A slowdown in scooter sales in Europe has dramatically affected Piaggio, one of the relative giants (owner of the Vespa brand, for instance). Piaggo was moving aggressively into the motorcycle arena with its own Gilera brand, and planned mergers/joint ventures with MV Agusta and Husqvarna. Indeed, at one point, the Husqvarna relationship had been reportedly cemented, only to now appear unraveled.
Production of motorcycles for all three marques should be affected, at least, in the short term. Piaggio representatives are reportedly optimistic about a turn around in European scooter sales (due, at least in part, to an anticipated tax on larger vehicles in parts of Europe), and the ability to develop larger motorcycles in the near future.
