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ERIK BUELL ESTABLISHES ERIK BUELL RACING

New Venture Will Build Buell 1125R-based Racing Motorcycles and Supply Parts

Milwaukee, Wis. -- (Friday, November 20, 2009) Harley-Davidson, Inc. (NYSE:HOG) announced today that following the company’s recent decision to discontinue the Buell motorcycle product line, Erik Buell, Chairman and Chief Technical Officer of Buell Motorcycle Company, will leave the company to establish Erik Buell Racing, an independent motorcycle race shop.

Erik Buell Racing will specialize in the supply of race-use-only Buell motorcycle parts and race preparation services for engines and motorcycles, and the building and sale of Buell® 1125R-based race-use-only motorcycles under license from Harley-Davidson, as well as providing technical support to racers of Buell motorcycles.

“I’m looking forward to helping Buell racers keep their bikes flying,” said Erik Buell. “We’ve got some exciting race development projects in the works and it will mean a lot to me personally to see Buell racers competing for wins and championships in the 2010 season and beyond.”

“I’m pleased that Harley-Davidson is assisting Erik in establishing this business to continue supporting the racing efforts he has had so much passion for over the years,” said Buell President and COO Jon Flickinger. “Harley-Davidson and the Buell Motorcycle Company will always be proud of their affiliation with Erik, and we wish him well in this new endeavor to support Buell racers.”

Erik Buell Racing will be based in East Troy, Wisconsin and will be staffed by Erik Buell and a veteran team of personnel. For more information, after December 1, 2009, contact:

Erik Buell Racing, LLC
2799 Buell Drive, Unit C
East Troy, WI 53120
www.erikbuellracing.com
info@erikbuellracing.com

Hey that's some good news. I wonder if he has signed a no-compete for street bikes, or if he is going to build a race reputation with more wins and start manufacturing street bikes again - pobably years from now though.

I read somewhere that as long as he keeps campaigning the 1125RR, he doesn't have to build streetbikes to race in AMA superbike, because it's already homologated. His dilemma will come when he wants to start racing a new model. I look for some kind of Buell streetbike prodution to start 3-4 years from now.

jstark47 wrote:I read somewhere that as long as he keeps campaigning the 1125RR, he doesn't have to build streetbikes to race in AMA superbike, because it's already homologated. His dilemma will come when he wants to start racing a new model. I look for some kind of Buell streetbike prodution to start 3-4 years from now.

I had a Buell for several years and was always treated like stepchild by dealers and Harley regional people. Maybe this will give him the freedom to create and independent dealership program or at least one that is seperate from HD. Just thinking.

Where would you start? Maybe proving your idea's are superior and creating a winning racing program would do a lot ot create that impression.

I don't see him giving up on street bikes. We will have to just wait and see.

Just write Erik , he will write back, He has plans.

I'd bet Harley decided that having Buells trashing up their showrooms had run it's course and had to find a clean way to make the cut. By shutting down Buell and essentially killing the brand, all dealerships would have a quick divorce from the "problem" and could get on with selling the image. If Harley sold the brand it would be very difficult to make this happen as inevitably there would be some dealers who would still want to sell them, which would keep the issue alive. Once the divorce is final I wouldn't doubt that we see Buells (perhaps under a different name) show up from a different manufacturer. My $$$ is on Bombardier.

In the mean time the bikes will continue to be developed at the race-track.

High_Side wrote:I'd bet Harley decided that having Buells trashing up their showrooms had run it's course and had to find a clean way to make the cut. By shutting down Buell and essentially killing the brand, all dealerships would have a quick divorce from the "problem" and could get on with selling the image.

You're just a bit off the mark here. Killing off Buell and MV Augusta was a financial decision and had nothing to do with "image".

Gummiente wrote:

High_Side wrote:I'd bet Harley decided that having Buells trashing up their showrooms had run it's course and had to find a clean way to make the cut. By shutting down Buell and essentially killing the brand, all dealerships would have a quick divorce from the "problem" and could get on with selling the image.

You're just a bit off the mark here. Killing off Buell and MV Augusta was a financial decision and had nothing to do with "image".

O.K. Gummy, but your just a bit off when you say Harley killed MV Agusta. MV is for sale, Buell is not. I've done my share of reading about why Harley killed Buell and agree that the financial part is key. My point is that I believe the reason that Harley would want to kill the Buell business vs. sell the Buell business is they really don't want their dealers to continue selling something that is no longer in their control and doesn't fit the image. And believe it or not, there is a lot to do with selling Harleys that has to do with image.

Truth is, nobody really knows why H-D killed off Buell, because no one outside of H-D executives and the board has access to the financials that really matter. The published figures only tell part of the story. The guys on the Badweb Buell forum probably have the most access to inside facts, and they admit they're just speculating.

There seem to have been two entities, Buell Motor Company, which some have argued was profitable, and Buell Distribution Company, whose financials are intextricably intertwined with the parent H-D company.

I think we'll hear more from Buell in the upcoming years, EBR is just the first step. For the time being I'll surmise Erik is hobbled by non-compete and non-disclosure agreements, which will run for several years, as well as H-D's ownership of the rights to much of his unique IP. I think all future Buell development will be based on the 1125, the XB series bikes are well and truly dead and gone. It was air-cooled technology, it was going to die anyway.

Harley ended Buell because it was biting into their sales, when they started they thought it was going to bring in young new riders , but it didn't. older riders like me,(49) started buying Buells, and we are harleys age group. so Harley Killed buell.