MV Agusta Applies for Chapter 11 Bankruptcy

Today I received a note from MV Agusta confirming that due to its tight financial situation–created by inadequate sales numbers and consequent losses, and lack of fresh money–MV Agusta’s top management had decided to apply for Chapter 11 bankruptcy in order to save what positive assets are left in the company.

So far, there have been no releases from Mercedes-AMG, a 25 percent owner of MV Agusta. The move is announced as the sole possible option for saving the company, the workers’ jobs, and any possible future credible position in the market.

MV Agusta has always lived an unusual life, even when it was owned by Count Domenico Agusta, and was winning world titles by the truckloads thanks to the supreme technology of its racing bikes. But the quality of its production bikes at the time was inadequate given the very high prices they fetched. So sales lagged low, but Count Agusta cared mostly for his racing bikes, since losses in the production bike department were filled in by the sales of helicopters.

Today, the quality of production MV Agusta bikes is controversial: the three cylinder bikes are very good, and have proven competitive in World Supersport racing (Jules Cluzel just won in Thailand on his 675cc MV Agusta F3). But the four-cylinder F4 has struggled in terms of sales, and continues to struggle competing against other open-class rivals both on and off the track.

Reading comments from readers on my recent report about the MV Agusta situation, I must agree with "Superlight" when he says that MV Agusta must focus on a more appropriate line of products. Focus on the "good" engine (the three-cylinder), and on its tradition in the sport. The Brutale, Rivale, Dragster, and Stradale are all an overlapping interpretation of the naked bike theme, one should be enough.

MV Agusta could easily dress up the Brutale engine/chassis platform as a mid-sized “Supersport.” The current, Euro 4 legal, 116 horsepower MV Agusta 800 is a torquey, responsive, user friendly engine that delivers good performance. So is the new Brutale chassis, just add a well-designed fairing, clip-ons, an F3 inspired tank, and you’ve got yourself a very attractive MV Agusta Supersport 800. A real MV Agusta.

Stay tuned here for more on this subject as the story develops.