MV Agusta is set to retire the MV Agusta F4 superbike, but not before one last farewell. A final homage to the venerable machine, and a nod to the man who helped create it, the MV Agusta F4 Claudio is the supreme example of the Varesini company’s focus on performance and art. As such, only 100 examples will be produced.
The special edition model is based off the MV Agusta F4 RC platform, which means a 212hp inline-four engine when the dual-tipped race exhaust from SC-Project is installed. Peak torque hits 85 lbs•ft at 9,300 rpm, with a redline that reaches to 14,200 rpm. The bike still manages 205hp in street-legal trim.
The show finishes with us trying not to talk about a story that has been going viral in the two-wheeled space. You can probably guess it from the title of the show, but rather than stoke the fires directly, we try and approach the subject from a more elevated perspective.
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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.
Have you ever wondered what the backstory was to building a motorcycle? Perhaps no greater version of that story exists than the rebirth of MV Agusta from the hands of Harley-Davidson, and the building of the company’s supersport model, the MV Agusta F3. Making an appearance on National Geographic‘s “Mega Factories” show, the doors of MV Agusta were opened up to the film crew’s cameras, and a fairly candid look at what is behind the curtain takes place.
The reason for the show’s success is because it is always interesting to see what goes into building our favorite machines, and for motorcycle enthusiasts, the insight given by MV Agusta tells more of the saga that surrounded the development and production of the F3, and the reason for its delays to market.
Writing an open letter to the motorcycle industry, Giovanni Castiglioni, CEO of MV Agusta and son of Claudio Castiglioni, not only pays tribute to his father and his vision, but also aims to alleviate concerns about the next chapter in MV Agusta’s story. The path for any Italian motorcycle company right now is uncertain, and MV fans are anxious to see what Castiglioni has in store for the rebirth of this iconic brand. While we’re still seeing the tail-end of Harley-Davidson’s playbook for the Italian company, over the next few years we will begin to see the changes and projects from the new Italian regime.
Where that leadership will take MV Agusta as a brand and as a company is not immediately clear, but it is worthy to note that not only has the company changed its corporate ownership, but MV Agusta has also now undergone a generational change in its core management. Though likely not to be talked about in great deal in the mainstream, make no mistake about how this will factor into changes at MV Agusta.
With the Italian company reported facing serious cash flow problems, and a bevy of new models to debut in the coming months, all of these factors create plenty to watch at MV Agusta. Certain to be full of highs and lows, the only thing we know for certain about the company’s future going forward is that it will be interesting. Giovanni Castiglioni’s open letter is reproduced in full after the jump.
Claudio Castiglioni, President of MV Agusta, passed away this morning in Varese, Italy at the age of 64. In a statement from MV Agusta, the company says that Castiglioni succumed from an unnamed illness while attending a clinic in Varese. Over the course of his career, Castiglioni touched such esteemed brands as Ducati, Cagiva, Husqvarna, and of course MV Agusta. His most recent accomplishment was bringing MV back into Italian ownership, in an act of business acumen that saw Harley-Davidson actually pay Castiglioni €20 million to take back the recent refurbished company.
Registering “Elephant” with the United States Patent & Trademark Office, MV Agusta looks poised to make an adventure bike, based off the Cagiva Elefant mark of yore. In its application, MV Agusta cites the use of the trademark for “land vehicles, namely, motorcycles,” which certainly bodes well for those loyal to the old Elefant brand.
The trademarking process began in July of 2009, meaning the Elephant-branded motorcycle was a glimmer in the company’s eye while it was still a part of Harley-Davidson, as was the MV Agusta F3. Granted the trademark in October of 2010, it’s possible that the project has since been disbanded after MV’s divesture from Harley-Davidson. However there are plenty of arguments to suggest MV Agusta would have kept the project alive through its transition of ownership.
In what can only be described as a terse press release, MV Agusta has released two teaser photos of its upcoming MV Agusta F3, the three-cylinder supersport bike that Claudio Castiglioni hopes will save his company. Known to be using a three-cylinder motor, it has been previously reported that the MV Agusta F3 would be a 675cc machine, just like the Triumph Daytona 675. However the Italian brand has confirmed that it will be using a 600cc displacement for its street machine, while giving us a glimpse of the bike without its F4 camouflage.
Italian news site Il Sole 24 Ore sat down with the new owner of MV Agutsa, Claudio Castiglioni, and asked the Italian perhaps the most pertinent question about his new company: what’s next? Striking to the point of things, Castiglioni says much of MV Agusta’s future will depend on the company’s new three-cylinder motorcycles, which the company hopes to sell 10,000 of during the next model year.
Officially now called the MV Agusta F3, Castiglioni was also forthright on some of the details. Already rumored to be a 675cc three-cylinder powered motorcycle, Castiglioni has confirmed this setup along with the fact that there will be at least two price points, with a base and sport model being available.
There has to be a bevy of high-fives going on in Milwaukee right now, as Harley-Davidson has finally unloaded MV Agusta from its holdings (we broke the news on the purchase earlier this morning). Harley-Davidson bought MV Agusta for $109 million back in 2008 (most of which was bad debt), and now just a little over two years later is making a tidy profit of…well, nothing. After wiping the books clean, investing in new infrastructre, and getting MV Agusta back on track with an all new model line-up (with a bike on the way), Harley-Davidson saw a paltry sum of €1 cross its desks. Harley-Davidson shares are down 3.5% as of this writing.
Instead Harley-Davidson is calling things even with the Castiglioni family, who would have seen a stock pay-out had the company exchanged hands with another buyer, like TPG for instance. The Castiglioni’s stock was worth somewhere between €20-€30 million, and now with 100% ownership, the Italians are free to once again run MV Agusta into the ground, just like they did leading up to 2008.
Harley-Davidson & MV Agusta press releases are after the jump. One interesting point of note that taking the helm of MV Agusta is former Ducati General Manager and Chief Engineer Massimo Bordi. Bordi was once offered the job of CEO at Ducati, but turned it down, and the position was filled by Gabriele del Torchio, Ducati’s current CEO. Bordi’s last item of business at Ducati was trying to sell the Italian brand to Harley-Davidson, which makes for some good irony in today’s announcement.
Expected to be closed within hours, Harley-Davidson is on the verge of selling MV Agusta to Claudio Castiglioni. Castiglioni was able to leverage the purchase of MV Agusta by using the funds that would have been generated by his stock buy-out, which is rumored to be between €20 – €30 million. Castiglioni is today’s big winner in the deal, as the Italian is basically buying back the company he sold to Harley-Davidson for pennies on the dollar, while Harley-Davidson is left holding the tab on a hefty purchase price and cash infusion into the Italian company.