German Audi bringing some Italian flavor

There had been some speculations and now it's been confirmed by The New York Times. Audi, the luxury unit of German Volkswagen, has agreed to acquire the Italian motorcycle maker Ducati. The transaction was finally approved on Wednesday 18th. Audi didn't mention how much it was willing to pay, but it was rumored they would be able to pay about 860 million euros.


So what benefits does Audi wish to gain?


Volkswagen is the largest carmaker in Europe. Audi acquiring Ducati can possibly give them entrance to competing in a segment with rivals like BMW's motorcycles. Ducati is also known for having great expertise in small high powered engines and using materials like carbon fiber to design lighter vehicles. Having that kind of technology is becoming very important for carmakers being pressured by new regulations.


Audi also expects to increase profits with growing demand of motorcycles in Asia.


I feel this is a good step in the right direction for Volkswagen. Because Volkswagen has become more dedicated to making it's business more environmentally friendly. An article on Cars Bikes Trucks listed the targets set by Volkswagen. 

• 30 percent reduction in CO2 emissions during period from 2006 to 2015
• Emissions below 120 gram CO2/km mark for first time in 2015
• More than two thirds of €62.4 billion investment program for the period to 2016 to be spent on ever more efficient vehicles, powertrains and technologies as well as environmentally compatible production
• Every new model generation will on average be 10 to 15 percent more efficient than its predecessor
• Group production to become 25 percent more environmentally compatible by 2018
• 40 percent reduction in greenhouse gas emissions associated with production-related energy supplies by 2020
• Some €600 million is to be invested in expanding the use of renewable energies such as wind, solar and hydroelectric power

The benefits that Volkswagen's unit Audi could receive from Ducati will not just be good for the company, but also good for us. I expect them to use Ducati's technology to benefit the environment.