Italian bike manufacturer MV Agusta has been saved from bankruptcy by an Italian court in Varese; the brand has 40-50 million Euro debt
Italian superbike manufacturer MV Agusta is saved by an Italian court after the company’s debt restructuring plan has been accepted by the court. The court has approved the brand’s measures to reduce the costs and streamline its operations are enough to keep the company running, thus saving it from going bankrupt. The Italian bike manufacturer brand current has around 40-50 million Euro debt.
The famous company has been facing trouble due to the inability of paying to the debtors despite achieving immense growth and profit. According to the court order in Varese, Italy, MV Agusta could close its deal with the Anglo-Russian private equity firm Black Ocean Group. Speculations are that the brand’s break up with Mercedes AMG is imminent and the Black Ocean Group could take the latter’s position in MV Agusta. Mercedes-AMG owns 25% stake in the Italian company, which the German company purchased in 2014.
In an attempt to reduce the cost, the bike manufacturer is reducing its model lineup. It aims to produce only 5,000 units per year and the work force will be downsized to 200 employees only. As the company claims, the new plan will bring stability and profit to it.
With the cost cutting plan in focus, the Italian brand doesn’t plan to roll out any new superbike in near future. But it wants to expand its popular streetfighter model Brutale with a new 1,200 cc engine. In that case, the brand will roll out only one model in the current year, while in 2018, it could launch two superbikes. Also, the company has to work on its bikes to make them new Euro IV emission norm compliant.
In India, the Italian brand has a total of 6 models on offer, which include – MV Agusta F3 800, Brutale 1090, Brutale 1090 RR, F4, F4 RR and F4 RC. The brand has been famous for making high-performance bikes but it has been going through troubles during the last decade.