If you believe the rumors coming out of Italy, Polaris is poised to
save acquire ailing motorcycle manufacturer MV Agusta.
We have documented MV Agusta’s precarious financial troubles already in great detail, and how MV Agusta CEO Giovanni Castiglioni is between a rock and a hard place with his main investor, Mercedes-AMG.
According to the Italian media, and those who repeat their words like parrots, Polaris represents an escape from MV Agusta’s difficult position with the German automobile-maker, though the reality is that nothing could be farther from the truth.
The story of MV Agusta continues with even more interesting developments, as the Italian motorcycle manufacturer seems intent on buying back its shares from Mercedes-AMG, and recapitalizing with new investors.
Talking this week to Italy’s Il Giorno, MV Agusta CEO Giovanni Castiglioni said that he is “negotiating a buy-back of shares,” though that might be a task easier said than done for the Italian CEO
This is because MV Agusta’s current financial predicament is due primarily from the company’s massive debt accumulation, which now totals over €40 million.
MV Agusta as a motorcycle company has always seemed to have feet of clay, especially when its financial future is concerned. Today is no different, as MV Agusta has announced its intentions to restructure its debt, in order to keep the company afloat.
Afloat is an interesting phrase, as the storied Italian brand has changed hands four times in the past 12 years, with two of those purchase prices being a token euro, as MV Agusta’s liabilities far outstripped the company’s assets and holdings.
Fast-forward in time and it would be easy to say that not much has changed, as MV Agusta now has €40 million in liabilities on its balance sheet, all non-essential staff have been furloughed, the production lines in Varese recently have been motionless.
While this seems like more of the same from MV Agusta, the situation is far more complex, and for once in its lifetime, it isn’t MV Agusta’s lack of sales that are to blame. In fact, it’s the opposite, as it is MV Agusta’s success in growing its motorcycles that is the cause of its current financial situation.
That might seem like a counterintuitive notion, but if you understand the relationships between chickens, eggs, and which came first, then you will understand the situation at hand here with MV Agusta.
And while this impasse isn’t a new one in the business world, it doesn’t change the fact that the future of MV Agusta is in a precarious state.
MV Agusta and AMG are at the 66th IAA Frankfurt International Motor Show this week, celebrating the partnership the two brands share, as AMG is a minority shareholder in the Italian motorcycle brand.
Helping that celebration is this very colorful “Solar Beam” MV Agusta F3 800, which is just so damn yellow, we had to share it with you.
The machine isn’t anything more than a paint job, which happens to also be a nod at the Mercedes-AMG GT that rocks the same “Solar Beam” livery, but that’s ok with us — it’s a fetching color design, no?
We won’t waste more words with you: more photos of this impossible-to-lose-in-a-parking-lot motorcycle are after the jump, for your viewing pleasure.
Confirming much of what we already knew, MV Agusta’s spec sheet has the F4 RC making 212 hp with the race exhaust, or 202.5 hp in street trim, while peak torque is 84.8 lbs•ft in either configuration.
Thanks to carbon fiber fairings, titanium connecting bolts and exhaust, lithium-ion battery, forged aluminum wheels, and magnesium casings, the MV Agusta F4 RC is 33 lbs lighter than the RR model, with a 386 lbs dry weight.
As expected, the 2015 MV Agusta F4 RC is equipped with the MVICS 2.0 electronics system, which includes traction control, ABS, rear-wheel lift control, and quick-shifter.
We are still waiting for the 2015 MV Agusta F4 RC to break cover officially, but the top-of-the-line superbike from Varese continues to make itself sneakily available to the public.
First there were the leaked studio photos, which looked spot-on to the photos MV Agusta USA teased us with at its press launch earlier this year.
Now, we have more photos of the F4 RC leaking, though with some changes to the design — namely more prominent “AMG” badging, for MV Agusta’s newest minority partner.
One of the worst-kept secrets in the motorcycle industry, Mercedes-AMG has now officially acquired a 25% stake in MV Agusta S.p.A. The news also sees Mercedes-AMG and MV Agusta signing a long-term partnership agreement, as well as collaboration on future sales and marketing efforts.
Neither Mercedes-AMG, nor MV Agusta, are talking the price of the 25% investment, though rumors peg the cost of the deal around €30 million — a very good valuation compared to the €747 million Audi paid for Ducati Motor Holding just two years ago. Also as a part of the agreement, Mercedes-AMG will appoint one member to MV Agusta’s board of directors.
The writing was on the wall with this piece of news, as after Audi’s acquisition of Ducati Motor Holdings, AMG has terminated its marketing partnership with Ducati. The announcement should not surprise anyone, as AMG & Ducati were certain to sever ties as soon as Mercedes-Benz bowed out of acquiring Ducati Motor Holding, and Audi was rumored to have picked up the ball.
Marketing with “the other team” surely neither Audi nor AMG wanted Ducati to be associated with the other, and all that remained was some fancy foot-work from the lawyers to end the partnership amicably and swiftly. Needing only a day to do so, we think the language in AMG’s statement after the jump has interesting spin to suggest the suits could have done a better job.
More reports are starting to surface about Audi’s pending purchase of Ducati Motor Holding from Investindustrial. Said last month to have offered the private equity firm somewhere in the neighborhood of €750 million, Reuters is now reporting the figure to have been closer to the €870 million to €875 million range, which is closer to the original rumored offer of €850 million by the German automaker. What is most interesting in the report by Reuters is the notion that Audi is not making an offer to buy all of Investindustrial’s financial position in Ducati Motor Holding, which accounts for about 70% of the company.
Mercedes-Benz and Ducati continue to circle each other, as the two iconic brands hammer out the details of how an Italian motorcycle company would fit inside a German automobile manufacturer. While the bean-counters and pencil-pushers get that shotgun marriage’s pre-nup arranged, we get to see interesting co-branding “partnerships” like this: the Ducati Diavel AMG Special Edition. While we’ve seen plenty of AMG-tuned cars in Ducati adverts, events, and press materials, this is the first time the sacred three-letter name has graced the haul of one of Bologna’s steads.
When Ducati Corse announced that it had “partnered” with Mercedes-Benz’s in-house tuning brand AMG at the LA Auto Show, the deal raised a few eyebrows and sent shock waves across the keyboards of journalists as everyone asked themselves “what could this all mean?!” At the time it was obvious that the AMG brand would be featured on the Desmosedici GP11 race bikes of Nicky Hayden and Valentino Rossi, and that the sponsorship was just one of many that Ducati had secured, likely having something to do with a certain nine-time World Champion.
However the deal still stuck out as more than a straight advertisement transaction, with Ducati even saying that the relationship would be reciprocal, with the Bologna Brand helping hock a few Stuttgart Sleds in Mercedes-Benz’s ad campaigns. We got our first taste of how that cross-pollination of a partnership would look almost immediately after the announcement, with the two brands engaging in a sort of teaser video of what was to come further down the road (road…get it? ha!).
Then of course more recently we got another taste as the Ducati Superbike 848 EVO made a cameo appearance in a commercial that pitted it against a Mercedes-Benz C63 AMG Coupe. A lesser known fact to the public, but one readily apparent to journalists who attended the Ducati Diavel launch in Los Angeles, was that Mercedes-Benz has been supplying AMG-tuned vehicles to Ducati to use at press, media, and public events.
While it would seem that the two premium brands are exploring the limits of their marketing synergy, and how two wheels can compliment four wheels, and vice versa, reliable sources close to Asphalt & Rubber have revealed that the partnership goes deeper than just a joint-marketing campaign, and is in fact a part of an elaborate purchasing agreement that sees Mercedes-Benz acquiring Ducati Motor Holdings should certain criteria be met.