Buell and MV Agusta.... R.I.P.

The Prophet · 10-15-2009

Harley Davidson is dumping Buell, and selling off MV Agusta

Harley-Davidson terminates Buell brand | Up to Speed | Los Angeles Times

I stated it before, and will say it again, someone better wake up at HD, or some Chinese investors will soon be owning the iconic brand.

Sales are down, profits are down, selling off assets to worry customers, but raising prices to further repel customers. We call this "Sales Prevention".

A tried and true recipe for disaster. Read previous threads on this saga, and see how this decline has developed. Let's wish them the best of luck, but it seems they are determined to go down in flames.

Sad.

Speedtrip · 10-15-2009

I hate to see this, surely the good 'ol US of A can produce a production sportbike.

Here is what Erik Buell had to say today.

http://www.buell.com/en_us/

Speedtrip · 10-15-2009

Another link from Motorcyclist.

Buell Motorcycle Company Out of Business - Motorcyclist Magazine

Speedtrip · 10-15-2009

A link to HD's long term "Go forward" business plan.

Harley-Davidson Announces 3rd Quarter Results, Unveils Long-Term Business Strategy - Yahoo! Finance

SidecarFlip · 10-15-2009

I commented some time ago that the acquisition of MV Agusta/Cagiva by HD was a poorly timed and administrated move in as much as they were extremely in debt to their suppliers and HD had to assume that debt load.

One would imagine that the ownership of HD would have looked back to the 60's and their last failed venture into the Italian motorcycle industry but obviously they had amnesia.

If HD was truly loyal to their stockholders, they would have never even ventured into that business agreement and now, it looks to me like in a 'last ditch' effort to keep the company afloat, they cast off Eric Buell.

HD has to be the most copied style of motorcycle ever made and interestingly, for the most part, all the copies are technically more refined, handle better and are more reliable than the original.

Unless HD makes some drastic management and attitude changes, they will cease to exist in the marketplace. The competition is fierce. It's past time to rest on your laurels and reputation. All the other manufacturers have eclipsed HD in every aspect, the only bright, cutting edge aspect of HD was Eric Buell.

I look at motorcycles and compare them to the scenario that unfolded in the 70's with snowmobiles. Snowmobile manufacturers numbered almost 200 (HD included), now there are 5 players.

Maybe the owners of HD should invite John Bloor to a sit down and corporate strategy meeting of the minds. After all, Triumph is the oldest surviving motorcycle manufacturer. Triumph was mass producing motorcycles a year before HD was incorporated.

motowebmaster · 10-15-2009

This week has been both good and challenging already, but to come home to this makes me want to reach for a cold one

MV Augusta will likely get a buyer, but for most companies it doesn't offer a unique value to the masses. I fear that the Italian brand will be exported to another country.

I can't believe they would halt Buell. Even though I never bought one there was faith that Erik would fix the visual turn-offs of the 1125CR - or possibly a street version of the racebike we've recently seen. H-D can discontinue the other models, but they should keep the 1125CR going.

Oh well, this kind of thing was one of the reasons I created this site. We all still need to ride.

SidecarFlip · 10-16-2009

On the flip side, Buell's might very well become collectors items much like other defunct or not-in-production models have become. It won't happen right away but if you are willing to store one away for 10-15 years, you probably will be able to quadruple your investment.

I got a 'twinge' sort of from his (Buell)'s comment about innovations like 'oil in the frame'. Brit bikes (Rickmann Metisse) had oil in the frame in the 60's as did the late 60's production Triumph's. Everything has already been invented, it's just copying a design and incorporating that design into a more modern execution.

I found it interesting that some HD outlets don't even carry Buell's and the ones that do, relegate the motorcycles to the 'back corner' of the showroom. That, in itself not only shows 'tunnel vision' by the dealers but an attitude that spells doom.

Like I said earlier, the playing field is saturated so the lesser marques will fade away. Buell, as well as MV were never mainstream. I strongly suspect that they won't be the last to succumb to the receeding world economy.

Hooty · 10-16-2009

Quote:

Originally Posted by SidecarFlip

On the flip side, Buell's might very well become collectors items much like other defunct or not-in-production models have become. It won't happen right away but if you are willing to store one away for 10-15 years, you probably will be able to quadruple your investment.

I got a 'twinge' sort of from his (Buell)'s comment about innovations like 'oil in the frame'. Brit bikes (Rickmann Metisse) had oil in the frame in the 60's as did the late 60's production Triumph's. Everything has already been invented, it's just copying a design and incorporating that design into a more modern execution.

I found it interesting that some HD outlets don't even carry Buell's and the ones that do, relegate the motorcycles to the 'back corner' of the showroom. That, in itself not only shows 'tunnel vision' by the dealers but an attitude that spells doom.

Like I said earlier, the playing field is saturated so the lesser marques will fade away. Buell, as well as MV were never mainstream. I strongly suspect that they won't be the last to succumb to the receeding world economy.

I purchased a new XB12XT this year and sold my Goldwing because I wanted a bike with a little more handling capability and lot more "Fun Factor". The Uly hits the mark on both counts.

I will be keeping it for many years to come. There are a few people who can't get their heads wrapped around what it is and they marvel at the front rotor, but that is half the fun of riding it!

You state that some dealerships relegate Buell to the back of the showroom, I bought mine at Privateers H-D in Halifax, Nova Scotia and they have their Buells on an elevated platform in the front windows. The salesman I bought mine from drives a Uly. Two of the parts dudes drive Buells (one is new and the other is vintage) and two of the mechanics drive new Buells as well. These are not demo units, they drive them because they love them. It is a very popular brand here in Atlantic Canada and I am sad to see it go the way of the dodo.

My condolences to Erik Buell on the death of his baby. However, I see some interesting reunions and nostalgia rides coming up in the future!

The Prophet · 10-16-2009

Do we all really believe that no one is going to throw their hat in the ring to partner with Buell?

I think so, who, no idea, but let's have hope.

Bob

Speedtrip · 10-17-2009

'nother link and quote from Hell for Leather:

What's going to happen to Erik Buell? - Hell For Leather

Harley isn't killing Buell because it's unprofitable, it's killing Buell because it wants to invest every last penny back into Harley to save that brand from possible failure. It's not actually sales that are Harley's biggest problem -- although they can't help -- it's the troubled finance wing. Harley's practice of giving sub-prime motorcycle loans to unsuitable candidates has bit the company in its proverbial ass, forcing Harley to borrow $1 billion in operating capitol at 15%. That's only enough money to see it through to the end of the year. So far this year, revenue at Harley is only down 17 percent, yet net income has fallen 71.4 percent.

The decision was made to shutter rather than sell Buell because it's product range and distribution network are so heavily dependent on its parent company, that there's relatively little value in the company that could be transferred to a new owner.

Buell and MV Agusta.... R.I.P.

Buell and MV Agusta.... R.I.P.

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