Harley-Davidson buys MV Agusta

Harley-Davidson and MV Agusta couldn't be more opposite. While both motorcycle manufacturers are legendary, one is known for cruisers, the other for high-performance sportbikes. Where one is quintessentially American, the other is distinctively European. Yet the two legendary marques will merge, according to an agreement announced earlier today. Harley-Davidson Inc., based in MIlwaukee, is acquiring MV Agusta Group, of Varese, Italy. The pricetag: $109 million. In a deal expected to be completed within "several weeks," Harley-Davidson will take over the MV Agusta and Cagiva brands, both of which will continue to operate from their Italian headquarters.

"Motorcycles are the heart, soul and passion of Harley-Davidson, Buell and MV Agusta. Both have great products and close connections with incredibly devoted customers," Harley-Davidson chief executive officer Jim Ziemer stated in a press release issued Friday. According to Ziemer, the acquistion is meant to expand Harley-Davidson's presence in Europe, where Harley sales have been growing at a double-digit pace for three years running. In the U.S., however, Harley sales have been experiencing quite the opposite. Overall sales are down, after peaking at a whopping 349,156 motorcycles per year in 2006.

MV Agusta, which makes about 6,000 motorcycles each year and sells almost 1,000 of those in North America, has also been in financial trouble, due to problems with the Italian banking system and a weak dollar that was eroding the company's profitability in its second most lucrative market -- the U.S. MV Agusta had planned to introduce as many as five new platforms in the next three years, several of them in entirely new market segments. MV's acquisition by Harley-Davidson means those platforms and models are more likely to proceed as planned.

"We take enormous pride in MV Agusta and Cagiva motorcycles," said MV Agusta president Claudio Castiglioni, whose family owns 95% of the shares in MV Agusta Group. "Our riders seek an uncompromising experience in premium performance motorcycles. And with Harley-Davidson's deep understanding of the emotional as well as the business side of motorcycling, I have great confidence that our motorcycles will excite customers for generations to come."

-- Susan Carpenter

Photo by: Don Kelsen, Los Angeles Times (2008 MV Agusta F4CC)

Comments

[jim]

No more 0 t0 60 in ten seconds.. Smart move by HD. The Buell was not bringing the children to the brand. HD's crusier market is sliding. Geezer Gulde market is down. I just sold my Road King. Asia is the next stop. Bowling, Beer and maybe HD. What's Milwaukee stand ford?

[Sportybuck]

Harley Davidson has had a previous history with Italian motorcycle makers since the 1950's. Aermacchi made lightweight motorcycles, 250cc and less, for HD as well as light weight brake drums for the XL and FL's before disc brakes. Borrani, of Ferrari fame, made alloy rims for Sportster's and X-racers. Italians made the seats for many models of HD's as well. The purchase of MV by HD is historically a natural and may put a metric cruiser in HD dealers show rooms. Good luck to both.

[Trinket]

But does MV Agusta/Cagiva have any mass-appeal products? Too bad they no longer have Ducati or Husky. Maybe there are future product plans, but based on today's catalog, I don't get it.

[H Tran]

Would've liked to see more investment in Buell so they compete better with Suzuki and Honda - mainstream commuter bikes. The reason why HD sales are tanking is that they're essentially luxury products. High gas prices and a crappy economy dampens demand for large (often weekender) cruisers. MV Agusta is not going to change that.

[JohnA]

Is this Susan Carpenter's last column?

Say it isn't so.

HD and MV Augusta. Talk about oil and water!

[Kurt]

I'm exited for both companies. Unlike the car companies trying to create the next minivan, both of these guys build bikes they are passionate about.

I don't know how much business sense this merger makes, but Buell may benefit from some lighter, high output motors or parts sharing. Looking at the offerings from MV Agusta makes Harleys seem affordable. They are beautiful, but pricey.

It would seem more timely for HD to find a low end, high efficiency group to add to the line up. I think you will see a second wind in efficient, small displacement motorcycles with $4 gas. I already see cowrokers dusting off their bikes. Scooters, once embarrasing, are now trendy. Smaller displacment bikes would also provide a stepping stone for those who would later like a Buell or HD. Starting at 1000 and 833cc's respectively is intimidating to many and not catering to the miser crowd.

I wish them both well.

[tyrone mars]

i feel sick..guess i have to get a bandana and fringe. the sadest day of my 7 years of MV ownership

[Steve]

I own a Harley and Mv . Love them both.I also heard Mv
is now working on a smaller displacement bike .I can't wait
to see this.