Monday, February 28, 2011

CF MOTO looking at buying Malaguti Italy?

The Rumor in Italy is that Ducati has passed and CF MOTO is the main possible buyer and if no investor is found on March 4th the region will have to step in to stabilize the Italian brand.

This is a follow up to this blog posting:

The real problem it seems is the same thing going on in America. The entitlements, retirements, and extra expenses the Union ( don't call them socialists ) in Bologna demand. You can't just fire someone. To fire someone at Malaguti it can take you two years. So imagine trying to fire someone's cousin who doesn't show up for work, you have to pay him out. Even the Chinese are having a hard time understanding how it works in Italy. Over at the factories in China there are lines of people camping out waiting for someone to get fired. In Italy the process can take years. So nobody wants to hire permanent employees they just renew temporary contracts that cost more because of the liability full time employees represent.

So CF MOTO is still in the running? It will be interesting to see if its true or if they are just waiting to buy the brand in liquidation.

The list of companies in crisis in Italy or that have closed is pretty bleak:
Masiero (already closed),
Verlicchi, (done)
Kettle (in liquidation)
Electroplating (in liquidation),
RCM & Moto Morini (in bankruptcy and to auctioned off by next April 13, 2011 Odds are Silvio Berlusconnis brother will buy it for $5 million and assume no debt )
Marzocchi and Malaguti (both in desperate need of investment / investors / partners / and with deadlines to find them)

"The additional problem - Papignani accurate - is that for every worker in this factory in Castel San Pietro there are five that are part suppliers, and therefore the closure of Malaguti undermine done a thousand of jobs mainly in the area Imola, where there are companies and craft supplies metal mechanical parts of the plant castellano.

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