Bye-Bye Buell

Bye-Bye Buell

ROUNDUP

In a move that stunned the entire industry this past October, Harley-Davidson announced it was discontinuing production of Buell motorcycles. Not just temporarily; for good. This brought to an end a 26-year run for Erik Buell as founder, namesake and driving force behind a line of uniquely engineered and designed motorcycles.

In that very same announcement, H-D also revealed that its MV Agusta unit, purchased just 14 months earlier, had been put up for sale.

Strengthening its core brand is the reasoning behind what the company calls its “go-forward business strategy.” Sales of new H-D motorcycles had fallen dramatically during 2009, resulting in a 76.1percent decline in net income during the first nine months compared to 2008. “We must focus both our effort and our investment in the Harley-Davidson brand, as we believe this provides an optimal path to sustained, meaningful, long-term growth,” said H-D CEO Keith Wandell. “We are moving with the speed and decisiveness required to bring our business strategy to life.”

“This was not a quick, knee-jerk reaction,” said Paul James, Harley’s Director of Product Communications. “Our CEO has been looking at this situation for quite some time and considering all of our options. This matter was not taken lightly.”

James also explained that the decision to shut down Buell and sell MV was not entirely based on current profitability. “Right now, we are outperforming the rest of the market, but that’s not sufficient for us to secure our future. For every dollar we invest in Harley-Davidson, we get a much greater return than we do for every dollar invested in our two niche brands. This is why it’s important that we now focus exclusively on the Harley brand.”

When asked why Buell was shuttered instead of offered for sale like MV, James explained that it was because of differences in their structure.

“MV is a standalone operation in a different country, so it was an easy piece to break off. But Buell is so highly integrated into Harley-Davidson’s operations that we couldn’t even consider trying to sell it. That would have been too awkward and disruptive.”

And what about Erik Buell himself? Although no decisions had been made at presstime, discussions were ongoing between Erik and H-D management regarding possible roles he might play in the company’s strategy-perhaps as an advisor in technical matters or the development of new products.

While supplies last, remaining inventories of Buell motorcycles, accessories and apparel are being sold through authorized dealers. H-D also continues to provide parts, service and normal warranty coverage for Buells. All factory-backed racing activities were terminated, although racers competing on Buells should still be able to obtain parts until inventories are depleted.

This is yet another tragic consequence of the financial calamity of 2009. Buell represented one of the few remaining examples of diversity in motorcycle engineering and design, and its presence in the sport will truly be missed. Paul Dean

Buell Timeline

1983 Erik Buell’s first motorcycle, the two-stroke, square-Four RW750

1987 The RR1000, the first Buell with a Harley-Davidson engine 1993 H-D buys a 49-percent share in Buell 1994 The S4 Thunderbolt, the sportiest Buell streetbike to date 1998 H-D buys all remaining interest in Buell 2002 The XB9R, with innovations such as fuel in the frame, oil in the swingarm and inside-out ZTL front brake 2008 The 1125R, the first Buell in 20 years with an engine not sourced from Harley-Davidson

2009 The Buell Motor Company closes its doors