Ducati to Assemble Scrambler Icon at Volkswagen Plant in Argentina

Ducati and Volkswagen Group Argentina have reached an agreement for CKD assembly of Ducati bikes to be sold in the Argentinian market. 

The world’s eighth largest country, the second largest in South America after Brazil, and roughly one-third the size of the United States, will become the third country outside Italy to produce Ducati motorcycles.

Completely-Knocked-Down assembly will commence at the end of 2022, for local distribution, at the Volkswagen factory in the Córdoba Industrial Center, a manufacturing, agricultural, and logistics hub in central Argentina.

Cordoba will become Ducati’s second assembly line in Latin America. Since 2012, the Italian company has collaborated with Argentina’s neighbour, Brazil’s Dafra to assemble its motorcycles.

The south american country currently has seven exclusive Ducati dealers that sell the entire range of Ducati and Ducati Scrambler motorcycles.

Francesco Milicia, Ducati VP Global Sales, presents the $260 US million investment* as a result of the Argentinian market penetration and the Italian motorcycle builders relationship with the Volkswagen Group, which distributes Ducati bikes, for the decision.

“The Argentinian motorcycle market is very interesting, Ducati has a strong positioning in this country in which over the years we have been able to achieve excellent results, both in terms of volumes and market share”, said Milicia.  “In Argentina we can count on a great collaboration with the Volkswagen Group which distributes our bikes, and it is also thanks to this strong relationship that we are able to take this important step which will help to strengthen our position in this market even more”.

Commercial collaboration between Ducati and Volkswagen Group Argentina began in 2013 following Audi AG purchase of the Italian motorcycle builder in 2012.

*The investment also includes the update of the Volkswagen Amarok pickup truck.

What is CKD assembly?

The term CKD stands for Completely-Knocked-Down. It’s a method of manufacturing in which a company entirely disassembles or dismantles a vehicle at the factory and then reassembles it in a different country.

• The advantages of CKD are that it does not require investment in robotics and requires fewer employees in-comparison to a conventional factory.  
• Importing disassembled motorcycles saves room in shipping containers, making the operation more cost efficient.

Ducati Around The World

Despite Ducati’s affinity with its Italian roots, their motorcycles are no longer made entirely in Italy. 

With news of the new project Ducati will now have four manufacturing plants around the globe. The other three locations are Italy, Brazil and Thailand.

• Ducati’s main plant in Bologna, Italy, hand builds approximately seventy-seven percent of motorcycles sold. Operating two assembly lines, one builds motorcycles destined for the United States, while the other line produces for the other global markets. 
• The CKD assembly plant in Amphur Pluakdaeng Rayong, Thailand, opened in 2010, produces approximately twenty percent, primarily for the Asian market.
• CKD assembly plant in Brazil, opened in 2012, produces bikes for the Brazilian market. 
• Ducati motorcycles are assembled at the external locations using parts imported from Bologna.

What is AUDi AG?

Audi describes, “the AUDI AG stands for sporty vehicles, high build quality and progressive design – for “Vorsprung durch Technik.” 

The Audi Group is a global leader in premium automobiles, comprising ten brands from five European countries: Volkswagen, Volkswagen Commercial Vehicles, ŠKODA, SEAT, CUPRA, Audi, Lamborghini, Bentley, Porsche and Ducati. 

The First Subsidiary to Assemble Ducati Motorcycles

Pablo Di Si, Executive Chairman of Volkswagen Latin America, welcomed the decision and highlighted the point that Volkswagen Group Argentina will be the first VW Group subsidiary world wide to assemble Ducati motorcycles.

“Argentina is an important pillar for Volkswagen Latin America. With this new investment, we will continue to strengthen our brand in the region, with models that are increasingly adapted to the needs of our customers,“ said Pablo Di Si, Executive Chairman of Volkswagen Latin America. “Starting to assemble Ducati motorcycles in Córdoba is a great joy, since Volkswagen Group Argentina will be the first VW Group subsidiary in the world to do so.”

The First Argentinian CKD Ducati will be?

Towards the end of the year, 25 employees at the Cordoba factory where the Volkswagen Amarok and Taos transmissions are built, will begin assembling the Ducati Scrambler Icon. The initial forecast is for six Scrambler Icon units per day.