Piaggio Unveils Five-Prong Plan for U.S.

Italy's Piaggio Group plans to use its 70-person strong team in the United States to consolidate a multi-brand position in the scooter market and grow in the motorcycle market, "despite a fierce competitive scenario," says chairman and CEO Roberto Colaninno.

Colaninno revealed Piaggio's outlook for the U.S. market during a recent investors conference in Italy.

The Piaggio Group owns the Piaggio, Vespa, Aprilia, Moto Guzzi, Derbi, Gilera and Ape brands. The Group had €1.692 billion revenue in 2007 — 51 percent of revenue came from scooter business, 20 percent from light commercial vehicle sales, 16 percent from motorcycles, and 12 percent from parts and accessories. Business in the U.S. accounted for 5 percent of the group's total revenues.

Colaninno says the Piaggio Group's five-prong plan for the U.S. includes:

1) the introduction of selected new products for Vespa and Moto Guzzi, leveraging on their brand name awareness;
2) carrying out a re-launch of the motorcycle brands;
3) further developing the dealer networks, integrating the Aprilia and Moto Guzzi networks, optimizing coverage of major target markets and improving service and support provided to dealers;
4) increasing initiatives designed to provide customers with maximum exposure to, and involvement with, the brands and products;
5) increasing the exposure of brands in magazines, on the Internet and on television.

Piaggio Worlwide Business Plan
The Piaggio Group projects revenue of around €1.95 billion by 2010.

Colaninno says the Group plans to spend the next three years "concentrating on the challenges presented by the international light mobility market, with a special focus on technological innovation, to compete on world markets as an innovator sensitive to fuel consumption and the environment."

He says Piaggio Group's business plan for 2008-2010 includes:

  • broadening the product range and brand visibility in North America
  • consolidating Group leadership in the European scooter business;
  • expanding its motorcycle business in terms of segments/engines and international positioning, with parallel enhancement of its racing activities, especially for Aprilia and Derbi;
  • expanding its position in the commercial vehicles business in Europe, India and South-East Asia;
  • developing innovative engines with low environmental impact, by focusing on hybrid technology to cut fuel consumption and emissions;
  • broadening its presence on the Asia-Pacific market;
  • starting up a production facility in Vietnam in 2009;
  • further developing operations in China.

  • Piaggio Group Figures, 2007
    Brands: Nine
    Revenues: €1.692 billion
    Vehicles Produced: 860,000 vehicles
    Vehicles Sold: 710,000 units
    Production Plants: Eight
    R&D Facilities: Five
    Employees: 6,850
    Dealers: 13,500 Worldwide
    Subsidiaries: 15
    Countries Served: 50

    The Piaggio Group's products in the U.S. include:

    Piaggio Fly 50 (MSRP $1,899)

    Piaggio MP3 ($7,199-$8,899)

    Vespa LX ($3,299)

    Aprilia RXV ($8,599-$9,299)

    Shiver SL 750 ($8,999)

    Moto Guzzi Norge 1200.