castiglioni exit - Page 4 - MVAgusta.net
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post #31 of 41 (permalink) Old 10-15-2019, 11:33 AM
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I believe the strategy for Sardarov will be "pump and dump". At first I thought Sardarov bought into MV in order to have another conversation piece for his buddies but now I do think the move was much more clever. He may have realized that Castiglioni will not do much for MV so Sardarov has made him an offer that was hard to refuse.

The next step for Sardarov is to stabilize the brand and try to position it at the very top market level. The Oro and the upcoming F4 should get him there, especially since most of the new models are very limited production. Thus MV becomes a top tier boutique brand. The final step is to find a Chinese or possibly an Indian buyer and unload the brand at a hefty profit. There are very few if any premium motorcycle brands left in the world that aren't already part of the conglomerate groups and when Sardarov will offer MV up for grabs, there will be fewer left still.
Not sure, he already has everything. More money wouldn't do a thing more to his life. He might hang on to it for bragging rights.
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post #32 of 41 (permalink) Old 10-15-2019, 12:45 PM
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Not sure, he already has everything. More money wouldn't do a thing more to his life. He might hang on to it for bragging rights.
I'd chalk that one up to the thrill of the chase. Besides, I could see how taking a faltering global brand out of long time owner's hands, pumping it up and selling it to a conglomerate will give bragging rights as well. Plus it will put Sardarov's name on the map....
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post #33 of 41 (permalink) Old 10-15-2019, 03:11 PM
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I'd chalk that one up to the thrill of the chase. Besides, I could see how taking a faltering global brand out of long time owner's hands, pumping it up and selling it to a conglomerate will give bragging rights as well. Plus it will put Sardarov's name on the map....
Good point.
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post #34 of 41 (permalink) Old 10-15-2019, 03:57 PM
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That would be very sad if that were the case. Itís a shame the Polaris deal didnít come off either, theyíve done a great job with Indian and did a great job with the Victory brand for a while.
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post #35 of 41 (permalink) Old 10-15-2019, 10:30 PM
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Can someone explain why getting AMG out of the picture was considered a good idea by some? I can see why Castiglioni would want the germans gone as they kept him in deep check but if it was me in Castiglione's place I would be willing to sacrifice a lot to keep the brand my father resurrected and was in love with...

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That would be very sad if that were the case. Itís a shame the Polaris deal didnít come off either, theyíve done a great job with Indian and did a great job with the Victory brand for a while.
+1
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post #36 of 41 (permalink) Old 10-16-2019, 01:57 AM
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Castiglioni had no options for taking actions any more. AMG was the 25 % shareholder and wanted to get out due to the mess created by GC. A buy back by GC was obviously not possible, so he was likely no longer in the driver’s seat when it came to selecting who was to buy the 25%. Even if he had a contract with AMG that allowed him to decide on buyers there would likely have been limits, especially for a situation when the value of the company is constantly decreasing due to critical financials.

After Black Ocean was in, it was clear that the current funding was not sufficient to get the company back on track. Then the second investment came and the before minority shareholder became 50% partner, whereas Castiglioni was totally dependent on Sardarov’s willingness to invest further. The third capital injection by the Sardarov family did the rest to clear the new hierarchy.

I would never doubt GC has a passion for the business, but owning and running a business comes with a responsibility. And in times of economic difficulties he lived on as if the company was totally save. In such a situation you should consult with your investors and banks instead of your tattoo artist. Would he have been honest with AMG, the situation could have been solved in 2016 right away, as the amounts of money needed are peanuts for Daimler.
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post #37 of 41 (permalink) Old 10-16-2019, 07:16 AM
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I'm not sure AMG was the best fit, personally Polaris would have been the best imho. AMG while producing great cars, have a large but largely atrocious dealer network with ludicrous pricing and who wants to buy an m/c from a car salesman/showroom. It's a different dynamic. I have an AMG and as much as I like the car, the ownership experience even going to Mercedes Benz World (their own dealer) is a huge rip off which detracts from the ownership experience.

They rely on the cars being so good, if ever there is a problem you can forget about getting things sorted easily. There have been some awful stories on AMG forums with owners even still in warranty struggling to get work done. If that is for cars, imagine how much attention they'll pay to a motorcycle sideline in the showroom.
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post #38 of 41 (permalink) Old 10-16-2019, 12:52 PM
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I'm not sure AMG was the best fit, personally Polaris would have been the best imho. AMG while producing great cars, have a large but largely atrocious dealer network with ludicrous pricing and who wants to buy an m/c from a car salesman/showroom. It's a different dynamic.
While I can agree that Polaris might have been a better choice, its safe to say that MV would not be sold off the same floor as AMG cars. Ducati is a stand alone brand in terms of retail/service dealer network. Integrating MV into MB dealer network would be a very costly proposition, it wouldn't really make any sense from financial or marketing standpoint.
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post #39 of 41 (permalink) Old 10-16-2019, 01:33 PM
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The charm of a big player in the background is nit so much the usage of the same shop floors, but leveraging of common procurement solutions for the dealers, inventory management and warehouses that a company like Daimler has already established around the world.

The next step without any compromising of the MV brand’s uniqueness would be an integration in the procurement processes. If Daimler negotiates with Bosch on the supply of ABS equipment, they achieve other conditions than a company asking for not even 10.000 units per year,

Polaris would also have been a good option. I wish the current owner all the success, but over the long run MV Agusta either has to be integrated in a major player corporation or enter alliances with such companies.

But with electric mobility coming up, there might be new potential investors that have the battery technology, but not the name to create a full bike. Not really where I would like to see any bike company going, but with the current eco-fundamentalism going on, everything seems possible...
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post #40 of 41 (permalink) Old 10-18-2019, 02:53 PM
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Well without change nothing changes. If MV wants to stay in the game, then change is needed.
I look forward to buying my next new MV.

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