It was only in March 2024 that the Austrian company Pierer Mobility AG acquired a 50.1 percent majority stake in MV Agusta. Now, almost nine months later, KTM is letting go of the Italian brand, if media reports are to be believed. This decision was apparently made on December 9, 2024, when trade unions and KTM representatives met in Varese, Italy, the headquarters of MV Agusta. According to KTM representatives, MV Agusta is no longer considered a strategic asset. Production is to be completely relocated back to the plant in Varese over the next three months.
The decision to part with MV Agusta is apparently closely linked to the financial situation of Pierer Mobility AG and KTM AG. KTM AG applied for debtor-in-possession restructuring proceedings at the end of November 2024 after accumulating debts of 1.5 billion euros (approx. 1.63 billion USD). Drastic steps were necessary as part of the restructuring and redimensioning, including the withdrawal from the cooperation with MV Agusta.
The cooperation began in 2022 with the acquisition of 25.1 percent of the shares by KTM AG. This was followed by the purchase of a further 25 percent in March 2024, making Pierer Mobility the majority shareholder. KTM took over the management of the supply chain and purchasing and distributed MV-Agusta models via its own network. However, this integration is now being reversed and there is also talk of selling the majority stake.
The future of MV Agusta
MV Agusta is once again facing the challenge of surviving as an independent company. According to the Italian trade union CISL, existing agreements, such as the employees’ 13-month salaries, remain untouched. However, it has been announced that the workforce reduction will take place on a voluntary basis, without financial incentives for departing employees. In addition, management positions could be the first to be affected if further cuts become necessary.
MV Agusta plans to resume production in mid-March 2025. The aim is to produce 3,000 motorcycles and bring the 2,000 or so unsold models from the existing stock onto the market. The focus will be on training and improvements in production quality in order to learn from previous mistakes. The current development plan envisages economic stabilization by 2027 – without the support of KTM.
A look back at the difficulties
The restructuring of MV Agusta is nothing new. Even before the takeover by KTM, the company was already struggling with financial bottlenecks. The former owner, Timur Sardarov, is reportedly interested in regaining control of the brand and would therefore like to buy back the majority shares if necessary. Alternatively, an investor from China could also step in to offer MV Agusta a new perspective. At the moment, however, this is all still speculation.
Trade union representatives report that expansion plans have been put on hold for the time being. Instead, production in Varese is to be adapted to demand. The relocated production offers the opportunity to optimize capacities and focus on the brand’s core competencies.
MV Agusta: A tough battle for the future
MV Agusta has already overcome a number of challenges in the past, including the takeover by Harley-Davidson in the early 2000s. Now the brand is once again at a crossroads. It remains to be seen whether it will manage to build a stable foundation without KTM. However, the planned measures and the return to its own strengths could open up a new opportunity for MV Agusta.
KTM gives up majority stake in MV Agusta? A new era for the Italian luxury brand 3
