Harley-Davidson, Inc. has announced decreased revenue, net income and earnings per share for the third quarter of 2009 compared to the year-ago period, although the slowdown of retail sales is not as great as it was in the second quarter.
Sales are down some 10 per cent in Australia which compares well with worldwide retail sales. These declined 21.3 percent in the third quarter compared to last year, and were accompanied by an 84.1 percent reduction in net income.
The Motor Company also unveiled major elements of its revised business strategy to drive growth through a single-minded focus on the unique strengths of the Harley-Davidson brand. How is that going to happen? Well, the Board of Directors has decided to close Buell and sell the recently-bought MV Agusta.
“While the environment remains challenging for us, we are mildly encouraged by the moderation in the decline of dealer retail Harley-Davidson motorcycle sales,” said Keith Wandell, Chief Executive Officer of Harley-Davidson, Inc. “And moving forward, our strategy is designed to strengthen Harley-Davidson for long-term growth and deliver results through increased focus.
“As our announcement regarding Buell and MV Agusta indicates, we are moving with the speed and decisiveness required to bring our business strategy to life,” said Wandell. “The fact is we must focus both our effort and our investment on the Harley-Davidson brand, as we believe this provides an optimal path to sustained, meaningful, long-term growth.”
So Erik Buell, America’s Bellerophon, will no longer be able to ride his Pegasus. The flying horse, in various versions, has been the logo of the sports bike manufacturer since the beginning – but this is, it seems, the end.
Effective pretty much immediately, the Motor Company will stop production of Buell motorcycles. Remaining inventories of Buell motorcycles, accessories and apparel, while they last, will continue to be sold through authorized dealerships. Warranty coverage will continue as normal for Buell motorcycles and the Company will provide replacement parts and service through dealerships.
The decision will result in a reduction over time of about 80 hourly production positions and about 100 salaried positions at Buell. Employment will end for a majority of Buell employees in the week before Christmas.
“Buell and MV Agusta are great companies, with proud brands, high-quality exciting products and passionate enthusiasm for the motorcycle business,” said Wandell . “Buell has introduced many innovative advancements in motorcycle design and technology over the years and MV Agusta is known in Europe for its premium, high-performance sport motorcycles. However, our strategy to focus on the Harley-Davidson brand reflects the fact that we believe our investments in that brand are a better utilization of overall company resources”..
Watch for a pictorial review and tribute in Australian Road Rider soon.
This message from Erik Buell is one of the most touching things I’ve ever seen.
Long live the name, even if production has ceased.
http://www.buell.com/en_us/
Peter “The Bear” Thoeming
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