Harley Davidson to sell off Buell + MV Agusta

[Draeger]

http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=PR&date=20091015&id=10494879

Details of Buell and MV Agusta Actions

The Company will discontinue production of Buell motorcycles. Remaining inventories of Buell motorcycles, accessories and apparel, while they last, will continue to be sold through authorized dealerships. Warranty coverage will continue as normal for Buell motorcycles and the Company will provide replacement parts and service through dealerships.


The decision will result in a reduction over time of about 80 hourly production positions and about 100 salaried positions at Buell. Employment will end for a majority of Buell employees Dec. 18, 2009.


Harley-Davidson, Inc. expects to incur approximately $125 million in one-time costs related to the discontinuation of the Buell product line. The Company expects to incur approximately $115 million of that amount this year.


Relative to MV Agusta, the Company will immediately commence efforts to sell the business, which is based in Varese, Italy.


In the third quarter, Harley-Davidson, Inc. recorded a one-time fixed-asset impairment charge of $14.2 million related to Buell and a goodwill impairment charge of $18.9 million related to MV Agusta.


"Buell and MV Agusta are great companies, with proud brands, high-quality exciting products and passionate enthusiasm for the motorcycle business. Buell has introduced many innovative advancements in motorcycle design and technology over the years and MV Agusta is known in Europe for its premium, high-performance sport motorcycles. However, our strategy to focus on the Harley-Davidson brand reflects the fact that we believe our investments in that brand are a better utilization of overall company resources," said Wandell

A video message from Erik Buell :-

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

 

[PardonTheWait]

Buell were always stuck between the devil and the deep blue sea, in a way.

Harley riders see Buells as sportsbikes - they don't want them.

Sportsbike riders see Buells as Harleys - they don't want them.

Interesting and cool bikes though, but they were a bit weird for me. I really wanted one at one point, but the fuel being in the frame means often an instant write-off if you drop it pretty gently, they vibrate so much they'll walk off on their own if you leave them on the sidestand... they're just oddities.

Shame to see them go though, I would have liked to have one one day, and still might. There's something about them I can't help but love, despite all their foibles.

Video's sad. That guy cares about his company, he looks close to tears.

 

[Toker]

that's a shame, I love both Harley's and sports bikes so thought Buell's were great