| Author | Message | ||
     Ulykan |
The demise of Buell? Todd Wilson 10/16/2009 Much has been written already about Harley-Davidson Motor Company's stunning press release earlier this week announcing that they are ceasing production of Buell-brand motorcycles. Some in the industry have gone as far as stating that this action was long-rumored or even expected for quite some time. I guess I missed the invitation to drink the Kool Aid and eat the Oscar Mayer wieners and bologna being served by Harley-Davidson, so I'm not convinced that the death certificate has been signed yet. Buell Motorcycle Company has long been known (by those who truly understand the motorcycle industry) as an overachiever. They have done more with less than any other motorcycle company around, yet their step-parent (Harley-Davidson) never acknowledged the contributions made by the East Troy, WI-based staff. Most of the folks at Harley's Juneau Avenue facility knew little about Buell other than the fact that some (not all) of the motorcycles manufactured there used a Harley-based engine. In spite of this, Buell continued to grow. It grew because of its incredibly passionate staff and the ideas they fearlessly brought to the table. It grew because its products struck a nerve to those fanatical motorcyclists who care more about the ride than how they look on the way. And it grew because Buell's philosophy put the passionate staff members in touch with the fanatical riders and that interaction drove constant improvement. Is Buell a worthwhile brand? Unless you are a product of the American automobile industry, you know the answer is a resounding "YES!" So why pull the plug on the company? And more than that, why pull the plug on this company while offering MV Agusta for sale? Hmmm. Have you seen Erik Buell's video message announcing Harley-Davidson's decision? As you can expect, Erik is almost in tears making this announcement. I know Erik, and I have worked side by side with him. I've sat in his office and had heart-to-heart talks with him, including the one where I told him I was leaving The Motor Company to move back home to upstate New York so I could be close to my family. I will tell you first-hand two things that you need to understand now. The first is that Erik is an incredibly passionate man. Whether it is the motorcycles that bear his name, the guitars that are never far from his grasp, or the people he surrounds himself with, each stirs a feeling within this incredible man that goes to a depth many of us will never understand. When you hear Erik's voice crack during the announcement, you are witnessing what is happening within his heart. That is the first thing you need to know. The unknowing might watch the video and think they've just watched a beaten man deliver his last message. Harley has pulled the plug. It's over. Even Erik told us so. Right? RIGHT? Well, maybe not. The second thing that you need to know is that Erik Buell has the heart and soul of a prize fighter. Let's look at history... The first Buell, the RW750. He risks it all, quits his job, invests his life savings and builds a motorcycle only to have the AMA eliminate the one racing class where the motorcycle can be ridden in the United States. The entire investment value plummets to zero, and the one motorcycle he is building is now useless. Even THAT wasn't the end of Buell. Compared to that, this is just another obstacle they face. Erik and his team have overcome insurmountable odds before, so unlike most observers, I'm not ready to give up. If there is any team in the industry that can use this obstacle as a stepping stone, the free-thinkers from East Troy are the ones I'd pick to do it. I may be the only person in the motorcycle media who is saying it, but I just get a feeling that we haven't seen the last of Erik Buell and his band of believers. Erik mentions in the video "I personally look forward to exploring how I can continue to work with Harley-Davidson to bring advanced product technology to riders." Erik is a much better man than I, because I could never work for the company that slashed projects and research budgets to the point that there was no room to develop new products, then went and spent $179 million (a 109 million dollar purchase price and H-D assumed 70 million dollars in corporate debt) on MV Agusta only to spin it off 16 months later. (How far would 10 or 20 million dollars in development money have taken Buell? We'll never know.) Obviously, Harley's new CEO is worried enough about the future of his company that he wants to focus on it and only it. (And on getting his company's stock price back where it was a few years ago.) On one of our previous shows Bill, my ever-direct co-host, stated that Buell would probably be better without Harley-Davidson. He pointed out that Harley's finances allowed Buell to live, but The Motor Company's control kept Buell Motor Company from expanding its wings. Could it be that Harley-Davidson doesn't want Buell out there competing against it, so it is simply shutting the company down? Never fear folks, because we're chasing the answers to these and many more questions regarding this horrible turn of events. We might even be able to make sense of it for you before this whole thing is over. Tune in next week as Bill and Todd B throw away the chrome and get to the frame of this issue. | ||
| Xbrad9r |
that was a great story to read...thanks for sharing it with us | ||
| Ulykan |
Maybe it's not as hopeless as we first thought? Time will tell. As the writer said...tune in next week for more of the story.  | ||
| Rainman |
I don't think it's hopeless at all (I am not,by the way, an optimist) Can Am, Victory, others may want to expand into a sportbikes with a man of proven record. There are no patents on low unsprung weight, mass centralization and radical steering geometries or other cornerstones of Buell philosophy. There are other ways. I hold any new purchase until I see what happens in four years, unless I buy a used Buell in the meantime | ||
| Teddagreek |
THANK YOU | ||
| Court |
Very well written and very accurate. | ||
| Court |
By the way . . . someone called me and ask how I felt about all this. My phone rang early Thursday morning. It was Erik sounding weak and shaky. He told me there would be an announcement that day and but he wanted me to be the first to know. "Harley is closing us down" . . he told me. I responded without a moments hesitation . . . CONGRATULATIONS. Harley-Davidson is simply too small, too confining and lacks a cogent vision of the future to allow Buell to thrive. I think time will prove that the greatest thing Harley-Davidson ever did for Buell was last Thursday. Erik . . by the time we spoke Thursday night was already showing signs of the guy I've come to admire over the years. . . he was starting to make an emotional comeback. This is going to be exciting. | ||
| Gowindward |
I will say it again. H-D lost customers on Thursday. Erik still has all of his customers. | ||
| Macbuell |
If Buell can somehow emerge from this without HD and with the ability to operate completely on it's own, it will be a great thing. The HD V-twin is a nice old lump but I have long thought the Buells needed a new air cooled engine to go in the XB frame and hopefully Buell will spring forward somehow without any involvement from HD in any way. That would be a great thing for Buell. The dealer networks exist. The bikes exist. Now we just need a will and a way. I'm sure Erik will find the will. Somehow,someone will find the way. | ||
| B5aar |
Ulykan/Todd Can you send your editorial to Roadracing world .com A counterpoint to some of the petty bashing Erik and Buell have received from superbikeplanet and other sources that sounds more like some personal vendetta than balanced journalism or thoughtful opinion. Tried to send it to superbikeplanet website but can’t find a contact link. Thought it worthy of publishing on Roadracing World.com. They may not take it from me cut/paste if its not from the author. | ||
| Sayitaintso |
Erik . . by the time we spoke Thursday night was already showing signs of the guy I've come to admire over the years. . . he was starting to make an emotional comeback. This is going to be exciting. That is the best news I've heard since Thursday, thank you. | ||
| Ulykan |
@B5aar, This was not my editorial rather copied from this website for Ultimate MotorCycling http://www.ultimatemotorcycling.com/What_Will_Happ en_To_Buell I merely thought that the article/story was too good not to pass on to all the great folks here at Bad Web. I'm happy that people like the story as much as I did. Unfortunately it's not my decision or story and I therefore can't give you permission to use it somewhere else. | ||
| B5aar |
Thanks Ulykan. I sent it with the appropriate credit references. | ||
| Hex |
Great read! | ||
| Ferris_von_bueller |
One of the comments to the article: The announcement was a shock, however, there are those of us in positions of some local consequence around E. Troy that won't let Buell go without a major effort or at least a direct order from Erik. Will that effort work, who knows. What I do know is, regardless of your opinion of the bike, that the innovation and passion that has driven Erik and the Buell staff should not be abandoned. There are those that love the Buell brand and those that dismiss it. Those of us in Walworth County, WI (the county where E. Troy is located) recognize and appreciate the commitment, passion, engineering and sheer will to win that Erik and his staff represents. Interesting | ||
| Donutclub |
Very good read! I sincerely hope that Buell takes the risk and begins anew. I've been riding motorcycles for many years, but it was in 2005 on my first Buell (xb12r) that I really understood the passion of riding a bike where the Manufacturer felt like family. It's hard to explain......it's just nice to be appreciated as a customer. I never felt this way on my Hondas. | ||
| Ezblast |
There is the non-competition clause, and you know he probably had to sign it to release his contractual benefits. He could work for another company though, and a few select with him and help another company develop a unique American sport bike, that is fun, confidence inspiring, and competitive - that too could be a great thing to see. EZ (Message edited by ezblast on October 17, 2009) | ||
| Court |
>>>>There is the non-competition clause, and you know he probably had to sign it to release his contractual benefits. How . . I am dying to know . . do "you know" this. And . . . how do you know what elements it consists of. It took me a lot of digging to find some of the germane legal documents, I'm eager to see where you found them. | ||
| 2008xb12scg |
Court has a point! As always. How do we know this? Speculation? We don't! Maybe Buell is no more. Look it's the new Erik motorcycle! Wec just don't know, do we? I'm done being A pesamist. I want to see whats next...and I have no idea how to spell pesimist. | ||
| Ezblast |
Court - my family went through similar, there are ways to work through those contracts, but usually there are things that need court submission/documentation to ward against conflicts as well. This does not mean that Erik must remain idle, or that he can not work for another similar company, just that he can not build the same version brand name motorcycle. Since Buell is his familly name, he would be allowed to use it, as Shelby was allowed. If HD was building a sport bike stealing all Erik's info to make it a go, then they would want as much time as they could get to stop Erik from beating them to the punch, with a new line of his own, so Its a good bet the clause is there. However, Erik could still beat them through certain contacts, and his own genius for coming up with his own way of putting down designs that work. EZ | ||
| Elvis |
I don't know the details of any agreements, but, like it or not, moving forward with any chance of success will likely involve getting some rights back from Harley (any non-compete agreement would be one of the minor concerns of a buy-out). Even without a non-compete, Harley almost certainly owns the current designs and those will have to be bought. Without those existing designs and specific, proven parts, a clean sheet design will take a minimum 5 years to develop, test, gear up for production etc. That's 5 years in which no money is coming in the door. That's what kills most new manufacturers before a production model even leaves the plant. Realistically, if he's going to go out on his own, he needs to buy the rights to produce some existing models - logically the 1125R, 1125CR and 1125RR. If he can obtain those rights (and it will be costly, but Harly needs money, so they should be willing to talk) and keep the existing facility and tooling, something in the ballpark of 30 management personel and 30 line personel should be able to produce something in the ballpark of 3000 bikes next year. Then the big hurdle remains distribution . . . and don't underestimate the value of a proper distribution system. As part of the deal, I would try to get Harley to allow me to use the handful of current, excellent dealers and, in addition to those, begin shopping to other dealers currently carrying other brands (maybe with some sort of clause that would require the current Buell/Harley dealers to work toward creating facilities that are physically separate from their Harley Store and staffed by Buell only personel). I'd say that's the logical route to the beginning of a stand-alone Buell. And . . . it may leave a bad taste in our mouths, . . . but it can't happen without Harley allowing it to happen. | ||
| Fireboltwillie |
i, for one, would love to be a buell dealer in the future. opportunity may knock someday!!! sure beats being an unemployed architect... | ||
| Court |
Everything and anything is possible. I was there when Erik was essentially tossed out of a bank trying to get a loan to keep Buell open that was less money than it would take to buy a Blast. That day . . . nearly 20 years ago looked like the end. Nothing worth doing is easy and there are a lot of folks who now have more experience, contacts, credibility and knowledge than you can imagine. By the way . . . money, as silly as this sounds . . . is the least of the hurdles. Timing for this could not have been better. HD needs money BAD and there are BILLIONS sitting on the side line and folks BEGGING for places to put it. | ||
| Oldog |
Without those existing designs and specific, proven parts, a clean sheet design will take a minimum 5 years to develop, test, gear up for production etc. If you have a copy of 25 years please get it out and read it, I for one will not take that bet, I Believe that IF Erik Buell decides to go after it again it will happen and I would take the bet it WILL be sooner rather than later. } | ||
| Davegess |
5 years!, dude we are not talking the motor company here, this is Erik Buell , 24 months tops! | ||
| Fireboltwillie |
family has a warehouse in downtown denver, 4 blocks from a ducati dealer. hmmmm... the possibilities | ||
| Ferris_von_bueller |
Elvis, now is not the time to have a rational discussion. Emotions are still running high, as evidenced by the "irrational exuberance", being displayed. | ||
| Cityxslicker |
Maybe its time to resurrect the Tuber, ala Factory Five Cobra Kits.... He still has the barn! | ||
| Jerseyguy |
When he builds it, I'll be first in line! | ||
| Hughlysses |
You know, it is awfully coincidental that he "restored" the barn this year and took the media on a tour just a few months back. Were plans in the works even back then? |
