MV Agusta Introduces Repayment Plan in Court

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

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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