The deal is done. Harley acquired all shares of Italian motorcycle manufacturer, MV Agusta, for the price of 70 million euros. That's about $108 million stateside. Read more about it at Cycle News or at Forbes.com.
I've got mixed emotions over the union. On one hand, Harley's brand loyalty and marketing power could do wonders in bringing MV Agusta to the forefront of the motorcycle world. The MV Agusta group, according to the above sources, racked up a sizable debt. No doubt, as successful as Harley has been financially over the previous decade, the Motor Company could solve the Italian manufacturer's financial difficulties.
But on the other hand, MV Agusta motorcycles are legendary for their performance and power. The Italian brand is considered one of the thoroughbreds of the industry. While Milwaukee considers it's brands as "premium", I have to question whether what classifies a brand as premium can be determined solely by level of sales. Harley's definition seems to be more a measure of marketing rather than of performance. And I'm forced to question whether a thoroughbred remains a thoroughbred if it's over bred.
2 comments:
I think there's going to be very little, if any, impact in Europe, and even less here in the 'States.
Say what you will about Harley and their bikes, I think they have the right kind of business know-how and know their audience well. This acquisition gives them an outlet for accessories and apparel, but I can't see them blending showrooms at all.
If my suspicions are correct, they'll prod Erik to consider the MV mills for some of the Buell bikes, they'll leave the MV products alone and they'll largely remain hands off on the Euro marketing.
It sure would be cool to have Harley's F-U money to toss at a boutique brand, though, and try to mainstream it.
Again, I think they'll pump some money into MV and remain hands off.
Here's hoping...
An MV engine in a Buell would be a wonderful blend indeed.
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