Benelli Back in Trouble
Financial problems return to Italian firm in global economic recession
DARK TIMES at Benelli. Many staff at the factory in Pesaro on Italy’s Adriatic coast are working part-time. Production has been scaled back to about 1000 bikes this year as the Chinese owners review the future of the still unprofitable marque.
It’s all a far cry from the positive view three years ago, when Benelli seemed to be well on the way to recovery under its new Chinese owners. Qiang Jiang is a huge Chinese company that sells more than a million scooters per year in its home market. In October 2005 it bought Benelli, whose previous owners, the Merloni Group, had developed the rapid Tornado 900 streetbike and raced it with some success in World Superbike before financial difficulties led to bills going unpaid and production being suspended.
The new Chinese owners paid off the debts, restarted production and introduced several new triples, starting in 2006 with the Tre1130K. Benelli produced several thousand bikes in 2007, and announced ambitious aims to increase that figure to 10,000 in 2008 and 20,000 this year. That was due to be achieved with new parallel twin and single-cylinder models led by the 754cc Due twin, which chief engineer Pierluigi Marconi created by chopping one cylinder off the triple motor.
A prototype Due was unveiled to generally positive response last year. But the twin’s development is still not completed, and meanwhile Benelli has been badly hit by the global downturn that has seen sales of existing three-cylinder models plunge, and dealers in many countries left with unsold stock. Many of the Pesaro workforce of over 100 are currently working part-time under the Italian cassa integrazione system by which part of their salary is paid by the government.
“The recent plan was to produce 5000 bikes this year, but we couldn’t achieve it,” says Gianluca Galasso, the former World Supersport racer who works as Benelli’s PR chief as well as helping develop the Due. “The Chinese owners understand the problems and there will be meetings soon to decide Benelli’s future.”
Moving production to China to reduce costs is not a serious option, Galasso insists. “Scooters will be built in China and motorcycles in Italy, apart from some low tech parts such as mirrors. At the moment Qiang Jiang doesn’t have the same quality and technical levels in China. What we can do is help them improve their quality and design to produce a better product.” Hopefully for Galasso and his colleagues, Benelli’s value to Qiang Jiang is based on more than just profitable motorcycle production. If not, the famous old marque’s future looks bleak.
Discuss this story
You have to wonder about the brands that have re-established during the economic boom. Benelli, MZ, Morini, Guzzi etc. There are only so many companies that can bite at the pie, and with Augusta firmly at the top as the "Ferrari" of bikes, its hard to see how much pie is going to be left for them. These bikes rarely get good reviews, its always, "not my cup of tea but if you are looking for something different" Most riders want a bullet proof bike they can re-sell later with no problems. A short production bike with expensive spares and a dubious reliability is always going to be a problem. Look at ducati, they are now a mainstream bike but they put in millions and a collosal effort to improve the reliability. I love the TNT cafe racer, but I wouldnt buy one unless they gave me a 100,000 km garauntee. Dreams dont last long in the cold winter of an expensive breakdown.
Posted: 09/06/2009 at 20:39
I agree, the TNT is a work of art. but 3 1/2 years doesnt make a reliable bike. My suzuki is now 10 years old, has ~75,000 kays and gets everything from commuting to thrash rides. All it gets is tyres, oil/filter and occasional spark plugs. Its a bit rattley and looks less than new but I would'nt hesitate to set off on a long ride tommorow. I wonder how many bike riders would buy a Benelli if they offered a bulletproof garantee... to make up for the lack of history that gives the confidence to buy Suzuki, Kawasaki and Yamaha.
Posted: 10/06/2009 at 01:59
um, is a typo, 1000 km? Did you mean 10,000 or 100,000 km?
Posted: 10/06/2009 at 07:23
You can add MZ to the list, if you want. I can simpathise with both Tltourer and 5thtimelucky. I bought an MZ 1000S in 2006, as I was looking for sport-tourer and the default choices really did not do for me (no space uner the saddle for a good lock and chain, for example). Since my purchase, I've experienced both sides of rare-bike ownership. Elation at the competence of the bike and quiet satisfaction at riding something so unusual. Despair at some design details and rage when it lets me down for some crappy electric gremlin. I've felt dread when I got news of MZ going bust (again), but was reassured when the UK importer (the indefatigable Grahams Motorcycle of Taunton) reassured about parts availability. When it works, is the most satisfying bike 've had. But on the whole, I have come to the conclusione that brilliant though it is, this is not the bike for me. It requires dedication, mechanical ability and ingenuity. I have none of those, which is why I also have a Japanese bike to use as workhorse. Ride Safe,
Posted: 10/06/2009 at 10:08
"but people are so cautious and conservative it drives me mad. " You cant blame people for being conservative with 20-30 grand can you? Apart from the reliability question there are two further problems with niche motorcycles. They cost more to start with and they are worth less second hand. Depreciation is a significant expense with a motorcycle.
Posted: 10/06/2009 at 20:45
Moto guzzi Griso, list price $24990 NZD I presume you work in "Paunds" govener....
Posted: 11/06/2009 at 21:18
Its like love,sex and marrage. I love MV Agusta, would like to have sex with a Bennelli but perhaps its wiser to marry a Ducati ! I have often been very tempted to stray to Benelli and maybe might get one as a bit on the side.But my Ducati has never let me down and deserves my faithfullness.I still look longingly at an MV Agusta and wonder what might have been if we had met earlier and I could have afforded to take her out. Italian bikes and women....the great joys of life....ride on. All the best, Ado
Posted: 12/06/2009 at 14:53
Strange to think you went of GSs due to lack of character...some people quote that as the reason for buying them! I think 'character' is just a advertising thing anyway; some bikes are marketed with a certain 'character'...character for a bike is a personal thing; for me 'good character' means being reliable, capable and comfortable. Things like rattles and build quality issues annoy me to the point of ruining my relationship with my bike...lack of reliability would put me off altogether. There's no need to suffer poor reliability today. I'm not sure what it is about Italian bikes that people like; pride of ownership, feeling of being different, looks, heritage...its all personal though and highly subjective. On the subject of Benelli; in their defence...didn't somebody ride one across the Shahara? On the other hand; I'm not sure why anybody would pay so much more than the norm for a bike which is actually not as capable...is a TNT really better than a Tuono, Speed Triple or a Superduke? And a longer warranty would be pointless...what's the point in a long warranty from a company constantly on the brink of going bust?
Posted: 12/06/2009 at 15:16
"And a longer warranty would be pointless...what's the point in a long warranty from a company constantly on the brink of going bust?" A good point well made. So whats happening in the TT, living in New Zealand is like living in an Amish community. How does anyone watch it? I cant find any links on the web to watch it without paying a small fortune.
Posted: 14/06/2009 at 21:31
I owned a Benelli Tornado Novecento Tre Limited Edition with only one small problem in three years. The plug slowly loosened from the back of the clocks is all. That bike was stunningly beautiful and fast enough for anyone, although it wasn't as fast as new liter bikes. Their reputation for reliability, or lack there of, is more than deserved as many of my firends (also owners) came across multitudes of small problems that could easily have been factory solved in the production phase. However, problems that reared their heads after a few years riding were being sorted out by exceptional backup from exceptional companies such as Russ at Bennetts in the UK and Brian at KJM also in the UK. I have owned Honda CBRs out the wazzoo, Suzuki dirtbikes, MV Agustas and Ducatis along with loads of other assorted machines that were bland enough not to be mentioned. The Nelli LE rates amoung the best I have owned...ever. How much did I like it...I had to sell it...to buy another new one! This one will be with my family for ever!
Posted: 21/06/2009 at 19:06
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