Another article (Potential MV Sale): M&M revs up for Italian ride - MVAgusta.net
 
LinkBack Thread Tools Display Modes
post #1 of 2 (permalink) Old 05-19-2008, 07:00 PM Thread Starter
Senior Member
 
Amer's Avatar
 
Join Date: Nov 2005
Location: Mountain View, CA
Posts: 418
Send a message via Yahoo to Amer
Another article (Potential MV Sale): M&M revs up for Italian ride

MUMBAI/DELHI: Italy is fast turning into a hunting ground for Indian auto companies and more so for Mahindra & Mahindra. The tractor and utility vehicle maker is learnt to have set sights on Italian motorcycle marque brands ó Cagiva and MV Agusta ó famed for designing high-end, high-performance superbikes that are a rage on the speed motorcycle circuit.

This development comes close on the heels of M&Mís interest in buying a controlling stake in Italyís Stile Bertone, a high-end design company. ET had reported in April that M&M has initiated buyout talks with the Bartone family.

The Castiglioni family, which owns flagship MV Agusta and Cagiva motorcycle brands, has been facing financial troubles for some time and has been on the look out for a potential acquirer.

Despite a limited roll out of 8,000 bikes a year, demand for MV Agusta has been stagnant, eroding its profitability. The company is now forced to look at alternative markets for growing the brand. There are, however, no production figures available for Cagiva, which is a mid-segment brand.

Sources said that M&M is keen on entering the two-wheeler space and has been talking to a number of Italian and domestic two-wheeler brands. The utility and tractor major is understood to have held talks with Ducati at one point in time, but it failed to materialise.

A deal with the Castglioni family is likely to give Mahindras access to high-tech design and technology and also help the Indian auto company in its plans to build a global footprint. M&M, which already has a strong focus on rural markets, is likely to develop cross-segment, two-wheeler products for the Indian market. The Italian company had earlier expressed interest in selling its bikes in India, but never found a suitable partner. When contacted M&M officials refused to comment.

While itís too early to peg a value to the deal size, the Italian company is estimated to have posted a combined revenue of euro 141.3 million in 2007 (around Rs 1,057 crore) and a loss of euro 34.4 million during the same year.
Although India is a large two-wheeler market with annual sales of over 7.5 million units, the country canít still boast of high-end, high-performance bikes.

The Varese, Italy-based MV Agusta has been strapped for cash and has been unable to invest in new product developments, according to sources. Recently, the company shelved its plans of participating in the World Superbikes series, fuelling speculation that all was not well with the legendary bike company that ranks third largest in Italy.

The MV Agusta has bikes in the 700cc to 1,100cc range, while Cagiva bikes have 125cc engine displacement. Mahindrasí two-wheeler strategy could include lower displacement from Chinese companies. The company had been negotiating for long with Chinese two-wheeler maker Lifan Motor Company for sourcing the right technology for mass-market products.

Its premium two-wheeler product is likely to come from the Italian bike maker. The company is already looking at acquiring land at Uttarakhand for its low-cost Chinese bikes and other high-end products, sources said. The company already has a unit in Uttarakhand for its three-wheeler range.

The Pune-based Kinetic currently develops components and engines for the 125cc Cagiva motorcycles.

M&Mís interest in the segment springs from the strong growth rates witnessed in recent times. However, rising interest rates, increasing competition and growing input costs, took a toll on the industry last year. M&M is one of Indiaís leading manufacturers of general-purpose utility vehicles, light commercial vehicles, tractors and SUVs.

ďMV Agusta has fabulous products in each segment, but has not been able to captialise on its strengths. It makes smaller bikes which are more suitable for the developing market like India unlike us who are mainly into performance bikes,Ē Ducati CEO Gabriele Del Torchio told ET during the launch of the Ducati range in India last week.[/SIZE][/SIZE][/FONT]


http://economictimes.indiatimes.com/...ow/3054487.cms
Amer is offline  
Sponsored Links
Advertisement
 
post #2 of 2 (permalink) Old 05-20-2008, 01:57 AM
Senior Member
 
Sammy Bono's Avatar
 
Join Date: Nov 2007
Location: Detroit, MI
Posts: 861
ok so everyone wants mv now?
Sammy Bono is offline  
Reply

Quick Reply
Message:
Options

Register Now



In order to use all of the features of the MVAgusta.net site, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in










Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode



Posting Rules  
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome