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HD to sell MV-AGUSTA and close BUELL !!!

ugocon

ugocon

Active Member
The New York Times today, Oct 15th 2009
NEW YORK (AP) -- Harley-Davidson Inc. said Thursday that its third-quarter profit slid 84 percent on fewer motorcycle shipments and recession-related difficulties in getting loans for its customers.

The motorcycle manufacturer also plans to stop making Buell motorcycle products and will sell its MV Agusta division as it looks to concentrate efforts more on its namesake brand.

''We believe we can create a bright long-term future for our stakeholders through a single-minded focus on the Harley-Davidson brand,'' CEO Keith Wandell said in a statement.

The Milwaukee-based company will sell off its remaining Buell inventory, including motorcycles, accessories and apparel, through its authorized dealerships while supplies last. Dealerships will continue to provide replacement parts and service for Buell bikes, with warranty coverage continued as well. The line's closing will likely result in a $125 million one-time cost for Harley-Davidson, with approximately $115 million expected this year.

The move means about 100 salaried workers and about 80 hourly positions will be eliminated, with most of the cuts occurring by Dec. 18.

Shares fell 80 cents, or 3.1 percent, to $25.46 in electronic premarket trading.

Harley-Davidson -- which has already implemented production and job cuts this year -- earned $26.5 million, or 11 cents per share, for the period ended Sept. 27, down from $166.5 million, or 71 cents per share, a year ago.

Quarterly results included a $14.2 million, one-time fixed-asset impairment charge for Buell and an $18.9 million goodwill impairment charge related to its plan to sell off Varese, Italy-baesd MV Agusta, which is known for its sport motorcycles.

Accounting for Buell and MV Agusta, Harley-Davidson now expects restructuring charges of $215 million to $245 million between 2009 and 2010 -- a $55 million increase from its prior forecast. Annual savings from the restructuring efforts are targeted between $140 million and $150 million.

Third-quarter sales dropped 21 percent to $1.12 billion from $1.42 billion, but its retail motorcycle sales decline of 21.3 percent was not as steep as the previous quarter's 30.1 percent dropoff.

Analysts surveyed by Thomson Reuters, whose estimates typically exclude one-time items, forecast profit of 21 cents per share on revenue of $1.1 billion.

Harley-Davidson said the economic downturn has crimped the retail and wholesale loan performance of lending arm, Harley-Davidson Financial Services. The unit has struggled as tighter credit markets have made it harder for customers to get loans and it has had a difficult time bundling and selling ''securitized'' loans, which it has relied on for funding.

The financial services division posted an operating loss of $31.5 million for the quarter on increased interest expense and a higher provision for credit losses in its retail and wholesale portfolios.

Harley-Davidson also narrowed its full-year motorcycle shipment expectations. The company now anticipates shipping 222,000 to 227,000 Harley-Davidson motorcycles to dealers, including 35,000 to 40,000 during the fourth quarter. Previously, the bike maker estimated it would ship between 212,000 and 228,000 motorcycles to its dealers and distributors worldwide for the year.
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That's sad news! :(

Now that MV had released the new Brutale and was about to launch the new F4 and the brand new F3....
In Italy in these last months MV has strongly increased the presence on media and surely sales have received a push.
Probably all this will provide a better sales price... :s
Anyway, this glorious brand will once again face an uncertain future!

Very sad for Buell, one one the most distinctive bikes on the market.
At first, I didn't care about them, but lately I admit they're very nice and enjoyable.
They also had a Buell Open Day at dealers not later than three weeks ago.
The semi-transparent finish is very beautiful looking.

Every time a bike brand closes, it's a piece of heart going.

BTW also Moto Morini is facing bankruptcy... :(

Bah!

Ciao
Ugo
 
Market pressure coming to bear. HD is having to make some tough choices. Hopefully, this is all the MoCo has to do to weather this recession (oh, wait, the recessions over!!).
 
Unfortunately tough times call for tough decisions. I hope that this move will keep HD through these tough economic times without further cuts. I feel bad for the workers and their families and pray that they will be able to find other jobs. We all have to weather this economic storm and this recession won't be over until all of the people who have lost their jobs are back to work even though the politicians would like us to believe otherwise.
 
I never owned a Buell but the ones that I have demo'd I found interesting. My thinking is that if a Harley Dealerships sold both H-D and Buell it would allow that dealership to be more viable as the customers would have more than one brand cycle to choose from.

I have noticed in the area I live the BMW cycle shops could never seem to stay open as they were "stand alone" businesses. A couple of years ago the BMW shop came back to Indy but it is "entwined" with a dealer that also sells Triumph, and Victory....
 
What will AMA DMG racing do now? They vetted the 1125RR to race and it will no longer be produced..

As for MV, Harley managed to run off one of their best executives after they purchased it. Harley owning the company never really did anthing to help sales. MV will stand on their own. They have in the past and will in the future. The one thing I had hoped Harley would have done, was gone MotoGP racing with MV. But that never happened. I hope MV ends up with a company that understands the brand's heritage and racing history. Becasue I don't think Harley ever did..

One thing is for sure.. I'm have to change one my signature lines with Harley sells MV.
 
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