Husqvarna sale shocks dealers
UK Husqvarna dealers were shocked by the apparently sudden news that BMW, which bought the Italian brand in 2007, had sold it to Austrian industrialist Stefan Pierer and that the Husqvarna road bike range was to be dropped immediately. Pierer, head of the KTM factory which also makes Husaberg off- roaders, now has three off-road marques under his wing. The Husqvarna off-road range will continue to be developed, though models powered by Yamaha and Minarelli engines will be dropped from the existing range. Husqvarna road bike dealers within the BMW network canvassed by BDN were dismayed and disappointed by the news. Of dealers who sell off-road
Husqvarnas only, some think the change of ownership may turn out to be beneficial. Jim Hill of Charles Hurst BMW,
Newtonabbey, County Tyrone, Northern Ireland, said: “We were exhibiting at the Irish show in the Kings Hall, Belfast, just days after the takeover became known and having Husqvarna there was an embarrassment. An order for a bike we’d provisionally sold was
some great bikes.” Husqvarna UK country manager Massimo Granata said he was not in a position to comment on the sale, which included the prestigious production and R&D facility at Cassinetta di Biandrono near Varese, Italy. Less than five years old, the state of the art facility with the capacity to produce 40,000 bikes a year cost BMW almost €13m to build. BMW has simply stated that
Husqvarna UK country manager Massimo Granata declined to comment on the implications of the sale of Husqvarna by BMW.
cancelled. I’ve been going to the show for 33 years – I’ll remember this one for all the wrong reasons.” Husqvarna off-road dealer Mike
Carter of Husky Sport, the former importer, said: “As a Husky off- road dealer, I think I can now look forward to better times with the brand.” Loyal to Husqvarna for 23 years, the Cheriton, Hampshire, dealer added: “Husqvarna have had their ups and downs, but the off-road people have persevered to make
BMW Dealer Opinion
Louise Jefferies – Allan Jefferies BMW
BMW dealer Louise Jefferies, who runs Allan Jefferies BMW in Shipley, Yorkshire, was recently appointed dealer for sister marque Husqvarna including road models. “We’ve been advised by BMW that Husqvarna is no longer a BMW Group product,” she said. “As we are a BMW dealer first and foremost we’ve asked HVUK [Husqvarna importer] to take some stock back, though we will sell the two demonstrators we have on fleet.” Jefferies expressed disappointment at the loss of the 125cc
“We’ve asked HVUK to take some stock back.”
Yamaha and Minarelli-engined Husqvarnas, which appealed to the youth and learner markets.
it is realigning core business to concentrate on electric-powered vehicles and urban mobility. The fact that the off-road
market has shrunk by 35 per cent since the German company acquired Husqvarna will surely have been a key factor. BMW had also had its fingers burnt by the failure to successfully market its own G450X enduro model through BMW dealers. It is also thought that
Husqvarna was losing its way as a result of BMW staff with no off- road experience being appointed to run the Varese operation. It had become yet another road bike manufacturer with off-road bikes fighting for survival in a unfamiliar niche market.
New owner Stefan Pierer of
Pierer Industries AG, a man known to drive a hard bargain, bought Husqvarna for an undisclosed sum. He has a keen interest in the marque’s off-road heritage and has proved his business and product acumen by turning KTM into a world leading off-road brand. Combined sales of KTM and
Husaberg, a KTM in blue, account for 30 per cent of the world motocross market and 50 per cent of the world enduro market. Through holding company
Cross Industries, Pierer owns a 51 per cent stake in KTM and employs 3500 people in Austria alone on engine parts, drive train design and the manufacture of motorsport-related product. Cross thus has a massive pool of talent available. Cross Industries also owns Dutch specialist WP Suspension.
The sale of the Husqvarna brand to Stefan Pierer signals the death of the fi ve-model Husqvarna road bike range.
Husky Dealer Opinion
Jennifer Jones – Dual Sport Motorcycles
While many in the separate off-road dealer network had been sceptical of BMW ownership, Jennifer Jones of Dual Sport Motorcycles, Ledbury, Herefordshire, saw positive benefits. “You associate BMW quality and that
with
certainly applies to Husqvarna now. The build quality of the bikes is excellent and the two-year warranty on Husky competition machinery is unique. No other manufacturer gives that sort of back-up or guarantee. I just hope it continues.”
“T e build quality of the bikes is excellent.”
Bike magazine sales continue to slide Frank Thomas – the fi nal curtain
Just released Audit Bureau of Circulations figures for the seven motorcycle titles that still have their sales figures independently audited by the Bureau indicate that average net circulations fell by nearly six per cent from January to December 2012. In 2011 average net sales were down by seven per cent. Despite being subject of a relaunch in 2012, Motor
Cycle News sales continued to fall, dipping under the 100,000 watershed for the first time in many years, selling an average of 94,941 copies a week, down six per cent, compared to the previous year’s fall of five per cent. Future Publishing’s Fast Bikes took the biggest hit, monthly sales falling by nearly 20 per cent to 20,553. Sales of Bike fell by nearly 14 per cent to 44,277 and are now not far ahead of Classic Bike sales, down only 3.6 per cent to 41,191. Of the seven titles, only RiDE magazine with
6 MARCH 2013
its down-to-earth, real-world editorial coverage of budget biking, held on to its readership, selling a fractionally improved 40,434 copies a month.
Publication
Motor Cycle News Bike
Classic Bike RiDE
Performance Bikes
Practical Sportsbikes 20,895 Fast Bikes Superbike Total
*Not ABC audited
2012 2011 Change 94,941 101,058 -6.1% 44,277 51,471 -13.9% 41,191 42,709 -3.6% 40,434 40,430 +0.1% 18,811 21,061 -10.7% *
20,553 25,525 -19.5% * 16,192
281,102 298,446 -5.8%
Ernst & Young, administrator of the failed Frank Thomas group of motorcycle accessory and apparel companies, has abandoned debt recovery activities and has initiated a formal dissolution of the business.
The period of court-sanctioned administration officially ended
on 26 January 2013 but Ernst & Young had ceased attempts to chase outstanding debtors on 15 January. The total recovered from an opening debt balance of £4.4m when Frank Thomas went bust now stands at £1.87m. A shortfall of £2.53m has therefore been written off. After disposal of group assets and debt recovery operations over
a two-year period, secured creditor Barclays Bank received £3.9m against the £13.9m it was owed, and has consequently suffered a £10m loss. Preferential creditors have been paid out in full. But unsecured trade creditors who were due circa £5.4m got nothing. The administrator says it incurred time costs of £924,981 but
has agreed a substantial discount with secured creditor Barclays. As a result, Ernst & Young received a total of £619,015 for its efforts, plus £16,785 in expenses.
Business news
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