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Flooding Just Latest Problem For MV Agusta/Husqvarna

Recent flooding causing an interruption to the production of MV Agusta and Husqvarna products is just the latest problem faced by the Cagiva/MV Agusta/Husqvarna group.

The apparently cash-starved operations were looking for an infusion of financial support from Piaggio when a planned merger collapsed just a few months ago. With designs for new bikes finished approximately two years ago, but still unable to reach production, both MV Agusta and Husqvarna, apparently, must make it without a money partner for the time being.

Much can be blamed on a slowdown in scooter sales in Europe, which has dramatically impacted expansion plans of Piaggio, Aprilia and others. Indeed, Aprilia would be a likely candidate to replace Piaggio in merger talks with Husqvarna, particularly since Aprilia has stated its intention to expand into the off-road market. Like Piaggio, however, Aprilia is dependent upon scooter sales for a significant percentage of its cash flow, and those sales are hurting.