MV Agusta – Money trouble

MV AGUSTA APPLIES FOR CHAPTER 11 BANKRUPTCY
Does the Italian manufacturer need to refresh its lineup to survive?

Today I received a note from MV Agusta confirming that due to its tight financial situation–created by inadequate sales numbers and consequent losses, and lack of fresh money–MV Agusta’s top management had decided to apply for Chapter 11 bankruptcy in order to save what positive assets are left in the company.
So far, there have been no releases from Mercedes-AMG, a 25 percent owner of MV Agusta. The move is announced as the sole possible option for saving the company, the workers’ jobs, and any possible future credible position in the market.
MV Agusta has always lived an unusual life, even when it was owned by Count Domenico Agusta, and was winning world titles by the truckloads thanks to the supreme technology of its racing bikes. But the quality of its production bikes at the time was inadequate given the very high prices they fetched. So sales lagged low, but Count Agusta cared mostly for his racing bikes, since losses in the production bike department were filled in by the sales of helicopters.
Today, the quality of production MV Agusta bikes is controversial: the three cylinder bikes are very good, and have proven competitive in World Supersport racing (Jules Cluzel just won in Thailand on his 675cc MV Agusta F3). But the four-cylinder F4 has struggled in terms of sales, and continues to struggle competing against other open-class rivals both on and off the track.
Reading comments from readers on my recent report about the MV Agusta situation, I must agree with “Superlight” when he says that MV Agusta must focus on a more appropriate line of products. Focus on the “good” engine (the three-cylinder), and on its tradition in the sport. The Brutale, Rivale, Dragster, and Stradale are all an overlapping interpretation of the naked bike theme, one should be enough.
MV Agusta could easily dress up the Brutale engine/chassis platform as a mid-sized “Supersport.” The current, Euro 4 legal, 116 horsepower MV Agusta 800 is a torquey, responsive, user friendly engine that delivers good performance. So is the new Brutale chassis, just add a well-designed fairing, clip-ons, an F3 inspired tank, and you’ve got yourself a very attractive MV Agusta Supersport 800. A real MV Agusta.
Stay tuned here for more on this subject as the story develops.

Source:

https://www.cycleworld.com/2016/03/23/mv-agusta-applies-for-chapter-11-bankruptcy-motorcycle-news/?src=SOC&dom=fb

Statement from my dealer

COMPANY ANNOUNCEMENT
Over the past month or so other UK dealers have been quiet about issues at the MV factory, this is understandable as they try to protect their livelihoods. However I think it is time to speak out to inform our valued customers of our view and future with the MV brand as a leading UK MV solus dealer.
GC the major share holder and effective current owner of MV proudly boasts of MV the brand and quite rightly too. His vision of the future is to downsize and produce fewer higher spec, higher priced machines. However he happily accepted millions of euros from AMG with the vision of a wider product range, and a sales target over several years of 20000 sales per year. He has taken the money, spent it and now wants them to disappear and he take the reins of this new and improved business. He has his photo taken puffing Cuban cigars in flashy suits, fast cars and a footballers multi million pound salary . However the workforce are watching Jerrmy Kyle on telly at home and no bikes or parts are being produced for their loyal customers.
He is an egotistical millionaire who if he did care for the brand would have handed the ownership of MV to AMG or another partner in an ordered planned way. Not wait till funds run out and then moan about AMG and then seek another investor whilst filing for liquidation protection . This current situation has damaged the brand massively and all his calls for restructure are not what was planned or promised to AMG when they bought their shareholding. Or promised to dealers who have invested huge money and time with the MV brand we all love.
So here is where I stand.
If AMG are not successful owners of MV in the very near future we will NOT be selling MV products or services.
I personally apologise to all our customers and service clients for all delays in warranty work and service parts not being delivered from the factory.
We have not received any parts including basics like filters in over 3 weeks now
Or had any warranty claims approved.
I apologise to all but hope you our valued customers have always treated you in an open professional manner.
To this end we are currently negotiating several other dealership opportunities going forward.
However nothing will make me happier for the MV brand than for an AMG takeover which will hopefully bring this fantastic 70 year old company into sustainable growth profitability and top quality levels of management and customer service which have been lacking in the past.
We as always will keep you posted on any news as we have it.
Thanks to you all. Edward Cosker.