The Piaggio Group has annouced that it has devised a new business plan for its subsidiary, Moto Guzzi. According to Roberto Colaninno, President of the Piaggio Group, the new business plan will ensure that Moto Guzzi releases a new line of motorcycles during the 2011-2012 model year.
Helping fuel this product line extension will be the investment of €12 million that the parent company plans to dump into Moto Guzzi’s coffers, but the money comes attached with some interesting strings from the European Investment Bank. More on this after the jump.
You’ll remember that the Piaggio Group got a €150 million loan back in December of last year, which was loaned to the group on the contingency that it be used for electric and hybrid vehicles. We have yet to see anything which suggests that Piaggio is allowed to use these funds in manner other than what the European Investment Bank specified. So if the EIB is the true source for the €12 million being invested into Moto Guzzi, then this fact begs the conclusion that Colaninno’s new business plan for Moto Guzzi includes the brand producing an electric or hybrid motorcycle range.
Whatever the source and use of the funds may be, it is certain that Moto Guzzi’s research & development center will be moved to the mothership, at Piaggio’s Noale facility. However, production will continue at the Mandello plant.
Moto Guzzi currently produces 3,500 bikes per year, but under this new plan hopes to increase production to at least 4,500 bikes by 2010, which is also the point where the company will begin to break-even.