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MV Agusta, Mercedes-AMG to separate, MV to scale back production, slash R&D budgets, reduce headcount


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In terms of sales, MV Agusta are doing better than ever before. And yet, a severe liquidity crunch is hitting the company's operations really, really hard. The partnership with Merc-AMG seems to be over already

Despite selling close to 9,000 motorcycles in 2015 (a 30% increase over the previous year!), MV Agusta are again in big financial trouble and the Italian company's President, Giovanni Castiglioni is currently struggling to keep things going. With a current debt of approximately 40-50 million Euro, MV Agusta are in a slightly weird situation right now – business has never been better for them, and yet they do not have the cash to keep things afloat.

Back in 2014, Mercedes-AMG had acquired a 25% stake in MV Agusta, and this was then seen as a big step forward for MV, in terms of bringing financial stability and security for the small Italian company. Within a short span of two years, however, the partnership has run into rough weather and already, according to Il Giorno, MV and Mercedes-AMG are preparing to go their own separate ways. "We are negotiating a buy-back of shares," said Giovanni, speaking to Il Giorno.

Given their current lack of liquidity and mounting pressure from suppliers for repayment of outstanding amounts, MV Agusta are looking at reducing their workforce by up to 200 people, as well as scaling back production from last year's 9,000 units to just 6,000 this year. Money spent in R&D will, reportedly, be cut from 15 million Euro to 7 million, while MV's racing budgets will be slashed from 4 million Euro to just 600,000 Euro.

"Unfortunately, Mercedes-AMG has not turned out to be the strategic partner as I had thought. I am now working to bring new investors in the company. In the meantime, we are carrying out a plan that aims to generate cash and then restructure the debt," says Giovanni. He's definitely not ready to give up though. "There have been Asians and Americans, and now the Germans. But who always remains, and over the years has invested 120 million euro in MV Agusta, is the Castiglioni family. We want to go back to being the Ferrari of motorcycles," he adds.
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Faster and Faster Mercedes-Benz Motorcycle News MV Agusta News

Mercedes-AMG to acquire 25% stake in MV Agusta


Could AMG's expertise with forced-induction engines mean a supercharged MV F4 RR in the near future? We hope so!

Mercedes-AMG and MV Agusta have announced a long-term partnership and have signed a cooperation agreement, whereby Mercedes-AMG GmbH will acquire a 25% stake in MV Agusta Motor S.p.A. No word yet on the price that Mercedes-AMG are paying to acquire this stake, but the two companies will work together in the areas of sales and marketing, and Mercedes-AMG will appoint one member of MV Agusta’s Board of Directors.

“MV Agusta and Mercedes-AMG are a perfect brand fit – two complementary companies that stand for design, high performance and excellence. Mercedes-AMG will help MV Agusta to further expand globally and to accelerate our growth. The uniqueness of MV Agusta will further enhance Mercedes-AMG’s leadership in the high-performance segment,” says Giovanni Castiglioni, President and CEO, MV Agusta Motor S.p.A. “In MV Agusta, we have found the perfect two-wheel partner for Mercedes-AMG. MV and Mercedes-AMG are connected not only by a long and successful racing history, but also by shared values and goals for the future. The partnership provides us with an entry into a world of additional high-performance enthusiasts,” added Tobias Moers, Chief Executive of Mercedes-AMG GmbH.

With this, each of the ‘Big Three’ German car manufacturers now have motorcycle operations as well – BMW have anyway been makes motorcycles for ages, Audi (part of the Volkswagen Group) owns Ducati, and now Mercedes-Benz will soon have a stake in MV Agusta. “The positioning of Mercedes-AMG as the performance brand in the Mercedes-Benz product portfolio will be further strengthened through the strategic partnership with MV Agusta. The strategic cooperation with MV Agusta will allow us to address high-performance enthusiasts with automobiles and with motorcycles. Through the cooperation in the area of marketing and sales, we will be able to attract new target groups for both companies all over the world,” says Wilko Stark, Vice President – Daimler Strategy and Mercedes-Benz Cars.
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