Rennie Scaysbrook | August 4, 2024
MV Agusta is in the middle of a rebirth under Pierer Mobility AG that the company hopes will transform it into the ultimate luxury two-wheeled brand in the North American market.
MV Agusta’s tagline is “motorcycle art.” It’s hard to argue with that when you look at the stunning 2024 Superveloce 1000 Serie Oro.
MV Agusta has always enjoyed a special reputation in the international motorcycle industry. The glory years of Giacomo Agostini waltzing his way to title after title in the 1960s brought with it a glamor image money simply can’t buy, but the afterburn of Ago’s success had long faded by the turn of the century despite creating legendary motorcycles like the 750S of 1970 and the F4 of 1998, among others.
MV Agusta has endured quite the ride over the past 15 years. Bought by the late Claudio Castiglioni for the third time in 2010 (purchasing the brand from then-owners Harley-Davidson), and sold to Russian billionaire, Timur Sardarov, in 2019, MV Agusta was a bit of a hot potato when compared to the relative stability of compatriot and archrival, Ducati.
That all started to change when rumors of Pierer Mobility AG possibly buying the brand began to surface towards the end of the pandemic. In November 2022, the Austrian giants behind KTM, Husqvarna and GasGas, purchased a 25.1 percent stake in MV Agusta. A year later, Pierer Mobility AG stated its intention to acquire a controlling share in MV Agusta with a plan to bring some much-needed security to the brand.
The deal was struck in March of this year, with Pierer Mobility AG purchasing a controlling 50.1 percent stake in MV Agusta from Sardarov, who retained a 49.9 percent holding. Hubert Trunkenpolz (the “T” in KTM) was thus installed as MV Agusta’s CEO while Sardarov was moved to the position of Vice-Chairman, Brand Ambassador and Consultant.
KTM’s plans with MV Agusta are clear: to position the brand as the number-one destination for high-end, luxury motorcycles. Trunkenpolz himself stated he does not believe any MV Agusta should come with a price tag around $27,200, and production will be capped to 10,000 units worldwide with no exceptions.
A major part of this rejuvenation is reestablishing the brand in the U.S., so we sat down with MV Agusta in North America Managing Director, Italian Luca Dovesi, to see how the plan is coming along.
Luca Dovesi (left) comes to the American helm at MV Agusta after a stint with Ducati in Thailand and as Head of After Sales & Network Development for KTM in Singapore. Photo: Ryan Nitzen
MV Augusta is almost starting from the ground up in North America. What have been some of the challenges that you’ve seen so far in getting the brand back up and running here?
The biggest challenge is trying to change the perception of the brand. The reputation of the brand was badly affected in the past. Something different is when you have a startup, a new company, a new brand, and everything is new. People are excited. They don’t have any hard, bad feelings of the past. Now, when we came here and took over the MV Agusta project, it was really bad. Bad management, bad reputation, bad media experience, bad customer experience. The network was really in bad shape. So that is my biggest challenge.
I want the people to change the bad opinion of MV Agusta from the past. This is even harder than in Europe, because in Europe, being centralized in Italy, the brand was a little bit better managed. It was more centralized, so people still were appreciating the brand, riding it, and buying it. But here, we were very disconnected.
“I want the people to change the bad opinion of MV Agusta from the past.”
MV Agusta is a smaller player in a much bigger market, correct?
Yes. I think this is one of the biggest challenges—fixing the bad reputation that the brand had in the past from an operational side. Luckily, the brand itself has been strong for the people who know it. They still appreciate and love it. They know what MV Agusta represents. They know the singularity of the design and all the features. Thank God, at least, we still have a good brand.
It has a lot of great history with it, too.
Yes, absolutely. However, our job is to make sure a new generation of riders get to know the brand and understand it is accessible. You can touch it. You can try. You can buy. These are the people we want to reach.
What have been the first steps that you’ve had to take with that? You’ve got the new store in L.A. that opened up recently.
Yes. The first step started in late 2022 when we decided to rebuild the network. That was the first mission that we took, making sure all the partners were aligned on the new scope of the project, on the new pace that KTM was bringing to the brand, new procedures, and new processes. We reset all the network. So that was step one. You need a very good distribution. We did a lot in 2023, that I want to say we concluded with the first flagship store in Santa Monica, Los Angeles, which was for us a big milestone, as you can imagine. All that we want represented is within that store. We have an owner who is passionate about the brand, the people that can come there, and to experience a very Italian feeling regarding environment and the space. That is our first milestone that for us set the standard moving forward.
Will that be something you’re going to replicate in other flagship states?
I would love to, but first of all, I don’t think we should have a flagship store in every state of the country—only where it makes sense from perception. Places like New York, Miami, Los Angeles, San Francisco, Chicago perhaps. Big, metropolitan areas. It’s not only about finding a city, finding a space, and doing it. You’ve got to have the people to do it that love the project and are committed to it. That’s the only way you can succeed. Our dealer in Los Angeles is super committed. He treats each and every customer.
From left: MV Agusta Deputy CEO and Managing Director Luca Martin, Chief Executive Officer Hubert Trunkenpolz, and Chief Marketing Officer and Managing Director Filippo Bassoli are all are part of the new KTM restructuring of MV Agusta.
Who is the dealer?
The dealer is Victor Ruvalcaba from Moto Club California in Santa Monica. He also has an Aprilia storefront. He’s a great guy. That’s what we need. We don’t only need the location and a beautiful space, we also need the right people.
He’s a great person to align yourself with, especially because of his history with Aprilia and Italian models. I tend to find the people that go into the Italian space have a different mindset to the people that run Yamaha and Kawasaki dealerships.
When you sell a premium or a luxury brand, the transaction comes at the end of the experience. Everything is about the relationship. Why we should do business with each other?
On the other brands, it’s the other way around. It’s a transaction. You enter, you ask how much is the bike, can I get the financing? Yes, or no? Then you buy. There’s no experience whatsoever.
So, an MV Agusta purchase is an emotional one?
Yes, it is an emotional purchase. Remember, nobody needs a bike. Sorry, but MV included. Nobody needs a bike. You buy one because you want one. The culture of riding is not commuting. It’s about pleasure.
Uniquely, in Europe, it’s more about commuting. In Europe, I must find the best price, the best value for money, with luggage so I can commute from A to B every day, the best fuel efficiency, and all the characteristics I need. In the U.S., you ride because you want to ride, not because you need to.
The Dragster RR SCS America of 2023 glows under the New York City skyline.
Is it easier to sell MV Agusta motorcycles in North America or Europe?
It’s easier to sell here—and we’ve seen with our data—especially the limited-edition models. People are really looking for something different. They want to be special. But, in order to sell a comparable model on a standard level, it’s easier in Europe because people have a necessity of it. Then, of course, you don’t need this price range bike. But, with a little bit of effort, if you really like it, you can do it. Here you don’t need a bike whatsoever. You need a car. That was one of the things that troubled me about MV Agusta’s is there were so many limited-edition models, especially in the years leading up to when KTM bought MV. It was impossible to keep track of.
Has that side of MV been scaled back a little bit?
For sure. When we started the acquisition in 2022, we sat down with everybody, and we started to understand what the product line up and the portfolio would be. We still want to offer around 20-25 percent of limited edition in every year production, which I think is a fair number.
We had to, as you mentioned, limit the version, but people are still demanding for limited-edition bikes. Can the 25 percent can be absorbed as limited editions? Yes. Now, can we do 10 different limited editions? No. That is super clear.
“Nobody needs a bike. You buy one because you want one. The culture of riding is not commuting. It’s about pleasure.”
I was confused as to why KTM bought MV Augusta. In terms of perception, Ducati is the Italian racing brand, whereas now MV has moved into more the luxury line almost like Aston Martin versus Ferrari, in a way. I found it interesting that KTM decided to go for that route, although I think it’s starting to work.
The idea at the beginning was clear to everybody. Stefan Pierer is always looking for expanding. His goal is to become the biggest two-wheel manufacturer in Europe. The goal is keeping investing and acquiring companies, which is clear for everybody. It’s something we like because it keeps our job very fun and challenging, but also entertaining.
It gives the people the confidence. I’m under that umbrella, therefore there is a standard of what we do and how we do it. Now, if you think about it, and that’s the brainstorming we did with the management back in mid-2022 before we decided everything, was MV actually fits perfectly to the picture. It’s a company that has a very famous heritage that hasn’t been lost, so there is still a brand reputation that is struggling, and we needed, strongly needed, an industrial plan from KTM. We needed people, direction, procedures, and goals. That’s what it needed. Product-wise, we produce three- and four-cylinder motorcycles. This is something KTM doesn’t have in its portfolio. They only make singles and twins for production use. Therefore, we don’t cannibalize any product in the lineup and just complement the offer to the customer.
The Varese plant will see significant financial input from Pierer Mobility AG, but production capacity will be capped at 10,000 units worldwide.
Has KTM invested in the Varese production plant?
Yes. It’s already started, with the permission on everything. We will have stages. Imagine the plant as it is today, just better. It will not physically expand. It will just be better. We are refitting the space. It’s very vintage, but for a company to be efficient and also presentable, you need to upgrade. We started refining of an old production line, making it better and easier to work with. We will keep doing these phases in the next five years with the building.
Can you explain Timur Sardarov’s new role within MV Agusta?
He has a seat on the board. He’s focusing more on refining special project relationships together with Hubert Trunkenpolz. But as far as I know, he is not involved anymore on the day-to-day business of operations.
You mentioned Trunkenpolz. One thing that he said which made me go, okay, was that no MV should be available for less than $27,200 each. That’s a large sum as a starting point.
Yes, but we are not that far already. Our entry level lineup in North America starts at $19,000 for the Brutale RR.
We are trying to create a lineup and an experience with the brand together, like big luxury car manufacturers are doing. Then we can justify the price. He [Trunkenpolz] is very aggressive. He has a strong mindset on goals, so [when he said $27,200] he was setting the ground for the future.
This is where we want to be. And we’re not that far. We just have to upgrade some products to be really outstanding from everybody else and enhance the experience of that product. Then there is no problem.
So, what is special for them as a customer? Is there going to be a white-glove service? Are there track days brought into it? What else is there going to be as add-ons for the customer?
In the future we have many pipelines. We are already working on a loyalty program with different tiers, which allows you to get access to special editions if you have a portfolio already in our company. It gets you a private factory tour, private experience, private dinner outside the motorcycle environment. That’s the good thing about the brand.
Being motorcycle art, it gives us the chance to play around the ecosystem on different things. We can talk about fashion. We can talk about art. We see what happens when we create this partnership. Therefore, we attract people in our tier one, top tier, that are not necessarily riders.
Dovesi knows he’s got a job on his hands to bring MV Agusta to the fore of the luxury motorcycle market but the brand’s never had a better chance to do so than now with backing of parent company Pierer Mobility AG. Photo: Ryan Nitzen
What sort of financial programs have you got in place so people can afford such high-end products?
It’s not necessarily impossible to buy (an MV Agusta). That’s why we need to let the people know that, yes, it’s a desirable product; however, if you want, you can afford it today. Then you might ask yourself, “Can I afford $50,000?” Maybe that’s going to be tomorrow! But we have already those customers. So, for the youngsters, we are trying to break down the barriers in terms of getting their hands on a bike.
The smallest capacity MV Agusta makes is 800cc. Will there be a more entry-level bike? You were saying before you only make three-cylinders and four-cylinders. So, would there be a 600 three-cylinder?
No. Moving forward, we’re going to shape the lineup to be even more premium on that technology level. We are not a volume-making company. We have a limited production capacity that soon will be reached. Our target is to arrive to 10,000. units That’s physically where we have to stop, because the bikes are handmade. We cannot put two persons working on the same component in faster time. At some point, we will reach our cap.
Today, we could sell more by having an accessible entry-level motorcycle, yes. But we need to look at the future. Once we reach the 10,000 capacity globally, that’s it. That’s why you have to prepare the ground to play on the luxury side instead of the volume. Quality over quantity.
What about moving into the second-hand market? Like with Mercedes for example, they do the certified pre-owned vehicles, as do many other manufacturers. Is that something that MV is going to do?
We are thinking about it. Unfortunately, today we cannot have the Kelly Blue Book because we haven’t reached yet the minimum retail level. You need one or two thousand per bike to be in the Blue Book.
We started months ago with the first trade-in program. You bring us back any bike, or your MV Agusta. We’re going to give you a kicker, like $2500 etc. on top of the value of the bike to thank you for your loyalty. Of course, you’ve got to buy a new MV. If you take instead a Ducati, which is kind of a same field competitor alternative, then you’re also going to get a kicker.
We are starting to take care of our old customers, economically and service-wise. A few months ago, we launched the “welcome back” campaign. Basically, we gave a free check to all of our customers worldwide, up until 2018. A free service check, then 20 percent off on parts that you need for your bike. This is who we are today. We are different. Come back, we will take care of you. It was a massive success, both in the U.S. and in Europe.
Another beautiful limited-edition MV Agusta, this being the Brutale 1000 RR Assen, named after the Dutch circuit that’s hosted MotoGP every year since the series inception in 1948.
How many dealers have you got in North America now?
Right now, we have around 38.
That’s in Canada, Mexico and USA?
Twenty-seven in USA. Seven in Canada, and four in Mexico. By the end of the year we’re going to be 60 dealers.
If your maximum is 10,000 units internationally per year, what would be the ideal amount of sales in the North American market? If you’ve only got 10,000 bikes to go around the world, that’s not a lot for North America.
No. But, it can be a very good, profitable situation for us. The U.S. is the biggest single country out there, and North America, especially Mexico, is growing so much with our product. We want to reach around 25-30 percent compared to the global distribution, ideally 2500 units for North America.
The MotoAmerica program is brand new for this year. You’ve tied in with Melissa Paris, which surprised a few people. How has it been going?
It’s going very well. First, let me give you a reason why with Melissa we work very well together. At the beginning of the year, we had a couple of requests of teams that wanted to have the MV Agusta within MotoAmerica.
However, with Melissa, we had a very good understanding of our reality. We are small. We are growing. We are young in the industry. She understands very well what support we can offer at a corporate level. Melissa tells us in advance when she needs parts. It might take a bit of extra time to deliver, because, again, we are a small business in North America.
Whereas other teams that are used to working with bigger Japanese manufacturers, they would probably send me every week a list of things to do. It was too much to handle at this point, and with Melissa, it has so far been great, the relationship. And on top of it, she was able to get Roberto Tamburini, who is a famous Italian rider from the national level. Also, we have a very young talent, Aiden Sneed, that just turned 16 a few weeks ago. He’s young, but he’s going fast. Roberto is a very experienced rider. It’s his first experience in the U.S. circuit, so every circuit is new to him.
Sixteen-year-old Aiden Sneed (98) leads his international teammate, Roberto Tamburini in MotoAmerica Supersport in a venture headed by Melissa Paris.
Are those race bikes made here, or are they made in Italy?
The one engine is made by our WorldSSP team, and the other engine is assembled by Melissa to the same spec. It depends on timing. If we have an engine that is ready, we ship it. Otherwise, Melissa will build it. But all the bike is built here at Melissa’s.
MV Agusta recently launched its first true adventure bike, the LXP Enduro Veloce, and the limited-edition Oriloi. Given that MV Agusta is traditionally a brand for tarmac use, how big is this sector of the market for MV Agusta?
At the beginning when we started this relationship with KTM, from Stefan Pierer down, nobody was convinced about this project. They had all the questions and were skeptical, which is fine. That’s how we like the discussion to be, interactive a lot. However, if MV is good at anything, it is interpreting a segment and trying to re-elaborate in our own expression.
The team in Varese had a clear idea of these bikes, especially the Orioli. We wanted to have an all-terrain capable of everything, with the spirit and heritage of MV Agusta, which I think we pulled off.
I tried the bike a couple of times and also the Enduro Veloce, which is the same bike just different style, different bodywork, etc. And it’s super fun. Our bike has the three-cylinder that has a counter-rotating crankshaft, when and when the setup of the chassis is well done, you don’t feel the 21-inch front wheel. It’s a wholly capable adventure bike, that also has the heritage lookalike that MV Agusta must have, design-wise and in terms of quality. I think it was done very well. Also, the pricing is well-positioned, both for the Orioli and the Enduro Veloce.
Paris-Dakar legend Edi Orioli’s own limited-edition LXP adventure model marks the high point in the segment for MV Agusta.
What is the Orioli going for?
$28,998.
What’s the standard LXP worth?
$22K. The difference is the Orioli comes with the full accessories. Titanium carbon-fiber exhaust, aluminum side panel, skid plate, crash bar, fog lights, and also the different color scheme that resembles the old Cagiva Elefant back in the days. So, it’s justified.
Then if you like more the red, then go for the Enduro Veloce and put off-road tires on. This is what we are doing with the management that is working now in the company and making sure that every product is aligned for what it represents at the customer side.CN
