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Discussion Starter · #1 ·
Well i guess it is official. Harley bought MV/Cagiva for like 130 million, plus approx 70 million in previous debt obligations. that sounds like a pretty good deal, if some one would've told me earlier, maybe i would have bought it. Anyone got their deposit for a Black and Orange F4 with conchos?

699 Posts
my buddy works at is the company's internal email....

Supporting global growth: Why H-D, Inc. plans to acquire MV Agusta group

Tom Bergmann
Executive Vice President and Chief Financial Officer

By now you’ve likely seen the press release announcing that Harley- Davidson, Inc. has reached a definitive agreement to purchase the MV Agusta Group. If you haven’t, click here to read it now.

I’d like to share a bit more context with you about why Harley-Davidson pursued this acquisition and what it means for the Company.

The H-D, Inc. Vision
Harley-Davidson, Inc. is a global leader in fulfilling dreams and providing extraordinary customer experiences through mutually beneficial relationships with our stakeholders.

I want to call attention to the word “global” in our Vision. Global recognizes the strides we’ve made in overseas markets, but more importantly, the opportunities that overseas markets hold for our future. It’s safe to say that the U.S. market will continue to play a major role in our business. However, as Harley-Davidson, Inc. becomes a global company, we will increasingly pursue opportunities that are focused on growing our business in other parts of the world.

Acquisitions: Taking advantage of the right opportunity
The decision to pursue acquisitions isn’t just arbitrary; it’s a part of our strategic plans. At last year’s Annual Leadership Conference (ALC), Jim Ziemer, President and Chief Executive Officer, Harley-Davidson, Inc., and I began sharing information about the Company’s strategic plans for the future. Our strategy includes seeking growth through new customer segments, new product segments and new geographic segments.

Sometimes the strategy will involve organic growth from within, through existing brands and using existing resources. However, as we said at the ALC—and on a number of occasions since—we will consider acquisitions if the right opportunities come along that can help us reach new customers in the right market segments.

Longer term, acquisitions can also help diversify the Harley-Davidson, Inc. business model. Today, as the Motor Company's business goes, so goes H-D, Inc. Diversification can help reduce the dependency on the Motor Company over time as the only engine of success.

Strategy: How does the MV Agusta acquisition support worldwide growth efforts?
Harley-Davidson, Inc. has seen strong growth in recent years in all our major international markets as a result of the Company’s strategic focus to grow international sales faster than domestic sales. Europe is the second-largest global market for heavyweight motorcycles outside the U.S. Taking our European success to the next level and expanding our footprint there is Harley-Davidson, Inc.’s primary focus with this acquisition.

The European motorcycle market is significantly different than the U.S. market, with nearly 3 in every 4 motorcycles falling in the performance or sport category. The acquisition of MV Agusta will give Harley-Davidson, Inc. a greater presence in European motorcycling. We are approaching the acquisition of MV Agusta as an opportunity to revitalize this highly-regarded, premium European performance motorcycle brand and over time further expand our presence in Europe.

Why didn’t we invest additional resources into U.S. markets instead?
One of our Strategic Imperatives as a Company is to Grow Worldwide Retail Sales by increasing our focus on customers. We know that to advance this strategic imperative, it’s important to:

Continue to develop a greater presence in and grow our international markets
Continue to step up our efforts to address the needs of different customer groups
The sport performance category comprises about half of worldwide heavyweight retail motorcycle sales. The MV Agusta Group represents an attractive opportunity, because it increases the Company’s presence with sport performance customers and, along with Buell, further addresses the needs of this substantial and diverse segment, particularly in Europe.

As a Company, we will continue to allocate resources appropriately across Harley-Davidson, Inc. to achieve the goal of growing worldwide retail sales by increasing our focus on customers.

What happens next?
Looking ahead, Harley-Davidson, Inc.’s priorities after closing the transaction will be to:

Reassure the riding community, dealers, suppliers and employees that MV Agusta has a long-term strategic partner that is financially secure.
Get a management team in-place.
Resume operations and stabilize production of current models.
In summary, we are excited about the news we are announcing today and believe the acquisition of the MV Agusta Group is a good fit with Harley-Davidson, Inc. strategy on a number of levels. Harley-Davidson, Inc., with its industry-leading business management expertise, deep understanding of the motorcycles business and broad experience in the development and marketing of premium motorcycles, is well-positioned to revitalize MV Agusta and Cagiva. We look forward to finalizing the acquisition and welcoming these new members into the Harley-Davidson, Inc. family of premium brands.
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