| Author | Message | ||
     Koz5150 |
Harley's little boy Buell East Troy firm hasn't grown up quite the way it was hoped By RICK BARRETT rbarrett@journalsentinel.com Posted: June 5, 2005 Twelve years ago, Harley-Davidson Inc. bought a 49% stake in a small sport motorcycle manufacturer as a way to expand into a market where Harley didn't compete. Built for speed, Buell bikes have seen their sales slump. They have been penned in by other sport bikes on one side and their bigger Harley-Davidson brothers on the other. Harley now owns all of Buell Motorcycle Co., which has its manufacturing plant in East Troy. Buell builds bikes emphasizing performance and nimble handling, much like a sports car. Buell has seen strong sales in Europe, where street bikes with Italian and German pedigrees share the twisted, narrow roads with Porsches and Ferraris. Overall sales, however, have been flat or down, with 9,857 bikes shipped in 2004 compared with 9,974 the year before and 10,943 in 2002. Buell represents less than 5% of Harley's motorcycle sales. Harley shipped 317,289 bikes in 2004. "There are some in Harley-Davidson management who probably wish they didn't have Buell," said Don Brown, a motorcycle industry analyst from Irvine, Calif. Buell does not try to compete head-on with Japanese sport bikes that are less expensive and produced in far greater numbers. Instead, Buell is just trying to get a big enough piece of the market to hold on, according to Brown. Whether that piece will be big enough to satisfy Harley remains to be seen, Brown said. Back seat in showrooms Buell could attract some younger riders who otherwise would be drawn to European and Japanese sport and performance bikes. That's important as the percentage of young motorcycle owners has consistently fallen for more than 20 years, according to a recent Merrill Lynch report. In 1980, nearly 25% of bike owners were between 18 and 24. In 2003, that age group represented less than 11% of owners, the report noted. One of the challenges for Buell is getting sport bike customers into Harley dealerships, where the more athletic bikes often take a back seat in showrooms filled with Harley cruisers. Unlike Harleys, which are made for stretching out and cruising down the highway, sport bikes like Buell are made for crouching and leaning into tight turns on twisting country roads and city streets. It's more like driving a sports car than a luxury car, said Ann Nettesheim, a Buell owner from Germantown. Unless someone wants a Buell because it's a Harley product, they're more likely to buy a Japanese motorcycle, said Chuck Monroe, co-owner of West Bend Harley-Davidson / Buell in West Bend. Buell sales have slowed, partly because of the intense Japanese competition, Monroe said. "That's what makes it rough," he said. "We do OK with Buell, but I am not saying we sell them like hot cakes." Broadening lineup Buell plans to add more motorcycles to its lineup, thus appealing to a broader customer base, company president Jon Flickinger said. "We introduced a couple of new models late in 2003 and early in 2004, so we have started to fill in our product line a little bit," he said. The company will introduce at least one new model in July. Buell is working with Harley dealerships to improve sales and reinforce the dealers' commitment to the sport bikes, Flickinger said. "Certainly one of our challenges is getting people aware of the Buell brand," he said. Many young riders start out with small Japanese-made street motorcycles or dirt bikes, giving those brands a competitive edge when the riders are ready to move up to something bigger and more sophisticated. "Our competitors are very good, and they've been at this for a long time," Flickinger said. "But we are seeing more people cross over" from Japanese-made motorcycles to Buells as the company gets a better foothold in the sport bike market. It would not be a surprise if Buell comes out with a dirt bike, since Harley-Davidson must start targeting new markets in order to attract younger riders, according to Brown. "Otherwise, the demographics are really going to be tough on them," he said. Shaken by figures As part of its pitch to younger riders, Buell quit printing brochures this year and instead promoted its 2005 motorcycle lineup on compact discs. The CDs feature Buell riders cruising the Pacific Coast Highway, with background music from garage bands recruited by Milwaukee advertising agency Laughlin / Constable Inc. Buell is the first motorcycle company to pursue digital marketing material that aggressively, said Steve Laughlin, partner in Laughlin / Constable. Buell is able to deliver a more lively, convincing message with the CDs, he said. "All of our marketing efforts are aimed at driving people to the Buell dealerships," Laughlin said. "Because when you twist the throttle on one of those bikes, you get instant feedback that says 'buy me now.' " Harley-Davidson does not release profit or loss figures for Buell. But clearly, analysts and shareholders were shaken by Harley's 2005 first-quarter earnings report in which the company said that U.S. motorcycle sales were essentially flat and that 2005 earnings would increase 5% to 8%, down from a prior target of earnings growth in the mid-teens. After that earnings release in mid-April, Harley shares dropped 22% in only three days, reaching a low of $45.42 on April 20. Harley stock has been under pressure ever since, closing Friday at $48.40. "I don't think that Buell is big enough to move the needle on Harley shares one way or the other," said Ed Aaron, an analyst with RBC Capital Markets in Denver. For Buell riders, having a bike that's not mass-produced is part of the appeal. "I can hardly stop anywhere without someone asking about the bike," said David Stueve, a Buell owner from Appleton. "If I stop for gas, I better plan on staying a while." | ||
| U4euh |
Sounds like a pretty good indication to me, dualsport! ================================================ said David Stueve, a Buell owner from Appleton ================================================ If they only knew the whole story. | ||
| Johnnylunchbox |
I have heard rumblings of an adventure tourer type bike for 2006. | ||
| Daves |
I talked to the guy on the phone for over 5 minutes and that's all they used. I didn't say anything about a Dualsport. | ||
| Bomber |
pretty poorly written, research was worse, got some fact plain wrong -- ah, well . . . .. ink is good, I'm guessing good seeing you Dave! | ||
| Djkaplan |
"For Buell riders, having a bike that's not mass-produced is part of the appeal." Unfortunately for the bean counters at the Company, this is one of the reasons I ride a Buell. If they were as common as Hondas, I'd be riding a Moto Guzzi or Ducati for sure. | ||
| Steve_mackay |
Maybe if West Bend actually HAD some friggin' bikes they'd sell better. Sorry, but hosting the battletrax and such at West Bend was pathetic at best. They are *NOT* a very good Buell supporter No bikes on the floor, almost no merchandise, and one small rack of closeout Buell clothing. One of the Brew City Brag members was talking to one of the sales staff, who admitted they most likely wont be selling Buells next year. It should have been held at either Hals or Appleton. Dealers who actually support Buell. | ||
| Ezblast |
Insiders are every where - lol - and this from the yahoo site! - from:"leakyseals" <leakyseals@yahoo.com> HI EVERYONE, I'M JUST YOUR FRIENDLY/INSIDE BUELL- DEEP THROAT. I JUST JOINED TO SPOIL AND TEASE YOU WITH SOME INSIDE NEWS THAT MAY ROCK YOUR WORLD? I WANTED TO POST THIS ON THE BADWEB, BUT THEY WOULD HAVE FOUND OUT WHO I WAS, AND I WOULD HAVE LOST MY JOB AT BUELL. HERE'S THE NEWS : NEW FOR 2006, BUELL WILL RELEASE A NEW V-TWIN BLAST! IT WILL BE BASED ON THE XB'S FRAME AND ENGINE BLOCK, AND WILL USE A SHORT STROKE WITH SMALL BORE(883) CYLINDERS. THE BIKE WILL BE CARBURATED, AND CARRY A CONVENTIONAL FRONT FORK, ALONG WITH A FEW OTHER COST CUTTING FEATURES. THEY AIM TO PRICE THIS BIKE SIMILAR TO THE SUZUKI'S SV650. I HAVE SEEN EARLY PRODUCTION SAMPLES OF THIS BIKE, AND IT STILL LOOKS JUST AS SWEET AS THE XB'S. I HAVE SPOKEN TO A TEST RIDER, AND HE CLAIMS THIS IS AN EXTREMELY FUN BIKE TO RIDE, AND HANDLES AS WELL AS IT'S BIGGER BROTHERS. IT ALSO HAS MORE POWER THAN THE OLDER 883 SPORTSTERS. IN LESS THAN ONE MONTH, YOU ALL SHOULD BE SEEING, AND HEARING ABOUT THIS "BIG BLAST" AFTER THE DEALER INTRODUCTION PRESS RELEASE. DT lol GT - JBOTDS! EZ  (Message edited by ezblast on June 06, 2005) | ||
| Blackbelt |
Deep Throat???!!?!??!?! Nice... He could have been a bit more creative..lol | ||
| Daves |
I tried/offered Steve. Maybe next year. Do you think maybe I should have some Bikes, t-shirts and Buell acc on hand when the factory delivers 100+ Buell riders including the President of Buell to my store?  | ||
| Mikej |
Steve, I've been wondering how it was all going to play out for several months now. | ||
| Midknyte |
There are marketing types that know much more than me, and most of the rest of us here... But I don't get where it would make much sense to come out with another bike smaller than the 9 when it and even the 12 is oft critisized for not being big/fast enough. The sensible/realist in me would welcome it though. There are only half a handfull of small displacement sportbikes (that all the squids preach that you should start out on yet never do themselves). A "FireBlast" would make a keen-o girlfriend/wife bike eh? | ||
| Impulse_101 |
I was disapointed in the dealership as well. Steve's dead right Appleton or Hal's should host. Both deserve it as they actually sell and support the line and race teams. JT | ||
| Reepicheep |
Take it with a grain of salt. | ||
| Ezblast |
Yeah - but it would also be a great budget bike to start on for modifying - as you want more of anything - just add - the basics already in place - so to say. GT - JBOTDS! EZ | ||
| Steve_mackay |
Dave, I'd hope and guess you would ALWAYS have that stuff on hand. Pathetic may have been to strong of a word. Disappointing is more like it, really. Word of their "sad dyno" had reached Hal's employees by Sunday morning already  | ||
| Chainsaw |
Buell bikes have seen their sales slump... A 1.018% loss in sale qualifies as a slump??? | ||
| Lake_bueller |
HERE'S THE NEWS : NEW FOR 2006, BUELL WILL RELEASE A NEW V-TWIN BLAST! IT WILL BE BASED ON THE XB'S FRAME AND ENGINE BLOCK, AND WILL USE A SHORT STROKE WITH SMALL BORE(883) CYLINDERS. THE BIKE WILL BE CARBURATED, AND CARRY A CONVENTIONAL FRONT FORK, ALONG WITH A FEW OTHER COST CUTTING FEATURES. That makes no sense what-so-ever. Why make an 883 Buell when you already have the 9 models? Sounds a bit redundant. Just my $.02 | ||
| Eor |
I have learned that it is best to never speak with a media representative. When your words leave your mouth, they can and will be edited to support their agenda. | ||
| Dustyjacket |
Just save that reporter's E-mail address for post-announcement E-mails.  | ||
| Ezblast |
LOL - actually with the shorter Buell stroke - it would be just below a 720cc - a perfect entry level and project bike! GT - JBOTDS! EZ | ||
| Jugallo94 |
talking about crappy dealership presence at buell events. Saturday I was at motown harley Davidson for a sportbike challenge. Went inside with the winners, after the event, when they had their gift cards, and tried to locate some buell merchandise. Nothing, no hats, shirts, and no parts in stock. If I didnt hate this dealership before, I shure do now. I mean come on, you have had this event planned for months, and when it comes you have nothing in the store. Only had four bikes there, and one was a used 2002 blast that was beat up. | ||
| Daves |
It seems that Mr. Barrett was bent on writing a negative article from the git go. Look at the title. And this quote, "Unless someone wants a Buell because it's a Harley product, they're more likely to buy a Japanese motorcycle, said Chuck Monroe, co-owner of West Bend Harley-Davidson / Buell in West Bend." Real genius there. I guess "they just don't sell around there" | ||
| Cataract2 |
HERE'S THE NEWS : NEW FOR 2006, BUELL WILL RELEASE A NEW V-TWIN BLAST! IT WILL BE BASED ON THE XB'S FRAME AND ENGINE BLOCK, AND WILL USE A SHORT STROKE WITH SMALL BORE(883) CYLINDERS. THE BIKE WILL BE CARBURATED, AND CARRY A CONVENTIONAL FRONT FORK, ALONG WITH A FEW OTHER COST CUTTING FEATURES. This sounds like a bunch of BS to me. "Unless someone wants a Buell because it's a Harley product, they're more likely to buy a Japanese motorcycle, said Chuck Monroe, co-owner of West Bend Harley-Davidson / Buell in West Bend." As for this. Well, I guess I better sell my Buell and get a jap bike. I mean heck, I certainly wasn't looking to buy the Buell because it's a Harley product. Geeze, leave it to idiots to ruin the whole for us. | ||
| Reepicheep |
I got a laugh out of that as well. My first bike was a Yamaha Radian. I looked at every Japanese bike made to try and find a replacement, and they were either overpriced and underperforming (*cough* nighthawk *cough*) or simply would not fit me (*cough* SV650 *cough*). Everything with good performance at that time was a race replica, which I had *zero* interest in. Then I stumbled on the Buell M2. Short wheelbase? Torque tuned V-Twin? Aircooled pushrod? Naked Standard? Looks cool as hell? Sign me up baby! Had the XB9SX existed then, I would have found it sooner, and been even more excited. I bought my M2 and 9SX because they were much better bikes for me then anything else I could find. Period. I can't think of a bike better suited for all around aggressive but rational sport oriented street riding then the 9sx. I would never consider owning a Harley, unless I stumbled on a 1960 something Model K (I think it was called that... the precursor to the sportster, built to compete with the triumphs). Or maybe a very early sportster. But I digress | ||
| Koz5150 |
Well, I would be lying if I said the relationship between Harley and Buell wasn't a factor in my decision. My first bike was a Nighthawk 700SC and my 2002 M2 fits almost the same as that bike, except it is bigger. More room for me and the wife on it. I wanted the harley sound and a harley motor. Since owning it now, I find my bike doesn't sound like a harley because I cruise around between 3500 and 5000 rpm. Even with the 26 tooth front sprocket I rarely use fifth gear. My Dad's sporty, which I ride next to often, is always one or two gears higher then me. I still would love to own a Road King someday to compliment my Buell... At this point I think Buell could not be as ambitious without Harley when it comes to Marketing and R&D. A Duel Sport Buell would be AWESOME if it was well built. I also think if Harley were to drop Buell, there would be a lot of people outside of Wisconsin screaming about where to get parts. | ||
| Pale_rider |
Sorry to anyone that will be upset with me not that anybody cares about my insight but the homecoming was a drag, boring, no energy and NO vision.....Other than seeing all of the great people I ride with and meeting a couple of new ones I think count me out of BRAG. Maybe Badweb should be sponsoring a homecoming. I would be in for that! Oh and maybe a President of Buell that could see the motorcycle instead of the "PRODUCT" it may survive a while yet. No motivation or passion, only from the riders I have met and had the pleasure of spending a little time with, very disturbing event....... | ||
| Xbduck |
Instead of a v-twin based Blast, how about a Blast based dirt bike. That's how the Jap bikes get people hooked on their brand. They start you out with a usually dependable fun in the dirt toy. Then when you want to ride on the road, you remember the fun Jap bike you had and look for them for the street. It seems real simple, get them hooked early, and your chances are better later. Who now builds an american made dirt bike? When the die hard H-D person goes to get their kid a toy for the dirt where can they go? They can only get one from the far-east. What H-D needs to do to show the present H-D owners that their head WILL NOT explode if they say the word 'Buell' is to start offering a off road bike but only offer it under the Buell brand name. This will also help to get H-D into a new market so they can expand sales. Hey, how about a Buell 4-wheeler, they could even race them,....hum...  | ||
| Candy |
Always Remember-----The arena that BUELL operats in is filled with non--skilled riders!!!! It takes little more than the basic bycycle mentality to ride a Harley.(i have owned several). therefore when you go to a harley shop its about the "CLUB" , not about riding and riding well and learning and improving------few harley riders know what an apex or decreasing radius is all about. Is it any wonder they resent a BUELL in their clubhouse?? | ||
| Jprovo |
 |
