It Was Never Buell That Was The Problem

[Rogue]

Anyone who looked at the sales numbers and growth knew this from the gitgo.

I guess H-D CEO just didn't bother looking.

http://www.badweatherbikers.com/buell/messages/290431/613546.html?1296072676

[Gary B.]

I believe the numbers surged as soon as it was announced they were closing. I personally know of 3 Buells that were sold just 'cuz their days were numbered. JMHO...

[Rogue]

BAck in 09 someone posted up data on Buell sales trend.  It had steadily increased from year to year and there was a surge when the Lightning and Ulyses were released.

My point is that the shutdown was no based on sales performance.

[bomber]

Likely true -- the shutdown had all the earmarks of a corporate panic attack (anyone that's seen one will recognize others) . . . . . . it's too bad, but I'm not a stockholder, and no longer have a dog in this hunt, so I'll wish HDI well, and hope they get some leadership.

[Gary B.]

My point is that the shutdown was no based on sales performance.

I believe you are correct.
I, for one, am in the camp that says Harley believes it can sell overpriced, outdated product to the same public forever. So far, they're right. Buell was to them like kites are to Boeing. Just a market they don't need to get involved with.

[Rincewind]

Erik is almost ready to hit the road with his new production bikes.  I believe next month marks the end of the non-competition clause with HD.  He is getting his EPA testing done and prepping his production bike runs.

Maybe his divorce from HD will be a blessing in retrospect.  I couldn't tell what was going on in that BWB thread....  was there a chart or graph that I missed?

[bomber]

yep -- the chart illustrated a great march downward for HD sales while Buell sales held steady or increased, over the last 5/6 years.

no reall eye opening news, but still, a bit depressing to realize the HDI and Chevy are synonyms, as far as management smarts are concerned.

[Rogue]

Buell was to them like kites are to Boeing. Just a market they don't need to get involved with.

Well, that may be how they thought of it but it was more like:  Buell was to H-D like Multi-Role Fighters are to Boeing (who likes to build big, heavy, airliners and cargo planes).  

Buell's bike so outperformed any H-D bike, it wasn't even funny--even when they used H-D type engines!  

[Rogue]

....a bit depressing to realize the HDI and Chevy are synonyms, as far as management smarts are concerned.

I have to disagree with you because Chevy is capable of making great cars.  Just not across the board!  

Chevrolet can make world class high performance cars and trucks.

H-D can't make world class high performance bikes without help from outside.  It was always Buell helping them and providing them with the expertise to make their engines peform.

[2DFlyer]

Erik is almost ready to hit the road with his new production bikes.  Maybe his divorce from HD will be a blessing in retrospect.

With HD owning all the patents and rights to the Buell name what of all the trick stuff developed under his watch will he be able to use and what WILL they be named?  Pegasus?

[Baz]

If I recall, the Harley CEO quoted profit margin on Buell cycles was the reason for pulling the plug.

Big fat cruisers made them more money per unit sold. (A whole lot more) and they decided to concentrate their efforts on what they knew best. (You can't say this was a bad strategy seeing the mess they were in) This is also why they gave back MV Agusta.

When you have key shareholders pounding their fists on your desk asking about poor returns, loyalty will wear rather thin.

Of course you could debate to death that they did not provide Buell the proper support, etc. for it's demise.

[Joey Stalin]

what am i supposed to be looking at, a link to a thread on another forum discussing buell?

[Gary B.]

Well, that may be how they thought of it but it was more like:  Buell was to H-D like Multi-Role Fighters are to Boeing (who likes to build big, heavy, airliners and cargo planes).  

Even better!!

[Rogue]

If I recall, the Harley CEO quoted profit margin on Buell cycles was the reason for pulling the plug.

Big fat cruisers made them more money per unit sold. (A whole lot more) and they decided to concentrate their efforts on what they knew best. (You can't say this was a bad strategy seeing the mess they were in) This is also why they gave back MV Agusta.

That is all true.  The margins on the cruisers were really good.

But the biggest bleeding wound H-D had was their finance division, which was loosing money because they gave out so many bad loans to push the sales number up.  In addition, fat margins mean nothing if you are throwing away your future because you can't attract a younger customer base.  

I remember reading an article about the first week of H-D's new CEO.  His first question was:  Why do we have Buell?  Erik didn't make  new friends within the Motor Company either.  I don't blame him.  I didn't make any new friends at ANY of the H-D/Buell dealers I have ever gone to either!  

[Rogue]

With HD owning all the patents and rights to the Buell name what of all the trick stuff developed under his watch will he be able to use and what WILL they be named?  Pegasus?

Erik Buell Racing is the name of the company.  They have been up and running for a while now.  "EBR" for short.

EBR sells a few "offroad only" parts for legacy Buell models, and they also sell "Race Only" 1125R's and 1190R as well as parts for them.  If EBR is successful in bringing a new street model to market, the brand will be that.  You don't need the name and the patents....you just need the man behind the product.  

There is no other brand today that represents the hopes and dreams of one man.  There is no committee, it's just Erik.  The only source of weaknesses his bikes had was when H-D pulled strings and tied Erik's hands behind his back.  

[Brad1445]

That chart was crap, the scale is so far off it is misleading.  It also does not show that the best selling Buell was the lightning the second was the Ulysses and the newest bike was a huge nightmare with bad press.

If Buell had pride he would have quit rather than produce crap. Read all of Eriks interviews his vision changes to protect himself.  He could have quit to make a statement before releasing crappy bikes.

[atadaskew]

Where would the new Buells that Erik Buell is about to release be sold?

So many 'regular' dealerships have gone belly up, so who is going to carry them?  I don't see any HD dealers doing that.

For the product to succeed it needs a dealer base.

[Roadscum]

Why beat the dead horse?? Ya gotta make a profit to be in business, no??

[custodian]

Where would the new Buells that Erik Buell is about to release be sold?

So many 'regular' dealerships have gone belly up, so who is going to carry them?  I don't see any HD dealers doing that.

For the product to succeed it needs a dealer base.

I was betting on the BRP/Can-Am network... but no further news about the relationship has come up.

[st2sam]

I just got a brain storm.
No dealers, sold entirely over the internet, even parts.  
Every bike comes with a complete shop manual, disk and paper.
The one year warranty would include parts only. You mail part you think is defective, they send you new part and reimburse for shipping if part is defective.
I would rather do my own work, good technicians in my area are hard to find.  
IMO - most people who would agree to this type warranty will or should be mechanically able to be a parts changer.
Think about it, it just might work.
 

Is it spring yet!