ON THURSDAY, SEPT 1, AT APPROXIMATELY 2PM, I WAS TRAVELING EAST ON STATE ROAD 185 WHEN I NOTICED THE MOTORCYCLE BEGAN TO RUN POORLY. THE ENGINE WOULD SUDDENLY SHUT OFF AND RESTART. THIS HAPPENED TWICE. THE INSTRUMENT CLUSTER CEASED TO FUNCTION. I PULLED THE BIKE TO THE SIDE OF THE ROAD AND NOTICED SMOKE COMING FROM THE RIGHT SIDE OF THE MOTORCYCLE IN THE AREA OF THE SPU AND FUEL TANK. BEING FAMILIAR WITH THIS MOTORCYCLE AND THE PROBLEMS WITH THE SPU REPORTED BY OTHER OWNERS, I FEARED IT WAS FAILING. THE SMOKE GOT WORSE, I.E. IT INTENSIFIED IN VOLUME AND BECAME ACRID WITH THE SMELL OF BURNING PLASTIC. I QUICKLY REMOVED THE PASSENGER SEAT TO ACCESS THE FACTORY PROVIDED TOOL KIT. I REMOVED THE SIDE PANELS FROM THE TANK, I REMOVED THE FUEL TANK, AND FOUND THE SPU SMOLDERING. IT HAD ALREADY STARTED TO MELT THE TANK. I DISCONNECTED THE SPU FROM THE MAIN WIRE HARNESS AND REMOVED THE SPU FROM THE BIKE. I TOOK PICTURES OF THE DAMAGE AND NOTIFIED MY INSURANCE COMPANY. THEY PHOTOGRAPHED THE DAMAGE AS WELL AND PAID ME FOR A NEW TANK. THEY WOULD NOT PAY FOR THE SPU AS THAT WAS THE CAUSE OF THE FIRE. MY INSURANCE COVERS THE DAMAGE FROM THE FIRE, NOT THE CAUSE OF IT. MV AGUSTA IS AWARE THAT THESE SPUS ARE FAULTY. THEY HAVE REDESIGNED THE UNIT AND IT NOW CARRIES A DIFFERENT PART NUMBER. TO MY KNOWLEDGE, THEY HAVE NOT ISSUED A RECALL TO REPLACE THE DEFECTIVE UNITS WITH NEW ONES, RATHER THEY WAIT FOR A PROBLEM TO BE REPORTED TO A DEALER. SOMETIMES THE UNITS ARE REPLAC