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Mercedes AMG buys 25% of MV Augusta

Discussion in 'General Motorcycling Discussion' started by cjvfr, Nov 1, 2014.

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  1. That will certainly help MV stay alive.
  2. Yes and access to the Mercedes materials and engineering know how could be interesting times for Augusta.
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  3. Latest S-Class has different scents you can select for your cabin - will the 2016 F3 800 give me those options? :asshat:

    They are beautiful machines, if the fit and finish will reflect some of the Mercs offerings in the future, my money is in danger..
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  4. Hopefully Mercedes Benz keep the MV marque going....unlike what they did when they bought the iconic Horex motorbike company in 1955.
  5. It is MV Agusta not MV Augusta.
  6. there have been recent reports of liquidity issues, but now...

    MV Agusta Files For Chapter 11 Bankruptcy - Cycle News

    MV Agusta Files For Chapter 11 Bankruptcy

    MV Agusta could be on the verge of closing its doors after filing for Chapter 11 Bankruptcy in the Italian courts. A Chapter 11 is unlike a traditional bankruptcy, more a request for financial breathing space where loans are frozen, time is granted to allow the company to get back on its feet and give them a chance to save what positive assets are left.

    The past 24 months have been somewhat positive for MV Agusta, with 25 percent of ownership now in the hands of Mercedes AMG and solid growth thanks to a claimed 30 percent increase in international turnover, new models and more competitive pricing. However, this doesn’t appear to be enough to stem the tide of growing creditors lining up to be paid at the Varese manufacturing plant.

    It’s yet another sad scenario for MV Agusta, a company that’s changed hands numerous times since being revived by the late Claudio Castiglioni 20 years ago. Harley-Davidson tried to get the famous MV brand revving again, as did four-wheel concern Proton. The company is now back in Castiglioni hands in what proved Claudio’s last business move before his death in 2011 with his son Giovanni at the helm.

    MV Agusta recently started development of a series of three-cylinder machines to match its long-standing heritage with the triple engine configuration and has seen some success in the World Supersport arena with Frenchman Jules Cluzel taking a number of WSS wins on the beautiful F3 675. It’s been a more trying time in Superbike, with Leon Camier on the four-cylinder F4 now in his second full year with the company and in a seemingly constant struggle to match the speed of Ducati and the Japanese manufacturers.

    MV Agusta recently launched the Turismo Veloce 800 sport touring machine in an effort to expand their predominantly sport and nakedbike based line up, with an adventure machine also rumored to be coming late this year. This, however, now seems on the back burner as Castiglioni fights to save what is left of his company, and the jobs of his workers.
  7. If I am not misstaken Ducati did the same more than once, I thought they went into some form of Government assistance to trade out of this in Italy.This could be something I dreamed up but that's what I remember from the distant past
  8. To stump up more cash AMG wanted mayority stake in MV. Young Castiglione did not want that.

    The current bank loans are all Dependant on AMG retaining a 25℅ holding. Getting in another investor would dilute that and default the loans and be immediately payable.

    So Castiglione met with the unions and agreed the best way to keep the company Italian (and under his control) would be to get some debt restructuring.
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  9. The bottom line is, you can only safely fund growth on debt if you can guarantee that your income will cover your existing costs, plus at least the interest on the debt.
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  10. You are right, hornet, in the real world, but try convincing a politician. ;)
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  11. Now I think on it, it's a pity that VW didn't buy into MV.

    MV, for some unknown reason, bought the rights and tooling to build Mini Mokes, and, if someone was to produce a Mini Moke with the VW/Skoda 1200cc turbo motor and 7 speed DSG box, I'd buy one.... so long as it was yellow.
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  12. So part of the 'restructuring' is to cut back structures to produce 7000 units annually. They were geared up for 11000.

    They have no problem with sales growth (30% past year ) just they have been ploughing back 15% to fund R&D. Developing the 3cyl range has taken a few years (and one can say they did a fair job at that- latest ones really are sorted with previous weak spots addressed) but they still have a fair bit left to modernise the 4cyl range.

    Turns out the MV race team is a different private company so not affected by all this. Did anyone notice the absence of AMG stickers on Cluzel and company at the last Thailand round?
  13. MV Agusta in crisis Published: Yesterday 16:24

    MV Agusta will have to get smaller in order to survive over the long term, and that process has already started according to boss Giovanni Castiglioni. The Italian marque is to undergo a complete restructuring as it seeks the financial backing it needs to stave off liquidation.

    Rumours that production had ceased at the factory first began to surface in February, with local sources and insiders suggesting that much of the workforce had been sent home as management sought increased investment from its current partners, or to find new investment elsewhere. The factory phones went unanswered, and no staff would go on the record to confirm what was happening.

    But following the firm’s first public admission this week that all was not completely well at MV, Castiglioni spoke exclusively to MCN about the situation, explaining that the company are involved in a ‘continuity agreement’ with creditors, and that a complete restructuring of the operation would reduce costs and, combined with money from new investors, would enable the company to weather the storm.

    In essence, the company has run out of cash and the debt it currently carries is being moved and renegotiated. In the short term MV have been granted a ‘payment holiday’, while the management seeks fresh investors and new repayment terms. A deadline of the end of 2016 has been set for everything to be resolved, but MV boss Castiglioni expects a resolution to come sooner.

    Castiglioni told MCN: “We had a plan to increase production volumes at MV Agusta to between 15,000 and 20,000 units a year, and now we have decided that’s not achievable.

    “We are going to concentrate on our core business, which is to build premium bikes such as our F4 superbikes, and fast tourers including the Turismo Veloce 800 – but all of this will be with smaller volumes.

    “Our current liquidity problems have come from our spending on research and development on new models over the past few years. We have expanded the model range a lot. Our research has now shown customers want a different type of MV and that is at the high end of motorcycles, which we will be focusing on for the future.

    “We will be restructuring the debt and seeking new investors. Nothing has been signed at the moment for new investment, but the company will be carrying on while the search continues.”

    The rumours surrounding MV over recent weeks suggested production lines had completely stopped and staff had been laid off but Castiglioni poured cold water on these reports, explaining that: “Production has not stopped, but production lines have been slowed down for some months now and we have lost a lot of production because of this. We have been concentrating on selling off the inventory of bikes to raise money.”

    German car company AMG - a division of Mercedes-Benz and parent company Daimler - is a 25% shareholder in MV Agusta, and there have been unsubstantiated rumours that AMG were willing to either sell off their shares or take a larger stake in MV, on the condition that Castiglioni stepped aside.

    “These are not completely true,” says Castiglioni. “I cannot speak for Mercedes or AMG but as far as I know there was no interest in them being a motorcycle producer. Losing them as a minority shareholder is not a problem to me. I want to carry on running MV and I’m not interested in selling the company.”

    While Castiglioni won’t be drawn on details over how many bikes the company will aim to sell each year he says it will be fewer than in 2015, which he confirmed totalled 8500 units.

    So which models are likely to suffer in this focused restructure? With Castiglioni suggesting that the high-end models would form the bedrock of the business going forward, the implication is that the current 20-bike range will be reduced to a more streamlined selection, with the F3 675 supersport machine, Brutale 675 naked, and the base models in the rest of the 800 and F4 range likely to be phased out in line with stock running out. Time will tell if a deal can be reached that offers the firm more security, but it seems the MV rollercoaster ride isn’t over yet.
    • Informative Informative x 1
  14. At least Eric stepped down from CEO the rather than letting his company die.
  15. Castiglioni's stance is surprising considering his heritage would suggest he would take a backwards step.
  16. Oh that explains why price of coffee keeps on going up all the time.