Actual news on the KTM purchase of Husqvarna

Discussion in 'Newsroom' started by Howard V, Mar 4, 2013.

  1. Dirtdame Administrator

    Location:
    Rock Springs Wy
    Husqvarna Motorcycle:
    11 WR300,13 WR125,18 FE501
    Other Motorcycles:
    17 Beta Xtrainer
    I bought my first Husqvarna, a brand new 2007 TE450 because I actually managed to find a magazine review on it (a feat in itself) that gave it a short but favorable writeup. Then I went to the dealer and spent a lot of time looking at the bike, and even asked to look at the schematics of the machine to see how things were put together inside the engine. The bike was slightly less expensive than the KTM 450, but seemed to have plenty of nice engineering in its build, plus esthetically, it was such a beautiful machine compared to the KTM. Seemed like the obvious choice. Besides, it would be easy to find my machine, when parked in a sea of pumpkins. Also had that WOW factor to the general motorcycling public, who for the most part didn't even seem to know that Husqvarna motorcycles still existed, much less such uber cool ones.:banana:

    The second Husqvarna that I bought was a 2011 WR300. I bought this one because I lusted after it ever since I got to ride one on a press day event. It was marked down a bit, but i still couldn't afford it. I was not planning on buying it at all (was on my way to buy some kitty food), but ended up applying for financing which I didn't think that I was going to get....but it turned out that my credit was fantastic, and I took the bike home and forgot about the kitty food until the next day.
    Indorider, JonXX and wallybean like this.
  2. Radar Husqvarna
    Pro Class

    Location:
    Southern Nevada
    Husqvarna Motorcycle:
    2012 TE449

    I take umbrage at you questioning my honesty Sir

    But on the other hand I appreciate you explaining why I bought the TE 449.

    I thought it was because it was a street legal dirt bike that has CTS and a BMW motor.

    I had no idea it was because it was not a KTM. I thought I liked KTMs

  3. Dirtdame Administrator

    Location:
    Rock Springs Wy
    Husqvarna Motorcycle:
    11 WR300,13 WR125,18 FE501
    Other Motorcycles:
    17 Beta Xtrainer
    That's okay. He probably bought his KTM because he didn't like other brands. Ya think?:rolleyes:
  4. mnb Husqvarna
    Pro Class

    Location:
    San Jose, California
    Husqvarna Motorcycle:
    2011 TE310 . . . . 2003 TE610e
    Nah, buying orange is the safe buy. Like Windows. Everyone else uses it, so it must not suck, right?

    Before that it was Honda. In some countries, the word Honda is the generic term for motorcycle. Like Xerox for a photocopy or BandAid for a bandage.





    My philosophy on buying what everyone else has is quite simple:

    6 billion flies eat shit, but you don't see me lining up for chow.
    JonXX likes this.
  5. LandofMotards Moderator

    Location:
    Colorado
    Husqvarna Motorcycle:
    2014 TC250
    How did you wind up at a dealer while out getting cat food? Lol. Either way, perfect story :)
  6. ray_ray Mini-Sponsor

    Location:
    The Philippines
    Husqvarna Motorcycle:
    08\013 WR250, 010 TC250, 012 TC250
    This SM saga is weird to say the least ...

    Husky dominated SM racing in EU for quite some time before the previous, previous owners purchased the company. Then they win a championship with the new 449 bike. Then, then they kill off the SM racing. Hard to see how this makes sense from a customers view. Now, the new owners are bringing it back? OK ...

    --

    Pricing is the throttle I'm guessing ... SP really does not know the sales number on each brand till he sees the first real numbers, so I'm seeing the ~+$50 pricing as a hedge against the unknown ... Depending on the real sales numbers, he can then set a price with the profits margins he would like to see that will achieve sales numbers they are wanting to see. And these margins will have to be somewhat based off the current ktm margins I'd guess since the 2 are so closely joined at the hip. He can't really stomp on the ktm pricing that is successful to the tune of out selling bmw sales numbers ...

    Discounting new sales numbers in emerging markets, his current customer pool is somewhat 100K (?) ktm buyers + 5K(?) Bergs + 7k Husky =112K current new bike owners. It is possible some numbers can swing enough here (from the ktm pool over to Husky) to make all this really interesting in the next few yrs ... No swings in sales numbers and its just gonna be a slug fest for sales up to the double-sales-numbers SP refers to from time to time ... In any event, a $500 or so prices swing might can sway customers if needed in the future. SP might have a tiger by the tail here if a large number of ktm guys mover over to a Husky! :00).

    Now add in the emerging market sales numbers and it will be fun with all the sales numbers in the future. Keep your eyes on dirt bikes sales only in the future. Husky lives there actually no matter what SP produces with Husky decals on it.

    (Intel is dealing with profit margins now big-time as they try to switch from a PC 'chip maker' to all the other small devices 'chip-maker' that have emerged on the computer chip scene the last few yrs. )
  7. Dirtdame Administrator

    Location:
    Rock Springs Wy
    Husqvarna Motorcycle:
    11 WR300,13 WR125,18 FE501
    Other Motorcycles:
    17 Beta Xtrainer
    It's right on the way to Petco.:D
    JonXX and Norman Foley like this.
  8. LandofMotards Moderator

    Location:
    Colorado
    Husqvarna Motorcycle:
    2014 TC250
    Ray, if I remember right Husky was the only manufacturer to have a contingency for USA Pro Supermoto. It was quite a bit of cash for such a small Pro series. I'm interested to see how the new Husky treats Supermoto because he has said in multiple interviews that Supermoto is part of Husky and he wants it to be something they focus on.
    JonXX likes this.
  9. LandofMotards Moderator

    Location:
    Colorado
    Husqvarna Motorcycle:
    2014 TC250
    Makes sense lol
    Dirtdame likes this.
  10. Norman Foley Husqvarna
    Pro Class

    Location:
    Trumansburg, NY... The Beautiful, Finger Lakes
    Husqvarna Motorcycle:
    82 250WR 86 250WR 93 WXE350 03 TE610
    Other Motorcycles:
    '85 Fantic 300 '12 HUSABERG TE250
    Thank goodness it wasn't Small Business Saturday and you went to the little store in the other direction!
  11. Jeff aka BOLT Husqvarna
    AA Class

    Location:
    BOLT Ranch
    Husqvarna Motorcycle:
    Shopping for lightly used 09/10 450
    Other Motorcycles:
    350SXF 530EXC 300XC 525EXC 525MXC
    Don't feel bad... I almost bought a 449 too before I did some research. :thumbsup:
  12. oregonsage 4st Clerk

    Location:
    Dry Washington
    Husqvarna Motorcycle:
    FX450
    Other Motorcycles:
    Yamaha DT400 x 2, BMW G310R
    Ive been researching my TXC511 for 3 years. Still makes me smile every time I ride it. Still my favorite bike ever....and I have lots of data points.
    ray_ray, mnb, Motosportz and 3 others like this.
  13. Motosportz CH Sponsor

    Location:
    Vancouver WA
    Husqvarna Motorcycle:
    2021 TE250i, 570 Berg, 500 KTM, 790R
    Other Motorcycles:
    many

    Ditto. Owned this longer than any newer bike because i love it.
  14. Muchmore Husqvarna
    AA Class

    Husqvarna Motorcycle:
    2012 TE511
    Other Motorcycles:
    BMW K1600GTL
    I originally bought it because it had a 3yr 36k warranty thru BMW but when that bike was destroyed and it was relabeled a Husky I figured, I liked it then and BMW trusted it enough to put that long of a warranty I think I'll have another!
  15. TROFFER88 Husqvarna
    Pro Class

    Location:
    Camas Wa
  16. Sparrowhawk Husqvarna
    AA Class

    Location:
    Eastern WA, USA
    A German national newspaper Die Welt (The World) shines a not too flattering light on BMW's handiling of Husky. Nov. 27, 2013.

    http://www.welt.de/wirtschaft/article122313242/Hat-BMW-eine-italienische-Motorradmarke-ruiniert.html

    Google translation:

    BMW has ruined the Italian motorcycle brand?

    BMW wanted to revive the motorcycle manufacturer Husqvarna a cult brand - and has failed in every respect. Now the Italians throw the otherwise successful Bavaria technical mistakes before.

    By Tobias Bayer and Nicholas Doll from Biandronno and Berlin

    For days, the workers stood at the gate of the Husqvarna factory in Biandronno north of Milan. Defiantly, disappointed, drenched by the rain. They blocked the driveway, not a vice should be pure, none come out. The protest action this week was the last gasp of the 230 workers at the motorcycle maker.

    After their withdrawal is final in Italy for the legendary brand of sports and off-road equipment. Then there is for most just "Cassa Integrazione" support from the state. For one year a few hundred euros per month.

    "If we are not already used, we want to give them at least crumble into additional costs," a staff member said stubbornly. Who is meant by "them", reveals a red sheet that has hung the workforce to a balcony. It says: "Husqvarna ... Killed by BMW and KTM. "

    KTM has long been the archrival Husqvarna, but since the beginning of the competition is decided. In January Husqvarna was sold by BMW to the KTM shareholder Pierer Industrie AG. The Austrians did not hesitate to stop production in Italy. The plant is used in the future for spare parts.

    But the anger is directed not so much against the employee KTM, but especially against BMW. The Munich had gross management and strategic errors committed and so run down the brand, the accusation of employees. And when the bill had not gone up in Munich, you wanted to get rid of the two-wheeler daughter just yet, no matter how.

    In premium cars the measure of all things

    BMW is in business with premium cars undoubtedly the measure of all things. No one sells more vehicles in this league, none achieved higher margins. No one is in the trend themes low emissions and electric vehicles earlier. Even the motorcycle business of the Group is running shiny.

    Only the small sports and off-road brand faltered. Between 2008 and 2012 amassed Husqvarna to a net loss of more than 240 million euros. Apparently, the otherwise so spoiled by success Bavaria were so overwhelmed - it is said in Italy.

    When the staff learned this year from the planned sale to KTM, she was shocked. "BMW should have known that the Austrians had no interest in continuing the production in Italy," complains an employee.

    "You have one of our competitors given money so he closes the factory and the brand to Austria takes along," says a second at the blocked gate. On 10 July had demonstrated eight hours before BMW headquarters in the suburbs of Milan San Donato the workforce. The management had promised answers, an employee recalls. "But has reported at the end no one," he says bitterly.

    The list of accusations that the Italians make the Bavaria is long. Proven suppliers were replaced by German suppliers. Instead at a supplier in the region screws were purchased from Berrang in Mannheim. Have been saved had they thus almost nothing, say employees. "Logistics not counting" - For some materials, the cost would have doubled, one says.

    No saving potential recognizable

    From the balance sheet, no fine-saving potential can be seen in any case. The material costs devoured regularly more than 80 percent of sales. 2008, ie one year after the takeover by BMW, it was around 83 percent in the past year as much as 87 percent.

    The fact that Husqvarna has significant rehabilitation needs, the Munich went on soon. Business consultants were sent to Biandronno. They rolled up to the production, purchase, ordered new software and organized workshops, which should encourage the team spirit.

    Quite a few Husqvarna employees rolled their eyes and cursed under their breath about "waste of money". Undoubtedly, BMW dropped the consultant Bonanza will cost some. In 2011, fees for external consultants amounted to 16 million euros. The entire Husqvarna workforce only cost 15 million euros.

    Also in terms of technology, otherwise safe terrain for the Munich, BMW have located next to vigorously criticize employees. It was decided to use engines from the Taiwanese manufacturer Kymco Husqvarna machines. At BMW of Kymco drive came already in the model G 450 X for use.

    BMW customers may have accepted the engine, the echo of the Husqvarna clientele on the drive was devastating, the Italians say. "That's our image in the market completely ruined, the motor was just not powerful enough," says a Husqvarna employees.

    Sudden strategy swing

    The biggest mistake of BMW see the Italians, however, the strategy pivot, the decision to make the off-road specialist for manufacturers of road machinery.

    "Currently, Husqvarna only in off-road and off-road racing, and in the Supermotos a strong name. Certainly we want in this area sell more machines and put us technically to the top. But the sports segment accounts for only about ten percent of the motorcycle market from," explained Klaus Allisat, who was in September 2010 became head of Husqvarna, the decision now to build road machines. Nuda 900 was the model that wanted to score with the Allisat and praised the press as "strong Bavaria with Italian elegance."

    The Husqvarna workforce summarizes the other hand, at the memory of the Nuda today to the head. "Husqvarna had long built no more street bikes," says one employee. "The fans of road bikes preferred long-known name. Offroad trailer, however, were not overnight road drivers." Husqvarna Nuda have cost the project approximately ten million euros, although the model had already been largely developed by BMW.

    The development of the enduro machine 630 have tasted the other hand, one-fifth. The idea of ​​the Nuda 900 is not lit. 2012 Husqvarna introduced a total of approximately 11,400 motorcycles here - far from the target of 30,000 and significantly less than in 2008, the first full year under the leadership of BMW.

    The Munich were lined with ambitious goals. "With the aiming to the sporting competition Husqvarna models we can extend the offer quickly to younger audiences as well as to the entire off-road and supermoto range," announced 2007 BMW motorcycle chief Herbert Diess.

    Three years later, the optimism was undiminished. Klaus Allisat wanted to repeat in the bike what was in the car business succeeded with mini: the revival of a myth and the creation of an attractive motorcycle-level brand.

    2007, it was still gorgeous

    The odds were not bad, 2007, the motorcycle business was altogether splendid, even with the competition, and even in the niche business with off-road and sport bikes. Husqvarna was small, but had in countries such as the USA, Australia or Italy perfectly respectable market share. But the need for remediation was enormously similar to Mini.

    "The circumstances under which was produced in Biandronno were politely paraphrased adventurous", a BMW manager remembers the face of antiquated equipment. 2007 have also not yet once more the supply of parts to work. "The brand was already completely down badly degraded and that in a time when the motorcycle industry still went well," says an industry expert. "BMW has received at that time basically just a brand name plus plot, nothing more."

    Given the rumored purchase price of 100 million euros, the BMW should have paid, highly abundant appears. But the Munich wanted to venture into the off-road business. "Since we purchased a still appeared the cheaper option than the corresponding models to develop itself," says a BMW motorcycle man.

    But the financial crisis nullified all plans. 2008, the paragraph in particular large-scale machines, as BMW is building collapsed on motorcycles, were just hard to sell. The overall market was halved in the next few years almost, the demand for motocross or off-road machines, such as those produced by Husqvarna, fell still more steeply.

    Who buys already sport bikes if there are new daily bad news in the business sections of the leaves? "Small brands have it as particularly difficult. Without an investor such as BMW Husqvarna would this time did not survive," said an industry expert.

    Help of consultants

    That BMW relied heavily on the support of management consultants in the motorcycle daughter, is not disputed in Munich. "This just proves that we meant it seriously," says a BMW man. The fact that areas such as purchasing and marketing have been completely restructured, was inevitable, and the incorporation of Kymco engines was therefore the right decision.

    "These are BMW engines that we can build with Kymco. At BMW motorcycle that has but also works." Also, the plan to let Husqvarna produce road bikes, defend the Munich today. "Because you could not only on components of BMW recourse, but with motorcycles of this type completely different margins are possible, as these are achieved in off-road or sports."

    At BMW one admits that Husqvarna was a "entrepreneurial venture". After five years it was too big to Bavaria. A sale to a manufacturer who is active in the same segment, had been the best solution, it is believed at BMW.

    The Munich assert that one is not assumed that the new owner of post closes down the Italian factory. "The fact that after a sale pending tough restructuring measures, however, was clear," says a BMW man.

    Another end would have been possible. The end of 2012 BMW knocked at the northern Italian motorcycle manufacturer MV Agusta. The Husqvarna had once owned and new interest, not least because of the know-how of the employees.

    Early 2013 was the purchase agreement have been ready for signing, says MV Agusta CEO Giovanni Castiglioni, who was completely surprised by the sale to KTM and also still annoyed: "As BMW has not acted properly."

    All that is left in Biandronno at the factory are 102 unsold motorcycles, neatly arranged on the model, frame number and license plate. And the word "Husqvarna Motorcycles" on the administration building.
  17. Sparrowhawk Husqvarna
    AA Class

    Location:
    Eastern WA, USA
    Another interesting translated interview with Oliver Goehring posted on Thumpertalk http://www.thumpertalk.com/topic/1013154-husqvarna-2014-and-forward-or-life-after-bmw/?p=11209545

    Snipits:

    What was your reason for buying a Husqvarna?
    So first of all it was an opportunity that presented itself. BMW could offer, we accepted it.Secondly, KTM is the clear leader on the off-road market and there already do not see much room for growth. Simply put, not everyone wants orange and there are always customers who will want something else. For them we have a Husqvarna.


    We will find the latest news from some of the original Husqvarna?
    No, certainly not. We started from scratch, we build on the proven basis of a new Husaberg Husqvarna have nothing with the technology of Varese, with BMW, with Kymco ...


    Let's take the question of prices, which many are interested. Husqvarna reach out to customers through lower prices. How will it now?
    With the new Husqvarna certainly will not go this route. Husqvarna is and will be a premium brand. Bike on which components are the best and it will match the price. Italian Husqvarna motorcycles also not produced with the intention of selling them cheaply, lack of development and obsolescence of models and their components to the fact they simply forced to appeal to customers at least a lower price.


    What spare parts for owners of older models of Husqvarna?
    The spare parts 'Italian' will take care of your Husqvarna factory in Varese, it will take at least seven years, which is the statutory period.


    They will in future Husqvarna differ more from Husaberg and KTM?
    Do not hide the fact that current models are based on a large scale from Husaberg. On the contrary, we wanted to maintain the relationship with Husaberg and underline the connection on what was once divided. Anyway, in the future we will certainly evolve and perhaps go a different route than the KTM. But again, the use of a single platform is especially huge benefits. We come every two-three years with significantly upgraded technology and finance the development of such a challenging duplicate would be useless and ineffective.
    Tinken likes this.
  18. ray_ray Mini-Sponsor

    Location:
    The Philippines
    Husqvarna Motorcycle:
    08\013 WR250, 010 TC250, 012 TC250
    This sounds a little interesting and what a big fat, clueless company, rolling in money will do. Buy a company and then bring in outside people to 'fix' the previous company and really crap on the current people and processes with new outsiders making fat fat money under your nose. This is like saying : "you guys don't know how to build a dirt bike but with out fat money bag, we will bring in people who know how to build dirt bikes. Now back to work and we will tell you what you need to do later".

    --
    All water under the bridge. And nothing new really. Business as usual. And the beat goes on.
    4eyes likes this.
  19. organ donor Husqvarna
    Pro Class

    Location:
    Berlin
    There´s a long tradition of BMW eliminating competition here in Germany. After re-unification, BMW got rid of the very popular East German manufacturer MZ. Once a company has achieved a certain size, innovation becomes less important than attaining a monopoly position. It´s only small companies that innovate. BMW and KTM have left us without a street legal super moto. Just hope that some of the smaller companies jump in and fill the gap.
  20. Muchmore Husqvarna
    AA Class

    Husqvarna Motorcycle:
    2012 TE511
    Other Motorcycles:
    BMW K1600GTL
    It's funny you say that because I would consider their street bikes S100RR, new K16's ETC. to be very innovative, much more than their competitors, except possible Ducati.

    When they owned the G450X before the purchase of Husky it had two service bulletins, one was for graphics that wouldn't stay on the plastic so they mailed me a whole new set of plastics (without me asking) and the other was a weak kickstand, which they mailed to the dealer for safety reasons to be installed. At the time BMW really took care of that dirt bike (3yr/36k mile warranty) second set of plastic at no cost but when Husky was purchased they seemed to adopt a traditional view of dirtbikes.