HD cannot sell the Buell division as it exists now because it is too ingrained, etc, as they say.

But they can sell the brand, designs, etc. HD could also manufacture engines, parts, etc., under license for new Buell ownership.

Lots of potential for HD and Buell to walk away with a new profitable business plan.

Has anyone noticed that HD is not moving to liquidate Buell property and assets? Any CEO of a publicly traded company would have to have some plan in place to liquidate when making such an announcement in order to affect maximum value generation in the stocks before the end of the quarter.

But...nada.

Something's in the works.

I wouldn't be surprised to see HD remain as a minority owner of Buell.

 

Actually farber you make some great points... It was mentioned in another post about private investors possibly making an at attempt to "resurrect" Buell, and my first thought was.. would HD be willing to sell of the rights. Personally I don't think they're in a hurry to do so. The owner of my dealership actually believes since Erik Buell has remained with HD, that some of Buell's designs will reappear in a year to two as new models in HD's line.. I guess time will tell..

 

Good point, Faber.

My other thought was that Erik Buell seems like a pretty bright guy. Even if he had to start from again scratch he would be better off than most anyone else in that situation.

 

Now that HD owns MV Agusta (Europe) it would seem to me that if HD really wanted to sell super exotic sport bikes here in the US all the company would have to do is import MV Agusta bikes here. I think Buell has earned a great name for itself. I like their bikes and they seem to imploy a lot of high-tech ideas in their products that the Japanese bikes do not seem to have. ie...gas/oil in the frame, carbon fiber, trick brake rotors that run the circumference of the rims, under chassis exhaust. It's all there. If you want an exotic American super bike, the Buell is the ticket. Yet, sales have lagged here for years. They seem to sell better in Europe than they do in the US.

Now, if Buell were bought out by another company it would seem to me that since the company is already using a Rotax motor in their 1125R model, logic would dictate that they could use Rotax motors in their models as well. At least until such time that Buell found another source for engines. Who knows, maybe HD would agree to supply the motors for a specified period of time, until Buell found a new engine provider.

Who really knows what will happen, but in the end.........money talks.

 

In today's business climate, it is far more expensive to create a brand than to manage an existing one.

Look at the current ownership of Indian. That's what they do: they resurrect "heirloom brands" and have the capital reserves to commit to long-term brand management. (Whether or not their approach works for the cursed Indian brand remains to be seen.)

Buying an existing brand is an excellent way for investors and designers to break into an industry at the product and retail level. While Buell is not an heirloom brand, it has demonstrated market sustainability and customer credibility.

I'm sure there is some capital management group that has noticed this.

Buell also has a history with HD. And, the very reason that HD cannot sell off Buell completely actually creates value for an ownership consortium that will write in HD to an appropriate minority share.

Whatever happens, HD has expressed its intentions to distance itself from the Buell brand. So Buell would need new distribution and dealer networks. Shouldn't be too hard.

So whatever production licensing for components is worth to HD........

But, surely Erik has a nice golden parachute/handshake from HD, i.e. a cushy position as a design consultant or something. It will be interesting to see how he postures himself in what will surely unfold before the end of the fiscal quarter. He's a smart man but hasn't always been a good manager, though he does learn.

And that's as much as my crystal ball will reveal to me.......

 

I wonder if the Motor Company asked any MV Agusta dealers to add Buell.

Strange as it might sound, some (metric) customers didn't want to visit HD dealerships. Those who visited dealers often found Buells shoved into a corner. I noticed this myself at a few Chicago area dealers. Shame on the Motor Company's brand managers for allowing this to happen!

 

Local H-D dealerships are selling Buells with a heavy discount.. may be time to "invest" in one.. My riding buddy has one he uses as a dual sport bike and has ridden it for 2 years with no trouble from the bike.. its not an enduro, but its a good off road ride..

 

On Buells' site Erik has a personal message. In the video at the end he stated that he would remain to assist HD in technology advancements.

 

That would have helped.

 

Doesn't seem likely based on this quote from the MoCo:

"We chose not to sell Buell, and simply end production, simply because of the interdependencies that exist between Buell and Harley-Davidson. That is the decision we made, and that is not a reversible decision," said Harley-Davidson spokeswoman Pat Sweeney.

http://www.todaystmj4.com/news/local/66153987.html