Worrying signs point to potential bankruptcy at major electric motorcycle maker

Energica, Europe’s leading electric motorcycle maker and often considered ‘the Ducati of e-motorcycles’, appears to be in financial distress. New reports from local media indicate that the Italian motorcycle maker may be headed for collapse.

According to the Italian newspaper Chronica, Energica’s employees are preparing to strike in response to financial uncertainty regarding their employment futures.

“For months the company has been in a serious economic and financial crisis, with the 50 employees on solidarity contracts,” reported the publication.

Those contracts are currently being paid by Italy’s Istituto Nazionale della Previdenza Sociale (INPS), the country’s national social security institute. While the specific details regarding Energica’s case aren’t entirely clear, the INPS can step in to continue paying wages to workers when employers are unable to, providing government support to workers through social security programs without involving their employer in the payment process.

With the contracts set to expire soon, Energica employees are reportedly threatening to strike.

Italian media goes on to report that Energica’s board has been meeting with the local regional government and Energica’s workers, but that recent meetings have only further exacerbated issues.

According to Chronica, Energica’s board will be meeting on Friday “in order to decide whether the company was in a position to provide production continuity or whether it was necessary to open a judicial liquidation procedure.”

Energica has seen its fair share of economic hardships over the last few years. After landing a major investment from the US firm Ideanomics in 2022, follow-on funding has been less forthcoming.

The company has managed to land major tenders for government fleets yet has struggled to retain sufficient cash.

“We have highlighted the value the company has brought to the Motor Valley over these 13 years. We created the so-called ‘Electric Valley’ thanks to the investments of the founding partners and minority shareholders who have continued to support the business through the darkest times. Other companies have invested in EVs and chosen to locate their headquarters near our facilities because of us,” explained CEO Livia Cevolini, according to The Pack. “Now, we need help. We have developed technology, know-how, and jobs in our region. Over the past 18 months, we have engaged with various investors and industrial groups, but it seems nearly impossible to find investors willing to commit, particularly in the EV industry during this period and especially in Italy.”

Electrek contacted Energica but did not receive a response at the time of publication. The story will be updated if Energica representatives respond to a request for comment.