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.
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. 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.
For the past day I have been plunking away at a spreadsheet, adding in values found in several years’ worth of press releases. You see, while most motorcycle manufacturers go out of their way to hide sales information in their media communications, they still leave enough clues that allow one to decipher these pieces of information in their entirety. A monthly figure here, a quarterly result there, a percent gain over last year mentioned, and you’ve got your self five or more months of sales data extrapolated.
That being said, there is no need to go through this much work to know that Husqvarna has been having a rough couple of years. Even by just taking a straw poll from any of the BMW Group’s many glowing sales reports, you’ll find a three to four sentence paragraph outlining the continued disappointment that the Italian-based Swedish brand has brought the German company. Often not even cracking four-digit monthly sales figures, Husqvarna has been on a sales decline that has spawned BMW Motorrad’s decision to push the once dirt-only brand into the street bike scene.
In its most recent media communication, the BMW Group has praised Husqvarna’s sales success over the past two months. With the subsidiary posting a 50% gain in January, and a 2% gain in February, Husqvarna has thus far this year posted a 15% gain over the first two months of 2011. All is well for Zie Germans, no? You know the setup, continue reading for the take-down.
Not too different of an analysis from the one I did regarding the Ducati Diavel, the business case surrounding the Husqvarna Nuda is all about extending brand attributes, reaching new demographics, and putting more volume into sales figures. While I will reserve judgment on what the Nuda 900 is as a motorcycle for when A&R actually gets a chance to swing a leg over one, the positioning and reasoning behind Husqvarna’s first true-blooded street bike can be analyzed by us before the Nuda hits dealership floors early next year.
A Swedish brand based in Italy and owned by German company, there can be little wonder as to why Husqvarna suffers from an identity crisis. When the small, but eclectic, dirt bike manufacturer was brought into the folds of BMW, many loyal to the Husqvarna brand wondered and were concerned about what was in store for the company.
If brand loyalists were waiting for the first shoe to drop, then surely the release of the Husqvarna Nuda 900 & 900R is that moment. A departure from a history of motorcycles that like to get grime under their fingernails, the Nuda 900 represents Husqvarna’s attempt at a pure-street offering — a move both Husqvarna and BMW hope will pave the way for more street models, and thus more sales volume. The positioning and branding of the Nuda 900 is also especially interesting, as adding a street dimension to the Husqvarna name is certainly a new dynamic to the brand, but how to do so with parent company BMW looking over one’s shoulder is another affair all together.