No matter how the press releases are written or the news is reported, the decisions taken by Harley-Davidson yesterday are seen by many as a comment on the state of the motorcycle industry.

The iconic giant of motorcycle manufacturers used the backdrop of its quarterly financial results to discontinue one brand while publicly placing a 'for sale' sign on another.

Aside from what the parent company Harley-Davidson Inc. will look like in 2010, where it build its motorcycles in the future has also been hinted at.

While discussing its third quarter financial results Harley-Davidson unveiled key elements of its go-forward business strategy to drive growth through a single-minded focus on the unique strengths of the Harley-Davidson® brand.
 
As part of this strategy, the Company will divest its MV Agusta unit and also discontinue the Buell® product line.

"Our objective in acquiring MV Agusta last year was primarily to expand our presence in Europe, and was a recognition of MV Agusta's proud legacy. While growth in Europe and other global markets remains highly important to us, we believe that focusing our efforts on the Harley-Davidson brand is the optimal  path to sustainable growth," said Matt Levatich, President and Chief Operating Officer of Harley-Davidson Motor Company.

"This decision was not made lightly. MV Agusta is a great company with a proud heritage and brand, high-quality exciting products,  and a passionate team with whom we have achieved a great deal over the past 14 months," Mr. Levatich added.

Harley-Davidson acquired the privately held Italian motorcycle maker MV Agusta in August 2008 and key achievements since then  have included the reinstating of production at the Company's Varese factory and the re-starting of product development - leading to the recent unveiling of the re-engineered Brutale to great accolades from dealers and customers alike.

"With a streamlined business and such an exciting product pipeline we sincerely believe that MV Agusta is well positioned for the future," said Mr. Levatich.

While Harley-Davidson's decision to sell MV Agusta may have surprised industry experts, discontinuing Buell has left many riders and performance enthusiasts stunned. Not surprisingly,  EriK Buell, a man who built his career transforming rider's passions into motorcycle design became the face for many with his personal announcement of Harley-Davidson's decision in a video featured on Buell's website.
 
In a pained and emotional voice Buell discussed the decision, the many innovations created, the company's recent success in the racing world as well as the character of the Buell rider.

However, some feel Erik Buell anticipated today's announcement from Harley-Davidson. In a recent interview Erik expressed concerns over Buell Motorcycle's future.

"Especially in this economy, I do worry about it," he told Milwaukee Journal Sentinel's Rick Barrett in September 2009, "Who knows if the brand will survive? But if the philosophy of what we have done survives, then the brand could be absorbed and called Harley-Davidson and it wouldn't matter."

Many now wonder if the writing was on the wall when Harley-Davidson's then new President and Chief Executive Officer Keith Wandell, made his first cost-cutting decision and stop a planned consolidation of Buell's operations into one 163,000-square-foot factory in East Troy, Wisconsin.

For economists, it could be considered a wake up call for the state of the motorcycle industry and an indication of the direction needed for financial survival, lean and focused.

But what brought Harley to the decision it made today?

Worldwide retail sales of new Harley-Davidson® motorcycles declined 21.3 percent in the third quarter compared to last year's third quarter and an 84.1 percent decline in net income from lower motorcycle shipments and the effects of the economy on retail as well as the performance of it's financial services arm.

"As our announcement regarding Buell and MV Agusta indicates, we are moving with the speed and decisiveness required to bring our business strategy to life," said Wandell. "The fact is we must focus both our effort and our investment on the Harley-Davidson brand, as we believe this provides an optimal path to sustained, meaningful, long-term growth."

Continuing to promote and sell its iconic motorcycles appears to part of the ongoing strategy with an implied possibility of opening manufacturing facilities in countries where demand is greatest. In an article written by Rick Barrett in the Milwaukee Journal Sentinel, assembly plants for the iconic Hog could be in the company's future plans.

As Harley becomes a more global company, it may decide to build bikes in other countries in addition to selling them there.

"There is a possibility that we would have to both design and manufacture" a motorcycle for specific markets, CEO Keith Wandell told Rick Barrett.

In a word, its about the Harley name.

"We are refocusing our business with the expectation that we can provide growth that is both profitable and sustainable over the long term," said Wandell. "We believe we can create a bright long-term future for our stakeholders through a single-minded focus on the Harley-Davidson brand."

The Milwaukee-based company will sell off its remaining Buell stock, including motorcycles, accessories and apparel, through its dealerships. Dealers will continue to offer replacement parts, warranties and service for Buell bikes. The line's closing will likely result in a US$125 million one-time cost, with about $115 million of that amount this year. No timeline has been given for the sale of MV Agusta.

"Buell and MV Agusta are great companies, with proud brands, high-quality exciting products and passionate enthusiasm for the motorcycle business. Buell has introduced many innovative advancements in motorcycle design and technology over the years and MV Agusta is known in Europe for its premium, high-performance sport motorcycles. However, our strategy to focus on the Harley-Davidson brand reflects the fact that we believe our investments in that brand are a better utilization of overall company resources," said Wandell.

In a word, its about the Harley name.

"We are refocusing our business with the expectation that we can provide growth that is both profitable and sustainable over the long term," said Wandell. "We believe we can create a bright long-term future for our stakeholders through a single-minded focus on the Harley-Davidson brand."

The Milwaukee-based company will sell off its remaining Buell stock, including motorcycles, accessories and apparel, through its dealerships. Dealers will continue to offer replacement parts, warranties and service for Buell bikes. The line's closing will likely result in a US$125 million one-time cost, with about $115 million of that amount this year. No timeline has been given for the sale of MV Agusta.

"Buell and MV Agusta are great companies, with proud brands, high-quality exciting products and passionate enthusiasm for the motorcycle business. Buell has introduced many innovative advancements in motorcycle design and technology over the years and MV Agusta is known in Europe for its premium, high-performance sport motorcycles. However, our strategy to focus on the Harley-Davidson brand reflects the fact that we believe our investments in that brand are a better utilization of overall company resources," said Wandell.