If Moto Morini was a household dog, someone would have taken it out to the backwoods and put the damn thing down already. Yet, Administrators in charge of handling the bankrupt company’s assets are gearing up for yet another attempt to auction the brand, building, anything in order to get some euros back for Moto Morini’s creditors. Set to take place on July 19th, the auction aims to sell the company and its premises for €4.65 million (down from €5.5 million), but will strike a deal on the assets for a cool €1.95 million (also down from €2.6 million). Will this make a difference? Probably not.
Zero. Nada. None. That’s the number of offers made on Moto Morni and its facilities during today’s bankruptcy auction proceedings. The beleaguered Italian motorcycle manufacturer has had a rough time of things, since its closure hit the newswires back in December 2009. Several suitors have come to the company’s door, trying to woo it into acquisition. First it was Paolo Berlusconi, who came close to finalizing a purchase of Moto Morini, before the unionized labor put the kibosh on the transaction, and Berlusconi walked from the business deal.
Perhaps unsurprisingly was the failure of any offer from Thomas Bleiner to materialize, despite the Austrain businessman’s great lengths to publicize his intentions of purchasing Moto Morini. Bleiner’s plan involved supplementing the motorcycle company’s income with a bank of solar panels, made by Bleiner’s other venture, that would be affixed to the Bologna factory’s rooftop. As was thought at the time, this announcement appears to be just a move to drum up some publicity for the photovoltic enterprise, and not a serious interest in Moto Morini.
As Moto Morini marches closer to its April 13th auction date, a new potential buyer has come out of the woodwork for the troubled Italian company. Thomas Bleiner, an Austrian entrepreneur, has his eyes set on the Moto Morini facility with an interesting idea or two up his sleeve.
The proposal for the purchase is expected to be an interesting one, as Bleiner and his partner Gianni Farneda plan on making the dollar and cents of the deal work by installing a 1.1 megawatt photoelectric power system on the roof of the Bologna facility. Bleiner and Farneda have been heavily involved in the solar industry, developing a new photoelectric paint that uses nano technology.
Bleiner and his group believe they could have the factory up and running as early as June with at least eight employees returning to work. With the Granferro and Corsair lines seemingly to be ready to roll, Bleiner says the company could even make a November EICMA appearance. If this sounds a bit too good to be true, then perhaps it is, as Bleiner and his partners have yet to actually submit a bid to Moto Morini’s receiver, despite making the rounds to the Italian magazines and newspapers about their intent to purchase the brand.
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.
After getting his first offer to purchase Moto Morini rejected by the local unions, Paolo Berlusconi looks to have overcome the setback, and could finalize the purchase of the other Bologna brand by as early as next week. This news comes after provincial administrators called an emergency meeting, which resulted in some concession by Berlusconi.
At the center of the controversy is the number of workers Berlusconi will keep on at the Bologna-based plant. According to reports, this number has been increased from 20 to 26, out of total of 57 workers who worked at the plant before it entered into receivership. This concession does not come without consequences though.
You have to love labor unions sometimes. Faced with the prospect of being completely out of work, the labor union negotiators have rejected a proposal from Paolo Berlusconi that would save Moto Morini from going completely out of business. Of course us Americans can relate to this plight, as we just recently watched the UAW try to pull the same tactic while the US automotive industry crumbled around them. The blocked agreement is obviously bad news for Moto Morini, but Berlesconi is likely not done pursuing the troubled Italian manufacturer.
After a 60 year hiatus, Lambretta is finally returning back to the 125GP racing stage. Entering as Lambretta Reparto Corse, the team has already confirmed Marco Ravaioli as one of their two riders. The move seems to be primarily to help get the iconic Italian brand back into the public limelight as Lambretta is set to start production of its first new range of scooters since the 1970’s.
According to Lambretta, the team will hold a racing department in Bologna at the workshops of Engines Engineering, despite Lambretta being based out of Milan. Nicola Casadei will serve as the team’s Sporting Director, while Giancarlo Cecchini will develop the bike’s rotary valve engine, which is expected to show up in new Lambretta designs.
With track conditions at the Imola causing a near mutiny during the practice sessions, there was a panic in the WSBK paddock as to whether racing would occur at the Bologna circuit this weekend. After track officials cleaned the Imola tarmac, it became too slippery to ride upon. Whether due to the mixture of oil and water on the track, or the absence of the usual layers of rubber forming on the race line, the conditions caused riders to refuse to take to the track over safety concerns.
Commenting about the conditions, Ben Spies stated the course was slipperier than full wet conditions. Max Biaggi was also heard saying that the course was too slippery for racing, and that Sunday’s races could not take place on the course under these circumstances. Despite this, WSBK Superpole action still occurred, read on for more.
It looks like Ducati will be moving out of their current headquarters at Borgo Panigale (just outside the old city walls of Bologna), and into a new facility down the road at Perscietana. The new facility will boast nearly 1.8 million square feet, with space included for events and exhibits for customers and visitors, along with a new restaurant and test track.
The world markets may be down, and stores may dropping out of business like it’s third period French class, but Ducati is finding the economic downturn to have an upside on its balance sheet.
Ducati’s sales revenue for the first three quarters of 2008 grew by 25% compared to last year’s figures. This means to close to $417MM in revenue for the Bologna Bandits, with their bottom line looking 87% better than before, totaling in at $41MM.
Why now brown cow? Well shipments from Desmo-central to dealer floor rooms has been up by 19% for the year so far, with sales up 8% worldwide. In the meantime, worldwide industry sales are down 6%. Evidently, those cars that people aren’t buying, is not equating into motorcycle purchases (you know…for the mileage advantage)
The Bologna Boys say they are still on track to achieve a forecast 20% growth in worldwide sales for full fiscal year, up from a predicted 15% sales growth.
How are the other European manufacturers doing?
KTM has had a 50% drop in operating profit for the full 12 months of its fiscal year, closing the books at $21MM. The House of Orange (not Oranj) is blaming this decline on a bad Dollar to Euro exchange rate, and plans to cut motorcycle production for the 2009 season by 10%.
Piaggio (owner of Aprilia, and most of Europe’s scooters) is also cutting back on production across all its motorcycle and scooter brands after depressing results for the first 3 quarters of 2008. Overall sales were down by almost 6%, falling 10% in Europe, which accounts for about 80% of its bike and scooter sales.
BMW, while slightly more insulated, is feeling the pain too, with global motorcycle sales down by 2.5% in the same period, and profit from bikes falling by nearly 16%.
In other financial news, the trade-deficit for sportbike hotness in the United States has increased another 300%. Sorry Buell.