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H-D to Sell MV Agusta, Close Buell
Watch the video of Erik Buell making the announcement.
Varese, Italy, 15 October 2009 – Harley-Davidson, Inc. (NYSE: HOG) today announced its third quarter financial results and unveiled key elements of its go-forward business strategy to drive growth through a single-minded focus on the unique strengths of the Harley-Davidson® brand. As part of this strategy, the Company will divest its MV Agusta unit and also discontinue the Buell® product line.
“Our objective in acquiring MV Agusta last year was primarily to expand our presence in Europe, and was a recognition of MV Agusta’s proud legacy. While growth in Europe and other global markets remains highly important to us, we believe that focusing our efforts on the Harley-Davidson brand is the optimal path to sustainable growth,” said Matt Levatich, President and Chief Operating Officer of Harley-Davidson Motor Company.
“This decision was not made lightly. MV Agusta is a great company with a proud heritage and brand, high-quality exciting products, and a passionate team with whom we have achieved a great deal over the past 14 months” Mr Levatich added.
Harley-Davidson acquired the privately held Italian motorcycle maker MV Agusta in August 2008 and key achievements since then have included the reinstating of production at the Company’s Varese factory and the re-starting of product development – leading to the recent unveiling of the re-engineered Brutale to great accolades from dealers and customers alike.
“With a streamlined business and such an exciting product pipeline we sincerely believe that MV Agusta is well positioned for the future,” said Mr Levatich.
Harley-Davidson will now begin actively looking for a buyer for MV Agusta to continue along the development of the brand as an outstanding manufacturer of premium, Italian performance motorcycles.
Link to Harley-Davidson, Inc. third-quarter earnings announcement, including information related to MV Agusta: www.harley-davidson.com
Harley-Davidson, Inc. is the parent company for the group of companies doing business as Harley-Davidson Motor Company (HDMC), Buell Motorcycle Company (Buell), MV Agusta and Harley-Davidson Financial Services (HDFS). Harley-Davidson Motor Company produces heavyweight custom, touring and cruiser motorcycles. Buell produces American sport performance motorcycles. MV Agusta produces premium, high-performance sport motorcycles sold under the MV Agusta® brand and lightweight sport motorcycles soldunder the Cagiva® brand. HDFS provides wholesale and retail financing and insurance programs primarily to Harley-Davidson and Buell dealers and customers.
Forward-Looking Statements
Harley-Davidson, Inc. intends that certain matters discussed in this release are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the Company “believes,” “anticipates,” “expects,” “plans,” or “estimates” or words of similar meaning. Similarly, statements that describe future plans, objectives, outlooks, targets, guidance or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this release. Certain of such risks and uncertainties are described below. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and cautioned not to place undue reliance on such forward-looking statements. The forward- looking statements included in this release are only made as of the date of this release, and the Company disclaims any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
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I wonder how the clowns at the DMG will handicap the other teams to give Harley an advantage now that they will be racing a Wide Glide. This really puts how stupid the people that run the NASbike series right in the spotlight.
The only decent machines that joke of a company has produced in 40+ years…
Hopefully Eric Buell can find funding to give it another go. He tried to keep that corpse of a company (HD) from rotting too badly! What’s that smell?
You can expect more “belt tightening” with Harley Davidson in the near future. Now that it is losing it’s 100% American made image, people are recognizing that the product is inferior to other like brands offered. Gone are the days when you waited 12-15 months for big twin touring models. Harley’s loyal customer base is dwindling down. Harley attempted to build a “Wal-Mart image” by requiring new dealers to be open longer hours, 7 days per week and increased production above demand. It has now bitten them in the backside. Many dealerships have been bought by non enthusiasts looking to make quick money and many are now looking to unload them.
At least MV are saved further embarrassment. Hopefully they’ll be bought by a motorcycle related company, instead of archaeologists still digging up dinosaurs.