MV Agusta has revealed it has secured the financial security it needs to begin developing a new range of medium capacity models, as well as update its premium motorcycles.
Revealed in a statement from the iconic Italian marque as part of MV Agusta’s five-year business plan, the capital has been sourced entirely from the Sardarov family, already a major stakeholder in the company.
Over the next five years, MV Agusta is targeting a sales volume of 25,000 motorcycles, which will be driven by maintaining its premium models but – more significantly – expanding into the mid-size range to take on more volume models from Kawasaki, Honda, Yamaha and Ducati.
The intervention of the Russian origin Sardarov family comes after Timur Sardarov was installed as Chairman of the Board and CEO in December 2018. He has initiated a management restructure that sees Massimo Bordi – Executive Vice Chairman - and Paolo Bettin – Chief Financial Officer - join the ranks.
Founder and former Preisdent Giovanni Castiglioni moves to an advisory role.
"Over the next five years, MV Agusta's attention will be focused on developing the sales and service network, while investing in product development and maintaining its efforts in digitalization and technological innovation,” Sardarov said.
“We are committed to deliver the best products and continue to be a benchmark in motorcycle industry in quality, design and technology. Finally MV Agusta has all the tools to do so.
“Together with the management, we are working diligently to execute the business plan and achieve our objectives which will require an increase of personnel and dedication from all at every level of the company. This will also positively impact the local community in terms of employment and benefit the
Varese-area related industries.”
What does this mean for MV Agusta?
Sardarov has been quoted in the past as saying MV Agusta needs only to sell 2,500 models a year in order to break-even, a target it is comfortably meeting and one that – consolidated by Sardarov’s own investment - is allowing it to plan for a more ambitious future.
Curiously, this announcement makes no mention of the deal it purportedly signed with Loncin in July which suggested four smaller models in the 350-500cc displacement range were being developed together using the Chinese firm’s volume manufacturing capabilities.
In return, MV Agusta leant its design prowess and knowledge of the upper portion of the marketplace to Loncin’s burgeoning high-end brand, Voge.
Whether this latest announcement is a continuation of this or a shift away from that agreement in favour of keeping production in-house isn’t entirely clear.
MV Agusta to move into mid-range motorcycle market
Regardless, MV has bold plans for the future to capitalise on a brand that remains fondly regarded for its heritage, designs and premium feel, recently demonstrated by the demand for its limited production Brutale 1000 Serie Oro ‘hyper-naked’ and Superveloce 800 Serie Oro, both of which sold out within days of order books opening.
Even so, it is in a more mainstream area that Sardarov sees its biggest opportunity for growth in sales, stimulated by investment in growing its dealer network and infrastructure around world, as well as trial more modern buying methods, such as offering an online ordering process.
In short, with mainstream firms dabbling increasingly in offering more premium scale models which encroach MV Agusta’s sales space and chip away at its market share, the company will play the same game by heading in the other direction and take premium to the masses.
Quite what form these mid-range MV Agustas will take remain to be seen - such as an F1 or F2 - but for a company that has endured a rollercoaster in fortunes over the decades, the future certainly appears to be a brighter for this historic marque.
