HD Ceases production of Buell Motorcycles

[aussiebandit]

It appears the economic down turn has affected HD.

See here http://www.buell.com/en_us/q-and-a/index.asp and here http://www.buell.com/en_us/

[gbw]

Yeah, I thought maybe their purchase of MV Augusta might be the driving factor that caused them to shut down Buell but that is not the case.  I was reading HD's financial report today.  There are a few interesting facts:

...the Company will discontinue its Buell product line and divest its MV Agusta unit...

Net income for the third quarter was $26.5 million, compared to $166.5 million in the third quarter of 2008

An 84.1 percent decline in net income and an 84.5 percent decline in diluted earnings per share from the year-ago quarter

Third Quarter. Revenue from Harley-Davidson motorcycles during the third quarter of 2009 was $803.3 million, down 22.1 percent compared to the year-ago period.

retail sales of Harley-Davidson motorcycles decreased 21.3 percent worldwide

Harley-Davidson Financial Services recorded an operating loss of $31.5 million for the third quarter of 2009 compared to an operating profit of $35.6 million in the third quarter of 2008.

So, I believe the financial situation more than anything else caused them to refocus on their core business.  I hope they survive, but their customer base is getting older and it seems younger people are less inclined to buy HDs.  I hope they are not "focusing" themselves out of business.

[Sven]

This piece of news hit everyone by surprise, judging from the chat going on all over the web.  Here's my thoughts:  HD, like the US auto makers, has been heavily hurt by the economy.  My impression is that its core audience is North America, so while the Japanese brands have weathered the storm globally, HD is hurting more deeply because of it was more dependance on US sales and couldn't look to other regions to help shore up profits.

HD sure didn't see bad times coming when it bought Agusta...although I am not sure what its long-term strategy was in buying a niche product when it already made a niche product (Buell).  Maybe HD hoped to have that global reach that the HD cruisers don't quite manage.

I guess HD didn't have very good short-term vision when it killed the Buell Blast a couple months ago and announced a refocus on making Buell a "performance machine" brand.  Now Buell is another historical marque, until it gets resurrected (like Indian) by new owners.  The Buell fans were shellshocked on the web, and most of them had good things to say about the bike...but when was the lats time you passed one on the street?

I would think HD would want a long-term strategy to enter the Gixxer/Busa market, since there are many people like me would will only have a HD if I win one in a contest.

So, I guess HD will be asking for tariffs to prop up their profits, or maybe they want the same bailout deal GM and Chrysler got?  It's bad enough when individuals don't save for a rainy day, but I expect large corporations to have more vision and strategy.

[jimmym1296]

The message that Erik Buell read on their website must have been gut wrenching for him. He look devastated to say the least. Never road one but I always liked his different take on things. I hope someone else puts his talents to use.

[Vidrazor]

I think, however, that Erik Buell has himself to blame for associating himself so closely with H-D. The fact that he started a (real, and relatively American) bike company using Harley engines was suicidal at best. It was always a long uphill battle to get the engines to perform up to the rest of the bike. How someone could design a decent, modern bike and stick a Jurassic anarchism of an engine in it is beyond me.

To allow said company to be consumed by Harley was his second mistake. Had he remained (relatively) independent, or had different investors, he probably would've involved himself with the likes of Rotax much sooner and left the Harley curse behind.

It's hard to say whether it's really over though. I believe there will eventually be some group that will try and resurrect the company once the economy shows signs of life. It all depends on how much time that is, and if technology doesn't pass Buell by...

[jimmym1296]

There are certainly some good v twin options besides HD. Rotax, KTM would be good choices for Buell to hook up with. Whether anyone wants to pony up the cash to start him again is the big question. robably could get a good deal on the HD Buell factory.

[Bandit1250]

I won't shed a tear if HD go's under.....always a over priced machine and under engineered.
They refused to build a bike that would handle, brake well, perform well, was reasonably priced ect........
Instead of competing with the Japanese they decided to make the same old crap year after year and pissed and moaned when the Japanese bikes were better machines.

Don't say they tried to compete with BUELL either as the dealers hardly ever had a BUELL in stock and never liked them to begin with. Twice i went to a HARLEY dealer to see the BUELL 1125....neither dealer had one on the floor. They said they'd be getting one in and would call me when it was there........neither dealer ever called.

[mademiriam]

There are certainly some good v twin options besides HD. Rotax, KTM would be good choices for Buell to hook up with. Whether anyone wants to pony up the cash to start him again is the big question. robably could get a good deal on the HD Buell factory.

The new buells, or should I say at least some of them HAD rotax engines. No more pushrods, but nice DOHC... for the new century. That said had they made the engine move earlier, they may have had a bigger customer base. If I had the money I WOULD be buying one now, with the steep discounts.

[Red01]

I won't shed a tear if HD go's under.....always a over priced machine and under engineered.

I won't argue that.  Despite that though, they sell more streetbikes than anyone else in the US market.  Only Honda outsells them, and that's because they have a dirt lineup.  The last numbers I read, H-D had >50% of the US street-legal market.  It appears performance takes a back seat to style to the majority of US riders.  I have never been able to understand why so many people want to emulate criminals though.   

That association alone is enough to keep me away from H-D's.

[Dave 02 1200]

I have the highest respect for Erick Buell and his unique motorcycles.

The Harley Davidson Sportster first caught my eye when the AMA had a a one-design roadracing class for the 883 Sportsters in the 1980s.  I was racing Yamahas at the time but did enjoy watching the close competition in that class and I was impressed that the bikes held together and got around the track as well as they did.

However, I went to the HD dealer with a checkbook several times between 1986 and 1990 fully intending to buy a Sportster but rode home on my Triumph Bonneville each time.  They just didn't handle the way I hoped they would and they were slow. 

Then a friend offered me a ride on his Buell.  It handled great.  It made much better power than the Sportster.  I bought one the following week, a 2001 S3T, and I love it.  Then I bought another, a 2002 M2 and I love it too.  The classic tube-framed Buells were last made in 2002.

Those bikes are not for everyone but they are very special and, on the right kind of road, they are supreme.  I willl be keeping mine as long as I can still ride a motorcycle.

Too bad things didn't work out better from a business standpoint.

However, I don't think we have seen the last of Erick Buell.

[Guido_Brasletti]

I dont think that closing down Buell is such a big hit for motorcycling. I always thought that Buells are kind like building Stealth bombers, but equipped with 19th century bombs. Great frame/brakes etc but '50  engine!

[SmokeyAndTheBandit]

I dont think that closing down Buell is such a big hit for motorcycling. I always thought that Buells are kind like building Stealth bombers, but equipped with 19th century bombs. Great frame/brakes etc but '50  engine!

I felt the same way until they came out with the 1125r and 1125cr. They have a smooth rotax v-twin. I'm the proud owner of a 2009 1125CR. I got one heck of a deal on it!

[Guido_Brasletti]

May be, but they are still, in my opinion, too expensive for what they are (like HDs are too). If I wanted to buy a V-2 I would go for the Ducati (like I did). If I could not afford the Duc I would go for an SV or Aprilia

[SmokeyAndTheBandit]

I had planned on buying a Ducati Hypermotard but I couldn't pass up $6500 for a new Buell.

[Guido_Brasletti]

Ok, obviously Buells over there are much cheaper than they are here!

Enjoy your rides!