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Piaggio has presented a new four year
strategic plan which will see a focus on
growth in the Asia region and the Italian
firm will start manufacturing its scooters
in India as well as at the new plant in
Vietnam which opened at the end of last
month. |
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The
chairman and executive director of Piaggio & C.
S.p.A., Roberto Colaninno, presented the Board
of Directors with the 2009-2012 Strategic Plan
for the Piaggio Group yesterday evening. The
Plan, which for the first time embraces a time
frame of four years, aims to create the
conditions for strong growth in Asia by
strengthening the direct industrial presence and
by increasing the offering of two-wheel vehicles
to be produced in India as well and
commercial vehicles, backed by the development
of distribution structures, organisation, and
human resources.
On the European
domestic market, Group strategies will focus on
consolidating their current leadership position by
developing and renewing the product range in the scooter
sector - with various Group brand names as well as
rationalising the motorcycle range and accentuating the
different brand name missions of Aprilia, Moto Guzzi, and
Derbi.
In the Americas,
the 2009-2012 Plan aims to develop research and development
activities in order to pursue an industrial strategy based
on competitive costs in all segments of the scooter market.
As for motorcycles, the Group intends to work on the growth
of different brand names, also through the development of
sport bikes with mid-sized engines.
As a result of
its in-house technological innovation, the Group will be
looking towards establishing a leadership in new motors with
little or no environmental impact and reduced fuel
consumption: the Group will focus on the growing
availability of hybrid, electric, and bi-fuel technologies
applicable to both two-wheel and commercial transport. In
the meantime, production of new 1000 and 1200 cc diesel and
turbo diesel engines will start up in India. These engines
are to be the fundamental feature of the Groups expanded
range of commercial vehicles, produced and marketed in both
Europe and Asia, which will lead to growth and segmentation
of the Ape, Quargo, and Porter lines.
The 2009-2012
Plan also aims at increased standardisation in product
development processes, backed by a reduction in the
complexity of the various product ranges, and the
international development of current Sourcing, R&D, and IT
structures. At the end of the plan period (2012), it is
expected that the group will have reached a consolidated
turnover of about 1,880 million with sales volumes of
about 750,000 units, and an EBITDA of more than 248
million (13.2% of the turnover). The Plan calls for a
debt/equity ratio (net financial debt/net assets) well below
1 by 2012.
The focus will
be placed on managing the cash flow growing thanks to the
increase in the consolidated turnover oriented towards
debt reduction, returns on invested capital (dividend
policy) and R&D and fixed asset investments of about
90-100 million per year for the development of new products,
plants, and processes. During the meeting, the Chairman of
the Board of Statutory Auditors stated that the Board of
Auditors had verified that all the commitments undertaken by
the Company at the time of the listing had been completely
satisfied.
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