Rocky road for Moto Morini
Added on Thursday, October 1st, 2009 by Carole Nash Editor | One Comment
Rocky road for Moto Morini
Italian motorcycle manufacturer Moto Morini have gone into voluntary liquidation after suffering cashflow problems.
The brand produces V-twin powered machines like the Corsaro, 9.5, Granpasso etc and has been going since 2004, when the marque was revived after vanishing in the 1980s. Despite being admired for its high quality machines, sales have been weak, with some 1200 units per year sold.
This is below the break even figure of around 2000 units the factory need to survive, so in the last few months suppliers have stopped parts delivery after not being paid, and Morini has gone into liquidation. In Italy however, this means the company can still trade as a going concern, in order than potential investors can buy an up-and-running business, not just a brand name.
The latest word insidebikes has from Morini’s UK press spokesperson is that potential investors are in negotiation with Morini, and parts supply should be as normal via the UK dealer network.
We also understand that Morni will be at the Milan show with their new Supermotard model for 2010. If any deal is reached in the next few weeks, we would expect to hear details of Morini’s rescue at the Milan show in November.
COMMENT AND ANALYSIS
Can Morini survive in the longer term?
insidebikes reckons it will be almost impossible for the brand to go it alone in the long run, as the economics of small scale motorcycle production mean your end product has to cost a great deal more than rivals’ machinery. The costs per unit involved in sourcing parts supply globally, setting up distributors worldwide, shows etc are almost the same for making one brand as for two or three, so groups like Piaggio-Aprilia-Guzzi have a distinct advantage in that respect.
Morini also have an image problem - if I say Ducati, or Harley, or even MV Agusta to the average biker in the street, they know what that brand means, they can probably visualise the type of bikes that company makes. But Morin haven’t the same high profile heritage, the instantly recognisable brand values, as some of their rivals and that problem costs money to overcome.
It’s going to be a rocky road ahead, and the only upside is that Italy has a long tradition of saving its motorcycle manufacturers, whereas other nations like Germany, France and the UK seem keen to let them die. That said, would Ducati or Aprilia want Morini in its portfolio as a potential rival?
What do you think, do Morini make bikes that are good enough? Have you considered buying one but held back, if so - what stops you from owning a Morini? Post your comments here.
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One Comment
MRC
October 10th, 2009This company have a long heritage as an engine manufacture and prior to relaunching the brand back in 2004 they had developed & supplied small capacity engines for Suzuki amongst many others. Unable to match the unit costs coming out of the far east the move to building large capacity bikes was an obvious one. It is still possible that these engineering skills can be used to supply engines to other manufacturers. Yes they do not have economies of scale but they can still add value and provide a competitive edge in a crowded market. Lets not write off the little guy some times they can punch above their weight.