KTM/Husqvarna... now how will this play out?

Discussion in 'Newsroom' started by Farmer John, Jan 29, 2013.

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  1. Bobby Husqvarna
    AA Class

    Location:
    Woodstock, GA
    Husqvarna Motorcycle:
    '13 TXC310Rx2,
    Other Motorcycles:
    G450X, HP2E, 10 R12ADV, GasGas280
    This is the part that concerns me,....is the Terra now a one year trick pony or going to remain? It's in demand and a great price point, but if BMW is going to supply Engines what exactly does this mean? This is particuarly important to me as HSQ wants a Terra order from me today, but nothing is going to show up for over a month or more and from what I'm seeing the future for that model could change drastically in the next month, hard to say!
    Bobby, Jan 31, 2013
    #361

  2. ray_ray Mini-Sponsor

    Location:
    The Philippines
    Husqvarna Motorcycle:
    08\013 WR250, 010 TC250, 012 TC250
    You gotta remember, this guy just tossed ktm and who ever else out the door in a business manner ... He's gonna make some business remarks whether he means them or not ... Like a business apology... Its worthless ...

    He appears to have the cards he wants as he can still keep working dirt bikes as he sees fit and back over at the place he just left, well, Bajaj may wanna turn the company attention somewhere other than racing and researching dirt bikes ... Husky is sort of their lifeline in a way to ktm if this plays out ... The ktm ama racers will be a key indicator on money spent on racing ...

    And its usually good business to keep your enemies close and look over the counter from time to time at them ...


    Its a key indicator to watch ...
    ray_ray, Jan 31, 2013
    #362

  3. mnb Husqvarna
    Pro Class

    Location:
    San Jose, California
    Husqvarna Motorcycle:
    2011 TE310 . . . . 2003 TE610e
    BMW was good for Husky. Some people will never admit it, but without BMW, Husky wouldn't even be around right now. I am disappointed that they didn't see the deal through, cutting it short after only 6 years (and the first three did nothing). But they didn't seem to understand Husky. Road bikes are fine and all, but they put too much effort in that and not enough in the Husky core.

    Peirer could use this acquisition to increase his controlling interest in KTM or he could have his golden parachute. That remains to be seen. It all depends on where his mindset is with the Bajaj deal. Is he ready to cut bait and bail? To admit defeat? Or will he leverage this, stay on board and fight?
    mnb, Jan 31, 2013
    #363
    ohmygewd and Motosportz like this.

  4. boisedave Husqvarna
    AA Class

    Location:
    Boise, Idaho
    boisedave, Jan 31, 2013
    #364

  5. ray_ray Mini-Sponsor

    Location:
    The Philippines
    Husqvarna Motorcycle:
    08\013 WR250, 010 TC250, 012 TC250
    Power ... pure power ... The rubber is meeting the road as we speak ....

    I bet those Husky guys are like : "The exit is that way" ... Let bmw purchase the one-way tickets home :) ...
    ray_ray, Jan 31, 2013
    #365

  6. Planepower Husqvarna
    AA Class

    Location:
    Edmonton, Alberta
    Husqvarna Motorcycle:
    2007 TC 250/ 450 6spd, 2007 SMR 530
    Other Motorcycles:
    Ducat 1198S, SV1000, CBR125, DRZ125
    Thanks for a bit of clarification Grandia!

    I sure hope it doesn't signal the end of the TRs, they seemed to be one up on anything else in that class. And, I hope the Nuda continues, that was to be my next street commuter after this season. Sell the 1198 once I get my trophy and pick up the Nuda. From the sound of it, any BMW influence will be scrapped. :(
    Planepower, Jan 31, 2013
    #366
    Motosportz likes this.

  7. Dirtdame Administrator

    Location:
    Rock Springs Wy
    Husqvarna Motorcycle:
    11 WR300,13 WR125,18 FE501
    Other Motorcycles:
    17 Beta Xtrainer
    I'm hoping that the new owner will use his marketing skills (that helped make KTM such a success) with Husqvarna also. We should see better advertising, add on parts, accessories and clothing hopefully....and the kind of features that most of the model lineup has been needing for some time now. And maybe some new models, like some minis and new DI two strokes.:thumbsup:
    Dirtdame, Jan 31, 2013
    #367
    rajobigguy, ray_ray and Motosportz like this.

  8. Motosportz CH Sponsor

    Location:
    Vancouver WA
    Husqvarna Motorcycle:
    2021 TE250i, 570 Berg, 500 KTM, 790R
    Other Motorcycles:
    many
    I don't think there will be any KTM involvement. As I understand it he is selling his control and interest in KTM / to Bajaj India and going all in with husky. If this is true i think we are in fro great things.
    Motosportz, Jan 31, 2013
    #368
    WoodsChick, ohmygewd, dave lindsey and 6 others like this.

  9. mnb Husqvarna
    Pro Class

    Location:
    San Jose, California
    Husqvarna Motorcycle:
    2011 TE310 . . . . 2003 TE610e
    I'm sure existing parts and deals for their mfg for current bikes are part of the deal. That's a no brainer. Besides, with the exception of the Nuda, BMW doesn't sell bikes based on anything Husky has.

    I expect all the BMW based bikes to be EOL'd. There were rumors of a 450 based X-Lite. That may see the light of day with the death of the 449. It all depends on what Peirer wants to do with the brand.
    mnb, Jan 31, 2013
    #369

  10. Motosportz CH Sponsor

    Location:
    Vancouver WA
    Husqvarna Motorcycle:
    2021 TE250i, 570 Berg, 500 KTM, 790R
    Other Motorcycles:
    many
    I think your right, all that might be going away. On the other hand he might be able to continue that sourcing engines from BMW / Kymco. If so we might even see fantastic Dakar type 650 bikes etc.
    Motosportz, Jan 31, 2013
    #370

  11. mnb Husqvarna
    Pro Class

    Location:
    San Jose, California
    Husqvarna Motorcycle:
    2011 TE310 . . . . 2003 TE610e
    Or he could leverage buying Husky into more controlling interest at KTM... It's too early to call. Like, you, I prefer that he would focus on Husky. Besides, it makes for a way better movie.
    mnb, Jan 31, 2013
    #371

  12. Phil Lamb Husqvarna
    A Class

    Husqvarna Motorcycle:
    2012 TE310
    The following is my assessment, based solely upon some net snooping.
    Bajaj has been steadily increasing its % of Cross Industries, currently about 47% owned by Bajaj, 51% by a Stefan Pierer controlled corp. Cross is the majority owner of KTM. Pierer originally brought in Bajaj for development capital. Bajaj may have a right to buy more of KTM, or Pierer may have a right to sell more to Bajaj. At these percentages, Bajaj is essentially in control. SP may just sell his KTM stake and roll it into Husqvarna.
    KTM is coming off a strong year. Its stock, listed on the Vienna exchange, traded all fall around 44 euros, now it is about 50. Pierer may have a buy sell agreement and a performance bonus as CEO based upon stock value. Might be a good time to sell.
    BMW paid about 93 million euros for Husky. If they are willing to take a loss (which would be a minor issue given their finances), even more incentive for SP. He will not want to burn bridges with Bajaj until everything is finalized. In the long run, Bajaj is more interested in economical rather than high end cycles (apparently the 3rd largest motorcycle manufacturer in the world). And all of this is premised upon the lack of a noncompete which would otherwise bind SP.
    Phil Lamb, Jan 31, 2013
    #372
    Grandia likes this.

  13. Motosportz CH Sponsor

    Location:
    Vancouver WA
    Husqvarna Motorcycle:
    2021 TE250i, 570 Berg, 500 KTM, 790R
    Other Motorcycles:
    many
    thats my hope.
    Motosportz, Jan 31, 2013
    #373
    WoodsChick and crille74 like this.

  14. glangston Husqvarna
    Pro Class

    Location:
    Gardnerville, NV and Mammoth Lakes, CA
    Husqvarna Motorcycle:
    2012 Husqvarna TE 310
    Other Motorcycles:
    2012 BETA 350 RS
    Only thing that makes sense.
    glangston, Jan 31, 2013
    #374
    WoodsChick likes this.

  15. Motosportz CH Sponsor

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

    Bayerische Motoren Werke AG (BMW), the world’s largest maker of luxury vehicles, agreed to sell its struggling Husqvarna off-road motorcycle unit to focus its two- wheeler efforts on its namesake brand.

    Pierer Industrie AG, the holding company of Austrian investor Stefan Pierer, which also owns a 51 percent stake of motorcycle maker KTM AG, signed an agreement to buy the brand for an undisclosed sum, the Munich-based manufacturer said today in a statement.

    “Husqvarna didn’t fit to BMW’s long-term strategy,” Pierer said today in a telephone interview. He aims to end losses at the brand, which will remain independent, by 2014.

    BMW, seeking to defend its lead in luxury-car sales from Volkswagen AG (VOW)’s Audi and Daimler AG’s Mercedes-Benz, is parting ways with Husqvarna after buying the brand in 2007 to appeal to younger riders. The manufacturer plans to scale back ambitions in the off-road motorcycle segment with the sale.

    “In the context of changing motorcycle markets, demographic trends and increasing environmental demands, BMW Motorrad will expand its product offering to exploit future growth potential,” the company said in the statement. “The focus of the realignment will be on urban mobility and e- mobility.”

    Pierer plans to retain Husqvarna’s focus on off-road bikes and will use KTM’s international marketing experience to facilitate expansion, he said.

    Limited Synergies
    KTM, originally an off-road brand, has successfully expanded its model lineup to street bikes over the past decade. The Mattighofen, Austria-based company’s motorbike sales rose 32 percent to 107,142 vehicles last year with strong growth in India, the home country of KTM’s partner Bajaj, which holds 47 percent of the manufacturer.

    Husqvarna sold 10,751 motorcycles last year, an increase of 16 percent. Deliveries of BMW-brand motorbikes increased 2 percent in 2012 to 106,358 vehicles globally, marking a record for the 90-year-old marque.

    “The synergies between BMW and Husqvarna motorcycles were probably limited,” said Frank Biller, an analyst with LBBW in Stuttgart. “The brands address two very distinct customer groups and completely different motorcycle segments.”

    Husqvarna, which started making motorbikes in Sweden 110 years ago, was previously owned by Italy’s Cagiva MV Agusta group. The vehicles are now developed and produced in Cassinetta di Biandronno, Italy.

    BMW started rolling out two scooter models in July to attract urban commuters. The company plans to introduce an electric scooter next year.
    Motosportz, Jan 31, 2013
    #375

  16. ScottyR Husqvarna
    AA Class

    Location:
    Mitchell, ON
    I get the feeling that the EU would not allow KTM to purchase Husqvarna and that is why Pierer bought it personally. This way they get around the anti-trust legislations in Europe. It hasnt been confirmed by anyone that he is selling his shares in KTM. I think this deal will be similar to the relationships that a lot of auto makers have. Up until last year, Ford owned 40% of Mazda for example.
    ScottyR, Jan 31, 2013
    #376
    robertaccio likes this.

  17. Planepower Husqvarna
    AA Class

    Location:
    Edmonton, Alberta
    Husqvarna Motorcycle:
    2007 TC 250/ 450 6spd, 2007 SMR 530
    Other Motorcycles:
    Ducat 1198S, SV1000, CBR125, DRZ125
    Dammit! I'm hooked onto this thread now! Lol
    I'm really beginning to believe that Husqvarna will be promoted heavily. :)
    Planepower, Jan 31, 2013
    #377

  18. Motosportz CH Sponsor

    Location:
    Vancouver WA
    Husqvarna Motorcycle:
    2021 TE250i, 570 Berg, 500 KTM, 790R
    Other Motorcycles:
    many
    Tons of info rolling out today onthis announcment.

    CycleNews...

    As has been rumored for the past few weeks, BMW has agreed to sell the Husqvarna brand. But the sale isn't to KTM as originally believed, but instead to Pierer Industrie AG of Austria - the company owned by Stephan Pierer, the CEO of KTM.

    BMW says the sale of Husky is part of the realignment of its BMW Motorrad business.

    "In the context of changing motorcycle markets, demographic trends and increasing environmental demands, BMW Motorrad will expand its product offering to exploit future growth potential," a release from BMW issued this morning states. "The focus of the realignment will be on urban mobility and e-mobility. By restructuring the segment, the BMW Group will concentrate on expanding and utilizing the resources of the BMW Motorrad brand. Therefore the BMW Group signed a purchase agreement with Pierer Industrie AG (Austria) for the acquisition of Husqvarna Motorcycles. The acquisition will proceed subject to approval by anti-trust authorities. Both companies have agreed not to disclose the purchase price."

    BMW purchased Husqvarna from the Castiglioni family (the owners of MV Agusta) in 2008 and have been active in expanding the line-up - both with new off-road models and streetbikes like the Nuda 900.

    Although it sounds like BMW will focus its efforts on the "urban mobility" sector, it closed its press release with... "core segments from the 650 single-cylinder entry-level bike to the six-cylinder luxury tourer will also be selectively expanded."

    BMW Motorrad achieved new sales records in 2012, according to BMW.

    "With the realignment of its motorcycle business, BMW Motorrad aims to maintain profitable and sustainable growth over the coming years," the release states. "Its current core business consists exclusively of premium vehicles in the categories "Tourer", "Enduro", "Sport", "Roadster" and "Maxi-Scooter" from 650 to 1600cc. BMW Motorrad entered the urban mobility segment for the first time in 2012 with the C 650 GT and C 600 Sport maxi-scooters. The next step in the expansion of the product line-up in this segment will be the series launch of the "C evolution" electric scooter in 2014. Further innovative vehicle concepts are also under consideration. Drive trains will include both environmentally friendly combustion engines and pure electric drives. This move by BMW Motorrad reflects the BMW Group's overall focus on early identification of trends, such as megacities and traffic density, as well as environmental issues. Corresponding products and services are already available for the automobile segment."
    Motosportz, Jan 31, 2013
    #378

  19. boisedave Husqvarna
    AA Class

    Location:
    Boise, Idaho
    Very interesting -- I am hooked on this topic. Waiting for some info from the new owner. That would be great!
    boisedave, Jan 31, 2013
    #379

  20. MikeB Husqvarna
    AA Class

    From what I can gather then: Cross Industries is purchasing Husky ... and currently owns controlling interest in KTM, Pankl, and WP (and a couple of others). The BIG question is whether or not Cross is seliing its interest in KTM ?? In any case it would appear that Huskies will probably be suspended with WP in the future; that the Cross company that was developing DI for 2 strokes will get back to work; that Husky WILL surely get some new 250 and 300 2 strokes whether they be KTM based or not; that there's a good chance Husky will become one of the big players in all forms of off-road competition (and I hope Jenna keeps her job - she's been great to deal with regarding Husky contingency money).
    IF Cross is bailing on KTM that would be very bad news for the orange crowd ... I too wonder if DeCoster would retire or move over to make Husky MX competitive.
    :popcorn:
    MikeB, Jan 31, 2013
    #380
    oregonsage likes this.
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