The motorcycle rumor mill is burning through Europe with popular opinion riding towards Ducati bringing out a smaller and less expensive version of its popular Hypermotard 1100.

When first unveiled at the Milan International Motorcycle show, the Hypermotard won instant praise. Just hours after its launch it was awarded "Best of Show" and motorcyclists the world over have made it a popular model in the Ducati line-up.

Although the new, smaller version is expected to be named Hypermotard 796, it has been rumored to use 696cc air-cooled V-twin engine from Ducati's Monster line.

But why would a performance motorcycle manufacturer go smaller?

For all its design skills and winning ways on the track, Ducati hasn't managed to ride around the financial slow-down plaguing the motorcycle world.

Data released earlier this year by a motorcycle industry group show Ducati sales in Australia year to date down 13% over the same period last year. In January, news reports circulated that the management and owners of Ducati took a 10% pay cut and gave up their future bonuses due to the economic crisis.

Ducati, which is owned by the Bonomi family in the city of Bologna, made the announcement after the latest industry figures showed a 38.8 percent drop in new motorcycle sales in Italy in January.

Like other motorcycle manufacturers, Ducati appears to be looking for an inexpensive model in one of its popular lines of bikes.

According to the rumor mill, riders can expect the new Hypermotard 796 to be equipped similarly to that of its Monster 696, with a possibility of ABS being offered as an option. While no pictures have been leaked out, the date of September 25th seems to be the favorite choice for an official announcement.