International Dealer News IDN 150 August/September 2019 | Page 21

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MV Agusta in Loncin, China,
light/middleweight cc deal
In the latest spin of the
wheel in the motorcycle
industry's burgeoning light
and middleweight
displacement direction of
travel, Russian-owned
Italian manufacturer MV
Agusta has announced a
partnership with Chinese
manufacturer Loncin Motor
Co for small displacement
motorcycles.
The deal will see Loncin
manufacturing MV Agusta
branded 350-500 cc models in
what is described as a "long-
term strategic partnership
agreement that has, as a base,
the development of an all new
family of MV Agusta products.
"The vehicles will be
completely designed by MV
Agusta to occupy the premium
segment of the high growth
Chinese market. Like all MV
Agusta products, this new 4-
model family will embody the
unique MV Agusta DNA - its
unique sound and vehicle
dynamics will spark a strong
connection with all the new
riders.
"This strategic alliance will
enable MV Agusta to enlarge its
current product portfolio with
the objective of increasing our
riders globally and expanding
access into Asia. The
collaboration marks a
significant progress towards a
major pillar in the MV Agusta
accelerated growth plan. The
company objective is to expand
access to the MV Agusta brand
and driving incremental sales –
both of the new, smaller
displacement motorcycles and
of the current Italian 675, 800
and 1000 cc MV Agusta product
range".
The new models are slated
to be in Chinese dealerships
by the end of 2021.
Interestingly, MV Agusta and
Loncin have confirmed that
their partnership "will not be
limited to the development of
the new family of products in
the 350-500 cc range". It also
includes MV Agusta assisting
Loncin in entering the premium
segment market with MV's 800
cc platform. Through CRC
(Castiglioni Research Centre),
its state-of-the-art design and
engineering centre in Italy, MV
www.idnmag.com
MV Agusta CEO Timur Sardarov with Loncin President Yong Gao
Agusta will develop an entirely
new family of products for
VOGE, Loncin's premium high-
end brand. The family of VOGE
products will target the mid
and large size capacity market
through sharing MV Agusta
technology and engineering.
One of the most 'storied' of
motorcycle brands, the
company that eventually
became the MV Agusta we
know today was originally
founded as an airplane
manufacturer by Sicilian
aristocrat Count Giovanni
Agusta in 1907.
Following its full take-over by
Russian multibillionaire oil and
gas magnate Rashid Sardarov in
2018, Giovanni Castiglioni, the
last connection to the
Castiglioni dynasty, was ousted
as Chairman and CEO. New CEO
Timur Sardarov is quoted as
saying that "this strategic
alliance is an important step to
consolidate our vision for the
future of MV Agusta. Our target
is to reaffirm our leadership in
the production of upper-
premium motorcycles, while
also enlarging our customer
base by offering a broader
range of products without
compromising our distinctive
design and performance. We are
looking forward to grow with
the right partners and the right
products, making sure that our
clients enjoy a larger choice of
models, all of which share the
same DNA and MV Agusta
pedigree."
The President of Loncin, Mr.
Yong Gao, announced: "The
conclusion of the strategic
agreement is conducive to
Loncin's and MV Agusta's joint
response to the changes in
global market demand and to
the coordinated development
of both sides. Loncin will use
advanced manufacturing
resources and Chinese market
knowledge to help MV Agusta
expand its product line and
enhance product
competitiveness. MV Agusta's
technology and advanced
design experience of high-
performance motorcycles will
support Loncin's VOGE brand in
becoming the market leader of
premium motorcycles in China. I
am looking forward to our
strategic cooperation based on
the principles of mutual benefit
and success."
Loncin produces over one
million vehicles a year - mostly
PTWs (Powered Two-Wheelers)
and related units - and has
annual production capacity for
2,500,000 motorcycles,
3,000,000 motorcycle engines
and 150,000 ATVs. Since 2005,
Loncin has additionally been in
a long-term strategic
partnership with BMW,
providing them with around
100,000 products, including
some 35,000 350 cc Scooter
and 650/800 cc GS engines. In
2017 Loncin bought Italian
engine maker CMD.
INTERNATIONAL DEALER NEWS - AUGUST/SEPTEMBER 2019
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