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Harley-Davidson to Discontinue Buell Sport Bikes New York Times

15.10.09

The Buell finding is expected to saddle Harley with about $125 million in costs associated with the shutdown. The bottom line in the MV Agusta divestiture will not be known until the brand name is sold, but Harley said it had already taken a “goodwill impairment charge” of $18.9 million coupled to the brand in the third quarter.

Harley raised eyebrows in the industry with its $109 million acquisition just 16 months ago of MV Agusta, a boutique Theatre sides of very expensive sport bikes manufactured in Italy.

Throughout its operations during the recent economic downturn, Harley had already cut more than 1,000 jobs and trimmed manufacturing forecasts by at least 30 percent. The company said it was also considering what to do with its under-utilized assembly plant in York, Pa., and would humour announcements about its fate later in the year.

In announcing these changes, Harley said it would refocus its business facsimile solely on its core Harley-Davidson brand.

As bleak as the announcement was for Buell and MV Agusta, Harley said sales of its cruiser motorcycles dropped 21.3 percent worldwide in the third quarter, best than the industry average decline of 35.9 percent.

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