MV Agusta boss Giovanni Castiglioni has revealed that the company no longer has funds to develop new motorcycles.
MV Agusta’s struggle for survival over the past few years has been disheartening for the motorcycle community. The struggle seemed to draw to an end when MV Agusta Holdings, the parent firm, recently found funding by selling a big chunk of its shares to an Anglo-Russian investment group called Black Ocean. However, this has resulted in a major restructuring for the company. MV Agusta has now turned its focus on producing high-end models in limited numbers.
The harsh part about this is that MV Agusta will not be producing new models any time soon, as the development costs exceed the Italian manufacturer budgets. The limited production of motorcycles will see capacity drop from 10,000 units to 5000 units per annum, and a reduction of workforce from 300 employees to 190.
Even with the new 1200cc Brutale, the company is scaling up the existing platform to create a new bike. The Brutale continues to be the cash cow for the Italian marque and the company is banking on the new 1200 to turn the tables. With development of new models being put on a back burner, MV Agusta will have to keep the ball rolling by introducing special edition versions of its existing range. This should allow MV Agusta to charge a premium for the motorcycles and pull a higher margin.
