Husqvarna makes big move! Futures Sales Predicted At 40,000 A Year!

[BlipBlip!]

HUSQVARNA MAKES BIG MOVE:
The All-New Factory Is Ready In Cassinetta di Biandronno.
Futures Sales Predicted At 40,000 A Year

Husqvarna, which BMW bought in 2007, will be moving to its new headquarters in Italy this month. The move is part of BMW’s plan to have all the Husqvarna business units in one facility. This means that all the engine, testing, development, styling, and racing divisions of Husqvarna will exist under one roof at the Cassinetta di Biandronno facility, in the Varese district of Italy.

Part of BMW’s motivation behind the move is to reduce costs and to sort out Husqvarna’s problems with quality control and supplies of spare parts. While Husqvarna only sold 12,000 bikes in 2007, BMW hopes to increase sales by over three times the current levels over the next two to three years. In fact, the new manufacturing facility will have the capacity to produce up to 40,000 Husqvarna motorcycles every year.

BMW intends to keep Husqvarna as an off-road specialist brand and use R&D inputs from the company to improve/develop its own BMW dual-purpose and off-road machines.

 

[HuskyDude]

HUSQVARNA MAKES BIG MOVE: The All-New Factory Is Ready In Cassinetta di Biandronno; Futures Sales Predicted At 40,000 A Year

That my friend is one heck of a lot of Huskies.

 

[Dirtdame]

Can't wait till there is better availability on parts.

 

[Wetdog]

40,000 bikes eh, that is a lofty goal considering KTM didn't sell that many when the economy was at a peak and carries a mini bike lineup that accounts for 5000+ units.
Good luck Husky.

 

[Mike Kay]

I dont see even one good thing thats come out of this aquisition so far. Ive been hearing for 18 months now how great its gonna be. 'Soon' ......

I merged an Italian company with a US company, with 200 employees and 2 factories, $33 million in sales, and it went smoother than this. Way smoother. Its not that hard to do.

I think BMW will kill the spirit and soul of Husqvarna. Squish it like a worm. I think in the end there will only be badged bikes with a gunsite in red and white, and the same bike without the gunsite in blue and white. I think these bikes will be over engineered, dorky, heavy dualsports, with a hefty price. Yeah maybe the 2 strokes will only be Husky, or the mini bikes or something, but i think in 5 years thats where we will be.
It will be great for the dealers. Great for the workers at the factory. Great for the dentist in Kentucky who wants a new dual sport. Great for Husky websites. And some expensive pro riders will pretend like the bikes are great for racing.

I really hope i'm wrong. But i just dont see a huge german auto company allowing a little Italian dirt bike company to remain alone and on their own to passionately develop great dirt bikes.

They wont. Just go read that last sentence again, and ask yourself how thats gonna work out...

I really, truly, 100% hope i'm wrong. I mean--nobody makes big tanks for Shercos.

Frankly the last thing i want to see is Husky selling 40,000 bikes a year. I loved the way Husky was in '06/'07. Bikes arrived in August. Innovative 50 state legal. Great price. Parts where a breeze to get, and fairly priced. Husky was exclusive, but not exotic.

More is not always better.

 

[NothingClever]

I dont see even one good thing thats come out of this aquisition so far. Ive been hearing for 18 months now how great its gonna be. 'Soon' ......

I merged an Italian company with a US company, with 200 employees and 2 factories, $33 million in sales, and it went smoother than this. Way smoother. Its not that hard to do.

I think BMW will kill the spirit and soul of Husqvarna. Squish it like a worm. I think in the end there will only be badged bikes with a gunsite in red and white, and the same bike without the gunsite in blue and white. I think these bikes will be over engineered, dorky, heavy dualsports, with a hefty price. Yeah maybe the 2 strokes will only be Husky, or the mini bikes or something, but i think in 5 years thats where we will be.
It will be great for the dealers. Great for the workers at the factory. Great for the dentist in Kentucky who wants a new dual sport. Great for Husky websites. And some expensive pro riders will pretend like the bikes are great for racing.

I really hope i'm wrong. But i just dont see a huge german auto company allowing a little Italian dirt bike company to remain alone and on their own to passionately develop great dirt bikes.

They wont. Just go read that last sentence again, and ask yourself how thats gonna work out...

I really, truly, 100% hope i'm wrong. I mean--nobody makes big tanks for Shercos.

Frankly the last thing i want to see is Husky selling 40,000 bikes a year. I loved the way Husky was in '06/'07. Bikes arrived in August. Innovative 50 state legal. Great price. Parts where a breeze to get, and fairly priced. Husky was exclusive, but not exotic.

More is not always better.

Yep, couldn't agree more.

I suspect one of our forum members is in for a tough fight to keep Husqvarna close to its roots.

 

[NothingClever]

I really hope i'm wrong. But i just dont see a huge german auto company allowing a little Italian dirt bike company to remain alone and on their own to passionately develop great dirt bikes

Which is EXACTLY what they should do to achieve what their end goal should be......legacy brand stability & broad-spectrum growth over the long haul rather than quarterly margins (until the next neato merger opportunity comes along).

I think if BMW really wants to compete with KTM, which they obviously do, the best strategy would be to simply facilitate excellence at Husqvarna and foster its natural growth rather than structuring for production results.

Dang it, Mike.....just when I was starting to get over the whole merger thing you have to post and get me all fired up again .

 

[scoobywrx05]

I asked Rob Keith the same ? last year about the 2 merging and basically having BMW running the whole show. He told me it wasn't gonna happen,, Husqvarna will always stay separate from BMW and BMW will not be calling the shots on what Husqvarna does....Only time will tell though.

 

[HuskyDude]

Husqvarna will always stay separate from BMW and BMW will not be calling the shots on what Husqvarna does.

Like you say "time will tell"...Pretty hard for someone like BMW to sink millions into a small company like Husqvarna and say "OK go make some really good dirt bikes, we'll leave you alone and won't tell you how to run your business." Can't see it.
Bottom line is $$$ And like you say until the quarterly margins looks good you can bet they will have lots to say.

40,000 bikes is unrealistic.

 

[BlipBlip!]

I don't know if any of you noticed, but since BMW purchased Husqvarna the model range now has 22 different bikes and more to come.

7 Enduro models
4 Motocross models
6 Supermoto models
2 Dual Sport models
3 Cross County models
22 different models

I wouldn't worry about BMW's ownership of Husqvarna, their goal is the same as all those that make up the Husqvarna community and that is to see this great brand grow.

What everyone is missing is that it's been a little over a year now since BMW saved the Husqvarna brand and things take time, but the best example of what can and will happen is look at what BMW did for the Mini Cooper brand and where they are today and where they'd be without BMW.

JustSaying.

 

[Norman Foley]

40,000 bikes eh, that is a lofty goal considering KTM didn't sell that many when the economy was at a peak and carries a mini bike lineup that accounts for 5000+ units.
Good luck Husky.

Maybe not too bad a goal, as KTM sold more than twice as many in the last few years......

KTM ended its 2007/2008 business year Aug. 31, 2008, with sales of 92,385 units, up from 90,306 units sold during the 2006/2007 business year and 83,985 units sold in the 2005/2006 business year.

 

[Joe Chod]

I think due to Dale using a subjective title for the thread, that you are reading into this too much people. The article stated "the new manufacturing facility will have the capacity to produce up to 40,000 Husqvarna motorcycles every year." Capacity could be "capability", "Output quota" or anything like that. In no way does "capacity" directly mean nor be iterpreted as "financial assets to support this figure" , "current work force", "intended for the viewers at CH", worldwide demand", "Sales target goal for 2010". Bottom line........state what was known.......not what you interpreted out of your information. Of course this not apply to mechanical troubleshooting and stuff like that but there are folks that read into stuf and then fly off the handle and the rumor mill goes wild and then the Titanic starts sinking and there anren't enough lifeboats and then the swine flu hits..and well...you get the picture. Dale this was not anything directed toward you. I undestood the spirit of your post but apparently others may not.

As you often said before Dale........relax.......it will all be good

Joe

 

[Husky Relic]

Husky Will Remain Unique/Husky Will Benefit from BMW

Despite the worst predictions I have read here I will tell you that Husky's only hope is due to BMW ownership. Ownership that so far has only been supportive in providing the resources the brand needs to grow and develop. Joe is right, read the press release again, "40,000 units" is the the capacity not the actual production level at least not yet. The market place, the economy and our ability to build quality products at the right price will insure our survival. And gentlemen that is where the industry is heading in the next 5 years, survival.

If that means that we have to take advantage of BMW R & D, worldwide purchasing and outsourcing of certain materials then so be it. I work in and study this market everyday, with data to back it up, not armchair speculation. Motorcycle price levels are breaking the back of the market. Look what happened to KTM when the came out with their huge price increases this year. It literally killed their sales. Designing, engineering and producing motorcycles strictly in Europe given the cost of labor and exchange rate means that if that if that is your only means of producing bikes then that is where you are headed. Motorcycles priced at more than the market would bear and eventual extinction

Some would like to go back to 06 and 07 when Husqvarna was languishing on the sidelines, the super-niche for a very, very small group of enthusiasts. I have news for some of you, companies don't survive for long with that mentality. It's also been my experience that some enthusiasts are drawn to this because they have no other way of making themselves standout.

My view and the view of the new Husky management is to combine the best of being a small company with the advantages of having a large company behind them. For sure we have problems, problems that need to be fixed and fixed in a hurry. We work our asses of everyday trying to get those things on track. Without BMW support it would be a fruitless battle.

In my life I have made a choice to take steps to build towards a better future. I did that at KTM. I did that throughout my Hall of Fame racing career. Looking back is something I never choose to do. I beleive brighter days are ahead. I also beleive it will be tougher than ever to build a succesful business given the current worldwide economic situation. And because of that having a partner like BMW is something I will count as a blessing.

 

[Troy F Collins]

I don't know if any of you noticed, but since BMW purchased Husqvarna the model range now has 22 different bikes and more to come.

7 Enduro models
4 Motocross models
6 Supermoto models
2 Dual Sport models
3 Cross County models
22 different models

I wouldn't worry about BMW's ownership of Husqvarna, their goal is the same as all those that make up the Husqvarna community and that is to see this great brand grow.



JustSaying.

I agree....

 

[Dirtdame]

Maybe they'll do some mini's later.

 

[HuskyT]

It's also been my experience that some enthusiasts are drawn to this because they have no other way of making themselves standout.

This I think IMO is very true.....

Kind of like the guy at the track with the blinged out everything on his CRF that actually races/rides slower than mollasses in January....but damn he looks good doing it....

T

 

[ScottyR]

Kind of like the guy at the track with the blinged out everything on his CRF that actually races/rides slower than mollasses in January....but damn he looks good doing it....

Have you seen me race? Do we know each other?

 

[Husky Relic]

Maybe they'll do some mini's later.

Actually Minis aren't really a viable option right now. They were 15 years ago when I started doing all the development of the mini line at KTM. Then the market was growing and more importantly it wasn't diluted with a ton of cheap Chinese knock-offs. Due to the decline in the market, the Chinese eliminating any profitability and most importantly the latest CPSIA initiative it would be very difficult for me to recomend to management that an investment in millions of dollars in development of a mini line is a wise thing to do, especially considering that as of the date of this post they are illegal to sell. Even if they get a temporary stay it is just that "temporary". Who knows what the correct political masters of our nation will do down the road.

I have a different vision on how to approach the youth market and womens market but that is a secret I'll keep to myself until the time comes.

As for now minis are bad business from a manufacturers standpoint and something that while once was a profitable segment of the business has a much dimmer future now.

 

[Dirtdame]

As for now minis are bad business from a manufacturers standpoint and something that while once was a profitable segment of the business has a much dimmer future now.

And how sadly dim for the youth of America as well as other countries Guess they'll have to sit around on their spreading butts, swilling down junk food and rewiring their little brains into mush playing all kinds of violent mindless video games....ah, who needs to grow up in the real world.

 

[HuskyDude]

My view and the view of the new Husky management is to combine the best of being a small company with the advantages of having a large company behind them.

If this is true then it will be all good.

I hope my above post wasn't to harsh. And it is just that "Armchair Speculation" I can only comment on what I read or have heard.

First of all, I think Husqvarna has a very promising future and who knows how they would have fared if not purchased by a mega company like BMW. But to say "That Husky's only hope is due to BMW ownership" I'm not sure if I agree with that...Husqvarna has been around for a long, long time. They might not be one of the top 5 manufactures but to think they would have gone under if not purchased by BMW...well
I don't think BMW made this move without a lot of thought.
Huskys have always been the "underdog" and I believe have products that could and will compete with all. I wanted to put "Kick Butt"
BMW knows this and with some proper marketing could rule...
Bottom line again is $$$. If they didn't think Husqvarna was a "Gold Mined" waiting to be discovered and they would make millions from the purchase...they would not have done it.
Just my 2 cents.