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.
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| MV Agusta CEO Timur Sardarov with Loncin President Yong Gao |
"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 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.
