1990s and beyond Of Vespa

The ET model range stuck true to the wasp/aero design principles. It was lighter, more aerodynamic, had an automatic gearbox and could take a series of engines from a 50 cc in either two-stroke or four-stroke, up to a 150 cc four stroke.

When Vespa celebrated its 50th anniversary in 1996, more than 15 million of the scooters had been sold worldwide. Other companies vied with Piaggio for market share, but none came close to emulating the success—or romance—of Vespa.

Under new ownership

n 1959 Piaggio came under the control of the Agnelli family, the owners of car maker Fiat SpA. Vespa thrived until 1992 when Giovanni Alberto Agnelli became CEO, but Agnelli was already suffering from cancer and died in 1997. In 1999 Morgan Grenfell Private Equity acquired Piaggio, but a quickly hoped-for sale was dashed by a failed joint venture in China.

In 2003, the company found itself close to bankruptcy. Continual management changes and millions spent on many different plans and products had saddled Piaggio with crushing debt and left it vulnerable to competition from cheaper Asian rivals.

Then came Roberto Colaninno: A lot of people told me I was crazy. Piaggio wasn't dying. It just needed to be treated better. Piaggio's finances were in a bad shape, but its brand was still well-known and its products were featuring in more Hollywood films thanks to the Vespa ET4. In October 2003 Colaninno made an initial investment of 100 million euros through his holding company Immsi SpA in exchange for just under a third of Piaggio and the mandate to run it. Chief executive Rocco Sabelli redesigned the factory to Japanese principles so that every Piaggio scooter could be made on any assembly line.

Colaninno laid down some rules and made quick changes; all bonuses for blue-collar workers and management were based on the same criteria: profit margins and customer satisfaction. He didn't fire a single worker—a move which helped seduce the company's skeptical unions. Air conditioning was installed in the factory and he gave the company's engineers, who had been idled by the company's financial crisis, deadlines for projects. They rolled out two world firsts in 2004: a gas-electric hybrid scooter and a scooter with two wheels in front and one in back which grips the road better.

One of Piaggio's problems Mr. Colaninno couldn't fix from the inside was its scale. Even though Piaggio was the European market leader, it was dwarfed by rivals Honda and Yamaha. A year after rescuing Piaggio, Colaninno decided to salvage another Italian brand: scooter and motorcycle maker Aprilia. On July 11, 2006, shares of Piaggio & Co., became available to the general public through listing on the Milan [Italy] Stock Exchange or Borsa Italiana. Piaggio share prices, converted to US Dollars, may be found under the trading symbol: PIAGF.

Re-entry to North America

Piaggio first came back into the market in 2001 with the ET2 (two stroke 50 cc) and ET4 (four stroke 150 cc). In 2004, the PX (model year 2005) was re-introduced to North America to meet market demand for the classic Vespa design. Growth in the US market and worldwide environmental concerns meant a need for larger and cleaner engines, so Vespa developed the LEADER (Low Emissions ADvanced Engine Range) series of four-stroke engines. The larger Granturismo frame, with larger 12-inch (300 mm) wheels, was introduced to handle the additional power. The bike in 2006 spawned the iconic GTS-250ie version, with an upgraded suspension and the new QUASAR (QUArter-liter Smooth Augmented Range) 250 cc fuel-injected engine, capable of 80+ mph. As of the end of 2010 the GTS 250 has been replaced by the GTS 300 which has a 278cc fuel - injected engine. In 2005, the ET was withdrawn from Europe and North America and replaced by a new small-frame scooter, the LX range. These were available in the USA in 50 cc and 150 cc versions, while Europeans could choose a 50 cc or 125 cc.