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Castiglioni completes his rape of Harley-Davidson

It seems like only yesterday that Carlo Castiglioni sold the iconic MV Agusta brand to Harley Davidson.  Now, two years later, he’s bought it back–for less than he sold it to Harley-Davidson.

Along with Giovanni Castiglioni, the company will be headed by Mr. Massimo Bordi, a well known Italian manager. A 62-year-old engineer, Bordi took Ducati to success during the years when that company was owned by the Castiglionis and continued to manage it successfully under the ownership of Texas Pacific Group. Since 2003 Massimo Bordi has been the CEO of Same Deutz Fahr, contributing largely to the success of the company. Massimo Bordi commented that “MV Agusta has full capacity to once again become a major player in the high luxury brand motor bikes, this brand is one of the most recognized worldwide. We will implement a number of reorganization and managerial actions in the near future.

So, essentially, Castiglioni pawned off MV on Harley, so they could dump money into it for a few years, then bought it back as a stronger company for less than he sold it. Why H-D bought it in the first place is still an unanswered question.

Oh, and how hard did Castiglioni screw H-D?  Pretty hard.

Harley-Davidson bought MV Agusta for $109 million back in 2008 (most of which was bad debt), and now just a little over two years later is making a tidy profit of…well, nothing. After wiping the books clean, investing in new infrastructre, and getting MV Agusta back on track with an all new model line-up (with a bike on the way), Harley-Davidson saw a paltry sum of €1 cross its desks.

€1 is about $1.25.

So, Harley paid for the privilege of getting MV back on its feet, paying off the debt, bankrolling a new product line, then essentially gave it back to Castiglioni.  Who is, after all, the guy who was running MV into the ground before Harley-Davidson rescued it.

So, now we’ll get to find out if Castiglioni will run it into the ground again.

Along with Giovanni Castiglioni, the company will be headed by Mr. Massimo Bordi, a well known Italian manager. A 62-year-old engineer, Bordi took Ducati to success during the years when that company was owned by the Castiglionis and continued to manage it successfully under the ownership of Texas Pacific Group. Since 2003 Massimo Bordi has been the CEO of Same Deutz Fahr, contributing largely to the success of the company. Massimo Bordi commented that “MV Agusta has full capacity to once again become a major player in the high luxury brand motor bikes, this brand is one of the most recognized worldwide. We will implement a number of reorganization and managerial actions in the near future.
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