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.

Author: Dale Franks

Dale Franks is the former host of The Business Day, ”a daily, four-hour business and financial news program on KMNY Radio in Los Angeles. From 2002-2004, he was a contributor on military and international affairs for TechCentralStation.com. Currently, he a publisher and editor of the monthly political journal The New Libertarian, as well as an editor of the popular web log, Q and O. Dale served as a military police officer in the United States Air Force from 1984 to 1993, in variety of assignments both in the United States and Europe, where he also was assigned to the staff of the Headquarters of Allied Forces Central Europe. In addition to broadcasting, writing, and speaking on various topics, Dale has also been a long-time technical training instructor on a variety of computer software and technology subjects. Dale has also long been involved with information technology as an accomplished web designer, programmer, and technologist, serving as the corporate knowledge specialist for Microsoft Outlook at SAIC, the nation's largest employee-owned corporation. Additionally, he is the author of a number of software user guides used for classroom training by one of Southern California’'s premier computer training and consulting firms. His book, SLACKERNOMICS: Basic Economics for People Who Find Economics Boring, is available from Barnes & Noble.

2 thoughts on “Castiglioni completes his rape of Harley-Davidson”

  1. Sounds like a bad business decision on HD’s part and a savvy one by Castiglioni. Isn’t the first rule of business “buy low, sell high”?

  2. Actually Stacy I think the first rule of business is to make a product your customer wants and make it the best you can make it.
    For Harley, (and GM), this is beginning to look like 1971 all over again.

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