Business – The objectives of the Mercedes-MV Agusta alliance – Occasions MV AGUSTA

The objectives of the Mercedes-MV Agusta alliance

Business - The objectives of the Mercedes-MV Agusta alliance - Occasions MV AGUSTA

Since November 2014, Mercedes has acquired a 25% stake in MV Agusta through its sports subsidiary AMG. Why this alliance and for what purpose? The explanations and objectives of Dieter Zetsche, CEO of the Daimler group to which Mercedes and AMG belong among others.

Since November 2014, Mercedes is through its sports subsidiary AMG. Why this alliance and for what purpose? The explanations and objectives of Dieter Zetsche, CEO of the Daimler group to which Mercedes and AMG belong among others.

Mercedes and VAG at BMW’s ASPI !

It is as if the compatriots of BMW envy its dual "car and motorcycle" activity! After the Volkswagen group offered itself, Mercedes-AMG in turn places a few pawns on the "motorcycle" chessboard through a . 

If the approach differs in form (VAG owns Ducati, Mercedes is only a shareholder of MV Agusta), it is similar in substance: the two giants of the automotive industry are now linked to prestigious motorcycle brands. italian.

By the own admission of the CEO of Mercedes, his project "motorcycle" seemed to be originally written with Ducati, following a first partnership between the two brands in 2011, materialized by . 

"We had a past experience of cross-marketing with Ducati which was promising", reminds our colleagues of the man who has headed the Daimler group since 2006. "But the company was acquired by Audi and the experience ended", he seems to regret.

Why a car manufacturer invests in a motorcycle brand ? 

For different reasons: the first, the most obvious, is to make a financial investment deemed a priori profitable, while strengthening its "premium" image thanks to the rich sporting and historical heritage of brands like Ducati or MV Agusta

"We now have a new partnership with MV Agusta, a very prestigious brand. It is a strategy of ‘crossing brands’ between AMG and MV Agusta because we believe that the two brands are complementary," said Herr Zetsche.

Complementary in terms of images, but also to a certain extent technologically since it makes possible interesting transfers of know-how, as Audi has proven by presenting a . 

Certainly, on paper, neither the Mercedes engine manufacturers nor those of VAG have lessons to be learned from their counterparts in Bologna and Varese, especially as Mercedes and Audi engines are among the most sophisticated in the automotive world..

But motorcycle mechanics are developed with space and weight constraints clearly greater than those encountered in cars, where space is not lacking and where the mass is less penalizing. At least until now, because for some time the tendency in cars has been towards "downsizing", with smaller engines but just as – or even more – powerful than a large-displacement mechanic..

Seen from this angle, the excellent energy efficiency of motorcycle blocks has something to arouse the interest of car engine manufacturers, particularly in terms of friction management and the use of composite materials (like the sprockets of water pumps and technopolymer oil of the).

Finally, each car manufacturer is actively working on alternative technologies of the future….

Although none of them really want to trade their "expensive" gasoline and diesel engines for electric, gas or hydrogen (fuel cell) propulsion modes, all of them have to meet this demand. a requirement driven by a growing form of environmental consciousness. 

A situation that could for example lead to the design of a Smart (another brand belonging to Daimler) whose propulsion would be based both on the excellent 3-cylinder 675 cc from MV Agusta and on an electric or hydrogen motor, like that of the very advanced . 

Enough to answer a lot of problems in terms of autonomy and performance of so-called "zero emission" vehicles, no. ?

"Mercedes-AMG will not produce motorcycles"

One thing is certain, however: this alliance between Mercedes-AMG and MV Agusta is not intended to serve as a springboard for a hypothetical diversification from the manufacturer to the star in motorcycle production..

"We have no intention of taking over the company or producing motorcycles: MV Agusta can do this much better than us", says Daimler CEO. 

This also means that if it is possible that a Mercedes car one day embeds all or part of an MV Agusta mechanical, the reverse seems a priori excluded … for the moment, at least. !

What interests for MV Agusta ?

But in the end, what does this alliance with Mercedes earn for MV Agusta? First of all, cash! To acquire part of the capital of the Varese coat of arms, Mercedes-AMG obviously had to sign a large check, the amount of which has still not been communicated – and probably never will be. ! 

In addition, Mercedes can bring rigor to MV Agusta by providing valuable advice in terms of logistics management, in particular.

The Italian manufacturer will also undoubtedly take the opportunity to revise its commercial conditions with its suppliers, using its new partner as a guarantee..

Because the powerful German group has formally undertaken to provide "its marketing support and its assistance in the distribution of MV Agusta".

However, being associated with a giant like Mercedes is commercially invaluable to MV, whose image has been somewhat tarnished by its throughout its history..

The proof with the granting in December of a loan of 15 million euros in favor of MV Agusta, a credit issued by the Banca Popolare di Milano (BPM) and supported by the Italian financial insurance group SACE only one month after the announcement of the arrival of Mercedes alongside MV! Coincidence? Surely not !

Aimed at supporting the development of MV Agusta until 2018, this colossal loan also includes the extension of the range via new models and the "penetration of high potential markets" such as the USA, Brazil and Asia.

"The support of two financial partners like BPM and SACE is essential for this decisive moment of growth for MV Agusta".

"Relying on their undisputed capacity, we can successfully continue our development", rejoices Giovanni Castiglioni, the proud manager of MV Agusta.. 

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