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Old 17th December 2024, 12:36   #1
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KTM drops its majority stake at MV Agusta amidst financial crisis

According to reports, KTM's parent company, Pierer Mobility AG, has decided to sever its ties with MV Agusta.

Pierer Mobility AG acquired a 50.1% majority stake in MV Agusta less than a year ago. However, amidst the financial crisis being faced by KTM, the company has decided to drop its stake in the Italian bike brand. The decision to let go of the Italian bike maker was made at a recent meeting where KTM officials reportedly stated that MV Agusta was no longer considered "a strategic asset."

KTM drops its majority stake at MV Agusta amidst financial crisis-mvagusta.jpg

With this announcement, MV Agusta once again becomes an independent bike brand. The brand's production operations will likely return to its historic Varese facility. The transfer of production activities will likely be completed by March 2025. MV Agusta itself, though, seems to remain unfazed by the development.

KTM is experiencing critical financial troubles largely due to a slowdown in the motorcycle industry in Europe. KTM's parent company, however, still owns the GasGas and Husqvarna brands and is continuing its tie-up with Bajaj Auto.

Source: Car&Bike

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Old 17th December 2024, 12:47   #2
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Re: KTM drops its majority stake at MV Agusta amidst financial crisis

KTM should also cut down the fat that is GasGas.
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Old 17th December 2024, 16:30   #3
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Re: KTM drops its majority stake at MV Agusta amidst financial crisis

KTM is a good example of why the restaurant shortcut method doesn't work.

Butter masala gravy + (chicken or paneer or soya chaap etc) = butter chicken, butter paneer, etc. It all tastes the same.

KTM engine and frame + Husqvarna or gas gas clothes etc. = Different motorcycles but I'm guessing that maybe they all feel the same.

Europeans and Americans who have access to so many brands and models surely seek something different and "authentic".
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Old 18th December 2024, 11:57   #4
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Re: KTM drops its majority stake at MV Agusta amidst financial crisis

Correct me if I'm wrong, but I don't know a single MV Agusta owner who could profitably run the company.

Claudio Castiglioni probably saw some money (I doubt) while he ran MV Agusta. However, I'm confident that none of its other owners have made money running the brand.

Pierer is an old hand. He'll be able to ride out the storm, trim the company, and refocus on building desirable vehicles. He may have to work with new-age Chinese manufacturers, other than India's Bajaj, to create a new line of EV motorcycles.

It's an interesting time for the ICE universe. The ones who survive are the ones who can adapt.

Besides, I doubt fellow European brands can or are willing to consider a collaboration with KTM, let alone an outright purchase. KTM may want to do a Volvo and sell themselves—lock, stock, and barrel—to a Chinese manufacturer. And that would mean we won't be seeing any more WP suspension, at the minimum.
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Old 18th December 2024, 13:34   #5
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Re: KTM drops its majority stake at MV Agusta amidst financial crisis

Quote:
Originally Posted by Raskolnikov.R View Post
Correct me if I'm wrong, but I don't know a single MV Agusta owner who could profitably run the company.
They can. MV Agusta was the Ferrari of motorcycles. Incredible motorsport history which followed the "Win on Sunday, sell on Monday" philosophy and still carry the record of most constructor wins by a non-Japanese manufacturer in MotoGP. The issue is somewhere along the way they've given up on their own cultural history and allowed Ducati to fill that gap while presently trying to be the "Pagani" of bikes, which by all accounts is an absurd business model for bikes.
A motorcycle company which relies only on a few hyper exclusive bikes which is neither accessible to the 99.99% of the population nor cutting edge was never going to work. You cannot be exclusive for the sake of being exclusive.
The MV Agusta still carries a considerable amount of weight in the motorsport society. Let them do what they were historically best at and own their culture rather than pretending to be something they're not.
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Old 18th December 2024, 15:27   #6
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Re: KTM drops its majority stake at MV Agusta amidst financial crisis

Quote:
Originally Posted by Nayra View Post
They can. MV Agusta was the Ferrari of motorcycles. Incredible motorsport history which followed the "Win on Sunday, sell on Monday" philosophy and still carry the record of most constructor wins by a non-Japanese manufacturer in MotoGP. The issue is somewhere along the way they've given up on their own cultural history and allowed Ducati to fill that gap while presently trying to be the "Pagani" of bikes, which by all accounts is an absurd business model for bikes.
A motorcycle company which relies only on a few hyper exclusive bikes which is neither accessible to the 99.99% of the population nor cutting edge was never going to work. You cannot be exclusive for the sake of being exclusive.
The MV Agusta still carries a considerable amount of weight in the motorsport society. Let them do what they were historically best at and own their culture rather than pretending to be something they're not.
Nayra,

You make some valid points.

However, MV Agusta - was, is, and will remain - exclusive. It must be that way.

Pagani, by the way, is quite profitable. Their business case is clear: source the engine from MB and do all you can to make it bonkers.

What MV Agusta needs is another Massimo Tamburini and Claudio Castiglioni rolled into one. The design prowess and deep financial pockets will produce well-engineered motorcycles. However, they'll need to do a Norton and build more mainstream small-capacity bikes with ripped-off designs from the larger capacity models.

The difference - move from handbuilt to machine-built, at least for the small capacity bikes.

KTM, the owner, must have at least conceptualized that. And they should NOT have built them on their current platforms but on fresh, new ones.

I remember some folks talking about Bajaj taking over KTM or even CF Moto. However, I don't believe that will solve KTM's deep-rooted issues.

The demand in KTM's traditional markets is slipping.

And the economic gloom and high interest rates aren't doing anyone any favors.

KTM needs a white horse soon!

Time will answer if that happens.

PS: Your comment on Pagani reminded me of BIMOTA, maybe the most original of manufacturers.
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