Colaninno Explains Piaggio Expansion
September 21, 2004
Filed under Features
Piaggio President Roberto Colaninno says he looks forward to expanding the company’s global reach through the purchase of 100% of Aprilia SpA and the establishment and expansion of joint ventures in India and Southeast Asia.
Under Piaggio’s plan, Aprilia is to produce more than 160,000 units by 2007, compared to 112,000 units this year. Colaninno said the motorcycle and scooter manufacturer he seeks to purchase is expected to generate revenue of approximately $609 million in 2007 compared to $426.3 million at the end of 2004.
Colannino said the newly created company would have 11 facilities, employ more than 7,000 people, and have a yearly turnover of more than $2 billion.
“Our strategy is to place Piaggio, Aprilia and Guzzi in a single entity,” Colaninno said, squashing rumors of a separation between Aprilia and Moto Guzzi. “Yes, Aprilia needs restructuring. But we do not want to divide brands to satisfy creditors. We think Guzzi is a strategic part of our plan.”
Colaninno affirmed that Aprilia’s knowledge in certain sectors would help Piaggio break into the full-sized off/on-road motorcycles. “Piaggio needs motorcycles in its range, and Aprilia and Guzzi are the perfect compliment,” he said. “In fact, in the U.S., we have to add motorcycles to effectively penetrate the market.”
Another area of importance to the future of Piaggio is its global supply network.
“We want to conquer the Asian markets, which we feel we’re obliged to,” Colaninno said, explaining recent expansion into China and India will allow the company to produce one million units within two years.
In China, where Piaggio seeks to sell 200,000 units annually, the company recently entered a JV in a new production facility. In India, the goal is to double production to 120,000 units in 2005.