MV Agusta CEO Timur Sardarov
From an interview by Adam Child of Bennetts' 'Bike Social'
In a wide ranging and candid recent interview with Adam Child, published in the UK by Bennetts/Bike Social, MV Agusta CEO Timur Sardarov is quoted as saying that after the launch of five new models in 2020, the pandemic has put the company a little behind where he had hoped it would be by the end of 2020.
He went on to say that in the coming years he sees MV Agusta "going into the wider range of mobility. The journey will start in the lighter mobility segment and move to urban commuters that will be powered by electric propulsion.
"We will produce high-performance bicycles that are also electrified. We are working on a new 500 cc platform with quite an interesting philosophy, and we are also working on our new adventure range that will be announced in the next three to four months. We are also working on a brand new 950 platform and our 800 is going through major change with Euro 5.
"We took the opportunity with the Euro 5 transition to bring significantly more changes to all the bikes and all the platforms across the entire range. It's not just Euro 5, it's major change to the products in terms of styling and technical packaging - from next year I would say all our range could be considered new."
He went on to say that the expected replacement for the F4 had not yet made it further than the drawing board and that "we currently have to work more towards electric propulsion rather than saving the combustion engine.
"MV Agusta is a small company compared to many others, and for us it's important to see where everyone is going and evaluate complex developments for the high-performance superbike. We could produce a bike with 250 horsepower, but the quality of the rider and the quality of the ride needs to be balanced.
"We need to first see what will happen with electric, hybrid or combustion and whether we will need a massive engine with a lot of power or something different. The F4 is a brand in its own right that appeared at a time when the most technologically advanced product was the superbike.
"I'm confident that the standard dealer model is dead"
"Will superbikes be important in five years and still represent the biggest technological advancements? I don't know, it's an interesting question, but perhaps another product will have that technological superiority rather than a superbike."
Speaking about retail changes in the market, Sardarov said: "It's important to move towards own-brand retail. The supermarket-style bike dealers are at the bottom of the food chain of the business, and COVID is putting nails in its coffin.
"Dealers will either have to be loyal to a brand to deliver the experience to customers, or they will be wiped out. The faster they realise this the better, otherwise this business will not exist in a couple of years.
"I've seen a lot of dealers in Europe deal with multibrands and I'm confident that this standard dealer model is dead. So, for me, in terms of investment, it's about bringing in experience and showing the depth and history of the company to the customer.
"We are also moving towards becoming a mobility company rather than just a motorcycle company because we have a new DNA in which mobility is becoming more important. We are also moving towards safe mobility, premium product and beautiful designs, but not too much about sports, as that's a very dangerous area that could backfire on the company.
"Lifestyle, less pollutants, more comfortable, cheaper to own, reliable… this type of message is integrated into the product, which is why we are looking towards lighter motorcycles that are very connected.
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| MV Agusta CEO Timur Sardarov: "Our focus is adventure - we will launch two bikes, one will be 500 cc, one around 1,000 cc." |
"Our focus [in motorcycle terms] is adventure. We will launch two bikes, one will be 500 cc, one around 1,000 cc."
Addressing his company's involvement in racing, he said "to be honest, we don't need racing for our brand. It's a good showcase, but it depends how we are approached. The company went through a crisis and we had to reduce our direct involvement in non-profit making activities, so we gave it up in 2017.
"All the racing we do now is done with partner teams and we are evaluating that involvement with Moto2. We are going to stay for 2021 and maybe the year after, depending on how that goes. In Supersport we are evaluating it right now: there is a chance we will come back ourselves over the next two years as a factory team. Racing is relevant, but not top of the priority list.
"MV Agusta never made money, and the priority now is to make sure this brand is sustainable. I think I owe it to the company to love and make this brand work. Focusing on something that doesn't make money would be a shame as the industry would not be the same without MV Agusta."
The interview covered a lot of ground. In terms of life in a trade show-free environment he said: "Trade shows will not come back in the next two to three years. There will be less people and the significance of that investment is going to drop. I can tell you, for example, that the participation in EICMA in terms of people, products and time will cost MV more than € 1m.
"I'm pretty sure we can spend the same amount of money on a more effective way of delivering information - digital or direct - so that's why we are evaluating how we are going to present the new products and how to communicate. We will still be introducing new Euro 5 models without EICMA."
"Trade shows will not come back in the next 2-3 years"
In terms of growth markets for MV, he says that "for MV Agusta every market is growing. Number one market is Italy, we can grow two, three… five-fold here in a very short period of time. Same for Germany, UK, France and Spain, Netherlands… all the northern countries.
"Europe is our direct market, we can bring the clients, meet the collectors and I can be involved myself - we can be very intimate with our customers - we are friends with our clients.
"Then there's America, where we are now direct distributing. Things would have been so much better had COVID not intervened. America is a great country, but it is in disarray. Businesses on the ground are really struggling, which is why our events and activities have been halted there.
"China is a modern market where we have signed to build our network and I'm a great believer in this project. Then Japan, we are growing there. I would say Europe, US, China and Japan - these are our best opportunities to grow."
Sardarov stated that current production is around 5,500 units a year, but that "from next year we will produce 10,000 bikes, which will be a record for MV Agusta. From there we will start to be strong and the market will feel that effect. Over the next three years we will grow in all the segments, but with our production outsourced, especially for the 500 cc platform, which we are outsourcing to China, we will achieve 20,000 to 22,000 bikes in the next three years.
"Everything above 500 cc will remain produced here in Italy, everything below 500 cc is and will continue to be produced elsewhere."
To read Adam's full interview with Timur Sardarov, follow the links at
www.bennetts.co.uk/bikesocial/news-and-views/news/2020
