Harley-Davidson terminates Buell brand, sells MV Agusta

Harley-Davidson announced today that it is discontinuing its Buell product line and will cease production of Buell motorcycles permanently by Oct. 30. According to Harley-Davidson spokesman Paul James, the discontinuation of the 26-year-old Buell brand, which has been a wholly owned subsidiary of the Milwaukee-based manufacturer since 1998, "is part of Harley-Davidson's go-forward business strategy. The new long-term strategy aims to drive company growth through a focus of efforts and resources on the Harley-Davidson brand."

James said, "The fact is, a dollar invested into Harley-Davidson, there's more impact than the same dollar invested elsewhere when it comes to reaching new riders and enriching the experience of our core customers."

As part of the company's new myopia on its core brand, Harley-Davidson is also divesting itself of MV Agusta, the Italian sport bike company it purchased last year.

"We're exiting the sport bike market with those niche brands," James said.

MV Agusta is being sold because it was a standalone business unit. Buell "was highly integrated into the entire business and the distribution network of Harley-Davidson," James said, so "selling Buell as an outside entity was not the best choice for the company."

While Harley-Davidson is giving the ax to Buell the brand, it's still in talks with Erik Buell, the man, who may continue with Harley-Davidson in an advisory role as it develops new products.

No buyer has yet been named for MV Agusta. As for Buell, dealers will sell remaining Buell inventory and provide warranty, service and repair work. Harley-Davidson expects to provide replacement and service parts for as many years as required.

Harley's announcement to terminate the Buell brand comes on the same day it announced third-quarter earnings. Worldwide, retail sales of Harley-Davidson motorcycles declined 21.3% in the third quarter of 2009 v. 2008.

-- Susan Carpenter

Photo: Buell Motorcycles

Comments

[NachtRitter]

Very disappointing news... Buell was the only product associated with Harley Davidson that I actually liked, and the only US-made motorcycle I considered buying.

I'm guessing Erik doesn't even have the option to re-use the brand, which is definitely unfortunate...

[Jay S]

Buell has always been the answer to a question nobody asked. Eric's bizarre designs could never match Japanese sportbikes in performance or value. MV Augusta was supposed to add Euro-flash and Euro access, but it's a small brand with marginal potential at best.

Harley obviously needs to stick to its knitting, making image bikes that offer half as much for twice as much. The brand is known as "Hardly Ableson" to those who know value in motorcycling, so Harley will do best by sticking to its core market of old schoolers who resist anything better and newbie poseurs who don't know any better.

[gloria]

Buell has never really produced a true sportbike. When AMA rewrote the rules to allow the 1125 to race against the 600s that should send a message about Buell's Sportbike. Another issue is their styling. Most sportbike riders want sleek and sexy. The Buells look large and piggish.

Harley probably should have canned Buell when it bought MV Agusta. MV is on the verge of releasing a 3 cylinder that is lower in price but still high on performance. If Harley holds onto MV they might have a chance in the sportbike arena. If you don't think 3 cyclinder bikes can compete you need to read up on the Triumph Daytona 675, Speed Triple, and Street Triple.

[Sven]

Harleys and Buells satisfied a unique niche. They are high quality and a blast to ride.

I just sold my Dyna, with huge intentions to buy a Ulysses - bummer. Looks like a Triumph Tiger now.

[Chris]

Wow, lots of Harley hate. I don't really understand it... we all fawn over the nuevo-retro Bonneville, Thruxton and Moto-Guzzi V7 and yet the 'Merican analogues, the HD big twins and Sportys, suck and deserve to die? I don't get it.

Sure, some if not most HD owners (I say owners, rather than riders) are laughable caricatures. They truly are Hardly Dangerous, but if you're going to be honest and have actually seen and perhaps even ridden a new HD in the past 4-5 years, you've got to admit that the fit, finish and quality are really spectacular. The performance and price, not so much...

That being said, there is something pleasant about riding them. They are comfortable and easy, and it's a nice perch from which to watch the ocean roll by as one cruises along PCH. They aren't fast and they aren't exciting and they don't handle that well, but not everyone wants to go fast around corners and/or stop on half a dime. I did, so I sold my HD and bought a Triumph, but all this talk about running out of old guys to buy Harleys is nonsense. The old guy demographic is always going to be there, and guess what, jackasses, in 10 or 20 or 30 years, it's going to be you and me. HD has been around for longer than any of us have been alive and they will most likely outlive us all as well. We might think we are the elite, the moto-cognoscenti, that we are too good for the bland, domestic pablum that our redneck brothers swill between NASCAR events, but there's way more of them then there are of us. Get used to it.

[John]

gloria wrote: "Buell has never really produced a true sportbike."

I'm not sure why that is a bad thing, except for the fact they didn't stay solvent. They built bikes they and I think many others thought were fun to ride. It seems too bad to me that a motorcycle, or any other item, isn't appreciated in and of itself for its unique qualities if it's not "better" than the competition.

[e]

A sad day for the industry. Buell may not have been the fastest runner in the race but the look wrapped around that Harley sound was unbeatable in my book. I have had faster with rice rockets but they just never had the class of the american machine. I am on my second buelli now and I must say it has been the funnest most fullfilling ride of my life outside the bedroom. It will be missed. Hats off to Eric Buell. I am glad I was fortunate enough to be a part of the dream, if only as a rider. e.

[Matt]

I will never give HD a dime, do they make bikes or just t-shirts...

[Motorcycle Enthusiast]

This leaves Fischer as the only remaining US sportbike manufacturer. Cool bikes, but if Harley can't make money on sportbikes how can a little company like Fischer? (Harley was losing something like $150 million a year with their Buell brand). Can't we make anything in the US anymore?

[Eduardo Chaves]

In which of the big brands you are received at the factory, by the "owner"? In 2008 I was at the birthday party of 25 years of Buell, and was received by the Erick. The employees knew the motorcycle deeply. They exchange positions on the assembly line, so they know everything. Buell is unlike anything you have seen - and see! can not run as much as the others, but ultimately, what matters is that appeals to your buyers - that's what counts! Here in the Rio de Janeiro (Brazil) are a host of owners, and we are deeply saddened. But the hope is that the entrepreneurial spirit of Erick reborn in a new partnership. I do not believe that the mark simply die ...

[Ham Radio]

The real story, yet untold, is shifting demographics. Expect to see about 20% of stand alone H-D dealerships fold up over the next ten years.

[RaiVeN]

I have a XB9R for 2 years now and it is my first motorcycle. I love it and will keep on riding it until it falls apart. When looking for a bike two years ago the firebolt was love at first sight (and sound). I love the thumping v-twin and the technical innovations on the bike. Although they produce excellent machines, the japanese and european motorcycles have technically barely changed in the last couple of decades. Erik Buell designed some pretty cools stuff (ZTL brakes, underslung exhaust,...) that no japanese or european engineer ever thought up. Too bad this innovative brand is no longer. HD made a loss due to the global recession and the first thing they do is axe a worldclass bikebuilder. I'll just cherish my XB even more now (in fact, I'm going out now and give it a hug!) ;-)

Thanks to Erik and the entire Buell team for giving us owners all this joy we get when riding their machines!

[Jess James]

Blocking out the babble of the detractors, as one would the musak whilst on hold, I'm saddened to hear of Buells demise. I’ve owned many bikes over the years, all of which I have sold on to purchase the next new joy toy, only one has ever stayed, my ’99 X1.
Eric your machines evoke passion, all the best with your next venture.

[Kirb]

I own a 1999 Buell Cyclone since new and love it. Very easy and cheap to maintain as well as easy and cheap to buy parts. You can't say that for a naked Ducati or Triumph at the time I bought my cyclone (or even now). I think I paid under $7k for my bike where most others were over $10k plus had the bonus of non-existant parts and uber-expensive dealer service intervals. Naked bikes from Japan didn't exist or were a borefest. The buells were designed around the engines they used and focused more on where people enjoy riding than track days.

Most of the euro bikes converting to better looking/better built turn signals switch to buell's $12 each units. Most engine parts were sportster based and all the rest was very inexpensive.

Any minor problems I had were repaired under warranty and have been bullet proof since. The bike is fun, agile, and not like every other cookie cutter bike.

I'm not a Harley snob, either. I own the Buell, 2000 Excelsior Henderson, 2005 Yamaha FJR, and 1948 Indian. Considering adding a Moto Guzzi. Buell fit my need for a great naked bike that wasn't like everyone else's.

[me]

Harley? MV Agusta? Sell them to someone who knows more than fat, ugly and loud bikes.

[Paul H. Martinez]

To the corporate board of HDMC.
If by closing Buell your hopes are that Buell riders will become Harley riders, you have made a an egregeous error!

[John Self]

Harley-Davidson stockholders should be FURIOUS.

Buell WAS HD's foot in the doorway to the youth market, and the youth market is the FUTURE of Harley. HD has been mismanaged (remember the Rocker?) severely, and with Buell, they have killed their future for the sake of a few cents of stock price today.

What about diversity?
Remember when Diversity was the way to a safe future? Don't put all your eggs in one basket, HD!!

What about long-term sales?
What are you going to sell when new bikes that look just like your 80 year old bikes aren't cool anymore? What's going to happen when the saturated market on HD's falls out?

What about honoring commitment?
You HAVE to provide parts and service, it is the law. But what does this say about Harley's commitment to it's CUSTOMERS?

These three questions are all major considerations of a strong company, and HD has just destroyed all that.

They're standing behind their obligation (because they're federally mandated to) to the existing Buell customers, but they're NOT standing behind their product!!

To top it off, Harley-Davidson, the originators of the "FREEDOM" campaign, has been CENSORING the negative response to cancelling Buell on their Facebook page!!

SHAME ON YOU, HARLEY DAVIDSON!!!

IF YOU ARE A STOCKHOLDER, a Buell owner, or even just a fan, call HD Customer service at 414-343-4056!
Wait for the 4th prompt, and TELL THEM TO SAVE BUELL.
They WILL listen and they can write down your opinion upon request!!

CALL THEM and BE NICE!

Tell HD to protect your product, and your INVESTMENT!!!!

Bring Buell Back!!!

[TM]

I absolutely love riding my 2007 XB9R Firebolt. It was/is my 1st bike and won't be my last. I knew exactly what I wanted when I walked into the HD dealership. I've ridden the rice rockets and still think the 'feel' of the Buell is better than anything with 900 plus CC's.

For those not so old guys that want the HD sound and power but not that "Old Guy" image this brand gave us what we wanted.

The sad thing is I'm moving to the UK from California and need to sell off my bike before I go. $5400 and 6600 miles. Any interest please drop me a line.

[Pasadena'ed]

Hey, Chris. Way to go with the copy and paste comment. How many other comment boards did you past the same diatribe to? I count two thus far.

HD thanks you for your continuing support.

Why all the "Harley hate", you ask? Um, I think that much is obvious after yesterday's announcement.

[Martti Silvola]

All of you who hate HD bikes need to go find something useful to do. Who cares if you don't like Buell or HD. Truth is that that company made some people happy, just not you. They have been doing it a long time and successfully as well! More than you can claim for yourselves too I bet. I will never buy a HD but I am happy that they make bikes that people enjoy. Good for them. It's a great world, now go enjoy what YOU like doing! Not putting others down for what they like or like to do.

Making a change for the better starts with YOU!

Whats with all these haters?

[D Craig Sallas]

I think its a shame Buell is being discontinued. Cut back would have been better. Buell made major in roads winning races and beating the majors. Bad time to cut and run. I say you should have gotten lean and mean. You guys were headin somewhere and my sons and I had our sites on Buell sport bikes. We're bummed. Big companies were built during bad economies....

[WOW]

Wow, this is big news. Someone should have told HD that Buell just won the AMA Sportbike Championship! How does it go..."Win on Sunday, sell on Monday!" Yeah, yeah, I know...they wrote the rules to fit Buell...wakeup they have been doing that for years for the Ducs in WSB.

I guess Jason D and Danny E will be looking for another pit to work out of next year.

[Robert Johnson]

Buells did something that no other Harley did properly it went round corners. Here in Europe that is very important and something that Harley have never learned.They will state their increased sales in the cruiser market as a factor of their increased sucess in Europe, be aware the bubble is about to burst. Owning a harley is a status symbol made possible by the weakness of the dollar, these bikes are rarely ridden and most owners will not trade up where as the normal Buell owner is late 20's, rides a lot and will probally buy a large Harley for long trips. To those critics who say Buell was not important to HD think again because this is the start of the end for HD.

[Ex-wife of Ex-Buell employee]

My former husband will finish his days at Buell in East Troy very shortly. Harley did not in anyway handle this properly. They told these employees 2 hours before this was announced on the news. These people had no time to even tell their families before this came out. Nice, glad I work there.
I gotta give kudos to Erik. He built this company on what he believe were values and Harley just blew those values. I feel Erik's pain at this time. It's gotta hurt that a company you built and sold to a big company ends up just cut and I doubt he can use his name again.
This is a sad day for all of these employees who have given their blood, sweat a tears to Buell and Harley Davidson. Harley is a company no one ever thought would go under, but they are closing the doors on Buell. We all thought how lucky they were to work for Buell/Harley. I now think how crappy it was to work for Harley. Thankfully I don't work there and at this point, myself nor my husband will ever purchase a Harley, not after realizing how they treated these people that they called "family". Nice "Harley family".

[Chris R]

Kudos to "Ex-wife of Ex-Buell employee" and "John Self" you summed up my thoughts.
This is another good example of people in high places, with high income and no or little knowledge of the core business they are running. The same guys thought a little over a year ago, that they had to buy a sport bike manufacturer (MV Augusta) to attract more people that they wouldn't reach with the Harley brand and now they do a 180 on the hole thing. Show's just how little they think or know I guess. Investors should give them the boot instead of cutting Buell.
The most recent advertising for Harley shows the American dream. Well, they (management) showed their true coulors. Same as the banker, and auto CEOs of recent. Their dream is money and more money at what ever cost, even if it means to spit in the peoples faces that had invested their hard earned money in Buell and their American Dream. Shame on you! Do you really thin by "refocusing" on Harley as you core business you can win over people that you (management) though wouldn't look at Harley just a year ago. How blind are you or your advisers!

What a sad day. I feel sorry for Erik and the employees at Buell. They truly inspired me and my dream bike until recently was a Ulysses. Their goes that dream.