Harley-Davidson's Return To Italy
HARLEY-DAVIDSON'S RETURN TO ITALY
ROUNDUP
HARLEY-DAVIDSON has agreed to purchase 100 percent of MV Agusta for $109 million, joining two of motorcycling's greatest icons, two powerful brands in two different market segments.
The purchase is an Italian homecoming for H-D. MV’s
premises, near Lake Varese, were built in 1913 by Aeronautica Macchi, a major aircraft company best known to motorcyclists simply as Aermacchi. Harley-Davidson acquired the Italian bikemaker in 1960, marketing its lightweight 250 and 350cc machines in the U.S. as Sprints, and sold it in 1978 to the Cagiva Group, headed by Franco and Claudio Castiglioni. Cagiva later acquired Ducati (sold to the Texas Pacific Group in 1996), Husqvarna (sold to BMW last year), and, finally, MV Agusta in 1991.
What made MV attractive to Harley, given the Italian company's $70 million debt?
“MV has a great presence (in Europe),” said Harley CEO Jim Ziemer. “It’s an aspirational model. They have a great brand reputation, racing heritage and are passionate about their product. Their customers are passionate about the product, much like (those who buy) HarleyDavidsons and Buells. It’s a great fit culturally in the way
we approach the business and in terms of experience.” Ziemer also said Harley has “increased its strategic focus on global markets” and that MV can give it more insight into a younger, performance-oriented buyer, particularly in Europe.
Ziemer says the Buell brand won’t be threatened by MV “We’ve done a great job with Buell, but there is more we can do,” he said. “We need to be relevant to a broader range of riders, and this is a way we can do that.” MV had in 2008 “significantly slowed production due to financial difficulties.” So H-D’s initial plans are simple: “Our first job is to get the factory up and running,” said Ziemer, adding that there will be an American management team in Varese and that Claudio Castiglioni will stay on as chairman of the board.
Perhaps the greatest assets acquired in the deal are the services of legendary designer Massimo Tamburini and his Cagiva Research Center.
“Tamburini is an icon, and it was important that he was a part of the deal,” said Ziemer.
In fact, Tamburini insisted on separate negotiations. Long fiercely loyal to Castiglioni, Tamburini in recent times has been critical of his boss’s policies.
“Claudio was incredible,” said Tamburini, reflecting on his relationship with Castiglioni dating back to the Ducati days. “His abilities as a charmer are superhuman. When we met with Harley-Davidson, suddenly I discovered the other, unknown side of Claudio. He tried to blame MV Agusta’s financial troubles on CRC and on me.
“From then on, I requested private negotiations with Harley-Davidson officials, and that was immediately granted,” continued Tamburini. “And to my great personal gratification, we talk the same language. Their quest for quality is exactly like the one I have worked for all my life. They know the mission of a prestige make like MV Agusta. They are themselves a prestige make. I look forward to working with them.”
A final note from Ziemer about MV: “Harley was in a similar (financial) position 20 years ago, and with our expertise we can help them become successful.”
—.Mark Hoyer,
Bruno dePrato
