Harley-Davison to Buy MV Agusta

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Brutale engine in a Road King? Straight pipes on an F4? Looks like it's gonna happen.

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No, I beg to differ. It's gonna go down in corporate history as the dumbest thing Harley ever did. Firstly, Harley had similar Italian proclivities in the late 60's. Aermacchi, a reputable Italian brand, was a cheap prey. A sort of belatedly defensive, i.e. anti-Japan strategy. Aermacchi's small displacement and mostly two-stroke bikes got badge re-engineered as Harleys, while Japan was successfully entering the "big" four-stroke arena. Old timers in America will remember these spaghetti- (as opposed to rice-) burners. A dismal, commercial flop. Secondly, Harley commissioned Porsche to develop 4-cylinder engines (in-line and V-shaped) which they promptly shelved for fear that they would hurt the venerable --and very lucrative-- V-twin sales. Thirdly, Harley re-hired Porsche to develop a state-of-the-art V-twin (that's when consistency equals obstinacy) which eventually (3 to 5 years too late) gave birth to the V-Rod of which the engine is already maxed out in terms of both displacement (including annual, extra cost CVO renditions) and torque and power. Fourthly, Harley upon finally realizing (?) all of the above, including its pathetic lack of in-house engineering innovation skills (although their previous chief R&D guy was highly respected in the automotive industry as a Corvette Z-series developer), via its Buell affiliate, decided to source motors from Rotax, Which only happened 6 months ago.

That's for the Harley side of the wedding. On the MV/Cagiva side, the company's assets are amittedly worth.... naught . Euroland ain't no place to mass-produce bikes in the first place. It takes US$ 1.54 US $ to buy one € today. But, regardless, the latest MV rendition (312-something) costs twice as much to the BUYER as a a brand-new Suzuki 1000 cc Geexer but reportedly (although very credibly) four times as much to the FACTORY or what's left of it to assemble it.

THAT'S ONE WEDDING I WON'T ATTEND. Jamie
 
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I can only guess as to why HD is buying MV but I suspect it has something to do with their declining market share. HD chugs (no pun intended) along on it venerable V-Twin which HD admirers just 'have to have' but those admirers are dwindling with age. It's also been rumored that HD cannot meet the 2010 Emissions certification without a number of modifications, the most obvious is water cooling, one that HD purists are adamantly opposed to.

That leaves HD in a pickle. To grow the company and support it's stockholders, I believe HD needs to branch out. Will staunch HD supporters accept MV's in the same showroom with their beloved V-Twins, it remains to be seen. Buell's are usually relegated to a corner of most HD showrooms I've been in, I wonder where the MV's will reside?....Maybe in the storeroom,

Finally, its widely known that the Italian manufacturers are plagued by labor problems so I'm wondering if it will be a 'hands off' acquisition or will HD have an active role in day-to-day operations and management. If it's the latter, I suspect that HD will have a lot to learn about handling Itallians......Didn't HD go down this road 30 years ago with another Italian manufacturer?
 
Jamie - Given the current economic situation, wouldn't it make sense for a US company flush with cash and facing declining sales in the US but substantial growth in the EU invest in a European company. No better way to guard against US inflation.

Now what HD does with it is another story.