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August 13, 2007 – BMW seeking to buy Husqvarna

August 14, 2007
Filed under Features

Even though BMW Motorrad is in the process of trying to acquire Husqvarna Motorcycles, U.S. BMW dealers should not expect to see an initial impact on their showroom floor.
Officials said should the pending acquisition occur, the Husqvarna bikes would continue to be sold through the existing U.S. Husqvarna dealer network.
BMW announced its plan to acquire Husqvarna July 20 from the Italian company MV Agusta Motor S.p.A. MV Agusta motorcycles were not part of the pending acquisition, which has to be approved by European Union cartel authorities before the sale can be completed. It was not known when the EU was expected to make its decision.
BMW’s purchase price was kept confidential.
“With the Husqvarna models targeted at the sporty competition, we will be able to extend the BMW Motorrad range to include younger groups of customers as well as the entire off-road and supermoto sector much more quickly and effectively than with our core brand alone,” Herbert Diess, BMW Motorrad’s general director, said in a press release.
BMW officials would not say whether they plan on increasing the production of Husqvarna motorcycles, which numbered 12,000 in 2006. Husqvarna bikes, which had a capacity range of 125-610cc in 2006, focus on the off-road segment and have single-cylinder engines.
BMW said it plans to keep Husqvarna as a separate enterprise, including all of the employees at Husqvarna’s facility in northern Italy. The director of operations for the North American distributor of Husqvarna motorcycles called the pending sale a “win-win” for both manufacturers.
“MV Agusta is strengthened by its ability to focus on its award-winning, high-end, on-road products, while BMW gains quick entry and excellent growth opportunities in the performance off-road sector with a strong, competitive, historic brand,” said Lawrence Ferracci, director of operations for Cagiva USA, which also distributes MV Agusta and Cagiva motorcycles.
In a separate press release, Cagiva said it will continue all sales, marketing, administration and logistical support for Husqvarna and MV Agusta motorcycles for the foreseeable future. It also noted the updated Husqvarna 2008 model year products remain uninterrupted.
MV Agusta was purchased by Italian firm GEVI S.p.A. in the spring of 2006 from a Malaysian company for one euro, plus all of MV Agusta’s debt.

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