Harley Davidson has hired BNP Paribas to help them sell MV Agusta. Maybe they could have done that with Buell, too, …
Press release follows:
HARLEY-DAVIDSON, INC. SELECTS INVESTMENT BANKING FIRM TO ASSIST IN SALE OF MV AGUSTA
BNP Paribas in Milan Will Help Harley-Davidson Move Sale Process Forward
MILWAUKEE (November 19, 2009) – Harley-Davidson, Inc. (NYSE: HOG) has selected the investment banking firm, BNP Paribas in Milan, to assist Harley-Davidson in the sale of MV Agusta. Harley-Davidson is currently identifying potential buyers for the Italian-based motorcycle company.
“MV Agusta is a highly desirable company for the right buyer,†said Harley-Davidson Senior Vice President and Chief Financial Officer John Olin. “MV Agusta has a proud heritage and strong brand, high-quality exciting and beautiful products, and passionate enthusiasm on the part of its customers, employees and dealers, and we are confident in our expectation that we will identify an appropriate buyer.â€
Harley-Davidson announced its plans to divest MV Agusta in October, as part of its go-forward business strategy to focus its effort and investment on leveraging the unique strengths of the Harley-Davidson brand to reach new customers, strengthen relationships with existing customers, and grow the Harley-Davidson brand worldwide.
While Harley-Davidson intends to sell MV Agusta, MV Agusta has continued to move forward on the road to revitalization. Under Harley-Davidson’s ownership, MV Agusta has restored production operations and continues to invest substantially in product development, as evidenced by the recent unveiling of the all new Brutale® and F4® models, which generated a highly enthusiastic response among customers and key trade media at the Milan show. MV Agusta is also returning to a position of prominence in the premium performance sport motorcycle category.
verbal says
Wait, didn’t they just BUY MV Agusta?
Jon says
It doesn’t really seem fair to suggest that H-D could have sold Buell like MV Agusta.
Harley owns shares of MV Agusta. They did not purchase the entire company and take full control of it.
Jon says
Actually, it seems I was mistaken — Harley Davidson does own all of MV Agusta.
That said, they have done little to integrate MV Agusta into their core business.
For example, MV Agustas are not sold at Harley Davidson dealerships.
Buell, on the other hand, is not sold outside of Harley Davidson dealerships, as far as I know.
Jason says
Now this sale makes total sense from the perspective that Harley needs cash, why not have a garage sale. Unfortunately it’s a bad time for a garage sale. People don’t buy a MV Agusta and then buy a Harley. People buy Agusta’s so they can park them in the garage next to the Ferrari they have in the French Riveria.
dave432 says
It looks like the dog has bitten off more than he can chew.
Arrogance and Greed always leads to the demise of the Corporation.
steve w says
Proof that they (HD) have gotten to the point that they “know not what they do”. It would be different if this was after years or several years of ownership but having purchased it such a short time ago this has to really be questioned. Did the new president take over after the purchase? Possibly he doesn’t have or some on the board have the proper motorcycle background to go along with the business decisions. I ride Harley clone customs and often wonder what HD is doing with it’s linup each year and who they are trying to sell the new? models to. Sorry MV, I was hoping to see you sometime in the near future in my area.
Fred M. says
HD killed Buell Motorcycle Company due to a few senior level managers with vicious, personal vendettas against Erik Buell. !80 Americans are out of work right before Christmas because a few people in HD management wanted to screw Erik Buell over in a high stakes game of office politics. There’s your ‘all-American’ Harley for you: Put 180 Americans out of work while announcing plans to sell Harleys in India.
HD could have easily sold Buell. The name has value. There is a rich portfolio of valuable patents, including fuel-in-frame, underslung exhaust, and ZTL brakes, etc. There are valuable, mature designs (like the 1125R and 1125CR). I’m sure that any number of potential buyers, including Bombardier (Can Am) could have managed to find dealers to carry Buell. Harley could have gotten out of having to supply parts and service for Buells by selling it. But that would have defeated the whole purpose: Screwing over Erik Buell, regardless of the damage done to employees and customers.
P.S. HD also screwed over its stockholders by not selling a valuable property like Buell.
Doug K says
An impressive number of corporate clichés all in one short press release:
“proud heritage and strong brand,”
“high-quality exciting and beautiful products”
“passionate enthusiasm”
“we are confident in our expectation”
“go-forward business strategy”
“leveraging the unique strengths”
“strengthen relationships”
“grow the Harley-Davidson brand worldwide.”
“road to revitalization.”
“returning to a position of prominence”
“premium.”
With a little more effort they could have squeezed in “DNA”, “stakeholder”, “customer focused” and a few others.
Harley’s ownership of MV is yet another blot on the name of one of the great names in motorcycling. I wonder if Valentino Rossi has enough money yet to buy MV and do right by it?
John O says
“…and we’d really screw up in the eyes of the world if we did the same thing to MV as what we are doing to our own. You know, all that effort and money we just invested in the Helicon motor which is not even 2 years old?”
Jim says
The need for HD to hire an investment banking firm to find a buyer is not good news for MV Agusta. It means the usual suspects who might invest in the sale are passing. It would be too bad if MV ended up going to some vanity group whose primary motivation is that it would be cool to own a motorcycle company.
Scotduke says
Perhaps the best thing would be for a major car manufacturer like VW to buy MV. It’d certainly be interesting. I still don’t understand why HD couldn’t sell the Bueel operation and remains as an engine supplier – something doesn’t add up in what’s been released though that doesn’t mean I think HD’s board was pursuing some kind of vendetta.
Zoom says
This is an amazingly important event in the history of motorcycling. A takeover must happen and happen sooner rather than later. MV needs a large responsible new owner willing to bring it into the modern era of business whilst maintaining it’s traditional ethos and restoring it’s image as a racing brand back to what it once was. It needs to remain a breeding ground for only the most creative designers, if we could clone a Massimo Tamburini every generation that would be ideal but this is the bar those who follow have to aspire to. All i hope is that it is taken over by a buyer who appreciates what the brand stands for in the world of motorcycling. We need to see this brand back in top flight road and track racing as soon as possible. Motorcycling needs MV Agusta to ensure the bikes we ride do not become bland machines lacking soul. Ok, so some rich guy in the south of France may have one in his garage, next to his Ferrari, which has never come face to face with a fly in his last second of life, but i can see more good than bad in that statement. If MV ceased to be who would remind other manufacturers that being just a machine is simply not enough???