Report: Rumblings of layoffs, stock sales at MV Agusta

From this article appearing on an Italian website, it sounds as if there are rumblings of changes ahead for MV Agusta.

Google Translate’s garbled deciphering of the Italian writing says while MV Agusta has seen great growth in recent years, that’s come at a cost; they’ve had to hire extra workers to build their bikes, and that growth has become unsustainable. As a result, the article says, they’re now planning to cut back on their workforce.

The trouble, it seems, comes with the disconnect between the up-front costs of production, and the delay in receiving payment for the completed bikes. Increased production has exacerbated the problem; the article says MV Agusta president Giovanni Castiglioni plans to restructure the company towards 10-15 per cent growth, which would ease the financial difficulty. Of course, that would mean less workers are needed.

To help the company overcome these issues, the leadership and union seniority are also looking at bringing in money from outside, potentially by increasing Mercedes’ stock share. Currently, Mercedes owns 25 per cent of MV Agusta, and rumour says the motorcycle manufacturer is trying to work a deal with the carmaker, and possibly banks, to bring in another 30 million. With that cash influx, MV Agusta could concentrate again on building motorcycles, not cutting costs.

6 COMMENTS

  1. Just when they have a hit on their hands with the Turismo Velocé.
    I just love saying that and would perhaps buy one if there were a dealer within 1000 miles.

    • $ to $ comparison-wise it would be difficult to choose one over a Multistrada, S 1000XR, etc. For the right price though they could have had a “hit” but I’m not so sure at the price they are asking….

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