MV Agusta Introduces Repayment Plan in Court

10/24/2016 @ 6:50 pm, by Jensen Beeler7 COMMENTS


MV Agusta has unveiled in court its plan to get back to financial stability, after seeing cash flow issues reaching a zenith in March 2016.

The plan is exactly as it has been previously advertised by MV Agusta CEO Giovanni Castiglioni: MV Agusta will reduce its workforce, produce fewer machines, focus on high-margin models, and seek a freeze on its debts to creditors and suppliers.

Whether the Varesini court will accept this plan remains to be seen, it will also require some buy-in from MV Agusta’s creditor and suppliers, who are owed €50 million from MV Agusta.

Right now, MV Agusta is working with roughly 200 employees at its Varese factory. Those remaining employees will be focusing their attention on MV Agusta’s more profitable models, namely the company’s four-cylinder platform.

As such, a new four-cylinder MV Agusta Brutale is expected to be the big debut at the upcoming EICMA show in Milan.

Going forward, MV Agusta will target a production volume of roughly 10,000 units, which will see some consolidation in the three-cylinder lineup. We would assume this means that the three-cylinder lineup will include the F3, Brutale, and Turismo Veloce, but that remains to be seen.

MV Agusta is still looking to shed AMG from its ranks, and talks of a new investor remain in the moto-rumormill. It’s likely we will hear more about these movements during the company’s 2017 model lineup debut, in Milan. Stay tuned.

Source: Il Giorno

  • Superlight

    Yeah, that makes a lot of sense – focus on the now-outdated 4-cylinder lineup instead of upgrading the newer, more competitive 3-cylinder bikes. One might ask why the F3 models have not offered Ohlins suspension, M50 Brembo calipers and forged wheels beyond the the initial “Oro” machines if MV wants more profitability. Instead, MV gives us “bold new race graphics”. And no matter what bikes MV offers it would be a good idea to have more dealers to sell/service them in the US.

  • sburns2421

    IMO the triples are seen as middleweights and will always have price pressure from competitors. The fours are seen as the premium top class and they can charge more (higher margin and more profit per bike).
    If most of the work redesigning the four is already done, focusing on it for 2017 makes sense. You have to wonder why not have a 1000cc homologation special F4, then put 1100cc+ in the standard F4 in 2018.
    Having been through similar situations in other industries, what MV has to do is focus on what they can realistically do with limited capital for development. Basically get back to their core business. Not sure if the Turismo Veloce will make it in the long run, but a big four to replace the triple might do it. Seemed to work for BMW and the S1000R.

  • rognin

    Sometime, just sometimes… I hope they fail and AMG takes over.

  • Statement Plus

    oh god this is exactly what they shouldn’t be doing. I wonder why they used the cash injection to develop a modern triple supersport when they really should have just made a new flagship superbike. Superbikes is what grabs headlines and puts manufactures back on the map. The entire lineup they have based off the triple they could have done with a 1000cc, simply detune it like BMW does. Then they need to price bikes very aggressively to get the cash flow. Cash flow is king in business. Even if you’re breaking even or even losing a tiny bit. As long as you got that cash flow and bikes are flying out the door.

    Im’ pretty sure MV will be on it’s last life line these next few years. It could be even be worse if the court hearings do not go favourably. Do I see MV for sale soon? I don’t even think Merc AMG wants to play the bike game anymore. Mahindra may be eyeing this MV development…the snagged BSA and they may want to snag more. Indian firms tend to go for British stuff though, perhaps a show of “we are not your colony anymore and we’re buying all your nice stuff” attitude.

    The fate of MV…could be messy, like Buell.

  • Superlight

    No question the triples are “middleweights” and can’t command the big dollars like the 1000s, but since MV doesn’t have up-to-date fours and does have competitive triples suggests to me the direction they should take right now – focus on their most competitive entries.

  • paulus

    I suspect suppliers are unwilling to take the risk of non-payment and MV lacks the cash to pay up front.

  • Bingo.