KTM is planning to acquire more than 50% stake in MV Augusta, which is a luxurious motorcycle brand.
KTM is in plans to acquire a controlling stake of more than 50% in MV Agusta, an Iconic Italian brand. KTM already has a 25.1 percent stake in the Italian marquee that was acquired last year. Sardarov Family is the current owner of MV Agusta. KTM wants to add luxury to their brand of motorcycles as Italian motorbikes are known for their Luxurious motorbikes.
The latest reports suggest that KTM plans to extend its shareholdings in MV Agusta by 2024. The main reason for the acquisition is KTM’s Parent Company, Pierer Mobility Group(PMG), which wants to invest heavily in the Factory of MV Agusta in Varese, Italy.
According to Hubert Trunkenpolz, a PMG's senior management board member, KTM intends to improve MV Agusta's production capacities and simplify operations while avoiding job reductions. The MV Agusta plant can produce 12,000 motorcycles each year. However, the Italian bike producer only produced 1,000 units last year. After acquiring the MV Agusta brand, KTM intends to use maximum capacity, producing 12,000 bikes at the Varese facility.
Hubert Trunkenpolz also stated that KTM and MV Agusta plan to keep MV Agusta as a unique premium motorcycle brand with no overlap or competition with KTM's product selection. This strategy would try to maintain both brands' distinct market positions and identities.
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