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New deal links KTM and MV

Global operation of KTM parent group expands again, with wide-ranging MV Agusta deal and CFMOTO UK distribution agreement.

The Pierer Mobility Group already owns three premium European bike marques: KTM, Husqvarna and GasGas, as well as the WP suspension brand. It has strong partnerships with Indian motorcycle giant Bajaj and Chinese firm CFMOTO. And now the firm has taken a 25.1% stake in Italian firm MV Agusta, following the signing of a distribution deal to sell the exotic machinery in North America. Meanwhile, KTM Europe has taken over CFMOTO motorcycle imports in the UK and Ireland, replacing former distributor Quadzilla (see below).

The MV Agusta “strategic cooperation” deal was announced by the Varese firm in November. According to an official announcement, “KTM AG, a company of Pierer Mobility, will provide MV Agusta with supply chain support and take over the purchasing. Furthermore, in the course of this cooperation, MV Agusta will partly distribute its product range via Pierer Mobility’s worldwide distribution network. In November 2022, KTM AG will acquire a 25.1% stake in MV Agusta Motor SpA, based in Varese (Italy), by way of a capital increase.”

That announcement followed an earlier one, which detailed a new multi-year distribution deal for MV Agusta machinery in Canada, the United States and Mexico. The agreement covers distribution and promotion as well as customer service and, according to MV, will combine the relative strengths of the two organisations. “On one hand there’s the strength of the brand and the exclusivity of its motorcycles, a symbol of Italy’s design and engineering excellence, and on the other hand, KTM AG’s extensive and solid commercial organisation which will support the growth of MV Agusta in the North American region.”

As part of MV’s strategic plan, KTM is set to launch a US-based legal entity in charge of all MV activity across North America, and the Italian bikes are also set to be put on sale next to the Austrian brand in KTM dealerships, as well as MV Agusta’s own stores.

Speaking about the US deal, Timur Sardarov, MV Agusta CEO said: “I am thrilled by this agreement between two historic European motorcycle manufacturers. I am confident that KTM’s extensive and professional sales organisation, paired with the strong appeal of our brand in the region, will bring great benefits to both companies. Thanks to our co-operation we will create synergies that will enable us to accelerate our growth strategy in North America.”

Meanwhile, board member at KTM AG Hubert Trunkenpolz said: “We are extremely excited to start a new partnership with such a historic motorcycle brand. Our brands are going from strength to strength everywhere in the world, particularly in North America, where we will exceed 100,000-unit sales in 2022 with the KTM, Husqvarna and GasGas motorcycle brands. Taking on the distribution of the MV Agusta brand will complement our extensive premium motorcycle range. With the addition of the most iconic Italian luxury motorcycle brand to our KTM North America operations, we are able to ensure support to all North American motorcycle enthusiasts as well as bringing exciting new business opportunities to existing and new dealers.”

The deal looks to make a lot of sense on the face of it. MV machinery is complementary to the Pierer Group’s existing brands, with little crossover, especially on the sportsbike front. Whether there’s more to come, in terms of KTM eventually taking on a larger portion of MV Agusta, remains to be seen.

CFMOTO moves to KTM network in UK and Ireland
on a more local front, KTM Europe has taken on the distribution of CFMOTO motorcycles in the UK and Ireland. Former distributor Quadzilla will, as its name suggests, concentrate on its main focus: sales and distribution of CFMOTO’s ATV and SUV ranges. The move follows a long-term global relationship between KTM and CFMOTO, which has been operating since 2013 and suggests even closer working between the firms.

Quadzilla’s Paul Miller said, “We have had the pleasure of supporting CFMOTO with the growth of its motorcycle division for ten years. We have not only raised the profile of the brand in the motorcycle market within the UK, but also had race success at the Isle of Man TT and No Limits twins classes. Considering the rapid growth of the ATV and UTV sectors in our market, Quadzilla Ltd has decided that now is the right time to relinquish the distribution of CFMOTO motorcycles within the UK and Ireland in order to focus on CFMOTO ATV, UTV and SSV products. We will continue to support our dealer network, as well as KTM Europe in Austria, with the transition and are looking forward to seeing the continued growth of CFMOTO motorcycles.”

Quadzilla will continue to honour the warranty of registered motorcycles during the transition process and has confirmed that any sold machine under warranty will be covered for the remainder of the period with the new distributor. CFMoto bikes remain available through the existing network at present, and Quadzilla is also set to supply spare parts for CFMOTO motorcycles for the foreseeable future.

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