This article borrowed from www.lightningmotosport.com/History/apriliahistory.htm - Ferris

Aprilia: Moving in on Japanese Territory

- Translated from an article printed in Italy's most read financial newspaper, "II Sole - 24 Ore" on February 24, 2000 by Mauro Castelli.

To make fun of the Japanese in the motorcycle industry, you’ve got to give it your best considering the technological levels reached by companies located in the country of the “Rising Sun”. Nevertheless, an Italian has already had this satisfaction by winning in just a few years 101 World Championship races, 15 World GP Titles (14 of which for road racing and one in trials); in addition, his company’s exploding sales have also brought great satisfaction with earning that last year reached 1,200 billion lire (US $652 million), compared to the Lit 1,014 billion (US $551 million) of ’98 and only Lit. 177 billion ($96 million) tallied in 1992.

The man that made it all happen is Ivano Beggio, heart and soul of the Aprilia Group which is headquartered in Noale, a small town in the northeastern region of Veneto in Italy, about 20 km (12 ˝ miles) from Venice. This is where the story began and developed into an extraordinary example of entrepreneurship; the company has been so successful that its finances are being noticed at a World level. A strong group with five facilities housed in a total area of 3.2 million square feet. Three of these are located in the Veneto region, (1) the first of which in Scorze’ where the entire production is assembled, (2) the second in Noale (Administration, research and development, planning & racing) and (3) the third in Santa Maria di Sala (parts and accessories). The other two facilities are located in (4) Marsciano (near Perugia), a factory which was acquired in 1993 and where the plastic components of scooters are made and painted, and (5) San Marino, a factory purchased in 1998 that now houses Aprilia Engines, the new center for the design and production of Aprilia’s own built power plants. There are seven subsidiaries outside of Italy located in France, Spain, Spain, Germany, Holland, Great Britain, Brazil, and the United States. The latter subsidiary becoming operative in Atlanta, Georgia during 1999 and already selling eight models including the RSV Mille.

To complete the picture, the Aprilia Group employs 1,650 persons and provides work for over 3,500 more through its suppliers. It’s second largest in Europe, behind Piaggio, for the production of motorcycles and scooters. And it is also one of the first European companies about to roll out a complete Internet sales initiative that by means of a series of phases will spread to other countries. The Internet sales in Italy will be operational by March, giving the chance to the surfer-client to personalize each and every model with tailored colors and accessories. Product delivery and payment will always occur through the customer’s local dealer.

Not bad. A group that is well on the road to globalization and with all the right cards for continued growth, but whose origins are indelibly tied to the creativity of one man, who has known to always look ahead and never let problems get in the way. But let's go to know this man better, in his own words, to share in this special adventure in the world of two wheels.

Italy’s past President, Luigi Scalfaro bestowed the highly respected title “Cavagliere di Lavoro” on Ivano Beggio in 1998 for his contributions to making Italy economically stronger on a global scale; while he was further honored by the University of Pisa with an honorary degree in mechanical engineering this past fall. Ivano Beggio was born in Rio San Martino, a tiny locality of Scorze’, only 500 meters from the actual factory. In was August 3, 1944, a difficult moment with the sounds of the war still ringing in everyone’s ears. “My father, Alberto, he recalls,” sold and repaired bicycles. He was a smart man and the tiny store he worked in was getting cramped. So he decided to open another larger store in Noale, where he began to build bicycles and a few mopeds. Those mopeds were absolutely nothing compared to the technological level of what we are selling today. The product’s name, anyway, was “Vivi.” All in all, things were going pretty well, even though the young Ivano wasn’t really interested in his scholastic studies, and only completed a few years of vocational high school training. But the passion for two wheels was in his blood, and not for those with pedals, but for those with a high performance engine. He began working with his father to understand what it meant to “sell” and get some hands on experience in the field.

“I was only about 16,” he says with pride, “when I decided to build a motorcycle. Finding materials wasn’t difficult. At that time in Italy there were many small manufacturers who built custom parts and before you know it I built a motorcycle with a 50cc engine, bodywork painted gold with blue streaks. I thought it was beautiful, and as far as I was concerned, I’d gotten it just right. So one Sunday morning I decided to go for a ride around the village, and took off the muffler. It didn’t go very well, considering that during the short ride. I had both a bucket of water thrown at me and shortly after someone’s old shoe. For three days thereafter I was so embarrassed that I didn’t leave home. You can imagine that my father didn’t have very kind words for me either; even though six months later without my knowing, he managed to sell the motorcycle at almost twice the market price.”

The real creative period began at age 18, when he built his second motorbike, naming it Scarabeo. “It was a 50cc off road model in which you could clearly see my own style preferences. Except for the frame, I had built a different looking fuel tank and made my own mudguards out of fiberglass with the help of a local craftsman. The entire bike was always brightly colored because I wanted to catch everyone’s attention, literally surprising or even shocking them. The shocking effect worked so well that my father said, in his local dialect, "I’ve never seen a motorbike in this world with one wheel so large and the other so small." He hadn’t noticed that it was one of the first optimal solutions for absorbing impact with holes when descending a hill. I was definitely heading in the right direction.”

So young Ivano becomes an apprentice and when he turns twenty takes over his father’s business, which at the time had earnings over 850 million Lira (US $462,000 basis current exchange rates) and employed 25 technicians (the company was already called Aprilia, the name taken from the beautiful Lancia automobile model of the fifties. This aspect about the names is true, but above all because the Aprilia name had great customer recognition in Italy, and a well recognized name could make a huge difference for a small company.) About a year later, Beggio decided to open a small workshop and machining area to make racing bikes. He even tired to race himself “but I was only good,” he admits, “at falling.” So the riding was better left to the others.

Production and sales were proceeding well, until one day an angry father arrived yelling that his son had injured his shoulder because the frame of his Aprilia motorcycle broke. He was right to be angry, because we were putting the frame of a 50cc bike on the 125cc models. It was an error that convinced me to hire an engineer, or better – seeing as I couldn’t afford it – an engineering student so we could do the frame calculations correctly.” I assure you, things have definitely changed over these years.

In 1970, in a 4x4-meter (13’x13’) stand at the Milan convention center (“absolutely the smallest in the entire show”) Beggio displayed, alongside his father’s bikes, one of his own creations “which was very much liked.” Now, at 26yrs of age, he marries Tina Campanella who Beggio says is still his best advisor and has a son, Gianluca, who is also passionate about motorcycles and has even won an amateur race. Gianluca now oversees the definition of colors and graphics of the new models in Noale.

In 1975, he launches his first true motocross bike, a 125cc model, also in this case, called the Scarabeo, however identified with the MX and RX logos so that Aprilia remains as the brand name.

“My real story begins here,” Beggio points out, “with the creation of a small racing team which did miracles, so much that in 1976, along with Ivan Alborghetti, we took the Italian Moto cross title and the following year managed to sell 200 of the racing replicas. Twelve months later, we were up to 700 units, supported by the win of the 250cc class.” The business literally took off, though in the meantime, total sales in Italy of small motorcycles increased. That’s how earnings increased from Lit. 800 million (US $435,000) in 1970 to Lit. 2.5 billion (US $1.35 million) in 1977. Over the next five years, sales increased to 5.8 billion Lira (US $3.15 million).

The year is 1982 and Beggio at this point stops building bicycles. As per Beggio's own words, "There was no margin in bicycles anymore, therefore no future." At this point, Beggio focused all his efforts to building motorcycles only, and at this point also street legal bikes. Beggio again says, "My first 125cc street bike was already ready for production by the end of the year". In 1983 earnings take a jump from 5.8 to 12 billion lira (US $3.15 to 6.2 million) and double the year after.

That’s how a difficult moment was overcome in Beggio’s history, in which the banks advised him to do what he knew best (build and race motorcycles, to be exact), letting go of the other sectors in which he had gotten involved: furniture and eyeglasses. The debt reconsolidation schedule initially called for repayment of the debt in five years; it actually required only three years. After this critical period of many sleepless nights everything became easier.

Aprilia began participation in the World GP Road racing Championships with Loris Reggiani, while it disbanded its efforts in off-road competition in 1987. Shortly thereafter, the company launched its participation in the scooter industry, which it has managed very successfully over the past ten years through to the present day with its launch of the 1000 Sport models two years ago. 

And now? Having finished partnership with BMW to design, industrialize, and build their F650 model which became BMW’s highest selling model ever, Beggio is contemplating other winning moves. He’s looking ahead with interest at the possibility of taking his company public, and is focusing particular attention on emerging markets like China and India. He is definitely not slacking the reins, because, as he is fond of saying, “Victories are built. No one gives them to you.”