Marzocchi Is Shutting Up Shop (...or Maybe Not)

Postby Melissa_Theuriau on Thu 23/Jul/15 9:40am

Holy crap! Marzocchi is goneburgers!

TENNECO ANNOUNCES INTENTION TO DISCONTINUE ITS MARZOCCHI SUSPENSION BUSINESS
Lake Forest, Illinois, July 22, 2015 – Tenneco Inc. (NYSE:TEN) announced today its intention to discontinue its Marzocchi motor bike fork suspension business and its mountain bike business, and liquidate its Marzocchi operations.

These actions are subject to a consultation process with the employee representatives and in total would eliminate approximately 138 jobs.Tenneco currently employs 127 people at the Marzocchi plant in Bologna, Italy and an additional 11 people in its operations in North America and Taiwan.

Tenneco intends to assist its motor bike customers with the transition of current production to an alternative supplier and expects to complete the closure by the end of 2015.

"We sincerely regret the impact these actions would have on our Tenneco Marzocchi employees, and thank them for their tireless efforts to improve performance and reduce costs. Unfortunately, it was not enough to overcome continuing market challenges in the two-wheeler business," said Brian Kesseler, chief operating officer, Tenneco. “We are committed to working with our employees’ representatives, and with our customers to make the transition as smooth as possible.”

This intended action is a part of Tenneco’s ongoing efforts to optimize its Ride Performance business globally while continuously improving its operations and increasing profitability.

Tenneco expects to record charges of approximately $27 million related to these actions in the third quarter which includes approximately $17 million of cash expenditures. These charges consist of severance and other employee related costs, asset impairment charges and other expenses related to the closure. The company anticipates improving financial results by approximately $7 million annually, beginning in 2016.

Tenneco is an $8.4 billion global manufacturing company with headquarters in Lake Forest, Illinois and approximately 29,000 employees worldwide. Tenneco is one of the world’s largest designers, manufacturers and marketers of clean air and ride performance products and systems for automotive, commercial truck, and off-highway original equipment markets, and the aftermarket. Tenneco’s principal brand names are Monroe®, Walker®, XNOx™ and Clevite®Elastomer.

This press release contains or may contain forward-looking statements. Words such as “intends,” “anticipates,” “expects,” “will,” and similar expressions identify forward-looking statements. These forward-looking statements are based on the current expectations of the company (including its subsidiaries). Because these forward-looking statements involve risks and uncertainties, the company’s plans, actions and actual results could differ materially. Among the factors that could cause these plans, actions and results to differ materially from current expectations are: (i) the company's continued success in cost reduction and cash management programs and its ability to execute restructuring and other cost reduction plans, including any cost reduction initiatives we may undertake in Europe, and to realize anticipated benefits from these plans; (ii) the outcome of the mandatory union consultation procedure; (iii) workforce factors such as strikes or labor interruptions; and (iv) the timing and occurrence (or non-occurrence) of transactions and events which may be subject to circumstances beyond the control of the company and its subsidiaries. The company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release. Additional information regarding risk factors and uncertainty is detailed from time to time in the company’s SEC filings, including but not limited to its report on Form 10-K for the year ended December 31, 2014.

Contacts:

Margie Pazikas
Media Inquiries
32 2 706 9025
mpazikas@tenneco.com

Bill Dawson
Media Inquiries
847 482-5807
bdawson@tenneco.com

Linae Golla
Investor Inquiries
847 482-5162
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Melissa_Theuriau
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Re: Marzocchi Is Shutting Up Shop

Postby Scotty on Thu 23/Jul/15 9:42am

Surely there's goota be a company out there interested in the IP.

I'm gutted. This was my favourite fork brand.
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Re: Marzocchi Is Shutting Up Shop

Postby ryda on Thu 23/Jul/15 9:46am

Scotty wrote:I'm gutted. This was my favourite fork brand.
+1
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Re: Marzocchi Is Shutting Up Shop

Postby Trail on Thu 23/Jul/15 9:50am

That is shite. My favourite fork brand too.

Now what choice do I have to find a decent plush oil and coil fork. Still not a fan of air forks and the amount of compression damping needed.
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Re: Marzocchi Is Shutting Up Shop

Postby Bigfoot on Thu 23/Jul/15 10:07am

The confirms I will never get rid of my 02 Z1FR's...
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Re: Marzocchi Is Shutting Up Shop

Postby Scotty on Thu 23/Jul/15 10:12am

Wishful thinking, but if Bryson Martin could raise the capital to buy it all out.

Then again, he's DVO now... so probably not.
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Re: Marzocchi Is Shutting Up Shop

Postby Rik on Thu 23/Jul/15 10:33am

That is 'shocking' news.

As another Marzocchi fan boy, I shall mourn their demise.

Bigfoot's comments have inspired me to go out into the garage tonight and unearth a pair of DH3's I have somewhere.
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Re: Marzocchi Is Shutting Up Shop

Postby Trail on Thu 23/Jul/15 10:57am

I have a couple of pairs of 55 Ti RC3s... Stancions on one on the way out... but at least one pair of good forks there.
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Re: Marzocchi Is Shutting Up Shop

Postby Astoria Paranoia on Thu 23/Jul/15 11:00am

Is there gonna be a sale of their stock?
I need something to stop my yacht from straying from its moorings.
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Re: Marzocchi Is Shutting Up Shop

Postby Dougal on Thu 23/Jul/15 11:12am

Trail wrote:Now what choice do I have to find a decent plush oil and coil fork. Still not a fan of air forks and the amount of compression damping needed.


Talk to me. On my "to do" list is fitting a coil spring to a Mattoc. Because I too like coils.
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Re: Marzocchi Is Shutting Up Shop

Postby Dougal on Thu 23/Jul/15 11:13am

Rik wrote:Bigfoot's comments have inspired me to go out into the garage tonight and unearth a pair of DH3's I have somewhere.


Pics please. They can't have made many of those.
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Re: Marzocchi Is Shutting Up Shop

Postby mfw on Thu 23/Jul/15 1:00pm

Trail wrote:Now what choice do I have to find a decent plush oil and coil fork.

Ohlins :love:
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Re: Marzocchi Is Shutting Up Shop

Postby Chickenman on Thu 23/Jul/15 2:28pm

It's a shame for sure to lose a crucial part of MTB history, but it's also hardly a surprise. OEM (the bulk of income for any component manufacturer) has been on the decline for Marzocchi for the last decade. And seeing as most bikes actually come with pretty decent specced forks now there are fewer and fewer people upgrading them, and the Joe Bloggs that does upgrade will more often than not replace like with like or upgrade within family because his fork got broken in a crash.

This thread also shows a lot of Marzocchi's problem, people love Marzocchi, or more accurately what Marzocchi was. I'm the same, I love my Z1 Bams on my SS, yet my Nomad had BoXXers, my XC bike Sids. My next bike will probably have Pikes, Marzocchi for me hasn't really been a contender since everybody caught up (and subjectively at least) passed them. So what were Tenneco to do? Flog the dead horse? Or cut their losses?
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Re: Marzocchi Is Shutting Up Shop

Postby Dougal on Thu 23/Jul/15 3:24pm

This post from last month on PinkBike shows far bigger systemic problems: http://www.pinkbike.com/news/marzocchi- ... -sale.html

How did they end up with no production for 2 years?
Andrea Pierantoni wrote:AP - After 2008, the Marzocchi mountain bike brand improved significantly with Tenneco’s support. But in 2012 we encountered problems when our assembly supplier stopped production. We lost two model years as a result.


:eh:
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Re: Marzocchi Is Shutting Up Shop

Postby Chickenman on Thu 23/Jul/15 3:55pm

Dougal wrote:This post from last month on PinkBike shows far bigger systemic problems: http://www.pinkbike.com/news/marzocchi- ... -sale.html

How did they end up with no production for 2 years?
Andrea Pierantoni wrote:AP - After 2008, the Marzocchi mountain bike brand improved significantly with Tenneco’s support. But in 2012 we encountered problems when our assembly supplier stopped production. We lost two model years as a result.


:eh:


Yeah I read that too. If a supplier stopped production I'd be asking why. Was it due to lack of payment? Suppliers vendors not coming through? Faulty goods from vendors? Etc.

If it's what I think it was (and I'm sure PBR will have more of an idea,) it was the faulty components from the manufacturers vendors. This forced Tenneco to change manufacturers mid season so not only lost that year, but the following too as tooling was bought up to scratch; then that surely was the nail in the coffin. But, IMO, it was already on the cards.
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