Cycle News - Archive Issues - 2000's

conference at the end of Moto Guzzi in Safe Zone March, at which Sabelli and Piaggio president Roberto Mota Guzzi's future is secure, with the revelation that new Colaninno introduced new owners Piaggio will devote a further 25 million euro ($32 million) to completing the turnaround of Italy's most historic motorcycle. Yet, it's been a sad irony of Aprilia's 2004 financial meltdown that Moto Guzzi, the division of Beggio's family empire which Guzzi CEO Daniele Bandiera (an ex-Fiat/Alfa did most to create the company's cash flow crisis, should have been the one most readily poised to start earning a return on ment into Mota Guzzi over the next four years, specifi- the huge investment he'd made in reversing decades of dire De cally targeted at developing Tomaso management, and lack of investment. Beggio spent a new models. Romeo car executive) and revealed their plans to pump a substantial invest- total of 90 million euro Oust over $1 15 million) in buying Moto "We intend to bring Guzzi from the Argentinian wheeler-dealer and his cronies, Guzzi to break-even point then restructuring its Mandello base, re-equipping its two production lines with the latest in digital machinery, revamping the within the next two to three years," Sabelli said, infrastructure of its magnificent museum, and kick-starting a 20 "with the minimum target million euro ($25.6 million) development of a new range of products spearheaded by the Breva VI 100, which is now finally in production and reaching showrooms around the world. This is aimed at quintupling annual production from less than 4000 bikes in 2004 (mainly the new model's worthy but modest Breva V750 kid sister launched back in 2003, and the bornagain spin-off version of Guzzi's entry-level model, the Nevada Classic 750ie cruiser), up to 20,000 units by 2008, with 7000 planned as an intermediate stage for 2005, all spearheaded by the new large-capacity Breva. The double cash flow whammy of the substantial Guzzi investment being paid out, and Aprilia's own reduced income thanks to the collapse of the small-capacity scooter market (not aided by delusions of grandeur in splashing millions of euros abortively going MotoGP racing), meant Beggio's bet on being able to bring Guzzi back to businesslike operation looked doomed - until Piaggio stepped in and bought the of 10-12,000 motorcycles needed to achieve this, It is a big step up from the pres- entire Aprilia Group last December. Even then, it seems to have taken a surprisingly long time for Piaggio management to realize that, in the shape of Italy's oldest and most illustrious motorcycle marque, winner of 14 Grand Prix World titles and owning a highly distinctive brand image, they had a prestigious, potentially profitable product - especially in the crucial U.5. market, where Moto Guzzi has a strong following. "To be quite honest, I wouldn't have been too disappointed if Guzzi had not formed part of the Aprilia group when we acquired it, because this is a separate stand-alone entity, which is difficult to integrate into the overall synergy of our group," Piaggio CEO Rocco Sabelli said when quizzed back in January about his plans for Mandello. "If someone made us a decent offer to buy Moto Guzzi from us, we'd be ready to start talking - but nobody's come forward, so now we're doing what's needed to turn it around." So why not let Ducati buy it, as Ducati president Federico Minoli stated publicly last year he'd like to do? "We have never received a firm offer from Ducati to pur- chase Moto GUZZi," Sabelli declared, "Never. And what they wanted to do before, to bid for only Moto Guzzi in order to split it off from the rest of the Aprilia Group, simply wasn't practical without first resolving the fundamental indebtedness of Aprilia as a whole." Piaggio's change of heart was highlighted at a Milan press ent situation, but we believe this significant investment will complete the turnaround already begun under the previous administration, And if the results are encouraging. we don't exclude Moto Guzzi having a wider spread of models outside its present rathernarrow niche sectors." Could this therefore mean a range of Guzzis powered by something other than a transverse V-twin engine? "We're working on a project which is completely innovative from an engine standpoint and in its application to the marketplace," Sabelli said. "But it's too early to say any more Piaggio's commitment to a new Guzzi motor, however, is thought to refer to the ail-new liquid-cooled V-twin engine under development for the past three years by Aprilia's R&D team headed by Mariano Fioravanzo, father of the Aprilia RSV Mille, as well as project leader for the new generation Guzzi pushrod models powered by the made-over Euro 3-compliant 1064cc engine making its debut in the Breva VI 100, Fioravanzo and company kept working throughout 2004 in spite of Aprilia's financial squeeze and are understood to be very close to completing the first prototype and beginning dyno tests of the all-new 1200cc eight-valve motor fitted with chain-drive twin overhead camshafts per cylinder, which has resolved the Aprilia-induced financial squeeze which had threatened to derail the turnaround strategy put in place by previous Moto Guzzi CEO Roberto Brovazzo, who's now back at Aprilia and in charge of strategic model planning for both Aprilia and Guzzi, which now operates as an independent entity within the Piaggio group, no longer as a subsidiary of Aprilia. The cash-flow crisis resulted in a two-week assembly-line shutdown and the layoff of Guzzi's 260-strong workforce last year, until a multimillion-euro line of credit from Aprilia's banks brought about a resumption of production. But with 9400 bikes built and sold in 2003, fuelled by the commercial success of the then-new Breva V750ie, against less than 5000 in 200 I, Moto Guzzi's total 2003 revenues of 68.2 million euro ($87.3 miliion) represented a massive 47-percent increase over the year before. But this was slashed as the company marked time thanks to Aprilia's financial problems. This proven potential for Guzzi's recovery undoubtedly encouraged Colaninno and company to pump in the extra investment aimed at completing the turnaround, although as a star in the Aprilia firmament, with a long list of suitors headed by Ducati, the future viability of the historic Italian marque was never really in doubt. Alan Cathcart retains Guzzi's trademark 90-degree transverse V-twin architecture and trademark shaft drive. In the future, expect one group of Moto Guzzi models, such as the California custom or Breva naked bike families, to be powered by the new-generation 750/1 100cc pushrod air-cooled engines, and another group fitted with the water-cooled overhead-cam engine design Aprilia is now working on. This will allow a differentiation in both price and performance between the two different ranges, with the modular capability to vary capacity and even adopt a single-cam two-valve head design on the new liquid-cooled motor in due course, as an eventual replacement for the exist- ing pushrod engine. Piaggio's commitment to underwriting Guzzi's future ing me what I was doing in the month of May," Ward said. "I told him that I was interested, and I flew over to Phoenix when they raced there and met with him and signed the deaL" said. "Sponsorship is not anything that I have to bring to the table. I know that Tony is Ward will drive Vision Racing's second car, few years since I have been there. I have been er. Now, I'm going back as someone from which uses a Dallara chassis and a Toyota there six times, and I've come close to win- outside the realm." Motor 5peedway owner Tony George's engine. A title sponsor has not yet been Vision Racing team. announced for the program. ning it. This is a good opportunity, a good team. There's a lot of luck involved, and you just need to get to the end [of the race]. I've Opening day at the Speedway is scheduled for May 10, and Pole Day is May 14. Scott Rousseau Ward for Indy 500 Reigning AMA Supermoto Champion Jeff Ward has secured a ride for the 2005 Indianapolis 500. The 43-year-old Californian headed to Indianapolis on May 6 to get acquainted with his new team, Indianapolis "Basically, Igot a call from Tony George ask- 8 MAY 18, 2005 • CYCLE NEWS "It's a good car and a good motor," Ward working on some things. "I'm excited," Ward said. "It has been a done that every time I have raced there. I'm excited to go back and be a part of it again. I feel like I'm going back as a motorcycie guy again. Before, I was there as an Indycar driv-

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