Castiglioni buys back MV Agusta

Like an Australian company returning Vegemite to its rightful home Down Under, Claudio Castiglioni has bought Italian motorcycle maker MV Agusta.

When MV's former owner Harley-Davidson encountered severe financial woes during the global financial crisis – which saw sales plummet and revenue drop - it closed Buell and put the for-sale sign on many assets – one of them being exotic Italian sports bike maker MV Agusta.

The sale of MV Agusta back to Castiglioni, and his holding company MV Agusta Motor Holding, S.r.l is akin to Kerry Packer's selling of Network Nine for a handsome sum, then buying it back at a later date for a dirt cheap price.

When Castiglioni acquires the company, it will be debt free, with sales up 50 per cent for the first quarter in 2010, and a brand new model ready to hit the tarmac mid-way through 2011, the MV Agusta F3 supersport model. All things considered, MV Agusta is in much better shape than when Harley-Davidson bought the company in 2008.

"MV Agusta is a proud brand and we wish Mr. Castiglioni and the company's employees well," said Harley-Davidson President and Chief Executive Officer Keith Wandell in an official press statement.

"Our decision to divest MV Agusta reflects our strategy to focus our efforts and our investment on the Harley-Davidson brand, as we believe this provides an optimal path to long-term growth," added Wandell.

According to the statement Claudio Castiglioni is" the historic intimate soul of MV Agusta" and as such  will continue as the company's chairman.

"MV Agusta is the crown jewel of Italian motorcycles, I am thrilled to have completed this transaction," said Castiglioni. "I have already won once together with Massimo Bordi, we made the most beautiful bikes in the world and we will continue with this tradition".

Day-to-day running of MV Agusta will be undertaken by Massimo Bordi, who had this to say of the acquisition: "MV Agusta has full capacity to once again become a major player in the high luxury brand motor bikes, this brand is one of the most recognized worldwide.

"We will implement a number of reorganisation and managerial actions in the near future. Both the current and new models under development have a very strong character, great innovative features and a very unique design, I have no doubts about their future success," added Bordi, hinting at the arrival of further models.

It's expected than a new middleweight naked bike powered by the upcoming MV Agusta F3's 675cc engine will be deployed in due course, possibly using the Brutale name.

However a day after the sale was confirmed, Claudio Castiglioni told Italian newspaper La Prealpina that staff layoffs were necessary: "We live a very difficult economic situation and we shall pursue the line of absolute rigor. Severity in every detail. Even the employees – who are 240 – will have to make sacrifices. Start, in fact, a period of layoffs that will involve them all.

"At the same time, however, I want to stress that this penalty is a prerequisite to the development of the company. Our new models work well but we already consider a three-cylinder that will be ready mid next year that will mark a turning point for the group. The layoff has done for the good of the company."