H-D Closes Buell
Posted: 17 Oct 2009, 19:33
Harley-Davidson will close its Buell product line of sportbikes as worldwide sales of its iconic street cruisers continue to fall worldwide.
In detailing its third quarter financial results — which saw sales, net income and earnings per share fall at 21 percent, 84 percent and 84 percent, respectively, since the year-ago period — H-D says the moves are part of its "go-forward business strategy."
H-D interpreted the 21 percent decrease in revenue as a positive for the company, compared with the second quarter when sales fell 30 percent.
"While the environment remains challenging for us, we are mildly encouraged by the moderation in the decline of dealer retail Harley-Davidson motorcycle sales," says CEO Keith Wandell, "and moving forward, our strategy is designed to strengthen Harley-Davidson for long-term growth and deliver results through increased focus."
Remaining inventories of Buell motorcycles will continue to be sold, while they last, through authorized dealerships. Warranties and replacement parts will be honored by H-D. The closing of Buell will result in the loss of 180 jobs in the greater Milwaukee area. Buell is based in East Troy, Wis.
In September a Buell 1125R won the AMA Daytona Sportbike Championship.
"We have built amazing and exciting world-class bikes ... It has truly been an honor for me to work with the other employees at Buell, as well as our suppliers," says company founder Erik Buell in a taped message on Buell's website. "We proved that a small group of passionate and inspired people can compete against industry giants."
H-D also disclosed plans to divest MV Agusta, approximately four months after it bought the Italy-based sportbike proprietor for $109 million. H-D hoped to boost its presence in Europe's growing sportbike market with the move.
In detailing its third quarter financial results — which saw sales, net income and earnings per share fall at 21 percent, 84 percent and 84 percent, respectively, since the year-ago period — H-D says the moves are part of its "go-forward business strategy."
H-D interpreted the 21 percent decrease in revenue as a positive for the company, compared with the second quarter when sales fell 30 percent.
"While the environment remains challenging for us, we are mildly encouraged by the moderation in the decline of dealer retail Harley-Davidson motorcycle sales," says CEO Keith Wandell, "and moving forward, our strategy is designed to strengthen Harley-Davidson for long-term growth and deliver results through increased focus."
Remaining inventories of Buell motorcycles will continue to be sold, while they last, through authorized dealerships. Warranties and replacement parts will be honored by H-D. The closing of Buell will result in the loss of 180 jobs in the greater Milwaukee area. Buell is based in East Troy, Wis.
In September a Buell 1125R won the AMA Daytona Sportbike Championship.
"We have built amazing and exciting world-class bikes ... It has truly been an honor for me to work with the other employees at Buell, as well as our suppliers," says company founder Erik Buell in a taped message on Buell's website. "We proved that a small group of passionate and inspired people can compete against industry giants."
H-D also disclosed plans to divest MV Agusta, approximately four months after it bought the Italy-based sportbike proprietor for $109 million. H-D hoped to boost its presence in Europe's growing sportbike market with the move.
