1 00:00:00,080 --> 00:00:03,640 Speaker 1: Let's talk about motorbikes. Dakassi revealing seven new bikes for 2 00:00:03,720 --> 00:00:08,479 Speaker 1: twenty twenty four. The latest is basically an anniversary version 3 00:00:08,680 --> 00:00:11,520 Speaker 1: of the nine one six, joining us now Jason Decasti, 4 00:00:11,600 --> 00:00:16,079 Speaker 1: North America CEO, and of course Bloomberg's Matt Miller Dicassie. 5 00:00:16,239 --> 00:00:21,120 Speaker 1: Everybody to remember pot of Fogs Foggen Matt. I feel 6 00:00:21,320 --> 00:00:24,439 Speaker 1: that a new nine one six will have you very interested, 7 00:00:24,480 --> 00:00:26,880 Speaker 1: But I think there are probably other bikes that Dakassi's 8 00:00:26,920 --> 00:00:29,000 Speaker 1: making right now that you might be more interested in. 9 00:00:29,400 --> 00:00:30,400 Speaker 1: But what do you think? What do you think of 10 00:00:30,400 --> 00:00:30,840 Speaker 1: the new bike? 11 00:00:30,960 --> 00:00:34,640 Speaker 2: Yeah, I mean I'm a lifelong Ducati fan, as I 12 00:00:34,640 --> 00:00:38,880 Speaker 2: think everyone who watches Bloomberg television knows, and the nine 13 00:00:38,960 --> 00:00:41,519 Speaker 2: one six is widely considered one of the most beautiful 14 00:00:41,520 --> 00:00:46,000 Speaker 2: motorcycles ever created. So this, you know, homage to the 15 00:00:46,080 --> 00:00:49,520 Speaker 2: nine one six I find amazing in a far more 16 00:00:49,600 --> 00:00:53,040 Speaker 2: powerful bike. I mean, the new bike is just head 17 00:00:53,080 --> 00:00:55,360 Speaker 2: and shoulders above the power that we had back then. 18 00:00:56,320 --> 00:00:59,520 Speaker 2: But there are a lot of bikes I'm especially interested 19 00:00:59,600 --> 00:01:01,840 Speaker 2: in more now that I'm older. Right, I don't fit 20 00:01:01,920 --> 00:01:04,520 Speaker 2: as well on a crop rocket. I like the multi strata. 21 00:01:04,560 --> 00:01:07,120 Speaker 2: I've had three of them, and there's a new multi 22 00:01:07,120 --> 00:01:10,119 Speaker 2: Strata V four that has the Desmo Dramic valves again 23 00:01:10,160 --> 00:01:13,360 Speaker 2: which I'm super pumped about, plus a supermono. They brought 24 00:01:13,360 --> 00:01:15,880 Speaker 2: out a single cylinder motorbike for the first time in 25 00:01:15,959 --> 00:01:16,760 Speaker 2: like thirty years. 26 00:01:16,760 --> 00:01:17,720 Speaker 3: Skuy okay. 27 00:01:18,360 --> 00:01:21,679 Speaker 1: Jason Matt is very exciting about this bike, as we 28 00:01:21,720 --> 00:01:23,280 Speaker 1: can hear, it's great to see you by the way, 29 00:01:23,280 --> 00:01:26,720 Speaker 1: thanks for stopping by. It's a very pretty machine out 30 00:01:26,720 --> 00:01:29,200 Speaker 1: of Bologna. We're looking forward to seeing it on the road. 31 00:01:29,440 --> 00:01:31,640 Speaker 1: What are these spikes? What are these spikes doing in 32 00:01:31,720 --> 00:01:33,520 Speaker 1: terms of what impacts are they having on sales? 33 00:01:34,000 --> 00:01:36,600 Speaker 4: Well, we've actually been having a very consistent sales over 34 00:01:36,600 --> 00:01:38,520 Speaker 4: the of course the last few years, and part of 35 00:01:38,560 --> 00:01:40,720 Speaker 4: it has to do with our product strategy. We've been 36 00:01:40,840 --> 00:01:44,200 Speaker 4: very consistent in delivering a solid amount of new products 37 00:01:44,319 --> 00:01:47,360 Speaker 4: every fall that lead into the next year. And we're 38 00:01:47,360 --> 00:01:49,640 Speaker 4: building an order bank, which is actually a big change 39 00:01:49,640 --> 00:01:51,000 Speaker 4: in the business model and what we used to do 40 00:01:51,080 --> 00:01:52,880 Speaker 4: in the past, where we'd stock our dealers and people 41 00:01:52,920 --> 00:01:55,440 Speaker 4: would walk in and buy a motorcycle. But this actually 42 00:01:55,480 --> 00:01:58,520 Speaker 4: creates a lot of excitement. In fact, the launch of 43 00:01:58,560 --> 00:02:02,600 Speaker 4: the nine to one six thirtieth Aniversario that just launched yesterday. 44 00:02:02,920 --> 00:02:06,400 Speaker 4: We've already received enough orders for us in North America 45 00:02:06,480 --> 00:02:09,600 Speaker 4: to cover our entire production for next year. So this 46 00:02:09,639 --> 00:02:11,440 Speaker 4: is something that also gives us a lot of security 47 00:02:11,480 --> 00:02:13,600 Speaker 4: as we look forward to the future in terms of 48 00:02:13,680 --> 00:02:17,040 Speaker 4: what motorcycles that we build, lower holding costs and higher profits. 49 00:02:17,520 --> 00:02:21,600 Speaker 2: So I wonder about the addressable market. Kevin Tynan, who's 50 00:02:21,600 --> 00:02:24,240 Speaker 2: our Auto's analyst for Bloomberg Intelligence, said, you know, shrinking 51 00:02:24,280 --> 00:02:28,680 Speaker 2: because younger kids these days are maybe worried about the 52 00:02:28,720 --> 00:02:32,800 Speaker 2: costs and the safety of motorcycling. What are you doing 53 00:02:32,840 --> 00:02:35,160 Speaker 2: to grow that market? This has been a nut that 54 00:02:35,560 --> 00:02:38,440 Speaker 2: motorcycle manufacturer has been trying to crack four years. What 55 00:02:38,520 --> 00:02:42,400 Speaker 2: are you doing, Jason Chuhuck in Colorado to help grow 56 00:02:42,440 --> 00:02:43,560 Speaker 2: the motorcycling market. 57 00:02:43,680 --> 00:02:45,440 Speaker 4: Well, part of what we're doing is actually making sure 58 00:02:45,440 --> 00:02:49,120 Speaker 4: we're bringing products that's accessible to those people. It's actually 59 00:02:49,160 --> 00:02:52,720 Speaker 4: expected that Doucatti could be intimidating because generally it's the 60 00:02:52,720 --> 00:02:55,080 Speaker 4: most it's the highest performance motorcycle. You think what we 61 00:02:55,120 --> 00:02:58,000 Speaker 4: do in Motor GP and World Superbike, that's what people 62 00:02:58,000 --> 00:03:00,880 Speaker 4: expect of us. But bringing out a new motorcycle like 63 00:03:00,960 --> 00:03:05,640 Speaker 4: the hypermotard mono that in itself makes the brand accessible, approachable, 64 00:03:06,120 --> 00:03:07,959 Speaker 4: and the intention is for us to be able to 65 00:03:07,960 --> 00:03:10,080 Speaker 4: make sure they get out and have an opportunity experience it. 66 00:03:10,440 --> 00:03:12,400 Speaker 4: And what better way to have a motorcycle that also 67 00:03:12,480 --> 00:03:15,520 Speaker 4: has all of this technology that actually increases safety for 68 00:03:15,520 --> 00:03:18,160 Speaker 4: the writer as well, because that is an obstacle. But 69 00:03:18,360 --> 00:03:20,960 Speaker 4: you know, as Ducati, what we've learned and developed on 70 00:03:21,040 --> 00:03:23,560 Speaker 4: the track, we've definitely found a way to apply it 71 00:03:23,600 --> 00:03:25,760 Speaker 4: to what people get to use on the street, not 72 00:03:25,919 --> 00:03:28,760 Speaker 4: just from a matter of performance, but actually safety and control. 73 00:03:29,000 --> 00:03:33,600 Speaker 2: You also have very high priced motorcycles, right The new 74 00:03:33,720 --> 00:03:36,600 Speaker 2: Maulti that I'm looking at starts at thirty eight thousand dollars, 75 00:03:36,640 --> 00:03:41,080 Speaker 2: and as rates rise, financing that kind of purchase, you know, 76 00:03:41,160 --> 00:03:44,880 Speaker 2: it's more and more difficult for your average motorcycle enthusiasts 77 00:03:44,920 --> 00:03:47,960 Speaker 2: in America. How are you dealing with the rising rate environment? 78 00:03:48,040 --> 00:03:50,840 Speaker 4: Where we're very lucky to have a captive partner, Ducati 79 00:03:50,880 --> 00:03:53,680 Speaker 4: Financial Services, which is part of the Volkswagen Group as well, 80 00:03:54,000 --> 00:03:56,560 Speaker 4: and we work directly with them in order to put 81 00:03:56,560 --> 00:03:59,840 Speaker 4: together programs and special rates that actually make it reasonable. 82 00:04:00,160 --> 00:04:03,880 Speaker 4: And in fact, October we had the highest ever penetration 83 00:04:04,000 --> 00:04:07,640 Speaker 4: of financing in comparison to pre pandemic times. And this 84 00:04:07,680 --> 00:04:09,760 Speaker 4: is a big contrast to what we were talking about 85 00:04:09,800 --> 00:04:11,320 Speaker 4: even last year. Last year there were a lot of 86 00:04:11,320 --> 00:04:14,160 Speaker 4: cash buyers. People were sitting on savings, they had a 87 00:04:14,160 --> 00:04:16,120 Speaker 4: little extra cash and say they were like, why should 88 00:04:16,120 --> 00:04:19,520 Speaker 4: I bother financing? Now? I think that those cash reserves 89 00:04:19,520 --> 00:04:22,440 Speaker 4: have let's say, maybe not dried up, but maybe get 90 00:04:22,480 --> 00:04:24,920 Speaker 4: shrunk a little bit, and so people are turning to 91 00:04:25,000 --> 00:04:27,640 Speaker 4: financing that it still has to be attractive. 92 00:04:27,600 --> 00:04:31,200 Speaker 1: Jason, is it to CATSI a discretionary item? And ultimately, 93 00:04:31,240 --> 00:04:34,760 Speaker 1: if the economy does slow down, do people maybe wait 94 00:04:34,760 --> 00:04:37,280 Speaker 1: a little bit longer before they get a new bike? 95 00:04:37,520 --> 00:04:40,080 Speaker 1: How do you see the next kind of eighteen months 96 00:04:40,120 --> 00:04:42,640 Speaker 1: progressing if the economy is slowing down, if ready to 97 00:04:42,640 --> 00:04:45,360 Speaker 1: do bike? There's lots of indications out there that this 98 00:04:45,400 --> 00:04:48,599 Speaker 1: is happening. Savings have been eroded, student loans are kicking 99 00:04:48,640 --> 00:04:50,880 Speaker 1: back in. Do you think that it's going to get 100 00:04:50,920 --> 00:04:53,320 Speaker 1: tougher over the next few years to sell new bikes? 101 00:04:53,839 --> 00:04:55,720 Speaker 4: I think we we've looked at the last five years 102 00:04:55,720 --> 00:04:58,000 Speaker 4: of the market and try to understand what's happening. We've 103 00:04:58,000 --> 00:05:00,680 Speaker 4: seen it very stable, but this year we have seen 104 00:05:00,720 --> 00:05:04,520 Speaker 4: a slight downturn in the overall five hundred cc market, 105 00:05:04,560 --> 00:05:07,200 Speaker 4: which is what we compete in. But in terms of Dukati, 106 00:05:07,240 --> 00:05:09,400 Speaker 4: it's one of the things of us retaining our position, 107 00:05:09,480 --> 00:05:12,680 Speaker 4: let's say, as an aspirational and a premium brand that 108 00:05:12,720 --> 00:05:16,839 Speaker 4: actually delivers more than just motorcycles but experiences. And there's 109 00:05:16,920 --> 00:05:20,080 Speaker 4: already a very large base of Ducati riders out there, 110 00:05:20,120 --> 00:05:24,040 Speaker 4: but also other motorcyclists that are looking for that next mortorcycle. 111 00:05:24,120 --> 00:05:26,599 Speaker 4: So are they going to delay their purchase? So far, 112 00:05:26,640 --> 00:05:29,360 Speaker 4: we haven't seen it. In fact, we're less concerned about 113 00:05:29,360 --> 00:05:32,160 Speaker 4: the overall volumes and really focusing on the experience and 114 00:05:32,200 --> 00:05:35,320 Speaker 4: the profitability per bike, not only with Ducati but also 115 00:05:35,400 --> 00:05:37,560 Speaker 4: our dealer network, which allows us to invest into that 116 00:05:37,600 --> 00:05:41,080 Speaker 4: experience as a differentiator from somebody that's looking at just 117 00:05:41,120 --> 00:05:43,320 Speaker 4: getting let's say, a commoditized motorcycle. 118 00:05:43,760 --> 00:05:46,919 Speaker 2: How important is racing You mentioned Moto GP and not 119 00:05:47,000 --> 00:05:49,240 Speaker 2: a lot of Americans know, but everywhere else in the 120 00:05:49,240 --> 00:05:51,599 Speaker 2: world is wildly popular. One hundreds of millions of people 121 00:05:51,680 --> 00:05:55,000 Speaker 2: watch it every weekend. And when I started, you know, 122 00:05:55,120 --> 00:05:58,120 Speaker 2: over ten years ago, Valentino Rossi was riding for Dukati. 123 00:05:58,440 --> 00:06:01,360 Speaker 2: They weren't winning. It was very difficult. Now, what Claudia 124 00:06:01,360 --> 00:06:05,599 Speaker 2: dominicality has allowed Gigi Delnya to do is to completely dominate. 125 00:06:05,680 --> 00:06:07,920 Speaker 2: You have six teams that are always on the podium 126 00:06:08,880 --> 00:06:12,680 Speaker 2: and are the global champion. How important is that though, 127 00:06:12,720 --> 00:06:14,760 Speaker 2: to selling motorcycles here in this country. 128 00:06:15,279 --> 00:06:18,160 Speaker 4: It's that great question because actually you're right, it doesn't 129 00:06:18,160 --> 00:06:20,880 Speaker 4: have necessarily the same residents or impact in the US. 130 00:06:21,240 --> 00:06:23,840 Speaker 4: We get one opportunity, and that's a circuit of America's 131 00:06:23,880 --> 00:06:26,040 Speaker 4: in Austin every April to be able to make that point, 132 00:06:26,520 --> 00:06:28,719 Speaker 4: But then how do we continue that throughout the year 133 00:06:29,360 --> 00:06:31,800 Speaker 4: on a global level with Motor GP and World Superbike. 134 00:06:31,880 --> 00:06:35,880 Speaker 4: It's great and the genuine hardcore people follow it, but 135 00:06:35,920 --> 00:06:38,080 Speaker 4: when it comes to North America, this is really why 136 00:06:38,080 --> 00:06:41,200 Speaker 4: we've invested heavily into what's happening to Moto America. This 137 00:06:41,279 --> 00:06:44,160 Speaker 4: last year we won the Super Sport Championship, took second 138 00:06:44,200 --> 00:06:47,800 Speaker 4: in the Superbike, and next year we're actually anticipating anywhere 139 00:06:47,880 --> 00:06:50,160 Speaker 4: between three to four teams, which is going to be 140 00:06:51,240 --> 00:06:54,400 Speaker 4: four times what we've currently got right now. In the 141 00:06:54,480 --> 00:06:58,320 Speaker 4: local racing, to make it more approachable, accessible and relevant 142 00:06:58,320 --> 00:06:59,440 Speaker 4: to the local market. 143 00:07:00,480 --> 00:07:02,840 Speaker 1: Jason, Formula one is making a really big push into 144 00:07:02,839 --> 00:07:04,920 Speaker 1: the United States. We're about to get the Vegas Race. 145 00:07:05,120 --> 00:07:07,599 Speaker 1: Everybody's very excited about that. Do you think Motor GP 146 00:07:07,960 --> 00:07:10,560 Speaker 1: could do more in North America? Should do more in 147 00:07:10,640 --> 00:07:11,680 Speaker 1: North America? 148 00:07:11,720 --> 00:07:13,920 Speaker 4: Absolutely, there's no question that it should do more, and 149 00:07:13,960 --> 00:07:16,080 Speaker 4: it could do more. I think what we've seen with 150 00:07:16,120 --> 00:07:19,160 Speaker 4: Formula one is that obviously there's the TV series that 151 00:07:19,520 --> 00:07:21,240 Speaker 4: brought a lot of attention let's call it to the 152 00:07:21,240 --> 00:07:24,960 Speaker 4: mainstream America, and there's definitely there's some talks in the 153 00:07:25,000 --> 00:07:29,120 Speaker 4: works about something potentially happening similar for Moto GP, and 154 00:07:29,200 --> 00:07:31,360 Speaker 4: we're directly involved in that because I think then you 155 00:07:31,440 --> 00:07:34,840 Speaker 4: get into the fabric of this of general society, to 156 00:07:34,920 --> 00:07:37,440 Speaker 4: make it more relevant, to make it I guess personal 157 00:07:37,480 --> 00:07:39,800 Speaker 4: as well, because that's what you want. The racing's great, 158 00:07:39,800 --> 00:07:41,520 Speaker 4: but you want to know the stories behind the people. 159 00:07:43,600 --> 00:07:45,640 Speaker 1: Any hits about the last bike just before we go, 160 00:07:46,480 --> 00:07:48,200 Speaker 1: haven't you got one more to go in December? 161 00:07:48,960 --> 00:07:51,280 Speaker 4: Yes, we do. We've got one that we're going to 162 00:07:51,280 --> 00:07:54,200 Speaker 4: be announcing at the beginning of December. It's a little 163 00:07:54,200 --> 00:07:56,240 Speaker 4: premature for me to get into too much detail, but 164 00:07:56,720 --> 00:07:58,840 Speaker 4: just tell us it's a collaboration. Yeah, I know, it's 165 00:07:58,920 --> 00:08:01,760 Speaker 4: a small world here, right, a collaboration with another brand 166 00:08:01,800 --> 00:08:03,880 Speaker 4: that will be a bit of a surprise for a 167 00:08:03,880 --> 00:08:07,840 Speaker 4: lot of people. But I've seen the motorcycle. It's absolutely elegant. 168 00:08:07,960 --> 00:08:09,280 Speaker 4: It's just stunning work. 169 00:08:09,440 --> 00:08:12,040 Speaker 3: You've done that before with Lamborghini for example, Absolutely, and 170 00:08:12,640 --> 00:08:14,680 Speaker 3: that was and that's Those have been great successes and 171 00:08:14,720 --> 00:08:17,680 Speaker 3: we've actually sold out of them almost as quickly as 172 00:08:17,680 --> 00:08:19,600 Speaker 3: we announced him, and we anticipate the similar thing. 173 00:08:21,320 --> 00:08:23,040 Speaker 1: Okay, well, that's going to be an early Christmas present 174 00:08:23,040 --> 00:08:25,400 Speaker 1: for Matt Miller. We'll look forward to that. Jason, always 175 00:08:25,400 --> 00:08:28,160 Speaker 1: a pleasure. Thanks for stopping by. Jason sna the Katty 176 00:08:28,240 --> 00:08:31,080 Speaker 1: North America and of course Bloomberg's Matt Miller.