The future of MV Agusta SpA company -
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post #1 of 6 (permalink) Old 09-11-2006, 06:53 PM Thread Starter
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The future of MV Agusta SpA company

What is the most likely fate of the MV Agusta in the future?

Heavily indebted, MV Agusta SpA was bought by Malaysian carmaker Proton in December 2004 for 70 million euro. In December 2005 however, Proton decided to cut its ties with Agusta and sold it to a Genoa-based financing company related to Carige for a token euro.

It seems that the company can not make a profit. If it goes under, bike values may become priceless in the distant future. However, in the near term, values would fall due to unavailibity of parts and service
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post #2 of 6 (permalink) Old 09-11-2006, 07:02 PM
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Originally Posted by yzfrr11
However, in the near term, values would fall due to unavailibity of parts and service
That is a problem of the importer. I haven't heared much problems with part being unavailable in Europe.
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post #3 of 6 (permalink) Old 09-11-2006, 08:08 PM
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I don't think MV's future is as much of an issue/worry now than it was in 2003. MV may not be turning a profit at this point, however, I do believe their bikes are selling quite well (despite current discounts).

In terms of the competition, the F41000 is on par with the Japanese bike (at least that's what the magazines have been say ) In contrast, the 750 was not competitive with the few bikes of it's class. It's now an issues of do I want to spend the cash, rather than do I want to spend the cash for less performance.

I'm not sure where MV's debt is coming from (costs, processes, etc.) but if MV could work partner with a lender to make MV's more financially accessible (kind of like how Ducat and GE had the low interest special or Jap bike have the $0 down/0 payments programs), that would help make the bikes accessible to those who want it.

So, to answer your question, without know were the loss are coming from, it's hard to say how MV will do. BUT, from a product standpoint, MV is in a much, much better position now with the F41000S, R, and Brutales than it was in 2003.

PS: On the Proton sale, I think the major issue was Proton loosing market shares in it's home market rather than giving up hope on MV's ability to turn a profit.
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post #4 of 6 (permalink) Old 09-11-2006, 11:24 PM
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Ironically, that 1 Euro sale means MV is probably more stable than they have been in years. The company is wholly owned by Italian concerns once again and the Italian government rarely lets companies disappear, especially the prestigious ones. For example, they kept Ducati alive for decades until the 916 was introduced and sales took off.

Outside of debt, which is certainly an issue, MV doen't have the fixed costs of some of the other Italian M/C companies. Ducati, Moto-Guzzi and Aprilia all have much larger factories and consequently larger costs, so at least from that standpoint, MV doesn't need to manufacture as many bikes to break even. Ducati's business model and plant capacity supposedly require the manufacture of 40,000 units per year and they're far short of that.

In any event, don't worry. Just ride the thing and have fun on one of the greatest bikes of all time, which is priceless in itself. If they go broke, you have the fun AND the bike becomes one of the greatest collector's items of all time.

You can't lose by buying an MV.
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post #5 of 6 (permalink) Old 09-12-2006, 12:35 AM
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the financial health of MV is an oft debated topic here.

as some other poster have stated, all indications coming out of varese are that the company is on much better terms and the future outlook is very promising. new capital spending has allowed the company to obtain some pretty expensive diagnostic equipment that helped them to optimize the F4 motor, which brought up the power by about 8hp.

other indicators that the company is moving in a positive direction are the hints at an expanded racing effort, with the ama superstock class as one possibility. previously, MV has stayed out of racing since it is a huge financial drain. it would appear to me that they would only consider it if they had the resources to do it, and had a real chance at winning.

btw, the investment banking firm that has control of MV is GEVI, SpA. from what i know, they are based in genoa.

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post #6 of 6 (permalink) Old 09-13-2006, 07:35 AM
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I hope they (MV) stay just as they are, I am against expansion or production increases or any scheme that would allow the masses to own an MV. If they were available to the masses I wouldn't have one OR I would expect it to be half the price.

They must be doing OK as all we have heard of in the last few months are the new models coming and the venture into racing with the new GP machine ... to be released this month in Milan? (is that correct?)
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