Marzocchi Will Cease Operations by the End of 2015

Google+ Pinterest LinkedIn Tumblr

It seems any efforts to save Marzocchi have been squashed, as the suspension company’s owners, Tenneco Inc., intend to cease Marzocchi’s world operations and transfer its motorcycle and bicycle business for clients to new providers.

The news not only affects a number of motorcycle manufacturers, but also 127 employees at Marzocchi’s Bologna-based factory, and another 11 employees in North America and Taiwan.

Tenneco announced its intent to shutdown Marzocchi back in July, though the news has been slow to permeate the motorcycle industry.

“We sincerely regret the impact these actions would have on our Tenneco Marzocchi employees, and thank them for their tireless efforts to improve performance and reduce costs.  Unfortunately, it was not enough to overcome continuing market challenges in the two-wheeler business,” said Tenneco COO Brian Kesseler. “We are committed to working with our employees’ representatives, and with our customers to make the transition as smooth as possible.”

Those familiar with the financial position of Marzocchi will not be surprised by this decision, as the suspension manufacturer has been operating in the red for quite some time, with a new business strategy unable to affect that position.

Tenneco is reporting that it will save $7 million a year by closing Marzocchi. It is not clear how much Tenneco will make in selling the Marzocchi’s assets, but Tenneco expects to spend $27 million in the process of shutting down the suspension manufacturer.

Tenneco expects to have Marzocchi’s business operations finished by the end of 2015.

Source: Tenneco