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Buell to Rise From Harley's Ashes?

Tuesday, October 20, 2009
Erik Buell
Erik Buell smiling during better times.
It’s been less than a week but the rumor mill is already churning. Reports about investors looking to resurrect Buell Motorcycles are already circulating. A business group based in Wisconsin near where the Buell facilities are located, loosely identified as the Walworth County Economic Development Alliance, is reportedly contacting Erik Buell about resurrecting the company that bears his name. The alliance is made up of business leaders and Chamber of Commerce members who are looking to retain as many jobs as possible. East Troy is a small community with a population of around 4500 people, so of course local business leaders will scramble to save an outlet that employs a lot of people in its district.
 
The Buell plant’s closing means 180 people found out they were out of a job this week, and there’s no telling how many other companies that Buell did business with which were indirectly affected. So the Alliance is chivalrously trying to keep production in East Troy, Wisconsin, in order to keep a paycheck coming in for its 180 employees.

The major complication that immediately pops up is the fact that many of Buell’s designs and components are trademarked by Harley-Davidson. Now you’re getting into that ambiguous grey area. Who wants to see their trademarks in the hands of potential competitors? Then again, Harley’s hurting for revenue, and maybe the selling price could be too good to refuse for the cash-strapped company.
 
Then there’s the wording of the announcement itself. Harley is ‘discontinuing production’ of Buell motorcycles. Does this mean it’s leaving the door open to maybe one day ‘continue production?’

From what I’ve gleaned from reading numerous forums is the fact that there a bunch of Buell loyalists out there who would love to see what Erik could do without having being under the thumb of The Motor Company.

Are there any motorcycle enthusiasts out there with a billion to invest in a motorcycle company? I hear there’s a couple up for sale.
Post Tags: Buell Motorcycles, Harley-Davidson, Erik Buell, motorcycle manufacturer
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Comments
zcarman - Buell  October 24, 2009 08:14 PM
The only thing holding Buell back was those junk Harley engines. I bought a Ulysses and loved everything about it except the motor. He should team up with Can Am and put Rotax motors in the entire lineup. It would be a perfect match as Can Am needs a 2 wheeler to go with there ATV's and Spyder's. Erik Buell's forward thinking would fit right in at Bombardier. They could produce way better bikes than anything that ever came out of Harley.
Patrick - Bracing for the times?  October 22, 2009 07:17 AM
This could be some sort of crazy conspiracy theory; but with the wording of their announcement, and the fact that they are still turning a profit this quarter it makes me think more is at play here than meets the eye.

I think HD may have shut them down right now so they can take the tax write-off in a quarter that they are profitable (remember, their tax rate just went up to around the 60% mark, a huge jump) and then sell it next year and use the cash to keep them afloat in a year where they may take a loss... I could be way off the mark here and i'm not a businessman, but could be.
Steve Cangiano - Buell Investment  October 22, 2009 02:54 AM
I bought a 2009 Buell Ulysses XB12XT just this past August after riding a cruiser for a number of years and a lot of study on what the market had in the sports touring arena. This machine, in a word, is "remarkable." The quality of of materials and manufacture represents what Made in America used to be and should still be. At first I was alarmed at the news of H-D's sale of Buell, but I have no doubt some smart investor, either singular or conglomerate, will scoop this baby up. Perhaps Erik Buell will propose an owner/investor set-up of somekind. I would certainly participate and he already has his Buell Owner Forum to present such a notion. In the meantime, I happily ride my machine as daily transportation and get favorable comments on it wherever I happen to be or stop.
Haggis - HD/Buell conflict of interest  October 21, 2009 03:22 PM
I tend to agree with USAall the way. I went into a local HD dealer who had very grudgingly stuck the Buell's as far away from everything else....as if they were contagious. Added to that was an indifferent and often hostile or resentful sales team that only was interested in selling those antiquated and overpriced lumps of iron from "the motor company".
I am one of those guys who is smack in the middle of HD's usual demographic, and I was seriously considering a Buell 1125CR before my sour experience with the dealership, and now HD's actions have put the final nail in that coffin. HD's management...or shall we say mismanagement, which involved buying MV Augusta just in time to have to sell it...and bailing on Buell leads me to believe that the boardroom at HD needs a good cleanout.
NorCalFilth - EVERYONE STOP FOR A MINUTE  October 21, 2009 01:27 PM
Guys, HD has suspended production, they haven't bulldozed the plant. I think that this is going to be a way for HD to reinvent its self. Who wants to pay $20k for an outdated POS? I truly think that HD will make some style changes and replace some tank stickers and you will see the CR and all the other new models that are actually great motorcycles again soon.... but not as a Buell, as a HD.
Jim Vincenti-Buell Cyclone M2 - Ouch!  October 21, 2009 11:31 AM
Just like a bee sting, this one hurts! Being a Buell rider I see I am on edge of mainstream motorcycling but a pure motorcylist at heart. I saw Erik Buell's anouncement and what a heart breaker. He has put his heart and soul into the developement and research of all kodels. The 1125 model is right on target. I can't believe HD is tossing this one as it has just got started and has great potential. On another note I would watch HD's newer models, there might be some Rotax flavoring in them. I hope Erik Buell comes back to life as a much stronger motorcycling company. To you Erik Thanks for a great motorcycle and continued great models through the years! Right now I'm going to go price a new Buell Ulysses......
fast2win - Buells future  October 21, 2009 08:05 AM
I can't see HD using any of Buells technology, really the only thing I see is the eng improvements on a sportster, but that helped HD as well. Styling runs HD and Buells engineering does not fit that guidline. HD does not mention anything regards to bring Buell back at a later date, if and when they turn around. It seem the best shot is to get investors to buy/bribe HD to sell all the rights to Buell. Doing so would mean they would also have to take on all the current warranty's for seven year's etc. Well it's the 4th Qtr. and theirs seconds on the clock the old man drops back he' gotta a man in the end zone and fire's it!!!!!! sorry got carried away
BOBBY BAUM - BUELL  October 20, 2009 09:49 PM
I believe that Buell is being dropped due to the low sales and the possibility that HD has some new product waiting to enter the arena that focuses on the cruiser line. The HD engine is comppliant till 2012 and they need to focus to get out a new engine that is compliant. Water cooled? Unit constuction?
If the new engine was unit construction, then the Sportster buell line would suffer the financials of retooling and competing in a heavey market.
Easier to focus on the main product line.
It has to be a sad day for Erik and his hard work.
That's my opinion.
BB
MotoJoe - Buell  October 20, 2009 08:17 PM
Well I went and bought an 1125R today. Got an amazing deal! After riding this bike for just 76 miles I can not believe that Harley would give up on this horse just as it is finding it's stride. I am no GP racer but I have ridden many bikes. This is the smoothest turning street bike that I have ever ridden. The gearbox box is awesome! It is a simple click, click, click through the gears. I also have an XB12S, fun bike but now where near the machine that this new 1125R is. I really think that Harley saying that they are ceasing production is the key here. Wording is everything. They won't be willing to sell it either becuase they don't want someone else to make them look stupid. Same old go at something for a while and then just stop. Same old Harley crap! I own a Harley as well as a couple of imports and this is another dissapointment from our American Motorcycle Company!!!!!
Jon Watters - I wrote to CNN after hear   October 20, 2009 06:32 PM
The other day I went to the Buell web site like so many time since my first test ride in 1999and found that buell was over.I have ridden Buell motorcycle many times and found them to be the best handling bikes on the market.I wrote to CNN to see if they would air the story of Buell lose hoping others would see and be able to help Eric Buell keep his company alive.To see that others are looking to help makes me happy to know that some one out there to keep this American dream going. Good luck to Eric Buell and his famialy.
USAalltheWAY - HD vs Buell  October 20, 2009 05:50 PM
I would love to see Buell get bought and funded by another company (or person) other than Harley-Davidson. The main reason I decided not to buy a Buell and instead bought a Suzuki SV1000 was I disliked the “motor company”. I would hate to have to deal with the dealer every time I would need parts or service knowing I would be looked upon as a shoe scraping that should “step up” someday to a “real” bike; kind of like how Sportster owners are treated.

If Buell came back with a 1125R derived type bike and a 650 or 850 version and just dropped all the air cooled models entirely, especially since HD has recently just dropped Buell, Erik would get my dollars$$$.

I know for a fact I am not the only one who feels the same way about Buell and their old relationship with HD. If HD bought Suzuki I would stop buying Suzuki it is simple as that.

Ryder - Buell  October 20, 2009 02:32 PM
Harley would be silly not to sell Buell vs shutting it down. The only bike in Harley's line than MIGHT compete with anything from Buell is the XR1200. Additionally, Harley would maintain a sales outlet for Sportster engines for a few more years...

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