MV Agusta has seen some turbulent times in recent decades, with owners coming and going and investments put in (and taken out) by partners as diverse as Malaysian car firm Proton, Harley-Davidson and Mercedes-AMG. The Varese outfit has continued to make gorgeous high-performance bikes throughout its various financial woes though, retaining its ‘halo’ image, amongst the consumer press and end users.
For industry observers, though, the brand has been tarnished by operational issues such as a sparse dealer network, poor spares backup and a lack of national press support. If MV Agusta could come up with a back-office organisation as attractive as its bikes, many think it would be well on its way to challenging some of the bigger brands.
At the end of 2022, it seemed like this might finally be on the cards. KTM parent firm Pierer Mobility announced it had taken a 25% stake in MV Agusta from the Sardarovs, the Russian family which had owned the brand since 2016 (and still owns 75%). Pierer took on responsibility for retailing, marketing and distributing the bikes – and has since announced that it plans to become MV’s majority shareholder by 2026.
Our customers own something exclusive, something to be proud of, that stands out
Big changes ahead then for Agusta – and positive ones it would seem. Pierer Mobility is one of the real success stories in European motorcycling, with its KTM brand enjoying success across a wide sector of the global market and enormous achievements in racing.
Meanwhile, its other brands – GasGas, Husqvarna, and WP – are growing fast, and a recent deal with Chinese brand CFMoto promises to bring even more growth. The Austrian firm has clearly developed excellent global production and supply chains, some impressive marketing messages, and a solid financial base. It seems more than capable of taking the northern Italian brand, with all its problems, to another level.
Dealer network
BDN spoke to MV’s new head of marketing, Stefano Campaci, to get an idea of how this change will affect the brand, especially in the UK. Campaci has worked for BMW, Ducati and Triumph, so knows what’s needed to make a bike firm really tick. We first asked him about the UK dealer network – and he had some positive news. “The UK team is working hard to get 15 or 16 dealers in the UK market by March. KTM and Pierer are giving it their full support; Pierer has a lot of experience, systems, and tools to establish a network.” Pierer is also assisting with marketing, customer care and providing a full press fleet.
But it seems like there will be a reasonably strong separation between MV and Pierer’s other brands on the ground. “One important thing: when the news started spreading about Pierer, there was a perception that people could go into a KTM dealership and buy an MV Agusta or have it fixed there. That’s not so.”
MV’s new head of marketing, Stefano CampaciThat differentiation is vital to the new MV offering – to be a premium jewel in the crown of the Pierer Group, as Campaci explains, making a comparison with another Italian vehicle maker. “MV Agusta is that jewel brand which we need within the portfolio. And that’s why the direction is to keep it as it is, so there won’t be an MV Agusta label on a KTM platform. Agusta will be developed, designed and produced in Italy. The platforms will remain separate; the engines will always be MV Agusta engines, and the bikes will be MV Agusta bikes. For MV, the fascination and the charm that the brand has is unique. You can take as an example Ferrari: it’s part of a major holding, Stellantis, but Ferrari doesn’t share anything with anyone, and they are built and designed in Maranello. And MV Agusta will be the same: part of a major holding that will provide the muscle in terms of systems and synergies, but keeping that unique identity and charm.”
So, expect MV to stick with inline triples and fours rather than borrowing KTM’s twin-cylinder motors. But another part of the plan will be limited production at the revamped factory, says Campaci. “It’s important to limit production to 15,000 bikes a year. The factory has the ability to produce more than that, but 15,000 is what we’re going to give to the market. It means our customers own something exclusive, something to be proud of, that stands out. Secondly, by providing a limited number of bikes, you maintain the value of those bikes. So, if I do my job with marketing, we should reach the point where demand is higher than supply. Agusta will never be a volume-oriented brand; it will remain a premium motorcycle manufacturer.”
Factory investment
The factory is already seeing changes thanks to new investment, and the firm plans to remain in its historical location at Varese, north of Milan, in a former aircraft factory overlooking the lake. “There are already investments that have begun since I joined in May,” said Campaci. “I have seen a lot of work, and the factory is being renovated constantly. There is a lot of investment in making it more efficient and more eco-friendly on the production side. And just last week, we saw a new state-of-the-art production line open. It is still the case that bikes are hand-built because we want to maintain the hand-built nature.
One of the people pushing that investment is [CEO] Timur Sardarov. His aim is to make the factory a hub for passionate people. There is also a new project about which I cannot share much, but maybe there will be a museum with a program to visit the factory.”
One important behind-the-scenes job has been integrating the spare parts operation with the Pierer logistics operation. “The spare parts were stored in our warehouse near the factory and had to be moved to the distribution centre in Austria. That means we were recording and then re-marking them to put them into the systems with new part numbers. New physical storage, inventory, barcodes, everything. To give you an idea, the Pierer Group had around 46,000 part numbers, but MV Agusta alone has 22,000. Our bikes are complicated, so integrating the systems is a huge job, but it should be all done by February.”
A long, dull job for the Agusta and KTM workers, no doubt – but a vital one. And a sign – together with the recent move to a four-year factory warranty – that Pierer is putting in the real hard yards needed to get MV Agusta back on track.
More dealers added
As we went to press, MV Agusta announced four more new dealers: Macpherson Motorcycles in Plymouth, Destination Dorset in Bournemouth, Drysdale Motorcycles in Perth, and P&H in Crawley. There are more on the way. KTM UK is managing new applicants – get in touch if you’re interested. Stevie Day, MV Agusta area sales service manager, [email protected]
What the dealers say
We spoke to a couple of dealers who’ve signed up for the new MV Agusta deal. Here’s what they think of the new operation so far.
“After almost 18 years with the MV Agusta brand, we have experienced many changes, and before Pierer Mobility stepped in, things were challenging. However, we believe that Pierer can provide the stability required to maintain MV Agusta’s reputation as a premium motorcycle manufacturer and regain the confidence of customers and dealers. As with all brand acquisitions, I’m sure Pierer will need to find its feet with the brand. The path to success will take time, but with their brand portfolio, successful track record and the processes and support that we’re already beginning to see, I am confident MV Agusta is on track to remain the niche, premium brand it always has been, but with the addition of quality aftersales service. I am very much looking forward to the future with MV Agusta.”
Russell Bennett – director of Bennetts Motorcycles
“MV Agusta has always been seen as a prestigious brand in the motorcycle world, with their motorcycles viewed by many as ‘the dream bike’ – myself included- which drove me to obtain the brand in my dealership.
“With Pierer Mobility now having input to the brand, the dealer network will strengthen by receiving some stability, which has been lacking with previous investors. I have confidence in Pierer Mobility’s ability, to the extent that this is the deciding factor in becoming an MV Agusta dealer. We are investing in the brand by opening a new lifestyle-focused dealership in Plymouth, with the aim of supporting our local community of riders, motorcycle enthusiasts and like minded individuals by creating a social environment that welcomes all, whether people are looking for their dream motorcycle, having their current bike serviced or if they simply want to admire motorcycle art over a coffee or a bite to eat.”
Chris Macpherson – director of Macpherson Motorcycles