Author Topic: Harley closing Buell, selling MV Agusta  (Read 1134 times)

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Offline grumburg

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Harley closing Buell, selling MV Agusta
« on: October 15, 2009, 04:46:41 PM »
From todays' LA Times      Harley-Davidson announced today that it is discontinuing its Buell product line and will cease production of Buell motorcycles permanently by Oct. 30. According to Harley-Davidson spokesman Paul James, the discontinuation of the 26-year-old Buell brand, which has been a wholly owned subsidiary of the Milwaukee-based manufacturer since 1998, "is part of Harley-Davidson's go-forward business strategy. The new long-term strategy aims to drive company growth through a focus of efforts and resources on the Harley-Davidson brand."

James said, "The fact is, a dollar invested into Harley-Davidson, there's more impact than the same dollar invested elsewhere when it comes to reaching new riders and enriching the experience of our core customers."

As part of the company's new myopia on its core brand, Harley-Davidson is also divesting itself of MV Agusta, the Italian sport bike company it purchased last year.

"We're exiting the sport bike market with those niche brands," James said.

MV Agusta is being sold because it was a standalone business unit. Buell "was highly integrated into the entire business and the distribution network of Harley-Davidson," James said, so "selling Buell as an outside entity was not the best choice for the company."

While Harley-Davidson is giving the ax to Buell the brand, it's still in talks with Erik Buell, the man, who may continue with Harley-Davidson in an advisory role as it develops new products.

No buyer has yet been named for MV Agusta. As for Buell, dealers will sell remaining Buell inventory and provide warranty, service and repair work. Harley-Davidson expects to provide replacement and service parts for as many years as required.

Harley's announcement to terminate the Buell brand comes on the same day it announced third-quarter earnings. Worldwide, retail sales of Harley-Davidson motorcycles declined 21.3% in the third quarter of 2009 v. 2008.

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Offline CaféElite

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Re: Harley closing Buell, selling MV Agusta
« Reply #1 on: October 15, 2009, 07:23:25 PM »
So not sweeting this... It appears HD is creating a tangible asset so they can sell (thank god) which shouldnt be an issue considering the value of Buell jumped a lot over last year. Im just hoping that someone good picks them up.. I wouldnt be suprised if Victory trys to snag it which I think would be a good home for Buell.

I think this will have a huge back lash on HD in the log run. One of their main goals is to try and start attracting the sub 34 year olds and this is the wrong way to go about it.

The thing that chokes me up about this is watching the vid of Erik Buell on buell.com. Here is a guy that built a motorcycle from the ground up because of passion.. not for girls.. not to be a ubber millionair but because he saw something missing in current bikes from major manufacturers.. passion and character is something a buell provides its owners in hand fulls.... or a twist of the throttle.

I ride a 06 XB9 Lightning and if all goes as planned will pick up a 06/07 XB12 lightning next year. Im excited for a Buell shop that does not reside in the same building as HD....
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Offline ColinMc

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Re: Harley closing Buell, selling MV Agusta
« Reply #2 on: October 15, 2009, 08:00:21 PM »
It's a shame, but almost a good thing. If Buell does end up as it's own entity, then I really won't have any reason to go into a Harley dealer anymore! My bikes are for riding...not fashion accessories.
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Offline KB02

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Re: Harley closing Buell, selling MV Agusta
« Reply #3 on: October 16, 2009, 04:05:34 AM »
According to Harley-Davidson spokesman Paul James, the discontinuation of the 26-year-old Buell brand, which has been a wholly owned subsidiary of the Milwaukee-based manufacturer since 1998, "is part of Harley-Davidson's go-forward business strategy..."

Harley hasn't looked forward in 50 years. Why start now?
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Offline lordmoonpie

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Re: Harley closing Buell, selling MV Agusta
« Reply #4 on: October 16, 2009, 04:48:59 AM »
Could be bad news for MV too if a buyer can't be found. I agree that this looks like exactly the opposite of what HD needs to do to attract younger riders. They might have just pressed the self destruct button with this move....but then if they hadn't done this, did they have the workign capital to keep going anyway?

Ah....who cares! :D
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