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MV Agusta wants to aggressively expand its presence in the United States, Canada, and Mexico in the near future. MV’s limited dealer network (only 35 dealers in the United States, five in Canada, and one in Mexico) can’t support that strategy, so MV Agusta recently made a multi-year deal with an unexpected ally: KTM.
Under the new agreement, MV Agusta motorcycles will be distributed through KTM dealerships. KTM North America will also handle “promotion and customer service” of MV’s products through its dealers. Eventually, MV Agusta will create a “dedicated U.S.-based legal entity” to oversee the brand’s growth in North America, but certain KTM dealers will be able to continue selling MV Agusta bikes after the dealer network expansion is complete.
This agreement looks very favorable for MV Agusta. Its motorcycles can be sold through hundreds of dealerships across one of the biggest markets for premium motorcycles, and KTM dealers already have plenty of experience handling high-performance Eurobikes. KTM also brings logistics, technical support, and a large premium customer base to the table for MV’s benefit.
MV Agusta’s CEO, Timur Sardarov, is “...thrilled by this agreement between two historic European motorcycle manufacturers. I am confident that KTM’s extensive and professional sales organization paired with the strong appeal of our brand in the region will bring great benefits to both companies. Thanks to our cooperation we will create synergies that will enable us to accelerate our growth strategy in North America.”
The KTM side
But what exactly does KTM get out of this deal? MV Agusta is a low-volume manufacturer, and its products could be construed as competitors to some of KTM’s own. Although some KTM dealerships will continue selling MV Agustas after the Italians expand their North American dealer network, is that a fair exchange for KTM’s help over the next few years?
Hubert Trunkenpolz, member of the Executive Board at KTM AG, said, “We are extremely excited to start a new partnership with [MV Agusta]. Taking on the distribution of the MV Agusta brand will complement our extensive premium motorcycle range. With the addition of the most iconic Italian luxury motorcycle brand to our KTM North America operations, we are able to ensure support to all North American motorcycle enthusiasts as well as bringing exciting new business opportunities to existing and new dealers.”
Dealer feedback on the agreement
Partnering with MV Agusta could help KTM by giving its dealers some more variety on showroom floors, plus additional profits from service, financing, and accessories. I reached out to Evan Yarnall, president of local KTM dealership Solid Performance, to get his thoughts on the MV Agusta partnership.
Andy Greaser: As a dealer, what do you think about this new arrangement?
Evan Yarnall: I’ve been a dealer long enough to not get too hyped by the marketing team. I’m sure the reasoning behind the distribution partnership makes sense on a certain level, as KTM Group is pretty good at picking a winning direction. It was news to you, the same as it was to us. I’m here just hoping MV comes back to Moto2 racing.
AG: How do you feel about the possibility of having MVs on the floor?
EY: MV is an iconic brand. It will be easy to tell that story the same way Husky does for the heritage within their brand. MV’s will certainly be in good company among strong Austrian brands and dealers. To my understanding, the existing MV U.S. dealers will be re-vetted to continue as dealers, as well as KTM Group dealers who express interest in the MV brand will need to apply through a whole new dealer application. This makes sense because not every KTM Group dealer will want Italian sport or ADV bikes on their floor; each dealer knows their clients best. I personally don’t have enough information yet to make an informed decision to say yes or no to MV. We spend a lot of time looking at the technical details first: margin and availability for units and spare parts, technical training and warranty support, growth plan, etc. We make sure we have the technical resources and know-how for any brand we take on so we can best support our riders, not just look for added revenue. That should be the stance of any manufacturer or dealer, in my opinion.
AG: Do you think partnering with MV Agusta will help dealers with things like product selection and inventory? Or is KTM maybe making moves to start acquiring yet another brand here?
EY: I personally do not think there is another acquisition coming. KTM Group is smart enough to know their distribution network is a huge asset. It’s with this resource they are looking to add growth and value at all levels. Heck, I’m not even sure we have room in the store for more units. I’m open to seeing more details as they become available. If there is opportunity to expand our product line, and we can support MV riders the same as our other brands, for sure we will consider it.
MV Agusta’s growth strategy is off to a good start. Meanwhile, KTM parent company Pierer Mobility AG continues to shatter its own records year after year. “Our brands are going from strength to strength everywhere in the world, said Trunkenpolz. “Particularly in North America where we will exceed 100,000-unit sales in 2022 with the KTM, Husqvarna and GASGAS motorcycle brands.” The Pierer portfolio of brands sold 332,881 motorcycles in 2021, and the Austrian juggernaut shows no signs of slowing down. As for MV Agusta, we’ll see if the “Motorcycle Art” brand can gain a foothold in North America with its new partner.
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