Premium Italian motorcycle brand, which posted a turnover of over 100 million euros in 2015, is learnt to be seeing tough times on the financial front.
29 Mar 2016 | 3293 Views | By Amit Panday & Kartikeya Singhee
Italy’s MV Agusta, one of the most premium motorcycle brands in the world, is understood to be experiencing financial distress and, as recent news reports claim, the company is seeking continuity in its operations from its creditors.
The company, which has filed for bankruptcy in Italian courts, is seeking ...
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Italy’s MV Agusta, one of the most premium motorcycle brands in the world, is understood to be experiencing financial distress and, as recent news reports claim, the company is seeking continuity in its operations from its creditors.
The company, which has filed for bankruptcy in Italian courts, is seeking corporate restructuring and continuity on the back of its growth in recent times and the ongoing projects.
MV Agusta closed 2015 with a turnover of 100 million euros (Rs 764 crore), which marked 30 percent year-on-year growth. “To create improved visibility, content and the greatest potential possible in emerging markets, we have invested more than 15 percent of the annual turnover in R&D, to enter new segments and ensure undisputed excellence in terms of quality and performance standards that fans expect from this brand,” quoted a recent company statement.
The press communication added that “In recent months it has been reported through the press that the company requires necessary financial assistance in order to sustain this organic growth. MV Agusta has decided to hold its ground together with the employees and its creditors by means a composition with creditors proceeding to request continuity that will allow the company to be able to restructure and generate positive growth returns for its stakeholders.”
In over 70 years of its existence, MV Agusta has won multiple MotoGP championships, created designs such as the F4 while changing its ownership several times. In 2014, Mercedes-AMG acquired a 25 percent stake in the company, which only hinted at a brighter future.
In 2015, the small company from Varese in Italy tied up with India’s Kinetic Group to sell the MV Agusta range of motorcycles in the maturing market. However, given the reported circumstances, there is no confirmation on how this would possibly affect the supply of iconic models in India in the near term.