Economics and V100 Production

[Tebax]

“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!”

Well, MG is not enlarging their old factory.
But they are building a new larger one in Mandello to expand the capacity.
ridermagazine. com/2021/09/10/moto-guzzi-announces-a-new-factory-museum-and-v100-mandello/
https:// wide.piaggiogroup. com/en/articles/events/moto-guzzi-presents-the-unique-futuristic-project-for-its-new-factory-and-museum-in-mandello/index.html

I accepted the brands small capacity with the possibility of uneven supply of spare parts when I ordered my V100.
MG wasn’t known for a lot of issues for my knowledge, and I liked the design and exclusivity.
My V100 haven’t been in need of any spares, and have worked great for 5000 miles now.
So I am getting value for my “investment” the whole time

 

[scottmastrocinque]

They removed some buildings withing the grounds to build a few newer ones.

The footprint of the factory grounds is exactly the same. Nothing has changed in that regard.

 

[Tebax]

They removed some buildings withing the grounds to build a few newer ones.

The footprint of the factory grounds is exactly the same. Nothing has changed in that regard.

Aha! Thanks for this input
In any case the new factory buildings are there to increase the capacity.

 

[Vagrant]

So what stops them from building another factory so they can double production and yet keep the old one running at full blast? That's what every other MFG does.

 

[scottmastrocinque]

As stated, requires government approval. Moving factory or building additional production facility, same thing.

Besides the most important part is they sell all of what they build now.

Bigger is not better.

 

[Tebax]

”Bigger is not better.”

What?
Oh man, there goes the ”nothing beats cubic inch”…

 

[Mayakovski]

I think you messed up your numbers.

The Honda numbers are from Honda itself. The Guzzi numbers are from you. Not sure where you think I messed up.

 

[indyrider]

The Honda numbers are from Honda itself. The Guzzi numbers are from you. Not sure where you think I messed up.

20M / 365 ~ 55K per day globally, not 800K. I think the takeaway should be that Honda produces more in a day than guzzi does all year. Not even remotely in the same scale.

 

[Mayakovski]

20M / 365 ~ 55K per day globally, not 800K. I think the takeaway should be that Honda produces more in a day than guzzi does all year. Not even remotely in the same scale.

I was assuming 254 days worked per year as that is the regular standard. If the factories work 365 days per year then you are correct.

Opps, I meant 80K per day at 254 days per year.

 

[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.

My American eyes see 20,000,000 ( twenty million motorcycles ) and 800,000 per day? ( So, do you mean to say that they only work 25 days a year???)

20,000,000 annual production / 800,000 units of production per day (a number which simply on the face of it, it entirely outside the realm of possibility - it’s not anywhere in the expected range) = 25 days of production

Something is amiss or I read numbers different.

UPDATE: I usually don’t make a post like #18. If I do, I’m pretty sure of my thoughts and when I saw it, I commented on it. I knew that you were making a valid point but that your math example had a “oops” ; there was some error and I genuinely wanted to help clarify your thought - No big deal.

 

[Mayakovski]

My American eyes see 20,000,000 ( twenty million motorcycles ) and 800,000 per day? ( So, do you mean to say that they only work 25 days a year???)

20,000,000 annual production / 800,000 units of production per day (a number which simply on the face of it, it entirely outside the realm of possibility - it’s not anywhere in the expected range) = 25 days of production

Something is amiss or I read numbers different.

UPDATE: I usually don’t make a post like #18. If I do, I’m pretty sure of my thoughts and when I saw it, I commented on it. I knew that you were making a valid point but that your math example had a “oops” ; there was some error and I genuinely wanted to help clarify your thought - No big deal.

Yup. It’s all good.

I meant 80,000 daily for Honda assuming 254 work days per year. Math and me don’t always see eye to eye.

 

[loudviking]

20M / 365 ~ 55K per day globally, not 800K. I think the takeaway should be that Honda produces more in a day than guzzi does all year. Not even remotely in the same scale.

Thank God, Guzzi does what I like, keep it small and charming!

 

[Racer242]

Moto Guzzzi builds all the bikes it can (or chooses to) with the basic sub assemblies it has. Two motors and three chassis and they mix and match to come up with five models and some specials for added variety. If they build 11,000 units in 2024, I would imagine that works out to something like 7000 air cooled models and 4000 water cooled, give or take 500 either way. While 11,000 is a small number for a manufacturer, 4000 individual units is not that unusual for a single model. Ducati builds what, 60,000 units a year? I count 14 models offered for the USA, including Scrambler. That's roughly 4300 per model. They certainly aren't building the exact same number of each but the point is, building 4000 of one particular model is not all that unusual, special or particularly expensive. Ducati mixes and matches an air cooled L2, water cooled L2, water cooled L4 and now a water cooled single, with what, five basic chassis? They stir that pot to come up with 14 models plus who can keep track of all the specials.

With such a small line-up, it's hard to keep MG dealers in business let alone interested. Look at Triumph, their line up touches just about every compass point on the motorcycle wheel of variety, they even now have a motocrosser. If Triumph says to a dealer "it's only us and no one else" under the roof, they can get away with that. Same with Ducati and Honda. How many unique engine blocks are in the Honda catalogue?

Here is a thought experiment, dd your own ideas, come up with your own plan/solution, if MG got taken over by some investment group and they had a mandate to grow unit sales by 20-25% per year, what would they do?

1. Move all air cooled production to India or Thailand.
2. Expand the air cooled line up with a 400cc entry bike
3. Increase the price of water cooled Italian builds by 25-40% , add more premium components to justify the increase.
4. Introduce four additional water cooled models: a Dakar Rally bike, a mostly fully faired sport bike, a traditional cruiser and a 1400cc power cruiser. That would be six models derived from one engine block and two chassis.

Now, for the next one, you might end up barring me from this forum, erase all of my old posts, forget that I was ever here...
Take that sweet bored out1400cc twin and put it in a side by side. It's the perfect package. You could build three wheelers for the street and 4x4's for the off road market. Keep the manual transmission but add an auto clutch and push button electric shift with optional Auto Mode. It wouldn't be hard to do. The profit margins in the side by side market must tower over the two wheeled market otherwise, dealers wouldn't be packing them in. The engines would be built in Italy, added to a chassis built in the USA, Canada, or Mexico. That's a model lineup that would appeal to US dealers. You could build a spec race car with the same drive train. Not sure if they are still doing that but KTM had such a project. Anyways, none of these ideas I think would go ever very well with traditionalist but if mroe unit sales and more dealers are the goal, there isn't much else that could be done.

 

[scottmastrocinque]

If that was a recipe, I would call it, "Death of a Marque".

 

[Mountain_Goose]

I like my dealer. Been around since ‘93. Stopped selling Aprilia for being a pita.