Harley Agusta?
Despite a tough first quarter, Harley-Davidson is apparently financially solvent enough to entertain buying most of the troubled Italian boutique builder MV Agusta, according to a Forbes story cited by Hell for Leather Magazine.
MV Agusta boasts a rich history that includes an astounding 37 world Grand Prix titles (14 of which were delivered by Giacomo Agostini), but the Italian bike builder is in debt to the tune of 95 million euros. Forbes indicates that Harley hopes to write off 35% of that debt, when and if such a purchase occurs.
This news comes after I recently tested MV's outrageous (but not sold out) six-figure superbike, the F4CC. You'll hear my thoughts in an upcoming review, but in the meantime what do you think could happen if the 105 year-old American legend purchases the 63 year-old Italian sportbike manufacturer?
Photo Illustration © Basem Wasef
Comments
Hmmmmm….Kinda like mating a Ferrari with a Massey Ferguson. You end up with a really pretty, stupid fast hay bailer - or - a 2009 antique Enzo.
I don’t see much good coming out of it….I bet in a couple years H-D will be desperate to unload MV, much like MB couldn’t wait to lose the Chrysler anchor.
What possible gain could MV be expecting?! An established dealer network? “Hi there….do you sell black leather MV chaps?”
If H-D was smart, they’d climb in to bed with someone who could drag them in to the late 20th century…an exotic Italian ain’t it!
Pete,
Ya never know… in the 1960s Harley acquired Aermacchi, and their expertise at building small bikes helped Harley to draw a new audience of riders who didn’t want or need big V-twins. If Harley can figure out the whole sportbike thing (without resorting to a gussied up power cruiser like the V-Rod), they could have one foot in the cruiser/touring bike world and another in the sportbike world.
Seems like diversification wouldn’t be bad for H-D, and what better way to mix up the gene pool than to inject some seriously dissimilar DNA?!
Basem
I don’t know about the dealer network being a big help. I’ve even found it odd to see Buells at H-D dealerships.
Scottie,
I think the Buell connection makes sense… if a die-hard Harley fan is going to migrate towards another type of bike, they’re more likely to do it if there’s an air-cooled twin onboard.
My guess is their vision with MV involves something deeper than just a dealer network. Imagine mating a V-Rod with a Brutale… it’s kind of like cross-breeding a great dane with a whippet; the possibilities are endless!
Basem
Hi Basem,
I don’t know that Aermacchi did H-D any good…they sold a handful of those really awful 250’s….that was about it.
I thought that arrangement was to put some much needed $$ in to H-D’s empty bank account.
Pete,
Aermacchi was a better merger on paper than it was in reality, but I’d imagine the potential for innovation is very different nowadays. Look at how long it took for Ducati to get in the black; everybody knew they could build a great bike, but they needed the infrastructure to do it right.
Kinda makes ya wonder if Piech might swoop in and gobble MV up…?
Valid point about Ducati - BUT- they did it on their own….long after they split from Cagiva.
Germany + Italy …. hmmmm….isn’t there some history there?
Dunno, Pete… maybe I’m just a hopeless optimist. I’ve been accused of that before.
Ducati didn’t do it on their own… after Castiglioni divested himself and Cagiva of Ducati, TexasPacificGroup held the reins
When things turned south during the last year of the underperforming 999 era, TPG sold Ducati. I think Ducati is now wholly Italian owned again but the parties in charge are a couple of banks… a similar story with MV.
I think MV needs a company that can offer it stability and time to plan and realize the efficiencies and business practices needed for sustainability.
MV Agusta is like the Indian of the sportbike world. Would be interesting to see how this all plays out.
Thanks Anthony…I din’t know that about TPG…truth be known, I’d never heard of TPG before.
I quite agree with everything you’ve said…MV could use a helping hand….I just don’t think H-D is it. Seems like they’re having enough of a time helping themselves.
Ferrari + Massey? From a certain point of view, that already happened. Behold Lamborghini. Back when Lamborghini built tractors, Feruccio Lamborghini already had a couple bucks, so he bought a Ferrari. He dropped Enzo a line with a few suggestions for improving the breed, and Enzo told him to shut up and go play with his tractors; let the big boys build super cars. Lamborghini took that as a challenge. Worked out pretty well, I think. What’s the rest of Agusta doing? Helicopter business slowing down? And I wonder what Erik Buell thinks about all this? Will Buell be affected? I don’t see how they couldn’t. Maybe Brutale engines would find their way into a new generation of XB or Loki bikes? Belt drive Agustas? 180 horsepower Sportsters? Or would Harley even see the need for two relatively obscure sportbike manufacturers? Make one of them go away? Very interesting to see how this all plays out.
Victory looked at a partnership with KLM a couple of years ago but I guess the companies had a different strategy for the future. The Harley purchase of MV does make some sense if Harley wants to have a world class sport bike and does not want to develop it from scratch. We all know that the Classic cruiser style may not last too many more years and I am sure Harley can recognize that. They are building what is popular now but will change when change is needed. MV just might be a part of the future change. As much as they spend on development of the not so successful V-Rod they have to be thinking twice about another program of that type. Why not find a company that has done all of the work, purchase if for a reduced rate, and start competing with Yamaha and Suzuki for the young crowd!!
My first bike was a HD Aermachi but the dealer was never into it because it wasn’t a “real Harley”. My current HD dealer feels the same about Buell; in fact, he recently dropped the Buell line. With this attitude, HD has no bike for beginners who are forced to go Japanese, and may stay Japanese when they look for their next bike.
I don’t know about this. Buell is good precisely because he doesn’t rely solely on Harley. He comes up with his own ideas and by the way what’s the source for that new engine? My opinion is that everything Harley touches turns to shite and they’re only fit for mid-life crisis poseurs any more.
“20,000 bucks and a T-shirt don’t make you a biker”
I can not imagine having a MV Agusta serviced at a Harley store. I’m convinced that most Harley stores assign their newest and most incompetent techs to service Buells. What quality of care could be expected on MV Agusta?
The questions are, (a)what does H-D gain from buying MV? (b) MV will certainly benefit from H-D’s cash, but will it enhance their brand?
I don’t understand this purchase. A Harley is a Harley for what it’s worth, with it’s cultish following, etc. If HD buy a high end sport bike, it’s still not a Harley, and all they would be is a distributor for these things. The hard-core folks would ignore the Agusta corner and proceed to their favorites. If HD buys it, they should be sold in a seperate dealership as an Agusta with HD making the profits only.
When companies merge it could mean several things; Shared technology, increased dealer network, new product lines, new manufacturing facilities, new capital and maybe several other things. I hope it means more than scooters at the Harley shop.
A buy out has to be a win-win situation for both parties. MV obviously receives a large injection of cash, what does Harley walk away with? Not much that would enhance their bottom line I’m afraid.
MV Agusta already has a dealer network, albeit a tiny one.
I cannot see Harley-Davidson turning their dealer network upside down to sell MV’s. The typical average H-D dealership might treat MV’s the same way the typical average H-D dealership seems to treat Buell… like an estranged spouse.
Maybe Harley wants an avenue to greater penetration into the sportbike market… MV Agusta is basically the only one up for sale. When you think about it, the price of the average MV lines up with Harley’s line… especially when compared against CVO edition Harley’s.
Not to long ago, you could walk int a Harley dealership and some fat, tatto, bearded so-called salesman would look at you like what are you doing here. Then he would try to sell you that overpriced and over-rated motorcycle. I hope they will do better than they treat Buell. H.D. must need something from MV. Who knows. You know the H.D. engines are very outdated–NOT THE V-ROD.
Either a hoax or Castiglioni is playing his cards really close to his vest…
http://www.motorcyclenews.com/MCN/News/newsresults/mcn/2008/June/9-15/jun1108mv-agusta-deny-harley-davidson-buy-out/
Really dont get this one. Harley management knows zero about sportbikes. They cant even get tracktion for buell