HD Shutting down Buell


Harley is doing what most companies in its position would do: they're trying to cut costs. Don't buy all of the babble about focusing on their core competencies or hemhorrhaging their synergies or whatever it is they do in their PowerPoint presentations. They're looking to prop up a sagging bottom line by not spending so much.

There's a problem with that strategy.

In a computer industry magazine, in 1999 of all times, columnist Bob Lewis hit the nail on the head when he described business as being like a hot air balloon. You can keep it up by making hot air or throwing out ballast. Cutting costs is like throwing out ballast, and if you keep at it long enough, you're eventually going to run out of it.

Harley needs a way to make hot air, and trying to milk more sales out of an aging customer base who's still shell-shocked from having just seen their retirements shrink considerably isn't going to help.

--Mark
 

After reading that, other comments here, my take on it, decided to buy some puts that expire in about 1.25 years. Yes quite a ways out... about 5 quarters of earnings reports...

The article did miss one point though re India and China. While they may be shorter people, it's Harleys (cruisers) that shorter people prefer to ride re the lower seat height.

But will the Harley mystique live in these countries? or will technology (newer cruisers) win out?

Well one good thing about options is your down side is limited :)
 
I had to read all the posts before I put my opinion into this. As I recall, a number of years back when Buell was on its own, H-D bought them out of a financial mess that was going to take the company down anyway. H-D wanted a way to build sportbikes that would appeal to the Harley crowd. It never happened. I doubt Mr. Buell would have been able to get the funds together to create a carve out or buyout of Buell, so the end has come.
I personally thought the technical advances introduced at Buell were pretty neat, but I never had the desire to buy one. I hoped the technological improvements would spur Honda to make new changes to their line of bikes.
 
The article did miss one point though re India and China. While they may be shorter people, it's Harleys (cruisers) that shorter people prefer to ride re the lower seat height. :)

Hank,

Ever been to India or China? I have and 125 cc's are considered a real Godzilla (I know he and Mothra are Japanese :D).

Cruisers for the masses in emerging markets ...... not likely in our lifetime. :rolleyes:
 
I was thinking about the Buell ad with the crushed Blast. Seems like H-D has done the same thing to Erik & Company. I doubt Gen X and Y and the Millennials will trade their love of technology for the retro-tech of their grandparents' eras. Not much to be happy about in H-D land.
 
Re: Buell is dead...

that does suck,,, I have never ridden one, but have looked at many... I just liked the brand and some of the designs...

if only gas were $4 a gallon again huh? (its well on its way) because I thought bike sales were booming then.... if it goes back to that price... it will be again... but the casulties along the way havent been good
JMO

"If only gas were $4.00 again huh?" You're kidding, right? Look I feel bad that this is happening-(personally, I could never ever have afforded an MV Augusta and they never should have purchased the company), but the last thing I want is 4 bucks a gallon...!!!
 
I was thinking about the Buell ad with the crushed Blast. Seems like H-D has done the same thing to Erik & Company. I doubt Gen X and Y and the Millennials will trade their love of technology for the retro-tech of their grandparents' eras. Not much to be happy about in H-D land.

In 70 years they'll have a smokey cruiser day, like tall ships day...

Dad, whats that on the ground?
It's oil.
Why does it leak oil and smoke like that?

Well son... You see... then... ahhhh Its nostalgic!


Clipper ships had their place too.

clipper.JPG
 
I personally thought the technical advances introduced at Buell were pretty neat, but I never had the desire to buy one. I hoped the technological improvements would spur Honda to make new changes to their line of bikes.

I think I saw something on the new VFR site about mass-centralization. That's something that Erik has been preaching for a long time (underslung exhaust, fuel-in-frame, ZTL brakes, etc). I think a lot of manufacturers are realizing the benefits of his ideas and implementations. Just take a look at the location of the muffler on the Kawi ER-6n and Versys.
 
I was reading in another forum where a guy just bought a new 09 1125 CR for $5400 otd.
That's cheap!
 
Just picked this up from my Chicago friends (one of the guys over there is a moto-journalist):

Yamaha is expressing interest in buying Buell.

October 16, 2009
AP
Iwata, Japan

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.

According to Yamaha, discussions of a purchase are in the exploratory
stage. Harley-Davidson Corp, owner of Buell since 2003, could not be
reached for comment.
 
I agree, support network and focused on the right demographics.

Well....if Yamaha sticks Buell with Star Motorcycles, you might see the same we-only-sell-the-cruisers-here attitude that prevailed at the H-D dealers. Plus I just don't see H-D selling Buell to a competitor unless the offer is too good to pass up. It might make more sense for Yamaha to simply offer Erik a job..
 
Re: Buell is dead...

I'm not an accountant, so I'm probably reading this wrong. But, for the nine months ending 9/27/2009, it looks like net revenue for Buell/MV Augusta was up by $3.295 million dollars over the same period in 2008. In this economy, I think that's pretty good. I know Buell/MV Augusta are just a drop in the bucket of the overall HD business, but I don't think they were costing the mothership money.

http://investor.shareholder.com/sec/...&CompanyID=HDI

You need to look at the loss for the last quarter and the fact that Buell and MV combined were less than 1/3 of general merchandise sales (That would be T-shirts and other wearables.)

The overall amount of time and money simply makes no sense and by this point in evolution Buell should represent more on its own than T-Shirt sales.
 
Just picked this up from my Chicago friends (one of the guys over there is a moto-journalist):

Yamaha is expressing interest in buying Buell.

BTW, I call BS on this one. Google searching keeps coming back to to a guy by the name Boo (from New Hampshire) on the FZ10A website. I don't think Yamaha would announce something like this (for business reasons) and if it were AP, it would be all over the web.
 
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