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Buell Motorcycles

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If it was still in business, this year would have been the Buell Motorcycle Company’s 30th birthday. Treated more like a line on the cash flow sheet to its parent company Harley-Davidson than a true self-supporting motorcycle brand, Buell suffered from not being “Harley enough” for the Bar & Shield devout, and conversely wasn’t adopted by the non-believers because of its extensive compromises with the Milwaukee brand. The ethos of the brand continues however, with Erik Buell Racing. We still don’t know what the future holds for Erik Buell’s new company, though a bevy of models are on his company’s product road map. We think if you polled a few former Buell owners, they would want to see this poster (full-size after the jump) updated.

Math can be tough sometimes, especially when it comes to counting, so we can understand the confusion surrounding the news that Erik Buell has recently been awarded a patent for a design that incorporates a motorcycle exhaust system inside the swingarm of the bike (now that’s some engineering). However we have the unpleasant responsibility of saying that this patent is not in fact owned by Erik Buell and Erik Buell Racing, as the filing date and patent assignee information were clearly over-looked by early reports on Buell’s patent. While the patent was published on October 28, 2010, its was filed by Buell last year (April 24, 2010), well before Harley-Davidson closed the company, and while Erik Buell still worked as a Harley-Davidson employee.

It’s been a few weeks since Harley-Davidson announced the immediate closure of its subsidiary Buell, where dealers began slashing prices both to liquidate stock and to cash-in on Harley’s $5,000 sale incentive. Basic economics dictates that any time a price is raised or lowered it has repercussions to the product’s resale value, and in the case of Buell’s sudden price drop and dumping of basically new bikes into the market, the consequences for current Buell owners seem dreary. Or are they?

In order to find an answer to that question, we asked Joshua Minix, former government think-tank Economist, and current John M. Olin Fellow in Law and Economics at Harvard Law School, to wade through the implications of Buell’s closure, and how it affects the used Buell motorcycle market.

After releasing grim third-quarter financials today, Harley-Davidson has also announced that it is discontinuing Buell Motorcycles. In a somber video (posted after the jump), Erik Buell confirms the news, and praises the Buell team for taking on the industry giants with “this little American sportbike company.” Buell will continue to sell its motorcycle stock, and Harley-Davidson will continue to honor any warranties and part needs for Buell motorcycles.