In conjunction with Harley-Davidson’s Q3 financial results, and shutting down of Buell Motorcycles, the Milwaukee motorcycle manufacturer is announcing that it will be selling Italian sportbike manufacturer MV Agusta.
Harley-Davidson bought MV Agusta just under a year ago, and assumed a substantial amount of debt from the beleaguered company. This past quarter, Harley-Davidson recorded a one-time fixed-asset impairment charge of $14.2 million related to Buell and a goodwill impairment charge of $18.9 million related to MV Agusta.
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.
It’s hard to take the AMA/DMG seriously sometimes, and today is one of those days. This time it is the latest musing from the bastard-child of road-racing that has use fired up: spec classes for the Harley-Davidson XR1200 and Kawasaki Ninja 250R. While not necessarily bad ideas at first thought, the proposed two new series seem like a step in the wrong direction for AMA road-racing.
There might be a pulse after all in the town of Milwaukee. A&R has gotten word that the Sultan of Slow is working on a cafe racer motorcycle, similar to the classic XLCR 1000.
With its second quarter sales dropping 35%, Harley-Davidson is going to be trimming its ranks in order to stay afloat. The Milwaukee based company will inject 700 hourly-wage workers, and 300 salaried workers into the ranks of the unemployed, with possibly more joining them in the future. These reductions come after Harley-Davidson earlier this year announced it was eliminating 1,400-1,500 hourly production positions in 2009-2010 along with 300 salary positions.
Dub Performance, a French tuner located just outside of the alps, have added their je ne sais quois to a Harley-Davidson V-Rod. With a 2200cc motor putting out 180hp, the Proto Slug (you have to enjoy the French sense of humor here) boasts a very radical departure from its cruiser lines. Pictures after the jump.
At the end of last year, we announced where if you bought a Sportster motorcycle (sadly, not the XR1200), you could receive the MSRP value of the bike if you traded it in the following year for “bigger” model.
The promotion was such a great success apparently, that now that it has ended, Harley-Davidson sales have slumped off.
Things have been quiet on the Italian front after Harley-Davidson acquired premium sportbike manufacturer MV Agusta last year, with the American company apparently leaving the brand alone for a while after its purchase. The company we love to hate from Milwaukee has finally started to make some changes in the old Italian brand, drawing a clear line between what product lines will focus on a premium road bike experience for the rider, and what products will be developed for track day weaponry for the weekend warrior.
There’s a rumor going around that Harley-Davidson is working on a water-cooled, four cylinder, v-twin motor with a displacement somewhere between 1,300cc and 1,600cc. The good, the bad, and the ugly after the jump.
As we noted late last week, Jim Ziemer, President and CEO of Harley-Davidson, will be leaving the Milwaukee company soon. Replacing him will be Keith E. Wandell, former COO of Johnson Controls. Along with Mr. Wandell, there is further shuffling and addition in the Harley ranks. Matt Levatich has returned from running MV Agusta, to become Chief Operations Officer. In turn, replacing Levatich at MV Agusta is the Italian Enrico D’Onofrio, former CFO at Ducati. D’Onofrio will take the position of Managing Director of MV Agusta. How about that for three letter bingo?
While we expect that these names have been gracing the lips of Board Members for some time, the announcement of their appointment happily coincides with harsh criticism made in the media of Harley-Davidson’s current financial problems, and general mismanagement. We can only hope that the timely appointments will also mean timely changes for Harley-Davidson.
You may remember the NY Times article that we mentioned a few days ago that was critical of the company’s current status and direction. In response to the NY Times article, Harley-Davidson is running the above ad in an attempt to provide a counter-argument to the criticism that the company is on shaky ground.
It should come with little surprise that Harley-Davidson is again playing on Patriotic themes and rhetoric that shifts the focus from the fact the company has serious issues ahead of it, and to date not clear plan on how they are going to overcome them. In addition to this ad, a message was sent out to all Harley-Davidson employees, read it after the jump.