We were hoping to hear something definitive about the Moto Morini acquisition early this week, and the news arrived right on schedule…but just not what we thought we’d hear. Unable to reach an agreement with the trade unions, Paolo Berlusconi’s company, New Garelli, which was created specifically for the takeover of Moto Morini, has backed out of the acquisition of the historic Italian brand.
In their statement, New Garelli cites the company’s inability to reach a mutual agreement with the labor unions as it’s main reason for backing out of the deal. With no other buyers in the mix, and the trade unions seemingly an immovable object, Moto Morini seems destined for the dead pool. Find the company’s statement after the jump.
Statement from New Garelli Regarding Closure of Moto Morini Acquisition Proceedings (Google Translated from Italian):
In connection with the negotiation for the acquisition of the bankrupt company Moto Morini, New Garelli SpA intends to clarify that:
The meeting convened by the Department for Productive Activities of the Province of Bologna, Graziano Prantoni, now scheduled for Monday, June 14 at the headquarters of the province itself, was canceled and postponed indefinitely. The communication, received by fax late on Thursday, June 10, pleading for the cancellation, reasons little understood.
The meeting of June 14, started as the previous update, which took place June 7 us, given the positive discussions and in that case, the events of mutual interest to develop a mutually agreed solution between New Garelli and Trade Unions and marginal points remained outstanding in the intentions of all, it would have been an opportunity to formalize and sign the final agreement. Of course the agreement with the Trade Unions, prior to the submission by New Garelli, a new financial proposal to the Bankruptcy Court, would become binding when accepted component of the proposal.
In light of this new obstacle and thus unable to forge an agreement with Trade Unions For unclear reasons, New Garelli feels obliged to put an end to this affair that may have connotations of a soap opera serials, if he saw – which unfortunately happens – and at home without work involved the workers of Moto Morini failure.
New Garelli has gained the decision after twice – the first in the arrangement and the second after the bankruptcy, on specific call councilor Graziano Prantoni to reconsider its position to exclude an interest after the failure itself - sought a solution to another Moto Morini, with proposals that would safeguard the preservation of historical company in Bologna, maintained the occupation of a large number of resources, incentives offered to those residual and invested significantly, and that nevertheless saw the defeat efforts that would allow recovery of the assets of the company in Bologna.
Source: MotoBlog.it
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So now what happens? Does anyone know? Is it certain that MM goes bust now, or how will the ‘pieces’ be handled?
Too bad this…
Very sad for the motorcycling industry and the workers. A union sure isn’t helping its people by causing the demise of their employer.
i believe he struck or is about to strike a deal for MV Agusta…
They always blame unions, its just a cop out.
Berlusconi is not in the mix for buying MV, one can’t say for certain but I doubt this would make him start pursuing that brand now.
For Moto Morini, this is basically the end of the road unless another buyer shows up (not likely). Whatever infrastructure that’s not bolted down, will get sold to pay creditors, and the union workers who put the kibosh on the deal, will all go unemployed and on the dole from the government.
For Garelli the value was less about the Moto Morini brand and line, and more about a facility that’s ready to build motorcycles fairly cheaply. When you have unions that aren’t willing to lower wages, or want quotas on workers, it makes that factory not appealing from a cost perspective. When you’re whole reason for buying is based around finances, when those financial models don’t make sense, you walk away from the deal.
Jensen, that made the picture much more clear. What are your thoughts on the time frame, would the ‘remains’ be split up fairly rapidly, or what scenarios could be played out over the summer?
The Death of Moto Morini – Acquisition Deal Falls Through as Garelli/Berlusconi Walk Away – http://aspha.lt/12z #motorcycle
Nooooooooooooooo! MM is an icon. Sorry to hear egos and finances couldn’t work things out.
very sad :(
-peter
What the heck?! Hopefully somebody will rescue this brand!
Current MM engine has so much potential waiting to be untaped. An upgraded tuned version could have easily match Ducati’s 1200 cc superbike engine!
In a perfect world, it would be an employee owned corporation.
Peter, I’m not as familiar with the Italian bankruptcy system, but I would imagine it would be a fairly quick process. Since Moto Morini is already in receivership, Berlusconi’s acquisition was already a hail mary situation.
We’ve heard a lot from Berlusconi’s side – I for one would like to hear the other side of the argument. I think unions generally prefer to keep their workforce employed so they just might have a good reason for rejecting this deal.
10 to 1 Berlusconi has plans on moving MM to china. use the existing plant to build some small piece with a skeleton crew. That’s just what the investor class does these days. buy a company cheap, chop it up, sell the parts, outsource to India, pocket the dough and move to the next one.
Probably for the best. The world has enuf Chinese junk