Economics and V100 Production

[1Danedaddy]

1dane,
What that means is the parts needed to do possible top end work are not warehoused in the USA, and may not even be available in Europe.
Very annoying.

I've been waiting for some service parts since late April. Meanwhile, warranty clock ticks away.

Moto Guzzi usa needs to up their game on parts stock & availability or they can kiss the water cooled market goodbye.

A website that shows quantity on the shelf & price. I can do that with Honda. Suzuki, Triumph, even KTM parts!

Annoying customers like Scott is very bad, he has strong influencer creds that can make or break business.

I agree!
Just getting the top box was quite an experience. It took a couple months for it to arrive, and then it arrived damaged, but to their credit they did overnight a new one and it was installed and ready when I picked my bike up in March.
I believe the same can be done if my bike requires extensive repairs.
Parts availability is extremely essential if a company wants to keep its customers happy!
It’s prime riding season here in Virginia, and I’ll be highly upset if my bike is sitting in the shop for an unreasonable amount of time.

I went through an experience with the top box coming from Italy before I took delivery of my bike. It took months for it to arrive, and then it arrived damaged, but my dealer raised hell and they sent one overnight just a day before I picked up my bike for the first time. MG can do better if they choose to do so! It's prime riding season here in Virginia, and I'll be extremely annoyed if my bike is sitting in the shop for more than two weeks. V100 buyers appear to be older riders like myself, making our riding time even more precious.
So you're correct about Moto Guzzi needing to step up their game if they want to have satisfied customers!
There are very few Moto Guzzi dealerships in the US, and I can't help but wonder if this could be part of the reason.

 

[scottmastrocinque]

Economics gents.

USA = smallest market for Piaggio Group

You don't spend $$$$$ on your smallest market.

You honestly cannot compare Moto Guzzi to any other manufacturer, especially Japanese.

Moto Guzzi builds a little more than 10,000 units a year - All By Hand! "Fatto a mano".

For the whole world.

They employ 250-300 people in total, worldwide.

 

[1Danedaddy]

Economics gents.

USA = smallest market for Piaggio Group

You don't spend $$$$$ on your smallest market.

You honestly cannot compare Moto Guzzi to any other manufacturer, especially Japanese.

Moto Guzzi builds a little more than 10,000 units a year - All By Hand! "Fatto a mano".

For the whole world.

They employ 250-300 people in total, worldwide.

Well I appreciate knowing this because I honestly didn’t know.
I’ll try to be more patient and understanding.

 

[Tebax]

Economics gents.

USA = smallest market for Piaggio Group

You don't spend $$$$$ on your smallest market.

You honestly cannot compare Moto Guzzi to any other manufacturer, especially Japanese.

Moto Guzzi builds a little more than 10,000 units a year - All By Hand! "Fatto a mano".

For the whole world.

They employ 250-300 people in total, worldwide.

That’s interesting.
Is that historical numbers, or from 2023?
I’ve been very curious about the production numbers of mostly the V100.
The factory has invested a lot and has just expanded by open a brand new production facility.
To start with the V100 has been produced in the old factory though.
And as the V100 is an additional model I’m prone to think that the V100 is added to the historical production numbers.
So that leads me to my question again, what is the relevant production numbers of the V100 during 2023?
And what was the total numbers of bikes from the factory last year?
Anybody who knows?

 

[1Danedaddy]

That’s interesting.
Is that historical numbers, or from 2023?
I’ve been very curious about the production numbers of mostly the V100.
The factory has invested a lot and has just expanded by open a brand new production facility.
To start with the V100 has been produced in the old factory though.
And as the V100 is an additional model I’m prone to think that the V100 is added to the historical production numbers.
So that leads me to my question again, what is the relevant production numbers of the V100 during 2023?
And what was the total numbers of bikes from the factory last year?
Anybody who knows?

I’ve been curious about this too, and I haven’t been able to find any information using the search engines on the internet.

 

[Tebax]

I’ve been curious about this too, and I haven’t been able to find any information using the search engines on the internet.

Eventually we will learn I guess.
Meanwhile we will drive around feeling exclusive

 

[scottmastrocinque]

The factory does not release production numbers.

They do however list production figures for 2023 at over 10,000 units, all crafted by hand.

This is "limited production" incarnate.

Most people have no idea just how small a manufacturer Moto Guzzi really is.

Owning and riding Moto Guzzi motorcycles puts you in a totally different class than any other motorcyclist. You are riding the oldest European motorcycle marque, which is hand-made to this day, and has been in continuous and uninterrupted production since 1921.

Small production means smalls parts production and distribution and small dealer network.

One consents to this even if you do not realize it is so.

 

[1Danedaddy]

The factory does not release production numbers.

They do however list production figures for 2023 at over 10,000 units, all crafted by hand.

This is "limited production" incarnate.

Most people have no idea just how small a manufacturer Moto Guzzi really is.

Owning and riding Moto Guzzi motorcycles puts you in a totally different class than any other motorcyclist. You are riding the oldest European motorcycle marque, which is hand-made to this day, and has been in continuous and uninterrupted production since 1921.

Small production means smalls parts production and distribution and small dealer network.

One consents to this even if you do not realize it is so.

I did know that Moto Guzzi was a niche brand, they’re hand made, and that aren’t many dealers in the USA.
I wasn’t concerned about the exclusivity of owning a Moto Guzzi. I just really liked the design and looks of the V100S. I liked the Ohlins suspension. I really fell for the bike when I took it on a test ride, and nothing has changed.
I have 7 years of warranty and I intend to keep it and enjoy it for that long at least. Whenever it’s not tied up in the shop for repairs, and hopefully that won’t be very often, I’ll be enjoying it.
I’ve learned that it’s okay to reasonably complain in some instances, but completely flipping out doesn’t do much lol.
We have enough Karens and Darrens in the world as it is.

 

[Vagrant]

Economics gents.

USA = smallest market for Piaggio Group

You don't spend $$$$$ on your smallest market.

You honestly cannot compare Moto Guzzi to any other manufacturer, especially Japanese.

Moto Guzzi builds a little more than 10,000 units a year - All By Hand! "Fatto a mano".

For the whole world.

They employ 250-300 people in total, worldwide.

This is all true. But! over the last 50+ years they have gone through so many importers/distributors and then US dealers that I'm not sure anybody could add them up. In fact I bet 50% of US citizens have had a former dealer in their family tree.
It's been the attitude from all of the Guzzi factory past and present ownership that F UM! If they don't like the way we do business, the next guy will. Pretty soon you run out of "next guys".
The US could be a big dollar market for them if, they treated dealers and customers with respect.
Honored warranty instantly with no BS involved.
Had a real parts supply in stock in the US.
But first, it will take someone at the top with a 20+ year goal and the desire to carry it out.

Me, I'm just dumb enough to love the product and tolerate the BS. I'm also lucky enough to be able to think out and fix most issues without needing a dealer.
Thank God for the few dealers out there who feel the same way!

 

[scottmastrocinque]

The US could be a big dollar market for them if, they treated dealers and customers with respect.

I believe you are thinking under a false premise.

The factory sells all the motorcycles they can possibly produce worldwide.

They have ZERO NEED to expand their market in the USA.

This is easily confirmed by the 100% absence of any marketing in the USA whatsoever.

European dealers do not have any false expectations of huge profit whereas every American dealership expects to get rich. When they don't, they just give up.

Nobody can get rich with only 10,000 worldwide units.

 

[South Westerly]

In the UK Moto Guzzi advertising is basically limited to a few bike magazines at least so far as I'm aware. I certainly didn't see any adverts for their products. Once I bought one the great algorithm in the sky seemed to wake up so I now get ads popping up fairly regularly when I'm on the Internet. An improvement on some of the BS that usually pops up.

 

[moparnut72]

Simple solution, just keep two in the shed. If one is waiting for parts you will have another to ride.
kk

 

[Mayakovski]

As of 2018 Honda was producing about 20,000,000 motorcycles per year. Or about 80,000 per day.
Moto Guzzi does about 10,000 per year. Or about 40 per day.

You just cannot compare in any rational way.

 

[BioKnee]

I believe you are thinking under a false premise.

The factory sells all the motorcycles they can possibly produce worldwide.

They have ZERO NEED to expand their market in the USA.

This is easily confirmed by the 100% absence of any marketing in the USA whatsoever.

European dealers do not have any false expectations of huge profit whereas every American dealership expects to get rich. When they don't, they just give up.

Nobody can get rich with only 10,000 worldwide units.

Hmm, not sure about this. If the majority shareholder in MG is the Piaggio Group then I would expect them to impose growth targets in _all_ markets, particularly if they’ve made a huge investment in the V100 drivetrain. They’ll want to see a return. Perhaps that will drive an increase in marketing budget and focus on customer service worldwide. I for one, hope so.

 

[john zibell]

Hmm, not sure about this. If the majority shareholder in MG is the Piaggio Group then I would expect them to impose growth targets in _all_ markets, particularly if they’ve made a huge investment in the V100 drivetrain. They’ll want to see a return. Perhaps that will drive an increase in marketing budget and focus on customer service worldwide. I for one, hope so.

I hope you are correct, but Guzzi has always been the red headed step child. I'm actually surprised they are still producing motorcycles.

 

[Vagrant]

There was a day not that far back when Honda produced its first bike. Then they set goals and high quality standards.
What comes first, the chicken or the egg?

 

[1Danedaddy]

This is all true. But! over the last 50+ years they have gone through so many importers/distributors and then US dealers that I'm not sure anybody could add them up. In fact I bet 50% of US citizens have had a former dealer in their family tree.
It's been the attitude from all of the Guzzi factory past and present ownership that F UM! If they don't like the way we do business, the next guy will. Pretty soon you run out of "next guys".
The US could be a big dollar market for them if, they treated dealers and customers with respect.
Honored warranty instantly with no BS involved.
Had a real parts supply in stock in the US.
But first, it will take someone at the top with a 20+ year goal and the desire to carry it out.

Me, I'm just dumb enough to love the product and tolerate the BS. I'm also lucky enough to be able to think out and fix most issues without needing a dealer.
Thank God for the few dealers out there who feel the same way!

It's even more unfortunate that with the V100 Mandello working on them yourselves isn't possible except with things like oil changes.
With repairs, we're at their mercy.
Mine goes into the shop

I believe you are thinking under a false premise.

The factory sells all the motorcycles they can possibly produce worldwide.

They have ZERO NEED to expand their market in the USA.

This is easily confirmed by the 100% absence of any marketing in the USA whatsoever.

European dealers do not have any false expectations of huge profit whereas every American dealership expects to get rich. When they don't, they just give up.

Nobody can get rich with only 10,000 worldwide units.

But they are doing some marketing here with their "Hot Guzzi Summer" promotion, and our local MGNOC is going out to our monthly gathering next month to support them.
And my dealership is making a special spot on their workbench to help resolve the disappearing coolant issue so that I can get back to wearing out tires asap! I'm very appreciative to have a good dealership!

 

[scottmastrocinque]

As of 2018 Honda was producing about 20,000,000 motorcycles per year. Or about 800,000 per day.
Moto Guzzi does about 10,000 per year. Or about 40 per day.

You just cannot compare in any rational way.

I think you messed up your numbers.

 

[scottmastrocinque]

Hmm, not sure about this. If the majority shareholder in MG is the Piaggio Group then I would expect them to impose growth targets in _all_ markets, particularly if they’ve made a huge investment in the V100 drivetrain. They’ll want to see a return. Perhaps that will drive an increase in marketing budget and focus on customer service worldwide. I for one, hope so.

Italians are DIFFERENT from Brits and especially Americans.

Piaggio is majority owned and controlled completely by the Colaninno family through their Immsi S.p.A. holding company.

They seek profit but they don't let investors tell them what to do.

 

[scottmastrocinque]

I did my cooperative program for my MBA in Scotland and Italy.

Most people just simply cannot wrap their head around business law in Italy.

Moto Guzzi CANNOT move their factory without government approval, which has been denied time and time again as it would decimate Mandello del Lario.

Moto Guzzi CANNOT enlarge their factory because they are physically constrained by the community built around the factory grounds. For example, the train station is across the street from the famous red gate!

Moto Guzzi sells everything they produce. Everyone involved makes money and life goes on. I admire their business model very much.