DeTomaso Mailing List: August 97, Message #189
     



From: pantera@shiseis.com (Shane F. Ingate)

Subject: Re:  DeTomaso and Guzzi

Date: Wed, 6 Aug 97 15:47:31 PDT



Mike,

    > >The association between DeTomaso and Guzzi was short, and unfortunately,

    >somewhat unpleasant.

    >

    >>>>In the September 1997 issue of European Car magazine, Matt Stone wrote a

    >three-page profile of DeTomaso.  From that, I quote:

    >

    >"He acquired the ailing bike maker [Moto Guzzi] for a song in 1972 and nursed

    >it back to relative health.  It is alive and well because of it.  DeTomaso

    >Industries, a U.S. holding company, owns Moto Guzzi to this day."

    >

    >It's my understanding that the holding company exists to enable DeTomaso to

    >wiggle around extremely harsh Italian tax laws.  But presuming that Matt is

    >correct, Alessandro DeTomaso still owns Moto Guzzi, directly or indirectly,

    >FWIW.



I am aware of Matt Stone's profile, however Ivar de Gier who is arguably THE authority

on the history of the Italian motorcycle industry (and has been for nearly 40 years)

sees otherwise.  I quote De Grier:

 

"Benelli indeed was in 

financial problems wen deTomaso acquired in the beginning of the 

seventies 85% of it's shares. With Guzzi the case was very 

different. In the beginning of the sixties untill the mid sixties 

the factory was in an horrific situation, it severed from bad 

management (too many workers, too little production, bad sales 

management etc.) and not in the least a declining market. The 

development of the first Guzzi lightweight mopeds raised not enough 

hope to change the bad situation. The final finishing of the V7 

prototypes could not yet start up beceause of lack of financial 

resources so a bankrupcy was in sight at the end of 1965. The 

declaration of this bankrupcy was made on the 25th of Februari 1965. 

During this declaration Guzzi went over in a receiver. This receiver 

was a group of creditor banks backed by the financial giant IMI 

(Istituto Mobiliare Italiano), IMI being a building society. The 

provisional board run an harsh re-organisation and made many 

cutbacks. They wanted to shape up the factory to a profiting 

enterprise which could repay the banks lost money. The succesfull 

foundations of the new profiting organisation were finished a year 

later beceause then, on the 1st of February SEIMM (Societa Esercizio 

Industrie Moto Meccaniche) was founded. SEIMM rented the plant and 

all Guzzi's former belongings for a period of three years (very 

interesting constructions to avoid high taxes). SEIMM had the right, 

if Moto Guzzi became profitable enough, to buy the "new" Moto Guzzi 

enterprise from the group with IMI to ensure definite pay-offs to 

the group via the SEIMM shares owned by IMI. A very smart deal, 

since IMI had almost all SEIMM shares... Main goal was the repay of 

the group of creditors, w.o. IMI. Within 2 years SEIMM bought Moto 

Guzzi definetly. SEIMM renewed the management again in March 1967 

for the final restart. Experienced automotive managers were 

installed. Worth mentioning is Romolo deStefani, who formerly worked 

was the head of ASA, Bianchi and Ducati. DeStefani was responsible 

in bringing Lino Tonti to Moto Guzzi." 



"Together with the upcoming market SEIMM had instant succes, however 

based on it's predecessors. In November 1965, at the Milan 

Motorshow, the final prototypes of the new V7 were finally shown, 

together with a revised Lodola (which did not enter production) and 

two new Dingo moped models. The V7 was a big succes, since large 

markets as Germany and the U.S.A. were ready for a big bike like 

this. Within 6 years the factory was vivid again, and had finaly 

repaid the group of creditors in full. The group decided after long 

discussions that SEIMM had completed it's job and that the thriving 

and therefore worthy Moto Guzzi could be sold, adding a huge profit 

to the creditors group. In 1973 this concluded in the sell off to 

deTomaso. This intelligent industrialist saw in Moto Guzzi the 

perfect partner for the ill-fated Benelli. Together they would be 

stronger then both individually."



"The remark that Guzzi was on the verge of bankrupcy is therefore not 

true! DeTomaso's main goal was to create a new Italian motorcycle 

empire, all models with all types of engine configurations should be 

offered to the eager public. I have met deTomaso three times. Once 

he told me the Japanese were a big example for him, they were 

extremely succesfull and there goals were his goals. In this he had 

initially no interest in the traditional Guzzi V-twins, only after 

realising that the market was not waiting for, in all respect, 

Japanese imitations, he changed his policy very reluctantly. Benelli 

therefore was lead the way to the lightweight bikes, making larger 

bikes as well which were still badge engineered with Guzzi. Guzzi 

concentrated on the larger bikes, hence the development of the new 

V50, which was a very brilliant decision of deTomaso to put this 

bike finaly on the market... As early as 1972 the first prototypes 

of this bike were already tested as SEIMM realised the value of a 

middleclass Guzzi. This was however before the deTomaso take over. 

Again, Moto Guzzi was thriving when he took over."



"DeTomaso was directly responsible for Guzzi's main policy. He was not 

interested in bikes but in money. It sounds harsh and bitter, but he 

sucked life out of Moto Guzzi in a degrading way. In 1994 Guzzi was 

almost completely bankrupt, 73 years of proud motorcycle history was 

almost halted and the image of this once very wellknown factory had gone 

saur. Therefore I am glad that FININPROGETTI with their American partner 

took over. These days the revived factory is slowly climbing out of a deep 

and dark valley."



I had this interview with Ivan earlier this year.



These may seem rather harsh words spoken of Alejandro, which I was taken

aback by.  However as my conversation with Ivan continued, he bears no

ill-feeling towards Alejandro; his emotion was "in the spirit" of the

discussion we were having (I was taking Stone's stance and defending Detomaso!).



We have every reason to believe Ivan.  He is a true gentleman and I

enjoy my friendship with him.



	Shane Ingate in San Diego



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