MV Agusta halts production after CFMoto deal

MV Agusta has reportedly halted all motorcycle production at its Varese factory in Italy. The stoppage follows the collapse of a critical investment deal with Chinese manufacturer CFMoto and leaves the company facing severe financial problems.

Production at the Varese facility has been dormant since April 2026. Supply chain disruptions and unpaid supplier invoices have crippled operations. Dealers in Germany, Austria, and Switzerland are now reporting shortages of both new motorcycles and spare parts.

Financial turmoil and failed deals

The current crisis caps three turbulent years for the Italian motorcycle maker. In March 2023, Austrian manufacturer KTM acquired a 50.1% stake in MV Agusta from the Art of Mobility group for a reported 60 million euros. Finances improved under KTM's stewardship, with sales reaching 133 million euros and an EBIT of 11 million euros.

This stability was short-lived. KTM itself entered insolvency proceedings in late 2024 and returned its MV Agusta stake to Art of Mobility in 2025. Sales subsequently plummeted by 54.3%. CEO Luca Martin then announced an ambitious plan to expand the model range, target annual sales of 10,000 units, and eventually enter MotoGP.

By July 2026, the company had reportedly sold only 1,238 motorcycles. Desperate for capital, MV Agusta turned to CFMoto. The two parties signed a memorandum of understanding in June 2026 for CFMoto to acquire a 49% stake and provide a multi-million-euro restructuring investment.

Collapse of the CFMoto agreement

The deal with CFMoto later collapsed after Art of Mobility terminated the agreement, triggering legal proceedings. Attempts to secure alternative funding reportedly stalled. A separate planned capital injection of 35 million euros earlier in 2026 also failed to materialise.

The financial fallout is severe. The company's debts are reportedly in the tens of millions of euros, raising concerns for its 185 employees. MV Agusta now requires fresh investment to restart production and stabilise the business.

Leadership changes and limited operations

Key leadership has departed amidst the chaos. Hubert Trunkenpolz, who served as chairman and played a key role following KTM's acquisition, resigned from the board on July 20, 2026.

Some limited activity continues. MV Agusta Operations in Cologne has reportedly managed to supply around 150 motorcycles to selected German dealers in 2026. The company is reportedly targeting a production restart for October 2026, though CEO Luca Martin has declined to comment on the latest developments.

This is not MV Agusta's first brush with production trouble. The company has a long history of financial instability, including a period under the ownership of Malaysian national car maker Proton starting in 2004. That acquisition later caused controversy when MV Agusta was sold for a symbolic one euro to GEVI SpA in 2009.