Actual news on the KTM purchase of Husqvarna

[oregonsage]

If anything Italy is one of the worst off at the moment according to the reports I read. Not quite into Greek disaster zone but a lot of economic issues in Italy. Havent heard how its going in Austria which is probably a sign that they arent doing too bad. Germany does seem to have control of the show.

I assume youre referring to the Audi Ducati deal

 

[XLEnduroMan]

Tearing apart new bikes to turn them back in to part stock does not sound right, does it? I have never got any new part from any mfg. that have been pulls, all 4 Jap brands and Husky. If there are 11k+ Husky's in storage, SP needs to break it down and send a inventory list out to the dealers and go from there.

 

[rxcrider]

rasputin said: ↑

...the local car company just recently bought an italian motorcycle manufacturer for ~1 billion us-dollars.​

???

VW bought Ducati through Audi / Lamborghini

http://www.topspeed.com/cars/car-ne...not-own-ducati-lamborghini-does-ar133326.html

 

[dcg141]

What bikes do you now sell? Are you a Husqvarna dealer? Importer for another brand?


???

Coffee I am a KTM/Husaberg/GasGas/Sherco dealer. The US dealer meeting this year is at the factory in Austria. On the schedule is a meeting with SP. The info I get is from people I know in the industry. If its second hand I will say so like the conversation I had with the guy from Sherco. If and when I get any real info that I am able to pass on I will. I know for sure that 11,000+ units are for real and I think we can all see what kind of issues would arise from that. Those bikes will have to be dealt with quickly and its obvious that the factory had to be shut down. We may be offered a Husqvarna dealership in the future but we have received absolutely no information from KTM about Husqvarna. As such we would like for longtime Husky guys to become customers and I am sure some will and others will move on. I don't want to make anyone mad in here but in turn I want to be truthfull as to what I do know and what I think may happen.

 

[rasputin]

If anything Italy is one of the worst off at the moment according to the reports I read. Not quite into Greek disaster zone but a lot of economic issues in Italy. Havent heard how its going in Austria which is probably a sign that they arent doing too bad. Germany does seem to have control of the show.

just like germany, austria is doing quite well.
the situation in italy is bad, but not as bad as in spain or portugal or greece.

r

 

[silverpilen]

+11,000 bikes is a real problem. Pulling them for parts is not a solution because it takes as much or more labour to do that than to build them in the first place, then you have to tag, box and catalogue the parts which will probably be classes as 'second hand'? Forget it, they wont do that. Selling them off cheap through KTM or Husky dealerships is also not an option. This will flood the market and canabalise sales from KTM and hit their bottom line profits. They wont do that either. They may ship them off to a new market like India or China and sell them off cheap without impacting western markets and sales, this may be an option. Otherwise they are all for the crusher and landfill. If you don't believe a company would do this kind of thing, go rent the DVD 'Who killed the electric car".

 

[oregonsage]

+11,000 bikes is a real problem. Pulling them for parts is not a solution because it takes as much or more labour to do that than to build them in the first place, then you have to tag, box and catalogue the parts which will probably be classes as 'second hand'? Forget it, they wont do that. Selling them off cheap through KTM or Husky dealerships is also not an option. This will flood the market and canabalise sales from KTM and hit their bottom line profits. They wont do that either. They may ship them off to a new market like India or China and sell them off cheap without impacting western markets and sales, this may be an option. Otherwise they are all for the crusher and landfill. If you don't believe a company would do this kind of thing, go rent the DVD 'Who killed the electric car".

Yep, if those bikes really exist then using them to open a new market may be the best option. One of the problems with disassembly for parts is that some parts are rarely needed as replacements and others are worn or broken daily. Its a pretty weak parts inventory management strategy. It is pretty clear that whatever there is was 'free' to SP and melting most of them down isnt as crazy as it sounds.

 

[Mike-AK]

+11,000 bikes is a real problem. Pulling them for parts is not a solution because it takes as much or more labour to do that than to build them in the first place, then you have to tag, box and catalogue the parts which will probably be classes as 'second hand'? Forget it, they wont do that. Selling them off cheap through KTM or Husky dealerships is also not an option. This will flood the market and canabalise sales from KTM and hit their bottom line profits. They wont do that either. They may ship them off to a new market like India or China and sell them off cheap without impacting western markets and sales, this may be an option. Otherwise they are all for the crusher and landfill. If you don't believe a company would do this kind of thing, go rent the DVD 'Who killed the electric car".

I'd buy a 511 at cost to help ease their pain.

 

[silverpilen]

Interesting viewpoint here...

http://www.asphaltandrubber.com/new...ign=Feed:+AsphaltandRubber+(Asphalt+&+Rubber)

"With the exception of the Nuda 900, the new 650cc road models were not well received by fans or dealers, being largely warmed over low-end BMW products with many components sourced from outside Italy."

This is completely contrary to what I know. I thought they had problems selling the Nuda, and that the 650 Terra/Strada was very well received by dealers and buyers?

 

[dcg141]

+11,000 bikes is a real problem. Pulling them for parts is not a solution because it takes as much or more labour to do that than to build them in the first place, then you have to tag, box and catalogue the parts which will probably be classes as 'second hand'? Forget it, they wont do that. Selling them off cheap through KTM or Husky dealerships is also not an option. This will flood the market and canabalise sales from KTM and hit their bottom line profits. They wont do that either. They may ship them off to a new market like India or China and sell them off cheap without impacting western markets and sales, this may be an option. Otherwise they are all for the crusher and landfill. If you don't believe a company would do this kind of thing, go rent the DVD 'Who killed the electric car".

KTM probably has the only dealership group left in off-road to get those bikes sold. Sent worldwide with the right terms and pricing we could get them sold. I'm sure some will taken apart for parts. That's way cheaper than producing new parts even including the labor and packaging. Remember you only need to sell about 1/3 of the parts to actually pay for what you would sell the motorcycle for.

 

[Coffee]

...I know for sure that 11,000+ units are for real and I think we can all see what kind of issues would arise from that. Those bikes will have to be dealt with quickly...

Why do they need to be dealt with quickly?

One option is to do nothing, continue selling the bikes for the next 14-18 or so months which will get rid of the bike inventory, then bring out the new models that are presumably being thought about. That would bring in sizable income.

 

[Coffee]

Interesting viewpoint here...

http://www.asphaltandrubber.com/news/husqvarna-acquisition-trouble-varese/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed: AsphaltandRubber (Asphalt & Rubber)

"With the exception of the Nuda 900, the new 650cc road models were not well received by fans or dealers, being largely warmed over low-end BMW products with many components sourced from outside Italy."

This is completely contrary to what I know. I thought they had problems selling the Nuda, and that the 650 Terra/Strada was very well received by dealers and buyers?

Correct. Husqvarna sold as many TR650s in 2012 as they did any of the other models, and the TR650s were introduced very late in 2012.

 

[Kenneth Webb]

Wouldn't it be great if instead of ditching the TR650 he kept them and made improvements to lighten and increase suspension travel a couple of inches! It doesn't have to be a real trail or dirt bike, just an even better road going adventure bike. Nothing could touch it for versatility.

 

[dcg141]

Why do they need to be dealt with quickly?

One option is to do nothing, continue selling the bikes for the next 14-18 or so months which will get rid of the bike inventory, then bring out the new models that are presumably being thought about. That would bring in sizable income.

When I say quickly I mean they need to come up with a plan to get them sold within a year. The older they get the more the value drops. For the most part companies do not hold inventory in house anymore. I have to tell you I was kind of stunned to find out there were that many bikes there. I would say that it is an issue that KTM may have not anticipated. Sounds like BMW may have kept that under wraps. I get the sense that it has changed what KTM had in store for Husqvarna short term.

 

[ScottyR]

I honestly dont believe there is 11000 unsold units sitting in a warehouse somewhere. There are zero bikes in the US warehouse from everything I am being told.

 

[Coffee]

When I say quickly I mean they need to come up with a plan to get them sold within a year.

Crush the bikes vs selling them over 18months instead of 12? I realize scrap metal is highly desirable but not sure it is that desirable.

 

[dcg141]

I have this mental image of a couple of guys from KTM going to Varese and after getting the tour they ask "hey what's in there?"

 

[Boogie]

We have to remember that the "11,000 bikes in stock" is more than likely not just 11000 crates in one big warehouse. It probably includes inventory at each and every dealer and distributor. I recall reading in the letter addressed to dealers that stock will be checked and appropriate action will be taken. There are sales on now so it appears action is being take to clear existing stock.

One option is to do nothing, continue selling the bikes for the next 14-18 or so months which will get rid of the bike inventory, then bring out the new models that are presumably being thought about.

.... and the 2014 models probably will be released late and in limited numbers.

 

[dcg141]

I honestly dont believe there is 11000 unsold units sitting in a warehouse somewhere. There are zero bikes in the US warehouse from everything I am being told.

I have to say its difficult to get my head around.

 

[Motosportz]

We have to remember that the "11,000 bikes in stock" is more than likely not just 11000 crates in one big warehouse. It probably includes inventory at each and every dealer and distributor.

thats my thinking too. Hell Bills (BMP) must have 35 bikes in stock on the floor alone.