MV Agusta files for bankruptcy

Aditya · 28th March 2016, 17:45

MV Agusta has run into financial trouble. The Italian motorcycle manufacturer is reported to have filed for Chapter 11 bankruptcy. With this step, the company is trying to get some time to try and resurrect itself and save its positive assets.

In 2014, Mercedes AMG acquired a 25% stake in MV Agusta. In 2015, the company's turnover went up to 100 million Euros - a growth of 30% from 2014. Despite this, the company has not been able to control its rising number of creditors. At present, the company's debts stand at approximately 40 million Euros.

There are rumours that Mercedes AMG could buy out the company in full.

MV Agusta is a legendary name in the world of motorcycles. The company has won at least 75 world championship rider and constructors titles. Its products are sold in India through Motoroyale - a chain of dealerships set up by the Kinetic Group.

Source: Drive Spark

pratap.pratu · 28th March 2016, 23:00

why are MV's so expensive ? I mean Ducati's are brilliant to look at and even perform well. Price is arguable if not justified. But MV's are still more expensive. Yes MV's are exclusive, but would the above situation be different, if MV's were affordable at Japo's price ?

v12 · 28th March 2016, 23:32

I hope and pray that AMG acquires MV Agusta and it does not get sold to the Chinese or the Russians. Nothing against them, but looking at what is happening to the Benelli's - I would prefer it's bought by the Germans. Who knows - maybe it'll get more affordable.

Bring it on AMG!! Italian design with German build quality!

VW2010 · 28th March 2016, 23:42

40 million Euros doesnt seem too high. And Chapter 11 though is not bad it does throw the uncertainty into potential buyers. Unless they come with a clever sales pitch including buy back in case they file for total bankruptcy.

But not a great news in the world of motorcycles. They have some legendary tourers and beautiful bikes with exceptional packages. Sad to hear this.

@V12 - Germans don't have that kind of investment in mind actually. Also someone from Middle east should take over this 40 million euro debt which is peanuts to them

. Benelli 899 is still a bike to beat to me. Irrespective of who owns Benelli that bike is a marvel in terms of engineering, power and delivery. I wish they priced it like a Chinese bike though. So we can get those 899 at sub 8L on road price.

barcalad · 30th March 2016, 16:57

MV Agusta has made a press release where it has said that it has not gone bankrupt and is merely "restructuring it's finances".

Source 1

Source 2

VellVector · 31st March 2016, 14:19

Quote:

Originally Posted by barcalad

MV Agusta has made a press release where it has said that it has not gone bankrupt and is merely "restructuring it's finances".

AFAIK Chapter 11 is a US norm of bankruptcy protection. An European equivalent would be similar to "restructuring it's finances". Either way it doesn't bode well for the company.

As mentioned before, I think Agusta prices itself out of it's own market. There is really nothing an Agusta gets you over the other major brands but the "exclusive Agusta label". Whereas an Agusta at the price of a Ducati or a Jap would probably fly off the shelves.

mail4ajo · 4th April 2016, 00:24

The Brutale 675 is selling for a throwaway price here in the US. I tried it briefly in the dealership yard and they are pushing hard to sell the 2014 model. Sad to hear the company may go bust.

28th March 2016, 17:45	#1
Aditya Team-BHP Support Join Date: Feb 2004 Location: Mumbai Posts: 17,835 Thanked: 77,063 Times View My Garage	MV Agusta files for bankruptcy MV Agusta has run into financial trouble. The Italian motorcycle manufacturer is reported to have filed for Chapter 11 bankruptcy. With this step, the company is trying to get some time to try and resurrect itself and save its positive assets. In 2014, Mercedes AMG acquired a 25% stake in MV Agusta. In 2015, the company's turnover went up to 100 million Euros - a growth of 30% from 2014. Despite this, the company has not been able to control its rising number of creditors. At present, the company's debts stand at approximately 40 million Euros. There are rumours that Mercedes AMG could buy out the company in full. MV Agusta is a legendary name in the world of motorcycles. The company has won at least 75 world championship rider and constructors titles. Its products are sold in India through Motoroyale - a chain of dealerships set up by the Kinetic Group. Source: Drive Spark
	(12) Thanks

28th March 2016, 23:00	#2
pratap.pratu BHPian Join Date: Jan 2013 Location: Bangalore Posts: 113 Thanked: 41 Times	Re: MV Agusta files for bankruptcy why are MV's so expensive ? I mean Ducati's are brilliant to look at and even perform well. Price is arguable if not justified. But MV's are still more expensive. Yes MV's are exclusive, but would the above situation be different, if MV's were affordable at Japo's price ?
	(1) Thanks

28th March 2016, 23:32	#3
v12 Distinguished - BHPian Join Date: Feb 2004 Location: Mumbai Posts: 6,739 Thanked: 7,213 Times View My Garage	Re: MV Agusta files for bankruptcy I hope and pray that AMG acquires MV Agusta and it does not get sold to the Chinese or the Russians. Nothing against them, but looking at what is happening to the Benelli's - I would prefer it's bought by the Germans. Who knows - maybe it'll get more affordable. Bring it on AMG!! Italian design with German build quality! Attached Thumbnails
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28th March 2016, 23:42	#4
VW2010 Senior - BHPian Join Date: Dec 2010 Location: electricity Posts: 2,763 Thanked: 3,413 Times	Re: MV Agusta files for bankruptcy 40 million Euros doesnt seem too high. And Chapter 11 though is not bad it does throw the uncertainty into potential buyers. Unless they come with a clever sales pitch including buy back in case they file for total bankruptcy. But not a great news in the world of motorcycles. They have some legendary tourers and beautiful bikes with exceptional packages. Sad to hear this. @V12 - Germans don't have that kind of investment in mind actually. Also someone from Middle east should take over this 40 million euro debt which is peanuts to them . Benelli 899 is still a bike to beat to me. Irrespective of who owns Benelli that bike is a marvel in terms of engineering, power and delivery. I wish they priced it like a Chinese bike though. So we can get those 899 at sub 8L on road price. Last edited by GTO : 29th March 2016 at 09:15. Reason: Typos
	(2) Thanks

30th March 2016, 16:57	#5
barcalad BHPian Join Date: Feb 2014 Location: NCR/Patna Posts: 802 Thanked: 1,325 Times	Re: MV Agusta files for bankruptcy MV Agusta has made a press release where it has said that it has not gone bankrupt and is merely "restructuring it's finances". Source 1 Source 2
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4th April 2016, 00:24	#7
mail4ajo Senior - BHPian Join Date: Mar 2006 Location: San Antonio, TX Posts: 1,957 Thanked: 331 Times View My Garage	The Brutale 675 is selling for a throwaway price here in the US. I tried it briefly in the dealership yard and they are pushing hard to sell the 2014 model. Sad to hear the company may go bust.
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