Monday, August 27, 2007

MV Agusta's Getting Better After Proton Era

Proton Holdings, a Malaysian company that has interest in the national car project - Proton, has disposed of its 57.57% interest in MV Agusta, a renowned motorcycle company to an unknown Italian company called Gevi Spa for a mere 1 Euro (incl. debts and working capital requirements totalling 139.44 million euros) way back during end 2005. I could have bought that company at a much higher price.

And lately, news came out that one of MV Agusta's motorcycle brand has been stripped of from its stable and sold of to BMW Motorrad International at an undisclosed price. The said brand being disposed of is Husqvarna Motorcycles, which is considered a renowned brand by BMW Motorrad and American Motorcyclist Association. I'm very about as BMW wouldn't have invested in a non-profitable business/brand.

It has been rumoured that MV Agusta managed to disposed the Husqvarna Motorcycles brand at a price of 93 million Euro. That was just for 1 brand.

The question goes back to Proton Holdings Berhad's management. Why did they dispose of MV Agusta for a paltry 1 Euro???? If people just brush it off by saying it's a management failure then I would say it's a total cover-up again or something fishy has happened. Who would in their right frame of mind dispose it at 1 Euro????

And then MV Agusta's new management managed to sell off a "renowned brand" for 93 million Euro. That sale would have met majority of the 139 million Euro required to cover debts/ working capital.

Not only that, after MV Agusta had freed itself from Proton, it managed to develop the following two events which I would say a brand building effort:-

* the joint-production of MV Agusta watches together with the renowned watchmaker, Jean Richard

* the development of the world's most exclusive and fastest production motorcycle on the planet, the MV Agusta F4CC at a price of 100,000 Euro, limited to 100 units only.

Me: Proton, what's your say in this?
Proton: We don't know.
Me: Ok, I had expected that answer as what else do you know.
Tags: MV Agusta, Proton Holdings Berhad, Proton, BMW, BMW Motorrad International, Husqvarna Motorcycles, MV Agusta Watches, Jean Richard, MV Agusta F4CC, F4CC, Motorcycles, American Motorcyclist Association



Blogger endroo G said...

I wonder why they bought MV Augusta in the first place.

28 August, 2007 17:19  
Blogger Johnny Ong said...

if not mistaken, they bought at a cheaper of 70m Euro and do know abt the potential of the company which we can see now. just a single brand can command 93m Euro.

28 August, 2007 23:28  

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