KTM Wants MV Agusta: Talks Of Owning Majority Stake

The problem with most luxury items is that they are sold in limited numbers. That’s what gives them a sense of exclusivity and premiumness. However, unlike fancy handbags and dresses, luxury bikes are more expensive to make, and if you don’t sell enough, eventually the brand will be broke. KTM knows that with MV Agusta’s current business model, the brand’s future isn’t as sustainable. Hence it wants to own more stake than it currently does to turn things around.

KTM currently owns a 25.1 percent stake in MV Agusta. But with more stake it will have more say and control over how things work at the latter’s center of business, said KTM top brass in a recent interview. KTM views MV Agusta as a “jewel” with great potential and with a majority stake it will help increase MV’s current production and distribution network. 

Some of the major concerns the Italian brand had with the Austrians taking charge were- one, change of where future MV Agusta bikes would be made, and two - would it be a hostile takeover with layoffs. However, KTM has addressed these concerns assuring that production will continue to be made at the historic factory in Varese, Italy and in fact, KTM was willing to spend more to develop the facility further. 

The Austrian bike maker is looking at MV Agusta as a cream-of-the-crop brand in its existing lineup of brands like Husqvarna and GasGas. With all four brands KTM’s parent company - Pierer group will have a wide variety of products across price brackets.   

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