Survival of the fittest
In the harsh environment of the two-wheeled industry, keeping a company afloat wasn’t easy, yet Piaggio succeeded where others failed
Undoubtedly, both Innocenti and Piaggio dominated the scooter market throughout the 1950s and 60s. Any opponents were quickly dealt with, and even scooters that looked like they posed a threat failed to slacken the grip these two companies held. Unfortunately, it didn’t end the way it should have, with Innocenti falling on its own sword; something that was unimaginable only a few years earlier. The series of events that led to Lambretta’s demise have been well documented, but could its downfall have, unintentionally, saved the Vespa? Also, it raises the question of how they managed to come out the other side and be as strong as they are today.
By the end of the 1960s, to all intents, Lambretta and Vespa were the only main scooter brands left. Competition was building from Japan courtesy of the Honda C90 (chicken chaser), but the main change was increasing prosperity that allowed people to own a car. Innocenti was in the perfect position to take advantage of this because the company was already producing cars under licence for BMC; but somehow, even that didn’t go as planned. The result of this market uncertainty was a reluctance in both Milan and Pontedera to invest in new technology. The Grand Prix may have been a cosmetic design masterpiece but, underneath, it was an ageing relic of 1950s engineering. At the same time Vespa offered the Rally, but this was only a slight improvement on the SS180 that it had replaced.
The problem for Piaggio was how to play its hand, should the company stick or twist. Making minimal changes would allow it to survive but that meant accepting that trade would slowly decline. In contrast, significant development would take a considerable budget and if a newly developed model failed to sell in substantial numbers, then it could bankrupt the company. When Innocenti fell into the hands of British Leyland in 1971, it was music to the ears of Piaggio. Not only was the company under new ownership, but Lambretta production would end. The Lambretta needed significant investment to move it forward, and in an uncertain market the new management simply decided to pull the plug on it.
This meant that Piaggio was now the only remaining major scooter manufacturer, and (until the Japanese got up to speed) had no competition to speak of. Despite the news, the company tentatively trod water for a while, not making any rash decisions. When it did, once again it was with upgrades and improvements to the Rally. This enabled Piaggio to weather the storm and then realising that there was a strong future, the company made a big investment by launching the P Range in 1977. This was a totally new design, both on the engineering and cosmetic fronts, and one that took a huge financial investment. It was a gamble that paid off as the new-look machine sold well throughout Europe, which had always been its biggest market. All models were well accepted, and the company reaped the rewards, growing stronger in the process.
While the Japanese manufacturers tried with similar machines, they were never going to offer what an out-and-out scooter manufacturer could; certainly when it came to looks. As for the technology side, Piaggio constantly improved and invested, making the Vespa both powerful and yet reliable as the engines were almost bulletproof. The company knew its market and kept in touch with the customers, offering such machines as the T5 as time progressed.
When it became clear that the writing was on the wall for two-stroke engines, the company once again reinvented itself by developing a reliable four-stroke motor. Around the same time, a new threat came by way of the auto scooter. Many manufacturers began producing these in large quantities and made an excellent job of them. Once again, Piaggio found itself threatened. The answer was simple; the company needed to develop powerful automatic engines that would outperform the opposition. The GTS was the new saviour of the company and became a market leader. The company’s success isn’t simply due to introducing the GTS but also down to Piaggio’s willingness to continually invest in it.
It’s this level of commitment that has seen Piaggio grow bigger and bigger over time. When there were problems, and there have been many, they were tackled rather than ignored. In so doing the company has avoided the fate of so many manufacturers who thought they were unbreakable. Though Piaggio did take financial gambles, they were calculated and implemented at the right time. There is no doubt that if Innocenti and the Lambretta had survived, it could have been a totally different story, perhaps even Piaggio would have been the one to fall by the wayside. Like anything in this world, the environment is harsh and it’s survival of the fittest. In the world of scooters, Piaggio was the triumphant one; it evolved, and that’s why it’s still here today.
The series of events that led to Lambretta’s demise have been well documented, but could its downfall have, unintentionally, saved the Vespa?