MV Agusta, Mercedes-AMG to separate, MV to scale back production, slash R&D budgets, reduce headcount
In terms of sales, MV Agusta are doing better than ever before. And yet, a severe liquidity crunch is hitting the company's operations really, really hard. The partnership with Merc-AMG seems to be over already
Despite selling close to 9,000 motorcycles in 2015 (a 30% increase over the previous year!), MV Agusta are again in big financial trouble and the Italian company's President, Giovanni Castiglioni is currently struggling to keep things going. With a current debt of approximately 40-50 million Euro, MV Agusta are in a slightly weird situation right now - business has never been better for them, and yet they do not have the cash to keep things afloat.
Back in 2014, Mercedes-AMG had acquired a 25% stake in MV Agusta, and this was then seen as a big step forward for MV, in terms of bringing financial stability and security for the small Italian company. Within a short span of two years, however, the partnership has run into rough weather and already, according to Il Giorno, MV and Mercedes-AMG are preparing to go their own separate ways. "We are negotiating a buy-back of shares," said Giovanni, speaking to Il Giorno.
Given their current lack of liquidity and mounting pressure from suppliers for repayment of outstanding amounts, MV Agusta are looking at reducing their workforce by up to 200 people, as well as scaling back production from last year's 9,000 units to just 6,000 this year. Money spent in R&D will, reportedly, be cut from ...
Source:
fasterandfaster
URL:
http://www.fasterandfaster.net/
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