Was killing Buell the right move by Harley-Davidson?
Harley-Davidson killed the Buell brand.
With Harley-Davidson’s 3rd quarter earnings announcement, also came the news that Buell will be shut down. Parts and warranties will continue to be serviced, but the sport bike brand is no more. The report also stated that Harley-Davidson will sell off the high-end, Italian sport bike brand, MV Augusta, to focus solely on the Harley-Davidson brand and its products. Are these smart moves?
Yes. Harley-Davidson is pretty far removed from the world of sport bikes.
Buell started to publicize itself as an underdog. Specifically in regards to its racing, with competition from superior race-bred machines from the Japanese contingent. Oddly enough, Buell won the AMA’s SportBike championship after a long summer of ups and downs – the first for an American motorcycle manufacturer since the 1980s. (As its been said by bike racing fans, the “NASBIKE” rulebook heavily favored Buell bikes in their respective category).
Will sacrificing Buell be a smart move to help turn things around for Harley-Davidson? The core Harley customer doesn’t care. However, if this move helps bring costs in line, then it will prove an advantage for potential H-D buyers.
The core audience for Harley has become a nebulous demographic. As the HOG moves forward, it will focus efforts on learning who’s going to be buying the next years’ bikes. The market has corrected itself — because there isn’t much need for a new bike every two or three years.
Stimulate the aftermarket, broaden the options for new ownership, narrow the gap to exclusivity and individuality.
Harley-Davidson has one choice: re-establish leadership and become the pinnacle of the motorcycle industry. My advice: refocus efforts on the production of cutting-edge bike designs. This will be attractive to existing Harley-Davidson owners while still attracting new riders. Harley has proven they can market themselves, so marketing a cutting-edge bike shouldn’t be hard for the 105 year-old brand that’s known for being first.
