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

[Joe Chod]

I think these are 4 stroke street models being sold in India and Asian markets.

Saw "KTM" on engine cases of bikes that looked like 1975 CB 250's in Afghanistan. Brand new. There is a whole other world out there that we USA folks tend to ignore.

 

[oregonsage]

These various "news reports" reflect the lack of business/financial coverage of this industry. Many questions: What is the status of KTM facilities; newer updated factories, where is their infrastructure capital being spent? Same for Husky. I have the sense from somewhere that their Italian plant is very modern. What has been Bajaj's recent trend re moving production of major recent car acquisitions to India? Where are their motorcycle production facilities? How much of KTM is already in India? What is the board makeup of Cross and KTM? Nationality of senior management and staff? Any recent senior personnel moves involving Bajaj, Cross, KTM, Husaberg, Husqvarna?
I agree, much more to follow. In the meantime, glad that I am not a struggling dealer trying to allocate scarce inventory capital/credit vis a vis Husky, KTM, Husaberg; particularly if required tooling for service requirements is likely to change. I know that the required tooling for Strada/Terra has put off some Husky dealers.

Exactly, what we have so far is news outlets regurgitating press releases which sound a bit different depending on whether they originate in Mumbai, Austria or Munich.

What to watch for....does Mr. Peirer remain in Mgmt at KTM? If so then this deal is making Husqvarna and KTM cousins. If he goes his own way then they are splitting the family and becoming full competitors.

 

[Gotlabs]

""""A: Let me give you two analogies. Let us say, Mercedes and BMW. They may both be in the same segment and they may both essentially be luxury cars but they are very different kind of luxury cars. Second example is, Volkswagen and Audi. They are not in the same space, Audi is one step above Volkswagen.

While they are quite different at the front end they do share the platform and therefore they do share a lot at the backend right from product development to supply chain to manufacturing. With these two analogies we can venture to say that what can happen in the case of KTM and Husqvarna is one at the front end and this is my personal opinion, KTM and Husqvarna should retain their individual brand identities because even today both brands have place in the marketplace.""" End quote""""


Am I the only one reading this in the respect that bajajaj is saying they will be the high roller by owni g ktm outright, and Husky will be sucking hind teet?

 

[Colo moto]

The new owners will be responsible for service and warranties on all Husky product. And, when the deal is final, BMW will no longer supply any BMW parts or engines to Husqvarna.

If this part holds true then that effectively means the end of the 449/511, 650 terra and strada, moab, and nuda. At least as badged as Husqvarna's, possibly sold as BMW's, but unlikely as BMW wants out of the dirt market where the 449/511 lives and would most likely want to shed anything that links it to Husky like the moab, nuda and 650 models.

 

[oregonsage]

Saw "KTM" on engine cases of bikes that looked like 1975 CB 250's in Afghanistan. Brand new. There is a whole other world out there that we USA folks tend to ignore.

Right, the global positioning of the brands may be one way to get mileage out of both KTM and Husqvarna. The world often looks different when you leave the 'west'.

 

[oregonsage]

While they are quite different at the front end they do share the platform and therefore they do share a lot at the backend right from product development to supply chain to manufacturing. With these two analogies we can venture to say that what can happen in the case of KTM and Husqvarna is one at the front end and this is my personal opinion, KTM and Husqvarna should retain their individual brand identities because even today both brands have place in the marketplace.

I think the weakness of this approach is that in any given country the dirt bike market is not very big and its probably inefficient to fragment it this way. However, it might be a useful tool in other markets...say Husky is the brand in Malaysia, while KTMs are the one in Iraq....

 

[pvduke]

bring back the twin cams!!!

 

[utopia]

Saw "KTM" on engine cases of bikes that looked like 1975 CB 250's in Afghanistan. Brand new. There is a whole other world out there that we USA folks tend to ignore.

They have a Duke 200 and a 390 is on the way:

http://www.ktm.com/in/naked-bike/200duke/highlights.html

People laugh at a 200 4-stroke streetbike in the USA, but they really are quite practical and a cheap form of transportation elsewhere.

 

[SHY UK]

the fact of the matter is that Audi plays in a higher market space than VW.

presumptive caste arrogance...

 

[robertaccio]

how this will play out?? I will still ride and race my 310 every weekend and do normal maintenance and needed mods to it, To keep her going strong, I have no control over the big biz of company takeovers and purchases. Doesnt really matter WTF is going on up in corp headquarters. Same as the good ole USA. Just Get out and ride.

 

[Motovet45]

http://www.reuters.com/article/2013/01/31/us-bmw-husqvarna-idUSBRE90U18E20130131

Not sure if anyone saw this or not, looks like common components ala Husaberg. Definitely going after the Japanese brands market share.

 

[utopia]

how this will play out?? I will still ride and race my 310 every weekend and do normal maintenance and needed mods to it, To keep her going strong, I have no control over the big biz of company takeovers and purchases. Doesnt really matter WTF is going on up in corp headquarters. Same as the good ole USA. Just Get out and ride.

My thoughts exactly. No matter what happens, the sun will still come up tomorrow, the snow will eventually melt and spring will come, and when it does I'm gonna just keep ridin' the heck out of my 09WR250!

 

[ajaxauto]

Boy this is fun Really BMW Acted like they did us all a favor well did they? Lets see they made Husky use there 449 motor the one no one really races,Then they made some street bikes and dual sport bikes
well who really cares.Husky is knows as a DIRT BIKE Company so I hope it continues as one.I really do not think BMW knew alot about dirt bikes and it seemed they would not lissen to those in the know about them.BMW people act like this is formula 1 when it really is Nascar. Maybe BMW tryied to make Husky something it is not people who ride Dirt Bikes are different so do not try to change them.
Maybe the future is looking brighter,maybe a new Husky/husaberg racing team something like that.
Most of the staff at Husky USA use to work at KTM so who know what will come of this
I hope Husky returns to making only dirt bikes racing one at that
KTM seems to like 2 strokes so lets hope for the return of premix or DI I do not care either way
I just want to take my cheap ,light weight,easy to work on dirt bike out for a ride beat it then fix it and do it all over again week in week out.

 

[utopia]

http://www.reuters.com/article/2013/01/31/us-bmw-husqvarna-idUSBRE90U18E20130131

Not sure if anyone saw this or not, looks like common components ala Husaberg. Definitely going after the Japanese brands market share.

That's the first statement that I've seen quoting anything from Pierer himself:

..."I want to see Husqvarna sales double in five years time to 20,000 motorbikes," he said, adding that his immediate focus would be on rejuvenating the ageing line-up of offroad models.
Instead of fully integrating both companies, Husqvarna and KTM will be managed separately, while reaping the benefits of using common components.
"This way we can use common engineering platforms to develop a variety of models that have completely different characteristics for each brand," Pierer said.

...When asked whether he was concerned the two brands might cannibalize each other's sales, he admitted there would be a slight effect.
Overall, however, the Husqvarna brand would help it take share away from Honda (7267.T), Yamaha (7272.T), Kawasaki (7012.T) and Suzuki (7269.T).
"It's never 1 plus 1 equals 3, but it's certainly 2.7, and there are still four Japanese brands from which there's plenty to grab."

Interesting.

 

[mnb]

And, when the deal is final, BMW will no longer supply any BMW parts or engines to Husqvarna.

That depends on the details of the deal.

Additionally, all BMW employees at the Italian Husqvarna plant will stay on BMW's payroll and return to Germany.

Not necessarily. They may go with Husky. Or they might yo yo back to Berlin. That depends on BMWs intent when they were placed in Husky. If they filled Husky headcount, they're gone. If they were loaned to Husky, they'll yo yo back.

Also unknown is what Peirer plans to do with Husqvarna. Can he repeat the success of KTM with Husqvarna? Does he plan to sell Husqvarna to someone else? What role will Bajaj play in all of this? Will he leave KTM to take up the controls of the Italian firm? Will KTM absorb Husqvarna they way they did with Husky spin-off Husaberg?

 

[oregonsage]

presumptive caste arrogance...

Nope, that is how they market them in the US.

 

[mnb]

That's the first statement that I've seen quoting anything from Pierer himself:

..."I want to see Husqvarna sales double in five years time to 20,000 motorbikes," he said, adding that his immediate focus would be on rejuvenating the ageing line-up of offroad models.
Instead of fully integrating both companies, Husqvarna and KTM will be managed separately, while reaping the benefits of using common components.
"This way we can use common engineering platforms to develop a variety of models that have completely different characteristics for each brand," Pierer said.

...When asked whether he was concerned the two brands might cannibalize each other's sales, he admitted there would be a slight effect.
Overall, however, the Husqvarna brand would help it take share away from Honda (7267.T), Yamaha (7272.T), Kawasaki (7012.T) and Suzuki (7269.T).
"It's never 1 plus 1 equals 3, but it's certainly 2.7, and there are still four Japanese brands from which there's plenty to grab."

Interesting.

So kill all the Husky engines and frames goodbye. They're gone.

While I doubt they'll simply rebadge, you're going to have a second Husaberg - essentially a KTM, but designed with KTM parts by a different team. Three companies, sharing the same few engines, transmissions and probably frames, too. As many parts as possible to reduce the cost.

 

[ScottyR]

I think it is pretty safe to assume that the Terra, Strada and 449/511 will not be produced under the new company.

Too bad for the dealers who just dropped $5000+ on the MOSS tool to work on the 650.

 

[Gotlabs]

I think the weakness of this approach is that in any given country the dirt bike market is not very big and its probably inefficient to fragment it this way. However, it might be a useful tool in other markets...say Husky is the brand in Malaysia, while KTMs are the one in Iraq....

That was copied from the original article, I only asked the question at the very bottom. Im on my phone so bolding/italicizing is difficult.

 

[BadMotoWeazal]

Well as a HVA owner & a KTM owner I've never really been brand exclusive as I like motorcycles. All of them, from one extent to another. BMW didn't see Husky as a money maker & decided to sale. KTM will do the same to HVA as they did to Husa & KTM: parts, bikes, accessories, dealerships, support, heck everything that has put KTM on top as an off-road motorcycle manufacturer. I feel bad for you folks that hate the Orange, but this may be the best thing to happen to the Gun-sight brand since the left Sweden. And that's my 2 cents.