Marzocchi to shut down its operations

It is rather a sad day for the motorcycling fraternity. Marzocchi, the Italian suspension, manufacturer is being shut down by its Illinois-based parent company, Tenneco.

Last month, the American company announced its intention to discontinue Marzocchi motorcycle suspension business and liquidate its operations. By doing this, the company will save $7 million (Rs 46 crore) a year, however, around $27 million(Rs 179 crore) will be incurred during the entire closure process.

Approximately 138 jobs will be eliminated in the process. These include the 127 people at the Marzocchi factory in Bologna, Italy, and 11 that have so far ensured operations in North America and in Taiwan. Marzocchi was acquired by Tenneco in 2008, however, it was contemplating a shut down just three years after the acquisition, due to high investment in the R&D department, to take on the rivals like WP and Ohlins.

But looks like the day has finally come. This shut down is going to affect lot of motorcycle manufacturers, who source the  Marzocchi suspension for their bikes. For them, switching to a new supplier means investing more in R&D and also testing. Let’s hope some big conglomerate acquires Marzocchi and keeps it alive by infusing money.