View Full Version : So long Buell

10-15-2009, 10:51 PM

Gas Man
10-15-2009, 11:10 PM
I think its a sad day. Erik is obviously broken up about it. I can't see Erik letting his baby die off. I hope they do something great with it. I think maybe somebody will buy up the buell name along with mv name.

Really the 1125 isn't a HD at all. So I dont see any problems in the seperation.

10-15-2009, 11:13 PM
this will end up upping the resale value on these bikes in the years to come. sad to see that guy have to make that announcement.

10-16-2009, 12:19 AM

We just got off the phone with Harley spokesperson Paul James. According to him, Erik Buell (http://hellforleathermagazine.com/cgi-bin/mt/mt-search.cgi?IncludeBlogs=1&tag=Erik%20Buell&limit=20) is in ongoing discussions with Harley (http://hellforleathermagazine.com/cgi-bin/mt/mt-search.cgi?IncludeBlogs=1&tag=Harley&limit=20) about taking on an advisory roll at The Motor Company, in which capacity he'll contribute to future product design. The rest of Buell's 180 employees won't be so lucky, they'll be out on the street as of December 18, the day the Buell plant shuts down. This news will come as a shock to them, like the rest of us, they only found out about Harley killing Buell (http://hellforleathermagazine.com/2009/10/harley-kills-buell-will-sell-m.html) this morning.

Paul didn't have Buell (http://hellforleathermagazine.com/cgi-bin/mt/mt-search.cgi?IncludeBlogs=1&tag=Buell&limit=20) sales figures to hand and we don't believe they're published by Harley, but he suggested that this year's sales were down compared to last's about the same percentage as Harley's better-than-industry-average 21.3 percent figure. Indeed, Harley isn't killing Buell because it's unprofitable, it's killing Buell because it wants to invest every last penny back into Harley to save that brand from possible failure. It's not actually sales that are Harley's biggest problem -- although they can't help -- it's the troubled finance wing. Harley's practice of giving sub-prime motorcycle loans to unsuitable candidates has bit the company in its proverbial ass, forcing Harley to borrow $1 billion in operating capitol at 15%. That's only enough money to see it through to the end of the year. So far this year, revenue at Harley is only down 17 percent, yet net income has fallen 71.4 percent.

The decision was made to shutter rather than sell Buell because it's product range and distribution network are so heavily dependent on its parent company, that there's relatively little value in the company that could be transferred to a new owner.

Asked how Harley intends to replace the customers that will now be lost to Buell's competitors and how Harley intends to expand its appeal to post Boomer generations, Paul is insistent that Harley's current range already has the ability to appeal to that audience, saying, "Keep in mind, in the U.S., H-D holds the number two share position overall (all size bikes) among young adults 35 and younger and we are the share leader in heavyweight motorcycles among this group, so we know our motorcycles appeal to young adults.

"We will continue to develop products under the Harley-Davidson brand that appeal to riders under 35 years old. That said - and while I can't discuss the specifics of future product plans - you can expect us to focus on high-impact product introductions that attract new riders and help define the future of motorcycling. We are not ruling anything in or out...we simply will pursue it through the Harley-Davidson brand."
Wes Siler. October 15, 2009 — Permalink (http://hellforleathermagazine.com/2009/10/whats-going-to-happen-to-erik.html)

10-16-2009, 09:04 AM
"We have proven that a small group of passionate people can compete"

Er....evidently not.