Harley-Davidson announced today that they will discontinue their Buell Motorcycles division and divest the MV Agusta brand they purchased in 2008, a double blow that has shocked the motorcycle industry.
The announcement comes in conjunction with poor third quarter results for the Motor Company, which include a 21.3 percent year-over-year decline in worldwide sales and an 84.1 percent decline in net income. Harley CEO Keith Wandell says, "...we are moving with the speed and decisiveness required to bring our business strategy to life," adding that, "... we must focus both our effort and our investment on the Harley-Davidson brand, as we believe this provides an optimal path to sustained, meaningful, long-term growth."
Today's news is sad on several levels; despite its long time adherence to air-cooled technology, Buell possessed the key plot points of a uniquely American success story: an iconoclastic leader in the form of company founder Erik Buell, forward thinking innovations like mass centralization and fuel-in-frame design, and a fiercely ambitious desire to take on major players like Honda, Kawasaki, Suzuki and Yamaha.
At the launch of the 1125R several years ago, Erik told me that "...one of the things that's cool about Buell is that it's family-like. People want to get stuff done. There's never any fighting that comes back to me, it just doesn't happen." His excitement about his company's first liquid cooled bike was palpable, and Buell's recent AMA Pro Daytona SportBike championship victory certainly earned Erik Buell some encouraging-- if controversy-laced-- respect. Harley expects the Buell shutdown to cost them a one-time loss of $125 million, and they assure Buell owners that replacement parts, warranty fulfillment, and service will be available at Harley-Davidson dealerships. To see a video message from Erik Buell, check out this clip at Buell's website.
MV Agusta was rescued from the brink of insolvency when it was purchased for $109 million by Harley-Davidson, and though the Italian sportbike manufacturer made odd bedfellows with Milwaukee manufacturer, they both shared storied histories that echoed the successful merger of Harley and Aermacchi some 40 years ago. I tested several MV Agustas that would certainly make a tough sell in today's austere financial climate: the $28,000 F4 RR 312 1078, and the outrageous $120,000 F4CC. MV's recently unveiled 2010 Brutale models were promising, but apparently too little too late for the brand-- at least under the H-D umbrella.
Blame the economy, bad timing, or simply bad luck, but Buell and MV Agusta are unfortunate victims of the financial hardship being suffered by Harley-Davidson. With two less sportbike brands to concern itself with, it seems Harley's efforts will eventually rest entirely on their own ailing, 106 year-old brand.
Related:
- 2010 Harley-Davidson Lineup
- Will This Year's Harley-Davidson York Open House be its Last?
- Controversial Buell 1125R Wins AMA Daytona Sportbike Championship
- Buell 1125R Review
- Buell 1125R Photo Gallery
- Buell XB12XT Review
- Buell XB12XT Photo Gallery
- Common Questions: What Does it Feel Like to Ride Buell's 1125R AMA Pro Daytona SportBike?
- Photo Gallery: MV Agusta's First New Brutales in a Decade
- MV Agusta F4 RR 312 1078 Review
- MV Agusta F4 RR 312 1078 Photo Gallery
- MV Agusta F4CC Review
- MV Agusta F4CC Photo Gallery
- It's Official: Harley-Davidson to Acquire MV Agusta!
- Harley Agusta?
Photos © Buell, Basem Wasef; click to enlarge
I think this is sad but a good move by HD, the Buells just never sold well. HD should just stick with what it knows and that’s cruisers.
I’m not surprised Buell is toast. I am however surprised they bailed on MV after less than a year. If they wanted a shot at opening a market in Europe, that might have been it. I wonder what that will end up costing them?
I can’t wait to see what rogerwhatisname at the daytona moronsgroup will do now.
Maybe we’ll see a VROD or a decker running with the 600’s -and as a safety bike. At least it will carry all the lights…and a plow..and a hook..and pull a trailer.
Daytona Morons Group. I like it.
Too bad, I think the industry is a bit poorer for it as a result.
While I never cared for the Buell motorcycles design-wise but I can appreciate the innovative engineering that went into them.
It’s sad to see the demise of Buell, like them or not. Buell seemed to be the only point of innovation in the Harley paddock.
I’m left to wonder what might have been, if the MOCO had invested the 109 million in Buell instead of purchasing MV?
A sad day for American motorcycles.
Like them or not, Buell seemed to be the only point of innovation in the Harley stable.
I’m left wondering what might have been, had the MOCO invested the 109 million in Buell, instead of acquiring MV Agusta.
Truly a sad day for American motorcycles.
Thats a shame Buell is an awesome bike. HD screwed up with MV if you are an American Motorcycle company leave it that way.
Isn’t there gonna be any other manufacturer who will come for the rescue of Buell???
MV Agusta screw up MV Agusta, they would have died last yr if HD didn’t buy them.
Buell might have been successful if H-D didn’t treat it like a bastard stepchild.
You mean an American motorcycle company that has Rotax (an Austrian company) builds its engines.
There is an unsubstantiated Internet rumor that Yamaha may be interested in Buell. Could be a hoax though.
The reason Buell didn’t do well is because people didn’t want it. I have seen so many posts saying I thought about getting a Buell but I bought a different (better?) bike. I don’t blame them, it wasn’t a good bike. Now these same people are crying that Buell will be no more. Can’t put a Sportster motor in a sportbike frame and think it will compete with the better metric sportbikes. The motor wasn’t designed for the application.
I was shocked the HD stuck with Buell as long as they did. HD should have left the sportbikes to the Japanese, they make the best Sportbikes. MV Agusta wasn’t selling either before HD took over, again because nobody wanted that bike. They couldn’t compete with the Japanese either. People will blame HD for MV failing but MV died before HD showed up, otherwise they wouldn’t have needed HD to buy them.
Joe,
I don’t think it’s about Buells being good or bad bikes– I understand their appeal, even if it’s not my taste– but I do think it took too long to evolve the brand. Buell incorporated some clever engineering and certainly didn’t lack for personality, but they were hampered by air-cooled engines. Had they moved to liquid cooled powerplants (much) earlier, their desirability would have had a chance to grow. Instead, the 1125R was a day late and a dollar short, and I think they missed their opportunity to claim a much bigger stake in the sportbike market.
Basem
Basem, that is what I said too, “Can’t put a Sportster motor in a sportbike frame “. I also think if the 1125 R came out earlier the Buell line may have faired a little better but I don’t think they would ever keep up with the Metric bikes in sales. I also agree when you said they were not your taste, mine either and that was a problem, seems they were not to many people’s taste. Even the 1125 R were no match for the Japanese bike in price or performance. Erik Buell is a great innovator but so was Stuabaker and Packard cars and we all know what happen to them.
Buells…? i can count how many i see on the street in the last 3 years on my fingers. Just another nail in HDs coffin and i’m lovin it…
I’m shocked and sad about Buell, and about MV Agusta. I’m even more sad about H-D in general right now. After all the ups and downs that this company has seen over the past 105 years, couldn’t they see this downturn coming? Why did it take them by surprise that the great times didn’t last forever, when the whole history of the Motor Company is boom followed by bust. It’s the short-sighted, quarterly earnings mentality that is killing the auto industry in the US, and now it’s taking down H-D. Sad.
Harley never actively marketed Buell, which contributed largely to their low sales. Then I see this quote on another board…take it for what it’s worth…
In a statement released by Yamaha Motor Corporation, Hirofumi Osawa, President of Yamaha Corporation of America, stated that the company is looking into acquiring recently defunct Buell Motorcycles. “We are interested in the spirit of innovation that Buell has used as a foundation in their business. We feel their values align well with Yamaha’s culture”, stated Mr. Osawa.
Hey Basem…how about using some of your industry contacts to see if there is any truth to this?
HD will never commit to anything except high profit big cruisers that are not for everybody. Buell was starting to have good brand recognition and give American motorcycle manufacturing some respect with creativeness and competitive in new areas. It’s a shame to see them give that up, especially for MV. American manufacturing continues to sink.
Rico,
I doubt I’ll be able to get any “official” answer since internal sources tend not to conjecture on future acquisitions, but I’ll see what I can find out.
Basem
YMC buying Buell? I can’t see it…that’s right up there with MB buying in to Chrysler. 3 years later they were desperate to get rid of it.
Yamaha does not need that albatross hanging around their neck.
But..considering who I work for – Go for it guys!!
The seating position on a 09XR1200 is very good from my perspective; comfortable and practical. How does it compare to the seating on a 09 Buell XB12Ss.
Buells are going for dirt cheap in Raleigh, NC.
Paul
FYI, I received an official answer from Yamaha regarding the rumored quote: “Not true… totally false.”
There you have it!
Basem
Sell out!!! Why not save yourself?? Buell just won the race did they not? An All American Motorcycle my a**! Seems like they are depending on European and Aussie technology and development rather than their own! Look at the V-Rod and the 1125R! Sad day as usual for HD. Too bad you can’t even buy American apparel off of them! Maybe it is a good time for the Indian after all???
Greetings. It is really sad that H-D is discontinuing its alliance with the Buell division. I hope Buell will continue on in another guise…
H-D, if you are listening, what about your R&D, developing some new “green” technology? How about an Electra Glide that really is “electric”?
Ride Safe. GOD Bless!
Hmmmmm…..Interesting…..Now if just one of the big four would purchase (rather bail out) HD and begin making dependable “American” motorcycles at a decent price…
HD could you maybe add the Ulysses to the HD line? It is an excellent all around bike. I hate to see it fade away. I took advantage of HD/Buell test rides this summer. The 2 best all around bikes were the XR1200 and the Buell Ulysses T with the luggage. They both use very nicely tuned Sportster 1200 engines.
(IMHO) Between Harley and Buell are two distinctly different brands of thinking that can both get a company into trouble.
Harley keeps pushing on the ostentatious, wretched excess nature of their lineup. A huge amount of owner satisfaction comes from the image, the glitz, and the the acquired “bad boy” or “American patriot traditionalist” society. Be you dentist, attorney, or a regular working bloke with stars in his eyes, Harley offered an instant image that you could buy into. Putting up with the indignities of the mechanical peculiarities and frailties of the bikes was considered an honorable mark of loyalty.
In these more financially austere times, these bikes look like dinosaurs that have reached the end of their evolution, and are sitting on the edge of extinction.
I always admired Eric Buell for his dedication to technological innovation, but at times he looked like he was addicted to “trickness” for its own sake, at the expense of reliability and useability, much as Harley does with its “Heritage” concept. I almost bought a Buell several times, but was turned away by the design flaws like the engine heat and vibration (and the really violent tendency to “stand-up” under corner braking).
When Buell became obsessed with racing success and had the 1125 developed, I sensed disaster lurking in the wings. Too soon, too much, not refined enough to justify the price. Again, that Harley-esque notion of suffering both monetarily and physically to show your devotion.
Again, IMHO, he should have developed a smooth, functional “gentleman’s express” sportbike not unlike the V-Roehr, which utilizes the existing V-Rod engine, a sweet piece of reliable engineering, although too heavy for racing and not “trick” enough. I suspect there is a surplus of them because the V-Rods don’t sell that well.
Oh well, into the dustbin of history for now…
Maybe Harley-Davidson’s sales would go up if they lowered the prices on their Harley-Davidson line. Instead of trying to hold the line on price they keep raising their motorcycle prices. Soon they will price themselves out of business. The same goes for Victory. Might just wind up with no “American Made” motorsycle manufacturer. Harley- Davidson keeps taking losses every quarter, you would think they would get the message. It’s time They came in line with the “metric” motorcycle prices. That’s their key to staying in business. Every year you see more metrics and less Harley’s on the road, Wake up Harley-Davidson.
Harley spends to much time and promoting lifestyle
rather than trying to lower costs.
I just went on the V-Roehr website, while I was glad to see the brand still in business, I was sad to see they are going for the “boutique” market at $34,000 and up.
Too bad, I think there’s a good, consumer-priced bike lurking in there…
I’m amazed that HD has gone on so long with pricing way higher than metric bikes. In this economy, it’s only the elite who have been wooed by the “Lifestyle” that can afford them. They probably did right by unloading deadwood, but they need to get real with the prices of their basic models. It is a lot of money to pay for a patched up 1903 design I reckon.
The loser is the American motorcyclist who will be persuaded that the cruiser form of motorcycle is the norm and the most desirable. Having just ridden 2000 kilometres to attend the Australian MotoGP (go Casey!) I am blown away by the diversity which the Aussie biker embraces. Sure, there were cruisers (mostly ridden by older guys) but they were well in the minority. Every other style of bike was in evidence – long live diversity!
Buell didn’t sell enough leather jackets to non-riders, which is HD’s bread and butter. And the HD jackets aren’t selling either when people can’t pay the mortgage.
CUT IT OUT. WHAT DO YOU MEAN OLDER GUYS ON CRUISERS. MOST OF THE ULYSSIANS I KNOW RIDE SPORT TOURERS AND SPORTS BIKES. AND SOME EVEN RIDE HARLEYS……..
Buell provided a small, light and low sports bike for petite girls like me that have a hard time backing up on tiptoes. For those reasons only, I was willing to overlook the excessive vibration, noisy fan and toasted inner thighs!
Hey Brenton, i don’t know what you’re on about but there is plenty of diversity here in the states. A whole lot more sport tourers, dual purpose and other kinds motorcycles than just cruiser. And just so you know i ride a cruiser and am not an “older guy”.
Correct me if i am wrong but aren’t HD engines made in Germany or somewhere overseas? if so does that still make them “American Made”?
Well, As H.D. does as G.M. etc. does. This is bad business and now they are paying for this blunder. Why they bought MV is a don`t know. Buell was a good sport bike straped with a H.D. engine. I hope someone picks up Buell andes a better job than H.D. did.
H.D, is at least ten to twenty years behind other companies, Honda, etc. H.D. is overpriced and very overrated. Why the company will not wise up is a big don`t know. The V-rod is the future of H.D–get rid of the nut and bolt shakers engines put some good v-rod engines on these bikes.
The H.D. dealer in the town near me went out of business–could not sale them.
THIS LOOKS LIKE ANOTHER NAIL IN THE COFFIN OF H.D.
WELL HERE WE GO H.D SHOT THEMSELF’S IN THE FOOT AGAIN!THEY CANT BUILD A DEPENDABLE BIKE SO WHY TRY TWO OTHER BRAND’S? I OWN A 1979 YAMAHA THAT IS SUPPOSED TO BE DEPENDABLE HA I’M AFFRAID TO GO AROUND THE BLOCK WITHOUT IT BREAKING DOWN. WHY SHOULD I BUY AN H.D. THAT IS KNOWN TO VIBRATE THE WINDOWS OUT OF YOUR HOME.I NEED EAR PLUGS WHEN MY NEIGHBUR STARTS HIS BOAT ANCHORE,I SHOULD HAVE BAUGHT AN H.D. IN 79 THEN BREAKDOWN’S WOULD BE EXPECTED,YOUR’S TRULY TOTALY DISGUSTED
This is a sad day for H-D they let a bunch of bean counters tell them how to run a company. I wish Erik Buell the best he has put everything he had into making worldclass bikes and i’m proud to own two of them. They were not the fastest I have owned but they were the easiest to ride, they are what they are. H-D made a very big mistake I wish I could buy the company to show them how bad of a mistake they made.