Aprilia Buys Moto Guzzi
APRILIA BUYS MOTO GUZZI
THE ITALIAN MOTORCYCLE industry is at a crossroads-again. Big makes have changed hands, sanctuaries have collapsed and previously unthinkable mergers are being finalized. Greater efficiency will likely be the eventual result, but will the survivors maintain their legendary individualism?
Nowhere is this upheaval more apparent than with Aprilia 's recent purchase of Moto Guzzi.
Aprilia acquired what is arguably the most prestigious of all Italian motorcycle manufacturers by simply outbidding the competition. The price? A princely $66 million. Ivano Beggio, the man who created Aprilia and leads it with a very capable and strong hand, paid that amount mainly for the magical Moto Guzzi crest: the golden eagle spreading its wings inside a red oval.
Beggio says Moto Guzzi will remain in Mandello del Lario. Unfortunately, the old factory is obsolete and poorly designed for quantity production. Much will be needed to bring the facilities up to current standards. More will be required to renew the current model line and, more importantly, the long-
standing V-Twin engines.
Last year, Moto Guzzi made 6000 motorcycles, posting losses of $11 million-$l million more than the previous year. That, along with an embarrassing financial situation (one mortgage atop another!), will be assumed by the Trident Rowan Group from the money it will pocket as Moto Guzzi’s majority shareholder. Aprilia, then, will get Guzzi debt-free.
When Aprilia officially takes over, expect a new management team. In the meantime, Gianni Bulgari, one of Guzzi’s main shareholders and the man who was delegated to sign the final act with Beggio, will serve as president. By the numbers,
Aprilia is Europe’s number-two two-wheeled manufacturer behind scootergiant Piaggio, with five production outfits around Italy, two R&D centers, and 1600 workers. Last year, it produced 3 10,000 machines, of which 250,000 were scooters.
The purchase of Moto Guzzi will certainly change the public’s perception of Aprilia, which has always been considered “too young.” Beggio, for one, is very optimistic about his new holding. As for the future, expect even more daring acquisitions.
Bruno de Prato
