AGV Backmarker: Ctrl+Alt+Del
November 5, 2009 by Mark Gardiner
Filed under Backmarker
“Is the recession really over?”
The Chick looked up from her computer and asked me that from over on the sofa. I was working on my computer at the dining-room table.
Hmm…. I explained the rule of thumb about two consecutive quarters of decreasing GDP but had to admit that (whatever economists say and notwithstanding Ford’s surprisingly profitable quarter) it certainly doesn’t seem to have ended in the motorcycle business.

In 2006, when the AMA allowed Buell to enter the XBRR production racer in the Daytona 200—where it raced against bikes with half the displacement—rivals howled. Ultimately, it was a moot point; the bike wasn’t competitive anyway. But it was good they got in some howling practice, because this year, the 1125R was competitive.
I was still thinking about Harley-Davidson’s shutdown of Buell, and there was other news that came on the heels of that, too. Yamaha just had its best weekend in the company’s racing history—Rossi clinched, Spies won the company’s first-ever World SBK championship, the manufacturer even won the World Supersport title—and still, Yamaha USA shut down its factory American Superbike team when it seemed poised to take the 2010 AMA Pro championship after closing out ’09 in great style. Then, American Suzuki flat shut down its press department.
I just have a feeling, too, that I’m about to hear news of changes at AMA Pro Racing. Recession over? From where I’m sitting, it feels as if the U.S. motorcycle market has been holding its breath for the last year and half, and has just passed out.
In the last few years, AMA Pro has made or interpreted rules that seemed to favor Buell. That favoritism may be rooted in the organization’s desire to lure Harley-Davidson fans back to road racing. It infuriated rivals, though AMA Pro might actually owe Erik a favor; he first incorporated to make 750cc two-stroke AMA Formula 1 race bikes, but the RW750 lost its raison d’être when the AMA changed its rules. Still, one thing’s not debatable: Buells excepted, modern sport bikes are (too) much of a muchness. Love him or hate him, we could really use Erik Buell.
There were lots of people in the motorcycle industry—in particular a few journalists I can think of—who were eager to see Erik get his comeuppance, but his emotional video farewell took even his critics aback. I was rocked by the news that Harley had shut its subsidiary down, though perhaps I should have seen it coming.
In a long, off-the-record conversation with Erik a couple of weeks earlier, he touched on—of all things—electric motorcycles. America, he told me, must take leadership in battery technology in order to keep jobs in the United States.
Erik’s ever passionate. To get a word in during conversation, you almost have to shout. He fiercely defends ideas like his ZTL rim-mounted brake and fuel-in-frame. The only things he hasn’t questioned are his own myth and his occasionally downright strange motorcycles. But he was particularly vehement on the subject of maintaining an American technological lead in the world of zero-emission vehicles.
I didn’t dare point out that the Chinese have already stolen that march (at least in the Lithium-ion battery area). But in hindsight, I guess he may have been distraught over the impending termination of his own employees.
The decision was out of his hands. For the last decade or so, Erik’s been the Chief Technology Officer of a wholly owned Harley-Davidson subsidiary. (Harley bought 49 percent of Buell’s stock in 1993 and virtually all the remainder in ’98.) Harley’s pushrod motors seemed out of place in Buell frames; so did Buell motorcycles in Harley dealerships.
Buell was no less a red-haired stepchild in Milwaukee. In the same press release, Harley-Davidson announced that it would sell MV Agusta, which it had acquired about a year earlier. Why not sell—or at least try to sell—Buell?
Within a week, some Harley dealers were advertising Buells at huge discounts and there were rumors that Harley was kicking $5,000 to dealers for each one sold. As an outsider looking in, it can seem that The Motor Company wants to erase any reminders of the brand (though H-D says it will honor Buell warranties and maintain good parts support).
This isn’t going to make me popular, but it must be said… Last year, the motorcycle business ended a run of about fifteen years of steady sales increases. Over that time, our industry ignored a demographic time bomb, as the average age of motorcycle buyers increased almost one year with each passing year. Until gas prices briefly spiked, our industry was happy to offer expensive, impractical toys while ignoring motorcycles’ potential as affordable traffic-busters. In general, our industry behaved like a California homebuyer at the height of the bubble, shopping for zero-down mortgages.

Kawasaki’s an exception to my blanket statement that OEMs haven’t tried to expand the market. Thanks (it seems to me) to press maven Jan Plessner, Kawasaki’s done a great job attracting women to our sport. Here, The Chick gets to ride a dirt bike for the first time, at Rhinoland. The Kawi-sponsored event was part of a breast cancer fundraiser.
It’s a truism of entrepreneurship that the time to make money is when there’s blood in the streets. Although this might be a crappy time to build outright sales volume, it’s a great time to build mindshare.
When your rivals cut their marketing, advertising, and PR budgets, your profile is effectively raised by the same amount as long as you keep pushing bikes out to hacks like me, and maintain a racing team. When consumers stop buying, they also break old buying habits. When they start buying again—and they always do—they start fresh and remember what they’ve seen lately.
If you don’t believe me, wait about a year and chart Kia’s share of the U.S. car market from 2007 to 2011. The companies that currently dominate the American motorcycle market, shambles that it currently is, should be thankful that Kymco and Hyosung weren’t quite ready, as Kia was, with a couple of hip, interesting new models. Next time, look out.
As I write this, Harley says that Erik Buell will remain on staff as a technical advisor. Advising on what? Harley said in its Buell/MV Agusta release that it was refocusing on its traditional core strengths—i.e., very traditional motorcycles. No traditionalist will listen to anything Erik’s got to say. My last email from him was a couple of cryptic sentences, one of which was, “I can’t speak to the press,” so who knows exactly what he’s up to?
I do know two things: One, if I were the CEO of one of those upstart motorcycle companies from Korea or China (and yes, I’m aware they’re only upstarts to us, but in their domestic markets they’re already huge), I’d be calling Wisconsin directory assistance right now. And two, either way, we haven’t heard the last of Erik Buell.
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The AMA or those acting in it’s name destroyed Dirt Track in a variety of ways but centerd around favoring Harley. Now they have botched Road Racing and again a prominant feature is Harley favoritism. Harley needs to produce a motocross bike and go for the hat trick.
Harley, my lawn mower is OHC. Just saying…
I’ve been watching Buell since he was a roadracer prior to his Barton purchase. I’d say you’ve made an astute call here - we’ll see more of Erik, and sooner rather than later.
I would have liked to see Buell make a middle-class Rotax v-twin powered naked or half-faired competitor to the Monster 696, Gladius, and
er6-n crowd. Maybe along the lines of the Firebolt.
On a crisis the first products that loose demand are luxurious ones. Such as Harleys and Agustas. It would make more sense if Harley actually focused on Buells.
On the other hand Harley Davidson motors actually makes money from Harleys, not Buells.
I truly wish we see more of Eric. A true genious.
Harleys racing history as whole has been the ama making rules that favor harley. examples of this are the 883 dirttrack class, 2valve pushrod aircooled short trackers can be 505cc and 4 valve liquid cooled bikes have to 450cc, air restiors on the rs750 hondas,and 1125rr non street leagl bike can race in the superbike class.
Like I always said
Lead, Follow or Get out of the way.
HD will be out of the way soon with their old technology bikes that only rednecks ride. Smart people like bikes that lead in technology like the Ducatis and Buell.
HD needs to relaize to many rednecks are unemployed now and they wont be able to buy HD bikes.
HD could never make a motrocross bike, its not a chopper. and they would not make any profit unless they sold them for 15 k, and then you think all those farmers would be able to afford it.
I ride a XB12R Buell. Started riding in 1974. Had many different bikes since then. The Buell is an aquired taste. A serious corner carver, ask my R1 friend. A well kept secret. It’s too bad that HD had so much of their hands in the Buell company. I think the red-neck targeted, land-barge building, chrome-plated looking, loud-mouthed sounding, designer-label clothing company is going the way of the dinosaur. About time. I’m so tired of seeing HD motorcycle (posers) who couldnt ride around a corner safely or panic brake if their lives depended on it. HD is trying to ride out the economic storm by continuing to build a product that does NOTHING for the younger rider. They had a good thing going in the Buell lineage, and Buell was just coming onto the playing field with an attractive package in the 1125. The Harley execs won’t even see this, but you really dont know what the mind and heart of the everyday average motorcyclist is. You are dead and dont even know it yet. The quicker Harley Davidson leaves the scene, the better. Many of us are so sick and tired of the halloween costumed HD crowd with their attitude and their total inability to ride a motorcycle that we could puke. Enough is enough. The only reason I don’t pull my clunky, slow, archaic, HD derived engine out of my Buell and throw it in the toilet is because it motivates one of the best handling motorcycles on this planet. Period.
Joe “Bueldog” Dillingham