From a Buell press release:
Buell Motorcycle Company officials thanked the company's customers, employees and dealers for an unforgettable ride, following today's announcement by Harley-Davidson, Inc. that it will discontinue the Buell® product line as 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.
"I want to personally thank all our past and present Buell employees, dealers and suppliers for their efforts. I also want to thank Buell motorcycle owners for their support and passion for the brand," said Buell Motorcycle Company President Jon Flickinger.
Flickinger said a limited number of new Buell motorcycles remain available for sale through authorized dealerships and production will wind down by October 30. He also stressed that Harley-Davidson will provide replacement parts and service through dealerships and that warranty coverage will continue as normal for Buell motorcycles.
"I will always be proud of what we have accomplished. It is a testimony to what a small group of passionate and inspired people can do, and with brilliant innovations, we've produced some of the best-handling bikes of all time," said Buell Chairman and Chief Technical Officer Erik Buell. "I personally look forward to exploring how I can continue to work with Harley-Davidson to bring advanced product technology to riders.
"I have also had the great fortune to meet and get to know many Buell riders over the years, and they are an amazing and interesting group of free thinkers," Buell said. "May you ride with pride into the future. And may your roads ahead be as adventuresome and rewarding as mine have been for the last 26 years."
From a Harley-Davidson press release:
Harley-Davidson, Inc. (NYSE:HOG) announced decreased revenue, net income and earnings per share for the third quarter of 2009 compared to the year-ago period, while reporting a moderation in the decline of retail new Harley-Davidson motorcycle sales compared to the second quarter. Worldwide retail sales of new Harley-Davidson® motorcycles declined 21.3 percent in the third quarter compared to last year’s third quarter, an improvement from the 30.1 percent decline in this year’s second quarter. An 84.1 percent decline in net income and an 84.5 percent decline in diluted earnings per share from the year-ago quarter reflected lower motorcycle shipments and the effects of the economy on retail and wholesale loan performance at Harley-Davidson Financial Services.
Harley-Davidson also unveiled major elements of its go-forward business strategy to drive growth through a single-minded focus of efforts and resources on the unique strengths of the Harley-Davidson brand, and to enhance productivity and profitability through continuous improvement. As approved yesterday by Harley-Davidson’s Board of Directors, the Company will discontinue its Buell product line and divest its MV Agusta unit as part of this strategy.
“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.”
The Company will discontinue 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 Dec. 18, 2009.
Relative to MV Agusta, the Company will immediately commence efforts to sell the business, which is based in Varese, Italy.
“Buell and MV Agusta are great companies, with proud brands, high-quality exciting products and passionate enthusiasm for the motorcycle business. 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,” said Wandell.