Breaking News: Marzocchi to Close its Doors
Tenneco has officially announced that Marzocchi will be closing closing its doors. A few months ago we first heard Tenneco were searching for a buyer for the company as they were looking to transition away from the suspension business. It's apparent that didn't happen, and they are now are discontinuing the business. There will be far reaching implications to this event (warranties, sponsorships etc...) that we will have more information on shortly. But here is the initial PR to all their shareholders.
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 expected 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.
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 expected 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.
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bikemarkt.mtb-news.de/article/518149-marzocchi-poster-2006-neu-rar?sa=X&ved=0CBUQ9QEwAGoVChMIhJGfw4jwxgIVw5UeCh1eZQEG#&gid=1&pid=2
Marzocchi News: As some of you are aware of last night’s press release that lit up the internet from Tenneco and we wanted to clear a few things up.
This morning we have spoken directly to the factory and I can confirm the following points.
• Sadly the Marzocchi moto factory in Bologna is now closed.
• Tenneco do indeed have the MTB business for sale.
• MY2016 MTB fork production is going ahead.
• New product for 2016.
• Marzocchi MTB will be at both the EUROBIKE (B1-302) and INTERBIKE shows.
• Race support continues.
Most importantly for our customers and the end consumer regardless to what may or may not happen, all forks and rear shocks sold will continue to be supported with the full WARRANTY and spare parts back up.
More news when we get it.
note: This is not an official communication from Tenneco or Marzocchi
Apperantly they are only closing down their moto department.
Source: Marzocchi on Facebook
Z1 cr was my first real fork, followed by my beloved Shiver DC
ep1.pinkbike.org/p5pb12486406/p5pb12486406.jpg
Z1 Bams
Z1 drop offs. Bam arch
Jr T 2003 skinny silver fellas
Jr T 2004
Monster T 2004 owned and abused for half a decade.
55 something or others (made in taiwan shit)
Shiver DC Worldcup
Another Monster T 2004
Back to my Shiver WC.
Good job the classics are built too last forever, im far too manly (fat) to ride a boxxer.
;-)
Is Pinkbike trying to kill Marzocchi?
Very sad indeed, hope someone can pick up the pieces and bring it back to life at some point.
I wonder if sponsored teams will start to switch to different suspension brands during the remainder of the season...?
It's a bummer to see Marz out of business but... well I haven't seen anyone riding a Marz fork in years.
Erm...
Just sayin.
Basically, if you're a brand manager, & SRAM is willing to save you the time putting together a full build kit, & beat everyone else by a significant margin on wholesale cost, you're going to stop looking at other people's offerings, even when SRAM offers some substandard parts, like Avid brakes.
That cost savings can mean a couple percentage points more profit per bike, or depending on build, dropping the retail price of your bike by a significant amount.
That said, it didn't feel like Marzocchi was making a real effort to take back OEM marketshare. It just never really felt like Tenneco actually wanted to be in the bike business.
Now that I think of it, I'm sure I saw some Marz forks at Windham last year. But I've **never** seen a 320 at an XC race, and I've definitely never seen any Marz stuff on the trails in my area. Maybe the 380 and 888 were selling, but none of their other shit was.
You're right about tenneco. I think it's fair to presume that since their CEO makes more than it costs to run marzocchi, tenneco aren't into being in anyone's industry.. Their business is making money. Capital, assets, balance sheets, losses.. blah blah. I mean, what's the deal with being able to legitimately benefit from a companies losses? That's crazy. Not saying that's going on here, just that its a legitimate investment practice.
Look at the fatbike segment: if that segment had come to prominence 15 years ago, you wouldn't have been able to buy a complete until one of the big three had gotten on board, & maybe not even then(Specialized did a lot more frame only business 10 years ago,) but several brands like Surly had completes ready almost as soon as it stopped being niche.
Look at DVO: 15 years ago, they'd have sat back & sold aftermarket forks(well, they did, since we're essentially talking about Marzo at that point) & been quite content. Instead, they are aggressively pursuing OEM business, like with Intense(another brand that only started selling complete bikes in the last decade) because they know you can't survive on aftermarket suspension anymore.
I guess it'll have to be DVO for my next fork (if I can't manage to find a 380 when the time comes)...although I don't anticipate the 888 crapping out on me anytime soon, thankfully!
Note to fork buyers and manufacturers: There is NO substitute for full bath oil systems!!
"As of last night’s press release from Tenneco on Pinkbike, all it is not as bad as it sounds.
This morning I have spoken directly to the factory and I can confirm the following points.
• Tenneco do have the MTB business for sale.
• There is serious interest from existing MTB companies that are looking to buy the Marzocchi MTB business.
• I cannot confirm who the interested parties are at this time.
• MY2016 MTB fork production is going ahead.
Most Importantly for our customers and the end consumer regardless to what may or may not happen, all forks and rear shocks sold will continue to be supported with the full WARRANTY and spare parts back up.
Obviously the parent company Tenneco could in fact over-rule any of this at any time, but for the moment nothing changes for Marzocchi MTB."
so may not all be bad.
In the end just a classic example of a bad American company acquisition buying the business in the plans to make instant profit and. It doing right by buying the company and then investing in it for the future (ex of a well done acquisition sram buying rockshox and hiring new engineers and staff to support the line).
Zocchi was a good company, tennecco however.
twitter.com/MarzocchiSusp/status/624043258159611904
And here is something that has been posted by Marzocchi UK on their Fb page :
"Marzocchi News: As some of you are aware of last night’s press release that lit up the internet from Tenneco and we wanted to clear a few things up.
This morning we have spoken directly to the factory and I can confirm the following points.
• Sadly the Marzocchi moto factory in Bologna is now closed.
• Tenneco do indeed have the MTB business for sale.
• MY2016 MTB fork production is going ahead.
• New product for 2016.
• Marzocchi MTB will be at both the EUROBIKE (B1-302) and INTERBIKE shows.
• Race support continues.
Most importantly for our customers and the end consumer regardless to what may or may not happen, all forks and rear shocks sold will continue to be supported with the full WARRANTY and spare parts back up.
More news when we get it.
Note this is not an official communication from Tenneco or Marzocchi "
ep1.pinkbike.org/p4pb12018035/p4pb12018035.jpg
Then they tell people lies that actually piss them off, like calling them into the office for 15 mins while security throws all their shit in a box, like they can't trusted to pack their own things. Waiting for Friday to lay people off because they read it was better in some stupid business magazine. that sort of stuff.
I know i'll keep my 55 Rc3 Ti for a while!
R.I.P Marzocchi, such a badass company!
The motorcyle market must be so soft that they can't find a buyer for that side of the business. The bike side will be sold off separate from the motorcycle side, but the moto factory has to be shut down and those loses realized by Tenneco.
I'd love to see X-Fusion start to gain some market share. Not sure why there aren't more OEM.
Its sad that Marz was bought by an American company because like most American companies (especially publicly traded companies) all the board cares about is short sighted cash. So, they'd rather save themselves that whopping (relatively speaking) $7 million than continue to try and revive the brand.
As others have said, it's probably not far off to say most riders here on PB had a Marz fork at some point and loved them. More than a sad situation, it's the disgusting side of American Capitalism at its finest.
So at the end of the day its a savings of 3.1%, which doesn't seem like alot, but who among us wouldn't accept a 3.1% raise in our next paycheck? For perspective that would be an extra $1,000 a year for someone making $35K. $1,500 for someone who makes $50K. I mean I'm not sure what your financial situation is but that is not something most people would sneeze at.
Yea it sucks that the company is being shut down and it is the downside of capitalism, but companies aren't in the business of losing money. They have shareholders to answer too and can't just continue to subsidize a brand thats not making any money. If the company has any value and a chance at being revived then someone will step up and buy it. And that is the positive side of capitalism. That someone with a different vision who may see value there can secure their own capital and step in and buy it.
Seriously though... They made some really good stuff. Sad that they have to close. My '04 888 is still holding on really good despite it's age.
but my first choice was the 350NCR titanium... so sad.. such a beautiful fork.
My custom built Zocchi 55's feel so much better than my highly modified pikes.. so much better control.
So sad that people only want fox or rockshox... fooled into thinking they are the best out there.
Ditched my highly modified boxxers (like throw another $2000 into the fork modified, above and beyond the standard world cups) for my old 888 evo v2 with a new 380 cartridge.. only downside is the weight but the performance of the zocchi's is just so much better... and the service intervals are beautiful.
Come on Pinkbike, if its closure is not totally a done deal then dont sell it as being the case as it will have a massive impact on whatever business may be salvaged from this!
In my opinion - Whomever has been in charge of the costings and decision making are to blame, over the years they've made some bad decisions like changing their vendor/offices in Taichung, TW - to save money, but all it did was give warranty and quality issues from 2007 - 10!.... I should know I was in the office they moved out of!
However recently their forks n shocks have been awesome again...... I say get rid of the free-loading money grabbing management/directors and save the brand.......Tenneco you suck!!
Not sure if they'll let go of the branding during this, probably just get rid of the equipment & facilites. The name will probably just moulder in their portfolio.
As a owner of both a 888 and a Roco air, I wonder what my future holds for service prices and parts availability.
It would be a shame to really see it gone.
I hope it will find a new investor so that this legend can go on!
All gone, like dust in the wind...
"Marzocchi MTB is open for business. Production continues. New product coming for 2016! #marzocchilives"
Uhm...the mountainbike division is fine, straight from the horse's mouth...
Check this old short video -> www.youtube.com/watch?v=5GNUfNpqmhY
I really hope a new investor will restart this brand and keep the hope of many bikers up in years to come.
Hey Cane Creek - wanna buy a great suspension company to round out your offerings?
Heck, there's your reason right there.
A company who's bread and butter is making 'shocks'(quotes used, as the term 'shock' used in conjunction with 'Monroe' could be argued is an oxymoron) for 1970's American land yachts and finer 80's Chrysler K-cars never had a chance trying to mesh THAT business model with one that's based on making cutting-edge hi-po suspension for two-wheeled vehicles.
I would have thought they would find a buyer! How can a multi billion dollar company close down such a great company! You would think they would have been able to sustain Marzocchi by relying on it's other companies profits. I just bought three new forks (two 350 & a 380). Now what will happen about my warranty and parts? All I can say is they made some of the best technology and their ride quality could never be matched. This is awful news! My day has just been ruined
Me and all my mates have had a pair and they are just awesome, reliable great forks
I still have mine on my bike and they have survived every heavy nose dive crash or massive case i ve been through
Thankyou Marzocchi
twitter.com/MarzocchiSusp
www.marzocchi.com/Template/listNews.asp?LN=UK&idC=1551&IDFolder=135&IDOggetto=29819
When they abandoned the bam-arch and went full retard with sub par Asian production. They lost most of their grip.
we all see you back in a very short future.
The only forks that don't need overhauling every 5 minutes and nobody wants that?
It's true they don't feel as good as a cartridge fork.
And they don't really sponsor the right people.
But still very unfortunate.
Or actual dimensions of all seals so I can buy them from somewhere?
Link to the post: twitter.com/MarzocchiSusp/status/624043258159611904
twitter.com/marzocchisusp
i'm a little confused about how you got the idea that avalanche had to do with road bikes?
It was (and it still is) such a nice fork.
I had a lot of fun thanks to Bomber.
Thank you Marzocchi!
Tenneco is unlikely to sell the marzocchi name, even if they're shutting down operations.
www.pinkbike.com/photo/6530387
Apparently x-fusion are actually quite good forks. Don't carry quite the same 'thang' as a company dripping in moto and mtb history, but hey..
Is anyone actually surprised this company failed?
It's obvious Tenneco was never REALLY invested in Zocchi's future. Otherwise they'd have more than 11 F'ing people to work in two entire countries. Meanwhile I'm sure that the 127 employees in Bologna weren't cheap with their short work weeks, 2 months paid vacation and government-mandated fat retirement plans.
I started riding 3 years ago, and I've been to every corner of the country so far, and never even saw a Marzocchi fork in person. That tells you how committed Tenneco was to growing the brand.
I understand the historical significance of the brand, and it is sad to see a company like this go under, but I won't act surprised that it's happening.
twitter.com/marzocchisusp
twitter.com/marzocchisusp
bye marzo, your company have a superb suspension fork on my bike (polygon collosus SX)
(I hope you guys get the reference)
You came in here super strong, made huge impressions & built a loyal fanbase, then you f*cked it all up. The last Marz I bought was going to be the last one I ever bought anyway. Good riddance.
DVO & Manitou all the way baby!
However im surprised to read that.