Actual news on the KTM purchase of Husqvarna

[ntbhusky]

Dear All, first of all I'd like to thank you on behalf of those I know from Husqvarna who are grateful that you gave them this opportunity to share their situation, their problems, with you.
Now, I just want you to update you with the latest news, just the facts: today there will be a meeting at Lombardy's region HQ in Milan. Husqvarna will be there with their employee reps. who will meet again the Austrian delegation who actually came to Biandronno. One of them is Werner Kohlhuber.
They will discuss again the layoff of 212 employees which is pending in the near future, like Monday. Now, let me explain you better how this works: usually the Company who wants to proceed with a layoff is required to consult different local authorities and of course the employee representatives in order to reach an agreement. If this does not happen, then the argument is taken to the local Industrial Union Authority to further discuss the deal. If again the deal does not happen, then it cause higher at the Region. If even there everything blows, then the matter is take to Rome (i.e. ministry of labor ) .. NOW, usually it all ends very quickly. I mean, if your company is bankrupt or anyway doesn't have the money to keep going, then what you gonna do? But this case is one of the weirdest and most scandalous ever, because of many aspects: number one, the owner is not in financial trouble, instead is one of the richest men in his country, nevertheless his company is one of the richest in Austria. So he does have the money. Number two,they did not cooperate with any Italian autorities, they mainly skipped the whole thing and here is where the truth lies: you don't skip this process unless you don't want them to discover something you need to hide. Also, the only Antitrust that has been called is the Austrian one, which may raise some eyebrows: what they basically did was to announce the thing on their website and wait for 14 days until passing the deal… so you’d aspect some bigger attention to this kind of acquisition, we are talking about direct competitors, both of them located in Europe etc..This is also why there's a lot of attention from the Italian government, from national TV and press that usually does not give this kind of coverage to local companies of 200 people. I mean, we have Berlusconi guys, alone gets the 90% of the total national coverage everyday!

Anyways, I can also announce you that in Italy they are proposing the range with 30% discount or so http://www.moto.it/news/jackpot-110-anniversario-fino-al-30-di-sconto-sulla-gamma-husqvarna.html.
SP now is looking to get as much money as possible from what he found here, first the bikes stock, then the parts and the latest I think will be the whole HQ and production plant. Infact, getting back to our Mr Werner Kohlhuber, if you google him, the first link you'll find is this, which I believe will be the same fate of Husqvarna’s factory: http://www.advantageaustria.org/nl/oesterreich-in-netherlands/news/local/20110504_KTM-Gebaeude.html. So this man came for a reason and we know what it is.

We can all agree, I think, on the fact that Mr Pierer wants 2 things: the brand, so that he can keep control of the competition, and the money. He did mention a couple of times this is a Volkswagen-ish thing he's trying to do. Well, it's not. cause those VW people yes bought the companies and factories, but didn't close any of them, they invested in them. Huge difference.

Regarding the MV rumor, we heard the same thing here (now people please, of course we got rumors here. I mean, do you expect anybody right now to put in writing what's the situation? Like SP saying "YES I WANT TO SCREW THOSE ITALIAN PEOPLE HARD" and the BMW people say "YES, WE SCREWED UP AND RUN AWAY, BUT WE NEED TO KEEP OUR IMAGE STRONG. So we gave away the thing and forgot about telling the people they need to find another job soon".. seriously? I don't think it's happening).
it is also being heard Varese asked Castiglioni to move from the lake area as they would like to improve it as a touristic attraction. Castiglioni is the owner of the place, so he can decide, I mean they need to pay up. Seems he had a conversation with SP about the factory, but Pierer is asking for a high price for it and he cannot meet his request. I wonder if he's trying to reach the top 10 in the richest men of Austria's list tho.

BTW, I’ve notice been some doubts concerning where will Husqvarna be produced.. I can assure you 100% it’s not going to be Italy (unless ofcourse the whole thing blows up – SP is fined for industrial looting, is then forced to rehire the 212 people, pay them extra money to settle the situation, etc etc but it’s super hard). It will be Austria or India or both. So the made in Italy in Husqvarna is officially over.
Regarding the soap opera thing, to me this is more like a Disney story:

Donald Duck -> Pierer
The Beagle brothers -> BMW
And the 212 employees are the usual victims of the villains. Disney always give an happy ending, but this is real life and very few times there’s one.

We still feel sick about the takeover, hope that your government will make SP pay for his arrogance. Wishing the workforce well.

 

[organ donor]

Yes! Very much so! And screw KTM´s Pierer. There´s sure to be another Italian dirt bike when my Husky packs it in and I´ll not be party to whatever´s going on in Austria.

 

[street2dirt]

Got a ? about HUSKY GEAR, didn't want to start another thread. Do ya think the apparel stuff will be closeout priced also or will they just dispose of it. Been thinking about getting what I can now so when the next version of stuff comes out(2014?) I can still proudly wear the pre-KTM gear.....

 

[Norman Foley]

While we all get indignant about this turn of events, let's remember.... 25 years ago 400 people lost their jobs in Sweden, when Cagiva moved Husqvarna to Italy. There are still people who won't ride a Husky, because of that.......

 

[photoguy_43420]

I know a more then a few people that feel that way.

 

[Coffee]

While we all get indignant about this turn of events, let's remember.... 25 years ago 400 people lost their jobs in Sweden, when Cagiva moved Husqvarna to Italy. There are still people who won't ride a Husky, because of that.......

Was it really that many?

 

[Dano540]

Im actually pretty excited about the idea of having a Husky hard parts store. Maybe we can all buy Husqvarna toasters

 

[MOTORHEAD]

Oh, look what I found.

 

[PeterHB]

While we all get indignant about this turn of events, let's remember.... 25 years ago 400 people lost their jobs in Sweden, when Cagiva moved Husqvarna to Italy. There are still people who won't ride a Husky, because of that.......

It´s not entirely true. Husqvarna AB began building Husqvarna lawn mower in the factory where they built motorcycles.

 

[PeterHB]

Oh, look what I found.

I think I need to puke

 

[silverpilen]

Don't forget, the italian motorcyle industry thrives on small subcontractors. The manufacturers are essentially engineers/designers and assemblers, most of the components are farmed out to a myriad of smaller sub contractors, even frame tubes and forming and sometimes welding are outsourced. Checkout the Megafactory documentary for both MV-Augusta and Ducati to see what I mean. This is how Italy can remain efficient and competitive against cheaper Japanese and Taiwan/Chinese bikes and still maintain style and quality. The loss of jobs for the Husky factory workers is the tip of the ice berg, the knock on effect to others is significant if SP decides to dump Italy all together and move production to Austria/India. As far as KTM/Husaberg goes, the only Italian products I can think of is the Domino throttle tube, I don't even think they use Acerbis plastics anymore? It sounds like SP want Husky will to go the same way. No wonder the Italians are pi$$ed.

 

[MOTORHEAD]

Yes, you are absolutely right on that.

 

[wallybean]

Spent a little time working on a friends KTM today. All I am going to say is if this is what I have to look forward too then I won't buy one. Have done some engine work in the past and scratched my head a bit but todays experience was a jaw dropper.

 

[Norman Foley]

Don't forget, the italian motorcyle industry thrives on small subcontractors. The manufacturers are essentially engineers/designers and assemblers, most of the components are farmed out to a myriad of smaller sub contractors, even frame tubes and forming and sometimes welding are outsourced. Checkout the Megafactory documentary for both MV-Augusta and Ducati to see what I mean. This is how Italy can remain efficient and competitive against cheaper Japanese and Taiwan/Chinese bikes and still maintain style and quality. The loss of jobs for the Husky factory workers is the tip of the ice berg, the knock on effect to others is significant if SP decides to dump Italy all together and move production to Austria/India. As far as KTM/Husaberg goes, the only Italian products I can think of is the Domino throttle tube, I don't even think they use Acerbis plastics anymore? It sounds like SP want Husky will to go the same way. No wonder the Italians are pi$$ed.

Brembo brakes on all KTM models and also hydraulics for clutches on all except 125/150/200's, which still use Magura. KTM is super into vertical integration, they even build their own 2T expansion chambers.

 

[Norman Foley]

Spent a little time working on a friends KTM today. All I am going to say is if this is what I have to look forward too then I won't buy one. Have done some engine work in the past and scratched my head a bit but todays experience was a jaw dropper.

Walt,
Tell us the details....

 

[Xcuvator]

Walt,
Tell us the details....

 

[wallybean]

Hi Norman,

I am not going into details but I was just stunned with the cheesy parts and under engineered parts. I know that many of us are used to the over engineered bullet proof Husky 2T's and if this is the direction they are going then I am bailing. KTM's are premium priced bikes...I guess that is how you make money by saving on the little things that bite the regular guy in the ass after the new is worn off.

 

[MOTORHEAD]

Yes, I'd have to say that's a good way to put it. The new seems to ware off rather quickly and you're basically in need of a new bike.

 

[Dirtdame]

As a former owner of a KTM, I would say that that is true. Like little wood screw looking thingies that screwed directly into my gas tank to hold the shrouds on, cruddy subframe that cracked right away, cracked exhaust, leaky engine gaskets, blown shock seal, broken light switch and on and on getting nickled and dimed. No problems of that sort with either my Kawasakis or my Husqvarnas.

 

[bhab]

Hi Norman,

I am not going into details but I was just stunned with the cheesy parts and under engineered parts. I know that many of us are used to the over engineered bullet proof Husky 2T's and if this is the direction they are going then I am bailing. KTM's are premium priced bikes...I guess that is how you make money by saving on the little things that bite the regular guy in the ass after the new is worn off.

I wish you would share your observations, I have owned several KTMs and I've not found this to be true. Mine have been very easy to work on highly adjustable and well laid out. I try to stay out of the orange/red (or blue and yellow) debates, but your opinion is highly valued around here and I'd honestly like to know your thoughts.