East Troy’s Buell Motorcycles to shut down
EAST TROY — Buell Motorcycles Co. will shut down its operations, the East Troy company’s owner said Thursday.
The announcement came after news Thursday that Harley-Davidson’s third-quarter profits slid 84 percent because of fewer motorcycle shipments. The company also reported recession-related difficulties in getting loans for its customers.
The shutdown will be effective Oct. 30, Harley-Davidson spokesperson Pat Sweeney said. About 80 hourly positions and 100 salaried positions will end early December, she added.
Company founder Erik Buell announced the shutdown in an emotional video posted on the company’s Web site Thursday.
“I will always be proud of American’s little sport bike company that took on the world,” Buell said. “While I regret that we will not be able to build new Buell Motorcycles, Harley-Davidson will stand behind Buell’s full warranty.”
“We’ve proven that a small group of passionate and inspired people can compete against industry giants,” Buell said.
Buell Motorcycle Company, a subsidiary of Harley-Davidson Inc., was founded in 1983 by Buell, a former racer and motorcycle designer.
Buell said dealers still have a limited number of motorcycles, and he encouraged customers in the market to get one before they’re gone. The company will not produce any more Buell motorcycles, but Harley-Davidson will provide parts as needed, he said.
“They’re truly superb motorcycles,” Buell added. “They’re great American technology and a legendary history.”
Thursday’s announcement puts an end to a series of challenging decisions by Harley-Davidson officials facing a tough market for the motorcycle business.
Harley-Davidson spokesperson Bob Klein said the moves have been part of a series of restructuring and cost-saving measures.
Production at Buell Motorcycle Co. had been scheduled for a partial shutdown between November 2009 and January 2010, leaving about 52 employees without work.
Harley-Davidson officials also have put in place temporary shutdowns at an engine and transmission plant in Milwaukee and at locations in York, Pa., and Kansas City, Mo.
The company’s temporary shutdowns vary from five to 14 weeks, Klein said. The two 14-week shutdowns are in Milwaukee and Kansas City.
In May, officials decided not to consolidate five leased facilities in East Troy into one facility that would have been built at the village’s industrial park. The plan was to reduce costs and improve efficiency in the long run.
Harley-Davidson spokesperson Rebecca Bortner said company officials chose not to consolidate to avoid short-term expenses.
At the time, officials also cut 10 jobs in East Troy, about 5 percent of Buell’s workforce, and put in place a series of restructuring initiatives in Harley-Davidson’s Milwaukee headquarters.
Other measures include layoffs that could affect 1,900 hourly employees by the end of 2010, Klein said. The temporary shutdowns are not considered permanent layoffs, he added.
Harley-Davidson’s economic concerns come on the heels of a 2.3 percent decline in revenue for 2008.
In January 2009, company officials reported a 6.8 percent drop in revenue in 2008’s fourth quarter and a 58.2 percent decrease in net income for the same period.
The company planned to reduce motorcycle shipments in 2009 after an 8.2 percent decrease in wholesale shipments in 2008 compared to 2007.
Oct 20, 2009 at 2:11 p.m.
Suggest removal
At least now Buell will not proclaim that they win motorcycle races anymore. How a racing governing body in the first place allowed a 1200cc Buell compete against 600cc japanese sportbikes is beyond me. Granted, buells do have excellent handling characteristics, but in racing, lets compare apples to apples and not 1200cc machines against 600's and then proclaim that we competed against the giants of the industry and still won. Please.
Oct 18, 2009 at 5:22 p.m.
Suggest removal
harleys are about as american as kia's, I have alot of business in Taiwan and China and harley is super busy there cranks, cylinders, cams and every accesory is made in China they makes me ill, I kind of liked the Buell but when they used a Rotax motor and HD bought MV Augusta I knew something was gonna happen, first Buell, and give those Wis. knuckleheads time and they'll ruin MV too. Buy Victory
Oct 17, 2009 at 7:57 p.m.
Suggest removal
Good for you miyata312 that you ride HD or any bike for that matter and not as a status symbol or bar to bar or as an investment for which most will lose on almost all bikes. You cannot imagine how many HD owners trailer their bikes across the states to lets say Sturgis SD and then ride - posers and what is the sense of spending 18K on a bike if you trailer it long distances. Those bikes are made to ride. Pete is correct though that there is a flood of HD's for sale as compared to other mfgs. bikes on ebay, craigslist, etc. and therefore is only going to get worse and the market will soon lower the price of what HD's are worth. Simply economics of supply and demand. More supply=less demand=lower price.
Oct 17, 2009 at 6:36 p.m.
Suggest removal
My wife and I love to ride. We don't own a Harley. Not because we don't like them, it just wasn't important enough for us to own one. Don't get me wrong, they're great - we just found another bike we liked. You see, we just enjoy the sport. It never was about the brand. Never the less, it is unfortunate to see Buell and all those families lose this great business and their jobs.
Oct 17, 2009 at 12:47 p.m.
Suggest removal
Another 180 or more losing their jobs. Well they are getting some CHANGE, probably not what they had HOPED for.
Oct 17, 2009 at 10:14 a.m.
Suggest removal
Well said miata. I'll never ride a H-D but I'll ride w/you.
Oct 17, 2009 at 8:26 a.m.
Suggest removal
HMMM! at 12 to 18 grand a car sounds far better , for those prices you can almost get 2 kia`s. Makes sense that buyers are now in short supply .You have to spend realisticly, and a bike for that price a bike is pretty RETARDED in this economy or at any time. Sorry bikers .
Oct 17, 2009 at 2:34 a.m.
Suggest removal
Cookie, Buells are about $12K. My 05 HD Ultra was $18K new. Didnt buy any "HD branded accessories" like pipes or Screamin Eagle garbage. I dont think there will be a flood of used HD's. You still have retards trying to sell 5-10 yr old HD's for more than the price of a brand new one. Sad thing is they find one sucker to buy it also for that price.
Mine is for riding. Its not an "investment" nor a "status sybmbol" nor a "life style" or a way to ride bar to bar. I hate those people. Screw the RUBS. My bike has been through 24 states in 4 yrs and not on a trailer. ;)
Oct 16, 2009 at 9:50 p.m.
Suggest removal
Nice bikes, but the price of a nice new car is ridiculous. Who can afford a 20K on up bike anymore - only the rich or the middle class thinking they can afford it until they spend their life savings on repairs/upgrades. The Harley fanatics are still out there, just unfortunately not the younger generation because not too many people under 40 can afford a Harley new or even used until the price keeps dropping and there will be a flood of used Harleys to be sold much cheaper than now and actually for what they are worth for a change.
Oct 16, 2009 at 5:53 p.m.
Suggest removal
It is a disappointment because by all accounts they produced a quality product. But high-end motorcycles are probably in the same trap as SUVs in that many of them were being purchased using what people thought was "free" cash from their rising home equity. So even if people want the product they can't afford it now.
Before you post a comment, consider this:
Note: GazetteXtra.com does not condone or review every comment. Read more in our User Policy AgreementPost Comment
Commenting requires registration.