Daimler AG to buy 25% stake in MV Agusta

German automaker, Daimler AG has announced that it will buy a 25% stake in Italian motorcycle manufacturer MV Agusta - one of the most legendary names in the world of motorcycle racing. The company has won at least 75 world championship rider and constructors titles.

Daimler will buy the stake through its Mercedes-AMG performance car unit. No details have been disclosed of the price to be paid for the stake in MV Agusta and Mercedes-AMG will appoint one member of MV Agusta’s board of directors. The partnership is still subject to the approval of the relevant authorities, which is expected to be granted in late November.

The development will mean that Daimler has access to high-performance, lightweight technology, including three-cylinder engines developed for Italian superbikes. However, the company says that it is unlikely to use Agusta's motorcycle engines in its passenger cars any time soon. That said, with anti-pollution laws becoming tougher, car manufacturers have started considering lightweight construction technology and compact engines, which could be used as "range extender" add-ons to complement electric engines in hybrid vehicles.

Other German automakers, such as Volkswagen, have already started adding superbike technology to high-end sportscars. Earlier this year, the company displayed the XL Sport, which was powered by a 197 bhp, twin-cylinder Ducati engine. Volkswagen had bought Ducati in 2012 for 860 million euros.

Source: Reuters