Go Italian

MV Agusta - 1078RR

You’re an executive at Harley-Davidson.  Gas prices are up, rally attendance is down, product costs are increasing, product sales are in free-fall, you’re customer demographic is aging, the economy is stalled and the housing bubble prevents people from fun-filled-equity-financing.

You dig deep into the Harvard Business School memories and determine what to do?  Buy an Italian motorcycle company (MV Agusta Group) for $108M of course!  WTF?  Harley completed the acquisition of MV Agusta in July,  but until recently I couldn’t wrap my head around this or understand the complimentary connection to the beer drinking Milwaukee company vs. the high-flying invitation-only cocktail soiree that MV Agusta typically entertains.

MV Agusta Factory - Varese, Italy

But, I get it now!   It’s about wine and Harley execs jet setting to Milan for private VIP parties to swap race stories with makers of high-end Italian brands in what can only be described as a marketing orgy to portray the ultimate in luxury and style.

Let’s break it down.  Fly into Varese on a direct international flight and land in northern Italy…about an hour from Milan.  Grab a room at the Palace Grand Hotel and catch a glance out the window to see a spectacular view of Lake Varese below.  The Palace Grand Hotel was built on top of a hill overlooking the town and lake below. Built over 100 years ago the structure is magnificent, and also happened to be owned by Claudio Castiglioni who was once president of Cagiva and MV Agusta.

MV Agusta is the Italian national symbol of motorcycling prestige and technology, and represents the ultimate in terms of engineering.  They must have held candlelight vigils after hearing about the Harley merger?   I learned the secret to this merger is the approximately 195 wineries located near the factory!  The Corso di Porta Ticinese is a popular place for young people to hang out and is home to many notable churches.  During the day the Harley execs can do long lunches drinking world-class wine and then visit the many boutiques, ateliers, craftsmen workshops and when the sun goes down the canal area transforms into a colorful nightlife where the Milwaukee “jetsetters” hang-out to be seen in the various clubs.

In my view this acquisition is a train wreck.  The concepts of cross-engineering or having a modern product that is consistent with an aristocratic past…is like walking around with a Girard-Perreguax watch, Trussardi jacket and camo-print cargo shorts that show off cotton white socks in tan nubuck boots.  This unusual sense of cool as a “Trussardi-wearing hipster” will not inject soul into the Harley brand or bring about positive word-of-mouth buzz for either party.  There is significant engineering/product overlap with Buell and someone needs to rehabilitate the overexposed, wine drinking executive staff.

This is a magazine shoot – not real life.

 

Photo courtesy of MV Agusta web site.

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