8 (July 14, 2021):

It's Time! Ignite the US Market for Euro Brands
"You're so right about BMW. We had a choice of so many premium cars but decided on a lease on a Bimmer because of their free maintenance program. Why motorcycle brands aren't following this trend?" J. Crane, MOTO Subscriber

BMW sells as many cars in the US as the mighty Mercedes (about 300K), in fact they recently beat Merc in volume. That's due partly to MB's very weak sales and marketing team. There is no reason for MB not to double their sales here. Although BMW also has an uninspiring marketing group (the days of creative marketing seems to be long gone), but their sales and incentive team are good. They are motivated. In those days we were creating new incentive packages every month. Although I was in marketing, but I did provide sales and dealer support with promos (collaterals). In the US all new BMW cars come with BMW Ultimate Care standard. Buy a BMW car and don't spend a penny on maintenance for 3 years. Just put gas and go. You can't beat that! Talk about total peace of mind on an expensive purchase (or lease). That's the secret to their relative success in the US.

Complementary Maintenance for Life of Warranty on BMW Motorcycles and Ducati
I've been pitching complementary maintenance for life warranty on BMWs and Ducatis sold in the US for a few years. With falling US sales, it's high time that they implemented this great program. If BMW motorcycles US starts to offer the same Ultimate Care concept as their auto division, it will not only increase their volume by potentially 10 to 20% but will inspire Ducati to do the same here. This would also put Ducati on the path of combating their reliability stigma in the US.

A Boon for Dealers
Complementary maintenance during warranty is actually a real boon for dealers. This will prevent riders from working on their bikes; it will also keep bringing them back to dealerships. When the riders are in the dealers because they are getting a free maint, they'll look around at accessories, apparel and new models. Also this will create a great buzz for premium Euros. The message is simple, buy our expensive bikes and don't spend a penny on service for the life of warranty. This is how BMW auto division is winning in the US and it's time our industry followed.

It's a Win, Win, Win
BMW has a 3-year, 36K miles limit on their bike warranty, Ducati offers only a 2-year warranty. Generally speaking Duc riders don't put much miles on their machines, so a free maint for 2 years is a no brainer. It might initially cost Duc US a little extra expenditure but will bring in lasting sales boost covering that early investment and more (there is a tiny b2b secret to plan this right). And since BMW group US already has the free maint, they can easily transfer the same program to their moto division and with the 36K miles limit, there is no worry of covering BMW riders who put huge miles. This is a win, win, win. It's good for brands, dealers and riders and will generate great buzz.

The System is Already in Place
In case you're wondering if this new free service would involve creating complex (expensive) accounting and digital algorithms, the short answer is no. There is already such system in place for brands paying for service; it's called the warranty. That's how Ducati is smartly managing to offer 2-year free service to the affected Multi V4 owners. If a motorcycle develops issues while under warranty, the brand pays the dealer (at a special rate) to remedy the problem. In the same way the dealer could easily provide scheduled maintenance, if supported by the brand, for the life of warranty. The system is already in place. Euro moto brands aren't doing too well here, this will certainly ignite popular interest. In fact, they can't afford to ignore this.

PART 9 (August 3, 2021):

It's Time! Ignite the US Market for Euro Brands - Part 2

"Ducati NA should really pay attention here. This is such a good idea to offer free service under warranty considering riders' concern about service cost." Anonymous dealer by request.

I've been suggesting for years for BMW to follow the success of their US auto division and offer the Ultimate Care program. I've mentioned it on MOTO as well, not only in Issue 104 but also in Issue 100 and in previous discussions about BMW and Ducati. Ultimate Care is complimentary maintenance for life of warranty. BMW's moto division stealthily released a variation of this program just around the time of MOTO's last issue.

My suggestion could potentially work better for Ducati, because of their higher price of entry and their ongoing reliability stigma. They could consider a 2-year trial run, for example, for models sold only in the US in 2022 and 2023. They could also limit the program to their premium line (vs Scrambler). Furthermore, they could potentially limit this offer even further to the "S" variants and higher spec machines, although by doing that they may sell a few more "S" bikes but will not attract too many new buyers, which is the whole point of this program to entice non-Ducatisti to join the club in the US. One last word on this, I hope when Ducati decides to unleash this program in the US that they make a real stink of it. I am talking separate ad budget just for their new "Welcome to the World of Ducati: The Maintenance is On Us" campaign.

PART 10 (January 12, 2022):

Ducati's E-Moto Mule Caught Testing

The biggest news in the world of e-two-wheels is that Ducati already has a test mule (image in slideshow). I mentioned that they are planning to take over the Moto-E races starting in 2023. Although that news was highly uninspiring and seemed like a total waste of their time and resources, however, since Ducati is riding on a wave of high anxiety about their future, I can see why they’d grab onto any opportunity, no matter how small, to gain relevancy in the upcoming all EV market.

Electric - The Real Equalizer
When all bikes are electric, the unique quirkiness of Ducati engines will no longer be a factor. BMW, Ducati, Honda, Harley, they will all ride pretty much the same using similar parts and components from the same vendors. The differences will be in the styling only. I actually think that the upcoming all-electric global tsunami will be a real boon for Ducati. For the first time in their history, they'll have a chance to seriously pitch to and attract all those riders who shunned their brand due to their engines. Whether they’ll accept any rider who doesn’t wear at least $5K worth of Italian riding gear is a different story. Electric will be the real equalizer.

PART 11 (March 11, 2022):

The Illusion of Growth Sustained by the Pandemic – Will it Last? Does it Matter?

Back in the early days of the pandemic I wrote that it’s going to create the biggest cabin fever of the century. The pandemic forced people to flock to all things outdoors and luxury. It was as though they woke up and become aware of their mortality. All outdoors related industries experienced massive growth. The pandemic may have saved our small but precious premium motorcycle market too—for now. A simple glance at the 2021 sales numbers would suggest that our industry is back. Things are looking good. Numbers are up across the board.

I am happy that things are looking up for a change for the US market, but will this boost in sales last? It’s a safe bet that the US premium moto market will not crash hard post pandemic. The market, naturally, will gradually stabilize. I suggest waiting a full 3 years post pandemic to get a real sense of the market’s biometrics. This means that if we’re fully over this nightmare by the end of this year, the 2025 sales figures (revealed in 2026) will show the real health of the industry. In the meantime enjoy the ride.

Record Setting Year for Many Industries
All outdoors and transportation (land, air, water) related industries are experiencing growth and the sales of pretty much every motorcycle brand is up. Ducati hit 60K for the first time, and BMW reached close to 200K in sales. However, no other press release from any brand on any product in any industry that has experienced growth due to the pandemic padded itself on the back except for BMW. Ducati smartly mentioned that the growth is due to people needing to have fun and to get out of doors. BMW on the other hand said, we grew because we have a hard-working team. It’s not their fault, they just can’t help it. BMW’s strength is in sales strategy, they don’t get marketing and don’t write good Press releases.

2021 was an incredible year for diverse industries, not just automotive. Here are some headlines. Private Jets: “Some of the leading global private jet companies have reported record sales in 2021.” Boats: “New boat sales were up 30 percent compared to the 2020.” Yachts: “The superyacht sales market was positively booming and it looked like new yacht sales over 30 metres (100 feet) would exceed the full year 2021.” Fishing: “The fishing equipment market has experienced three consecutive years of growth, according to The NPD Group.” Luxury Cars: “Bentley had record year and a 31% increase from 2020. Another VW brand, Porsche, sold 301,915 vehicles, an increase of 11%.” I can keep going, but I think it’s becoming clear that the growth in all these industries wasn’t related to their unique and “hardworking teams,” it’s about the sling shot effect of people reacting to the pandemic and the lockdowns.

PART 12 (March 16, 2022):

Ducati - A Master at Special Editions - V4 SP2

When it comes to creating multitudes of beautiful special editions, year after year, with very high price tags, Ducati rules supreme. There have been so many Diavel variations alone that I’ve lost count. They up the paint scheme a bit, some red here, a bit of chrome there, a dash of yellow or a couple of CF parts or a seat or an exhaust and boom you have 7 different special editions with a cool 50% to 300% markup. I applaud that, because they really know their customer base. Ducatistis are showoffs and the brand doesn’t let them down. This latest SE is called SP2 and should arrive with a price tag of $40K. Nice job!

PART 13 (July 13, 2022):

Ducati Wraps a Gorgeous Design around a Conventional eMoto

Ducati lives in a bubble. In fact, this bubble is so large that it encompasses everyone who works for the brand. Lucky for them the Ducatisti (their fanboy customers) also live in the same bubble. Hence Ducati is destined to remain as one happy but marginal bubble brand. Is there anything wrong with this scenario. Not a thing. But wait a minute, aren't they owned by one of the largest car companies in the world with about 650K people on payroll? Would VW Group be satisfied for Ducati to remain on the margins? I think they would be, since Lamborghini (they also own) and Ferrari (they don’t own) pride themselves on limited annual sales and don’t wish to become like Porsche or Lexus. More on this thread of arguments in another issue, consider this just a teaser.

A Normal Looking Sportbike
I have said this before, why Ducati has such good exterior designers? How could one brand consistently produce hit designs year after year? So far, all electric motorcycle startups have taken a big square box of batteries and built some basic chassis around it. This is the reason that none of them look great. Enter Ducati. By tapping into the car EV tech and using a group of small batteries, they managed to cluster them into a shape that would fit inside a normal looking sportbike. I think that's cool. As for the rest, their EV tech is pretty standard; it doesn’t stand out. Their elect motor is third party and its torque rating of 103 lb-ft is way too low (close to 60 lbs less torque than the previous e-racer). Since the cluster of batteries are fused inside a carbon fiber sleeve that is used as a stress member, they are not swappable, therefore they were forced to add a charge unit with port. On the other hand, the charge port would point to a consumer model and this MotoE race bike from Duc could easily transition to be their first halo eMoto.

PART 14 (June 7, 2023):

My Ducati Years – Part 1

I enjoy Moto, keep it up. So, what happened after you left BMW in 2012?
K.L., Noreply eMail

Thanks for the supportive comment. As I have written before, I left BMW in early 2012, due to disagreement with the then new, but short-lived, marketing management. Almost immediately, I got pulled into working with Ducati on marketing. A relationship that lasted (on and off) for about 6 years. The initial year or so of the collaboration was focused exclusively on the new Diavel. The key market for the Diavel model range was the US, so Ducati was looking to create excitement for it. A former BMW marketing manager was initially approached and he brought me onboard to help with gorilla marketing, community building, copywriting, graphic design and the digital interactivity of our promo plans for the Diavel.

We built a new Diavel website portal for the US market to house this large promo, which included prizes such as motorcycling tours of Italy on the Diavel. Back in 2012, if you received direct mail postcards, emails and Social Media posts about this Diavel promo, it was us. I also set up a demo ride experience portal and we encouraged those who demoed the new Diavel to share their experiences, with pics, on our newly built exclusive Diavel US portal. It worked out great, so our relationship with Ducati continued.

I wish I could tell you stories that would rival my work with BMW, but I’d have to disappoint you. Those days at BMW will never be duplicated again. Ducati has a conservative approach to marketing and they wouldn’t consider clever taglines or anything remotely controversial in nature. They prefer to let the bikes speak for themselves.

While I was building the Diavel US experience, I was given a Diavel S to ride around so I’d know what it is I am writing about. I liked it so much that I did a very detailed review of it for my BMW Superbikes forums. If you have kept up with my writings you’d know that I don’t do fluff. I shared on my forums how the Diavel was the exact opposite of our K1300Ses and it would make a good companion machine. At least five K bike owners posted a comment on my forums that they bought a new Diavel because of my writeup. You see, a Diavel sucks at long distance travel, it’s not really comfortable for taller riders (anyone over 5’ 7”), runs out of fuel in about 100 miles and so on, however it exceeds and shines as a boulevard cruiser. This bike is fun at 15 mph. Whereas a K13S, same as a 12-cylinder Lambo, has no business being ridden in traffic and it’s only suitable for long-distance high-speed miles. The K13 and the Duc “devil” are polar opposites, hence good garage companions.

My Ducati Years – Part 2

I think Ducati could benefit from clever marketing, similar to what we did at BMW, but it doesn’t sit well with them. It may be a German vs Italian thing. For example, Porsche used to run ads attacking other brands with clever taglines, but I don’t think I have ever seen Ferrari or Lamborghini ads with any taglines, they just showcase the machines and that’s that. A simple search of “funny Porsche ads” brings a long list of such marketing tactics. Here are a few examples: “Honestly now, did you spend your youth dreaming about someday owning a Nissan or Mitsubishi.” “Porsche separates Le Mans from Le Boys.” “It's a little too small to get laid in, but you get laid the minute you get out.” “Kills bugs fast.” So, what we pulled off at BMW was very much in line with German style of cleverly boasting about superior machinery, but Italian brands just don’t go for that.

I got to have some fun with the new for 2012 1199 Panigale for promo related activities. IMO, Ducati became really worldclass with the launch of the 1199 Panigale superbike, and the introduction of not only ABS (for the first time on their superbikes) but a long list of other electronic goodies, such as ESA (electronic suspension adjustment) and quick shifter. Although BMW introduced ABS in 1988, ESA in 2003 and quick shifter in 2008, it took Ducati a while to rise to the challenge. Today, due to proliferation of electronic ride assists, BMW no longer has the tech advantage that it used to.

After riding the Pani for a while, I wrote the most detailed review of it, at first for my forums and then as a cover story with photography for Backroads USA print mag. I covered every nuance of the machine, and explained every small feature and option. Similar to the Diavel experience, I found that the Panigale had nothing in common with my K13S. but I would have kept one in my garage just for the sound of the engine alone. People don’t set land speed records on Ducatis, because they aren’t good high-speed straight-line machines. I am used to bikes that come their own and settle in at a very smooth 125+ MPH. You can ride them all day at 140 MPH cruising speeds with zero vibration. With the Panigale, it felt the engine was going to either explode or fall off at 90 MPH. The V2 Pani is made only for racing on tight twisty tracks, that’s all. It’s no match for high performance Inline 4s, however, I found it to have 2 other qualities, intoxicating engine noise, and act as a cool low speed cruiser. It was specially good for winter riding with a very hot seat positioned above the exhaust. I tested the 1199 Pani in winter with temps in the high 40s (f) and it was very pleasant. The bike felt like it had heated seat set at high. I can’t imagine putting a lot of miles on it in summer, specially in traffic.

Along the way, I did, very politely, reject a fulltime position with Ducati and stated that I prefer to work as an independent contractor. Frankly, I don’t recall the last time I worked fulltime anywhere. It may have been in the late ‘80s or early ‘90s. Even when I ran the online/digital division of a medium sized Wall Street firm in Manhattan for a few years around 2000, I had it in the agreement that I’d show up only 4 days a week and even that was 2 days too many to be in the office. This is not an indicator on workload, it’s because I am way too intuitive, extremely fast at what I do and a-do-it-all talent that frankly 2 days is all you’d need me in the office anyway. Since then, of course, 4-day work week is soon becoming a reality and working from home (not showing up at the office) a necessity for mental health. Also, you make way more as an independent contractor (AKA consultant) billing directly under your own company. The US offices of Euro moto brands are miniscule and they don’t have the kind of budgets to attract major talents in any capacity. The salaries they offer (with no perks or sign-up bonuses at all) wouldn’t attract a 22-year-old in the Tech industry. Lastly, once you agree to go fulltime, they work you 7 days a week (because they are so short staffed). At BMW, my billing rate was on par or higher than their fulltime section managers, and I was saving the brand a couple of hundred thousand a year by eliminating the need to engage an established advertising agency. That was one of the main reasons (the other my love for what the brand used to be) that I stayed for as long as I did at BMW, even though the atmosphere became extremely toxic along the way.

Ducati, of course, has since shifted to V4s for their premium lineup and are planning further expansion into the Asian market. Ducati remains today as the only, sort of, purist 2-wheel brand. I say sort of, because when you start giving away rebadging rights and putting your prestigious logo on cheap offerings like the Scrambler and the soon to be released 1-cylinder bikes, you lose your sparkle. Imagine if Ferrari made cheap 4-cylinder cars. The horror! But none of this matter, since the golden age of high-performance internal combustion motorcycling with various methods of propulsion, whether V2, V4, L2, I4 and 6 (excluding that boxer crap) is coming to an end. It was a privilege to be a useful part of it and to have made a difference along the way. Cheers!

PART 15 (October 18, 2023):

The Hypocrisy of Ducati

I am a fan of Ducati design, and have said it a few times that they have some of the best moto designers in the world. They should be applauded for that. They also can be full of crap at times. They famously claim that they are the “Ferrari of bikes,” yet you can buy a Duc for cheap and now they plan to go even cheaper. Yes, sadly, Ducati has fully sold out and are joining the el cheapo Asian bike caravan. How sad! What a way to destroy the prestige of their brand.

Why Ferrari is a Ferrari and not a Fiat
The reason Ferrari is a Ferrari and not a Fiat, or Lamborghini is a Lamborghini and not an Audi, is because they are extremely protective of their image and logo. There is a good reason why you can’t buy a new $40,000 four-cylinder Ferrari commuter, or a $35,000 Lamborghini sub compact. The prestige and pedigree of any ultra luxury brand can only be maintained by steadfast protection of the image of such brand and by not selling out. Look what happened to Jaguar. Ducati has sold out!

Why is Duc Pushing Dirt Cheap?
The reason Duc is pushing dirt cheap is because their annual revenue is too miniscule to impress the VW Group. Lamborghini cars average $300K+, Duc is probably $13K. They need to stretch as much as possible to please the car bosses. My vision for Ducati is to actually fulfill their destiny of metamorphing into a true “Ferrari of bikes” by becoming exclusively an ultra high-end performance road brand. This is easy to do. I know a lot of Ducatisi and Ducati employees who agree with this statement as they are sickened by seeing their favorite brand being dragged in mud.

My Vision for Ducati
1. Kill off all the cheapies. This means get rid of the Scrambler and cancel the Asian 1-cylinder rebadge agreement.

2. Get off dirt. Be road only, like Ferrari.

3. Eliminate all models below the $20K mark.

4. Raise your prices on the remaining models to allow for wider profit margins--for the brand and the dealers.

5. Same as Ferrari, limit your annual production to create massive demands and waitlists.

6. Limit your production to 35,000 units on the remaining models with another 6,000 for special editions.

7. Don’t offer special editions for less than $60K.

And just like that, you can become the forever king of two-wheels. Otherwise, your current plan to consistently offer smaller and smaller bikes, just to please VW, will wipe your halo clean.

NOTE: I am aware that some of you, in support of the statements, may want to forward this article to your regional Ducati office, but you are wasting your time. They will try to make themselves appear as "experts" and ridicule anyone who doesn’t agree with them. They will also gaslight you with BS and convince you that to keep going smaller and cheaper is the "only" solution (they just follow marching orders anyway). What I am proposing is for the VW Group board only.

PART 16 (September 19, 2024):

Ducati Desmo 450MX and the New Panigale V4 – Are Scooters and 300cc Rebadged Asian Variants Next?
As predicted Ducati is going smaller and cheaper. After their release of the Hypermotard 698 and 950, they now have officially entered the 450 dirtbike segment. Their new offering is called Desmo 450MX. A motocross with race ambitions. But why? A small company like Ducati shouldn’t be pushed this hard by VW to stretch so thin and go in every possible direction just for marginally higher annual sales figures. The road model development will certainly suffer. I predicted all this long time ago, that the VW ownership will force Ducati to keep offering smaller and cheaper bikes. Although the Ducati boss denies they plan to go any smaller than 450, I predict future models of rebadged 300ccs for the Asian markets (like BMW). The Ducati boss does not set the direction for the brand, VW/Audi boards do and they want to make something of this brand and have it hit 100K+ units. And the only way to do that is to go cheaper. The area they are really missing out is the scooter market. Ducati scooters would kill in Europe and China, if made well, with no reliability issues and not priced astronomically high.

New Ducati Panigale V4 is Not Pretty and has an Ugly Nose

I planned to create a separate editorial for the new Pani V4, however, the styling is just meh. I get it, they are going after function, but at the cost of looks? Come on, you are Ducati, you're supposed to be in the business of shock and awe, not mainstream mediocrity. The new Pani V4 has a super long list of electronic ride assists. Granted they are all designed by Bosch and will appear on the next sport bikes from BMW as well, but the list is exhaustive. Having said all that, the base model which costs about $30K, out the door, doesn’t have electronic suspension adjustment, you have to pay near $40K for the S model. I am OK with Ducati charging whatever they want for their bikes. Since they cater to a cult-like following, you might as well milk them for all they got.

Speaking of VW, they are to shut down some factories in Europe, due to serious competition from the Chinese brands. In the US, Ford boss warns that Chinese cars could devastate US auto industry. This is true with bikes as well. Granted, brands like BMW and Ducati, maybe safe, but the others could lose serious marketshare to the Chinese brands.

Ducati of Detroit has License Revoked

Running a premium motorcycle dealership is difficult and costly. There is a saying, how do you make a million dollars from a motorcycle dealership, you start with 3. Due to various unlawful shenanigans, the state of Michigan has pulled the license on Duc of Detroit. These accusations include, fraud, forgery, and altered delivery dates. According to the report, the issues at the dealership started in May 2017 when a general compliance inspection uncovered the dealership was not submitting proper sales tax, as well as fraudulent acts in connection with selling vehicles.

Both BMW and Ducati Sales are Down Globally

The reason we haven’t received any self-congratulatory press releases (like my writings in every issue of MOTO) from BMW or Ducati telling the world how smart their executives are, is because both brands are down. The only time these 2 brands release sales data is when things are looking good. As I have said before, whatever happens at BMW moto and Ducati, stays at BMW moto and Ducati, their parent companies don’t want any involvement due to the minuscule nature of their volume. They are being tolerated, but just marginally.