Monday, June 17, 2024
HomeNEWSINTERNATIONALCastiglioni lays out plan for 'ferrari' MV

Castiglioni lays out plan for 'ferrari' MV

Speaking to the Milan-based Italian national newspaper Il Giorno, MV Agusta supremo Giovanni Castiglioni has outlined how he intends to revive the insolvent company and regain full independence.

Apart from restructuring MV’s monumental £39m debt mountain by bringing in new investors and cutting operational costs, Castiglioni claims to be in negotiations to buy back AMG-Mercedes parent Daimler’s 25% shareholding in his business.

On the costs front, he proposes to cut R&D spend from an annual £12m to £5.5m, slash motorcycle production by one-third to 6000 units a year with a smaller range and reduce the racing budget from just over £3m to a mere £470,000. At the same time, a plan for “generating cash” will be put in place.

How Castiglioni hopes to achieve any of this is still entirely obscure. MV Agusta’s Varese factory is currently idle with most of its 200-strong workforce laid-off. And its reputation for consuming capital without meaningful return — having successively burned the fingers of both Malaysian automotive giant Proton and Harley-Davidson, plus serried ranks of Italian investment bankers, over the past decade — is hardly much of an advertisement.

Nevertheless, he believes that MV Agusta can once again become “the Ferrari of motorcycles”.  

 

 

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