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benelliforum
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Received From Andrew Wright -- Superbike Inc.,
UPDATE:* Arbitration Between Benelli s.p.a. and Superbike, Inc.
As I promised, here is the up-to-date situation on what happened*at the arbitration proceedings.* * The final witnessing at arbitration*took place*on March 15th, 2004 in Milan, Italy.* Superbike presented: our financier, Bill Auld, and our business consultant, Richard Clinton; an*affidavit from our banker*was also submitted.* Benelli presented: the manager of distribution, Alessandro Diosono and chief engineer, Flavio Zanzini.** We had another witness scheduled to appear on our behalf but he was unable to attend the proceedings.* The ex-Export Manager of Benelli, Sandro Caparelli, was unable to*attend due to health reasons and his appearance was rescheduled for one week later.
The arbitration panel was impressed with our testimony. The witnesses we presented did not try to stretch the truth and replied only to those matters that directly affected their participation in the company.* Benelli on the other hand was attempting to substantiate previous lies by coaching their witnesses.* Alessandro*Diosono presented a lengthy list of dates, times and events that were alleged to have taken place.* When the chief arbitrator began questioning him on the details for several events, Alessandro was unable to answer the questions.* His testimony had been rehearsed and it soon became obvious he was concealing the truth.* As a result, Alessandro’s testimony was discarded.
Benelli tried to file with the arbitration a claim for technical expertise on the damages the arbitration panel rejected this claim.*
The next witness for Benelli did not fare as well.* Flavio Zanzini attempted to conceal what he knew, but the chief arbitrator brought out the truth under cross examination.* Flavio was present when the EPA testing was performed on the Tornado.* Flavio Zanzini told the arbitrator that when Benelli sent the test bike to*Superbike in November, 2002 Benelli*knew the bike would not pass the EPA test as it was a bad bike. This was an intentional move on Benelli's part as Andrea Merloni thought it would*give him another reason to cancel*the distribution contract.* Flavio went on to say that he and Sandro Caparelli were instructed by Merloni*to visit another company in the U.S.A. to take over the homologation on behalf of Benelli.* The chief arbitrator asked Flavio to repeat his testimony once again so that he could confirm that what was said the first time and that he heard*it correctly.* Flavio put his head in his hands, covered his face in humiliation*and spoke with a very humble*and quiet voice. He repeated what he had said before.* Meanwhile, Andrea Merloni looked down at the floor without showing any emotion.
The chief arbitrator said "Mr. Wright; if Benelli offered to reinstate the contract would you accept it?"* I replied that in view of the way in which Andrea Merloni had behaved, I could not trust him to conduct business in a professional manner; I would always be wondering what dirty tricks he would play next.* The arbitrator then told Benelli that they must offer Superbike a cash lump sum settlement.* The arbitrator asked me if I would accept this. I told him that it would depend on the amount offered and the approval of our board of directors.
We then received an offer from Benelli of* 300,000 Euros. This amount does not come anywhere near* to cover our expenses or deposits.* We were told that it was all that Benelli could afford to pay us; if they had to pay us more money the company would have to file bankruptcy. How strange this is because only two weeks earlier Andrea Merloni announced to the press*that a new Benelli race team is to compete in the World*Endurance Series Championship.* The cost of fielding an endurance team along with support can easily run into millions of Euros.* Furthermore, in this month’s*issue of “Cycle World” magazine, Andrea Merloni stated that he intends to produce 2400 bikes this year.
In September, 2003 Andrea Merloni agreed to pay us and take back the bikes and scooters that we purchased from him in September, 2002.*So far, this has not materialized; Merloni never keeps any promises that he makes that will cost him money.* Merloni did tell me on January 23rd of this year at the factory in Pesaro that he will not pay Superbike, Inc. any money as we ”….don't deserve anything”.* This whole episode is just a game*to Merloni*because the outcome will not affect his lifestyle in any way.* All he wants to do is win at*ANY cost no matter who is hurt by his actions.*
I was in Italy*last week on business. I visited*a lot of*people in the motorcycle industry and they are all following this Benelli*saga very closely. Many*people told me that they are ashamed of the behavior of Merloni.* Not only are his actions damaging to Benelli, but the Italian motorcycle industry as a whole is getting “tarred with the same brush”.* I was told that it would be better if Merloni was not involved in the motorcycle industry.
Merloni has tried on several occasions to do business directly with*OUR U.S dealer network. They will not entertain any offer Benelli presents them because of Andrea Merloni’s actions. In fact, the dealers*want to sue Benelli for the substantial losses they have suffered because Merloni cancelled the distribution contract with Superbike.* The U.S. market is not available to Benelli; the door is firmly CLOSED.* Only Andrea Merloni can take full credit for this.* When he decided to*terminate the Superbike distribution contract and cut the quality of his product, I'll bet he never realized that it would end up costing him millions*of Euros in lost sales.*
Now Benelli has developed problems with their European distributors. Many owners are turning in their Tornados because they are so dissatisfied with the product and the service.* Benelli will not accept these motorcycles back nor have they provided effective solutions to the problems the bikes exhibit.* Rumors are running rampant that 3 Cross Motorcycles is terminating their franchise for England. Benelli and 3 Cross have*said nothing on the subject nor have they tried*to dispel the rumors.* You can only draw your own conclusions; Benelli is losing its distribution network.
*
Andrea Merloni will not accept that he*is to blame for all*the problems that Benelli is experiencing; he blames and then terminates Benelli employees who are powerless to resist him.* Merloni has no intention of paying Superbike what we are entitled to.* So,*I have decided that if he does not pay Superbike Inc. we will file for the ownership of the Benelli trade mark.* We are currently in the process of planning the revitalization of the Benelli product line after the ownership of Benelli s.p.a. has been secured.* Within a very short period of time, a new Tornado Superbike would be launched.* In the model year 2006, we have planned a revolutionary new Benelli *Superbike to launch in the world market.*
Does Benelli have a future?** The answer is “YES”, but only if it is owned and directed by enlightened management.* Our care and concern for the motorcycling industry and its customers has become evident to those observing our struggle with Andrea Merloni.* We are pleased to state that support for Superbike Inc is multi-national and sufficient capital has been forthcoming so we may implement our plan to revitalize Benelli, s.p.a.
Andrew Wright
UPDATE:* Arbitration Between Benelli s.p.a. and Superbike, Inc.
As I promised, here is the up-to-date situation on what happened*at the arbitration proceedings.* * The final witnessing at arbitration*took place*on March 15th, 2004 in Milan, Italy.* Superbike presented: our financier, Bill Auld, and our business consultant, Richard Clinton; an*affidavit from our banker*was also submitted.* Benelli presented: the manager of distribution, Alessandro Diosono and chief engineer, Flavio Zanzini.** We had another witness scheduled to appear on our behalf but he was unable to attend the proceedings.* The ex-Export Manager of Benelli, Sandro Caparelli, was unable to*attend due to health reasons and his appearance was rescheduled for one week later.
The arbitration panel was impressed with our testimony. The witnesses we presented did not try to stretch the truth and replied only to those matters that directly affected their participation in the company.* Benelli on the other hand was attempting to substantiate previous lies by coaching their witnesses.* Alessandro*Diosono presented a lengthy list of dates, times and events that were alleged to have taken place.* When the chief arbitrator began questioning him on the details for several events, Alessandro was unable to answer the questions.* His testimony had been rehearsed and it soon became obvious he was concealing the truth.* As a result, Alessandro’s testimony was discarded.
Benelli tried to file with the arbitration a claim for technical expertise on the damages the arbitration panel rejected this claim.*
The next witness for Benelli did not fare as well.* Flavio Zanzini attempted to conceal what he knew, but the chief arbitrator brought out the truth under cross examination.* Flavio was present when the EPA testing was performed on the Tornado.* Flavio Zanzini told the arbitrator that when Benelli sent the test bike to*Superbike in November, 2002 Benelli*knew the bike would not pass the EPA test as it was a bad bike. This was an intentional move on Benelli's part as Andrea Merloni thought it would*give him another reason to cancel*the distribution contract.* Flavio went on to say that he and Sandro Caparelli were instructed by Merloni*to visit another company in the U.S.A. to take over the homologation on behalf of Benelli.* The chief arbitrator asked Flavio to repeat his testimony once again so that he could confirm that what was said the first time and that he heard*it correctly.* Flavio put his head in his hands, covered his face in humiliation*and spoke with a very humble*and quiet voice. He repeated what he had said before.* Meanwhile, Andrea Merloni looked down at the floor without showing any emotion.
The chief arbitrator said "Mr. Wright; if Benelli offered to reinstate the contract would you accept it?"* I replied that in view of the way in which Andrea Merloni had behaved, I could not trust him to conduct business in a professional manner; I would always be wondering what dirty tricks he would play next.* The arbitrator then told Benelli that they must offer Superbike a cash lump sum settlement.* The arbitrator asked me if I would accept this. I told him that it would depend on the amount offered and the approval of our board of directors.
We then received an offer from Benelli of* 300,000 Euros. This amount does not come anywhere near* to cover our expenses or deposits.* We were told that it was all that Benelli could afford to pay us; if they had to pay us more money the company would have to file bankruptcy. How strange this is because only two weeks earlier Andrea Merloni announced to the press*that a new Benelli race team is to compete in the World*Endurance Series Championship.* The cost of fielding an endurance team along with support can easily run into millions of Euros.* Furthermore, in this month’s*issue of “Cycle World” magazine, Andrea Merloni stated that he intends to produce 2400 bikes this year.
In September, 2003 Andrea Merloni agreed to pay us and take back the bikes and scooters that we purchased from him in September, 2002.*So far, this has not materialized; Merloni never keeps any promises that he makes that will cost him money.* Merloni did tell me on January 23rd of this year at the factory in Pesaro that he will not pay Superbike, Inc. any money as we ”….don't deserve anything”.* This whole episode is just a game*to Merloni*because the outcome will not affect his lifestyle in any way.* All he wants to do is win at*ANY cost no matter who is hurt by his actions.*
I was in Italy*last week on business. I visited*a lot of*people in the motorcycle industry and they are all following this Benelli*saga very closely. Many*people told me that they are ashamed of the behavior of Merloni.* Not only are his actions damaging to Benelli, but the Italian motorcycle industry as a whole is getting “tarred with the same brush”.* I was told that it would be better if Merloni was not involved in the motorcycle industry.
Merloni has tried on several occasions to do business directly with*OUR U.S dealer network. They will not entertain any offer Benelli presents them because of Andrea Merloni’s actions. In fact, the dealers*want to sue Benelli for the substantial losses they have suffered because Merloni cancelled the distribution contract with Superbike.* The U.S. market is not available to Benelli; the door is firmly CLOSED.* Only Andrea Merloni can take full credit for this.* When he decided to*terminate the Superbike distribution contract and cut the quality of his product, I'll bet he never realized that it would end up costing him millions*of Euros in lost sales.*
Now Benelli has developed problems with their European distributors. Many owners are turning in their Tornados because they are so dissatisfied with the product and the service.* Benelli will not accept these motorcycles back nor have they provided effective solutions to the problems the bikes exhibit.* Rumors are running rampant that 3 Cross Motorcycles is terminating their franchise for England. Benelli and 3 Cross have*said nothing on the subject nor have they tried*to dispel the rumors.* You can only draw your own conclusions; Benelli is losing its distribution network.
*
Andrea Merloni will not accept that he*is to blame for all*the problems that Benelli is experiencing; he blames and then terminates Benelli employees who are powerless to resist him.* Merloni has no intention of paying Superbike what we are entitled to.* So,*I have decided that if he does not pay Superbike Inc. we will file for the ownership of the Benelli trade mark.* We are currently in the process of planning the revitalization of the Benelli product line after the ownership of Benelli s.p.a. has been secured.* Within a very short period of time, a new Tornado Superbike would be launched.* In the model year 2006, we have planned a revolutionary new Benelli *Superbike to launch in the world market.*
Does Benelli have a future?** The answer is “YES”, but only if it is owned and directed by enlightened management.* Our care and concern for the motorcycling industry and its customers has become evident to those observing our struggle with Andrea Merloni.* We are pleased to state that support for Superbike Inc is multi-national and sufficient capital has been forthcoming so we may implement our plan to revitalize Benelli, s.p.a.
Andrew Wright
