Filed under: Europe, BMW, Motorcycle
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A couple of days ago the UK’s Motorcycle News reported that BMW was in the final stages of selling Husqvarna to KTM, with a deal potentially confirmed as soon as this week. Following that came reports that Husqvarna Motorcycles wasn’t sold to KTM but to a Pierer Industries, the company owned by KTM CEO Stefan Pierer. Turns out the advance report was true, as was the follow-up: BMW has just announced a “strategic realignment” of its Motorrad division, explaining that it sold Husqvarna to Pierer Industries in order to focus on the urban and e-mobility segments. Husqvarna’s off-road machines, obviously, don’t fit into those categories.
BMW bought the Italian-based bike maker with centuries-old Swedish roots in 2007 - the rest of the Husqvarna company remains based in Sweden - and has invested huge sums to integrate the smaller company into the larger parent. Six years later, just when dividends should begin to truly pay off, the brand is sold.
Before BMW made its announcement, one of the theories that forum members put forward for Pierer’s interest in purchasing Husqvarna was that he wants his own business to run his own way. The parent company of KTM, Cross Industries, is 47.27-percent owned by India’s Bajaj Automotive, with Pierer the majority shareholder, and is on a quest for global growth, taking the fight to BMW in Europe and launching new bikes and technology into the Indian market. Compared to BMW’s and KTM’s 2012 sales of around 100,000 bikes each in 2012, Husqvarna sold 10,751 bikes, which was a 15.7-percent increase over the previous year. Pierer would have a lot more freedom in the running of a company of that size.
Now that the sale has been confirmed, ruminations will turn to issues like whether Pierer steps down from his position at KTM, what will become of the sub-brand Husaberg if Pierer doesn’t step down and how Husqvarna and KTM might cooperate no matter what Pierer does.
In the press release from BMW below, along with urban and e-mobility initiatives the German firm says it will expand its interests in “core segments from the 650 single-cylinder entry-level bike to the six-cylinder luxury tourer.” The sale is pending approval from European anti-trust authorities.Continue reading Husqvarna sold to KTM CEO Stefan Pierer
Husqvarna sold to KTM CEO Stefan Pierer originally appeared on Autoblog on Fri, 01 Feb 2013 08:29:00 EST. Please see our terms for use of feeds.
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