Piaggio gobbles up Moto Guzzi

PIAGGIO is merging its wholly-owned Moto Guzzi subsidiary with the parent company in a move likely to result in the closure of the historic Moto Guzzi factory at Mandello Del Lario, where the marque has been based since its inception in 1921.

This merger, which will be completed at management level by the end of November, will create a single global competitor on the two-wheeler market in terms of size and resources, according to Piaggio. And while the distinguishing characteristics of the Moto Guzzi brand will remain intact, it permits what the parent calls “significant economies of scale by rationalising the technical, industrial, design and style operations of the two companies”.

Industry analysts expect a transfer of production and related activities to Aprilia’s base at Noale near Venice or the main Piaggio plant at Pontedera near Pisa. The latter probably has plenty of spare capacity after the off-shoring of much of its 50cc scooter output to China and light truck manufacturing to India.