The motorcycling world has been surprised by some unexpected news: KTM has decided to stop investing in MV Agusta, according to Paddock-GP, considering that the Italian brand no longer fits into its long-term strategy. This decision was formalized during a meeting with the unions at Confindustria Varese, where it became clear that MV Agusta will have to resume independent management of its operations.
According to union representatives, production will be completely transferred back to the historic factory in Varese, a process that should be completed by March 2025. This plan, although aimed at reducing costs, involves significant expenses in reorganizing operations.
The Italian company, however, sees this moment as an opportunity to redefine its course. Until March, it will concentrate on selling the 2,000 motorcycles currently stored in Austria. Then it plans to start production of 3,000 units, avoiding accumulating large stocks and focusing on production that is more in line with demand.
MV Agusta has drawn up an ambitious recovery plan, with the aim of achieving economic stability by 2027. However, the year 2025 will be crucial, requiring a redoubled effort in management and marketing to keep the company afloat.
Drastic change for MV Agusta: KTM leaves the scene
As far as working conditions are concerned, it has been guaranteed that the Christmas bonus will be paid unchanged. If financial cuts are necessary, they will start with senior management salaries before affecting other levels.
As for employment, a solidarity plan will be implemented to guarantee 80% of the pay of the workers concerned. In addition, a voluntary severance program will be set up, although, due to the financial situation, no severance pay is planned for those who choose to leave.
This is undoubtedly a delicate transition period for MV Agusta. The company recognizes the need to learn from past mistakes and is committed to investing in training and internal development in order to avoid the financial dependencies that have damaged it in the past.
With the support of the trade unions and the joint efforts of its employees, MV Agusta believes it can overcome this difficult time and write a new chapter in its history, geared towards innovation and sustainability.
The future of the brand is now at stake. To regain its place in the market and once again become a benchmark in the world of motorcycles, MV Agusta will have to demonstrate a great capacity for adaptation, creativity and resilience.