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.
