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Slagged
07-11-2008, 15:26
I really hope that this is good for MV. I would love to see the F3 600 reach production!

Harley-Davidson To Acquire MV Agusta Group Expanding Presence In Europe
Italian Company Known for Premium, High-Performance Motorcycles

Milwaukee, Wis., July 11, 2008 -- Harley-Davidson, Inc. (NYSE: HOG) today announced the signing of a definitive agreement to purchase the Italian motorcycle maker MV Agusta Group (MVAG). Under the agreement, Harley-Davidson will acquire 100 percent of MV Agusta Group shares for total consideration of approximately 70 million euros ($109 million), which includes the satisfaction of existing bank debt for approximately 45 million euros ($70 million). In addition, the agreement provides for a contingent payment to Claudio Castiglioni in 2016, if certain financial targets are met. MV Agusta Group is privately held, with the Castiglioni family owning 95 percent of MVAG shares.

The acquisition is expected to close in several weeks, pending the satisfaction of contingencies and receipt of regulatory approvals. Harley-Davidson intends to fund the transaction primarily through euro-denominated debt.

MV Agusta Group has two families of motorcycles: a line of exclusive, premium, high-performance sport motorcycles sold under the MV Agusta brand; and a line of lightweight motorcycles sold under the Cagiva brand. MV Agusta's F4-R motorcycle, powered by a 1078cc in-line four-cylinder liquid cooled engine, is rated at 190 hp. The company sells its products through about 500 dealers worldwide, the vast majority of them in Europe. In 2007, MVAG shipped 5,819 motorcycles. During 2008 MVAG has significantly slowed production due to financial difficulties.

"Motorcycles are the heart, soul and passion of Harley-Davidson, Buell and MV Agusta," said Harley-Davidson, Inc. Chief Executive Officer Jim Ziemer. "Both have great products and close connections with incredibly devoted customers. The MV Agusta and Cagiva brands are well-known and highly regarded in Europe. They are synonymous with beautiful, premium, Italian performance motorcycles," Ziemer said.

Harley-Davidson, Inc. plans to continue to operate MV Agusta Group from its headquarters based in Varese, Italy. Following closing, the first priority will be to appoint a leadership team to include a new Managing Director and to resume the manufacture of current models.

Current MV Agusta Group Chairman Claudio Castiglioni will continue in a leadership role as Chairman and will play a major role in future product development. Design Chief Massimo Tamburini will continue his leadership of MV Agusta Group's world leading sport-bike design studio.

"We take enormous pride in MV Agusta and Cagiva motorcycles," said Castiglioni. "Our riders seek an uncompromising experience in premium performance motorcycles. And with Harley-Davidson's deep understanding of the emotional as well as the business side of motorcycling, I have great confidence that our motorcycles will excite customers for generations to come."

According to Ziemer, the acquisition is intended primarily to expand Harley-Davidson, Inc's presence and footprint in Europe, complementing the Harley-Davidson and Buell motorcycle families. Retail sales of Harley-Davidson motorcycles have grown at a double-digit rate in Europe in each of the last three years, as the Company has increased its strategic focus on global markets.

"The acquisition of MV Agusta Group will enhance Harley-Davidson, Inc's position as a global leader in fulfilling customer dreams and providing extraordinary customer experiences. We look forward to a long relationship with the MV Agusta and Cagiva families of customers and employees," said Ziemer.

Conference Call
Harley-Davidson, Inc. will hold a webcast conference call regarding the acquisition from 8:00 to 8:30 a.m. (central time) today, July 11, with Tom Bergmann, Executive Vice President and Chief Financial Officer, Harley-Davidson, Inc. To access the webcast, please log on and register at least ten minutes prior to the start time at www.harley-davidson.com, under the Investor Relations section. A replay of the webcast will be available at the same location approximately two hours after the call concludes.

Company Background
Harley-Davidson, Inc. is the parent company for the group of companies doing business as Harley-Davidson Motor Company (HDMC), Buell Motorcycle Company (Buell) and Harley-Davidson Financial Services (HDFS). Harley-Davidson Motor Company produces heavyweight motorcycles and offers a line of motorcycle parts, accessories, general merchandise and related services. HDMC manufactures five families of motorcycles: Touring, Dyna®, Softail ®, Sportster ® and VRSC™. Buell produces premium sport performance motorcycles and offers a line of motorcycle parts, accessories, and apparel. HDFS provides wholesale and retail financing and insurance programs primarily to Harley-Davidson and Buell dealers and customers.

Forward-Looking Statements
Harley-Davidson, Inc. intends that certain matters discussed in this release are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as Harley "believes," "anticipates," "expects," "plans," or "estimates" or words of similar meaning. Similarly, statements that describe future plans, objectives, outlooks, targets, guidance or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this release. Certain risks and uncertainties are described below. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this release are only made as of the date of this release, and Harley-Davidson, Inc. disclaims any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

Although Harley-Davidson and MV Agusta Group have signed a definitive purchase agreement, there is no assurance that all of the contingencies will be satisfied or that the governmental approvals will be obtained in a timely manner or at all. The proposed acquisition may not occur if the conditions to completing the transaction are not satisfied in a timely manner.

In addition, Harley-Davidson intends to finance a portion of the consideration by borrowing funds and its level of indebtedness may increase as a result, which may cause Harley-Davidson to incur additional interest expense and limit Harley-Davidson's ability to obtain additional financing. It could also increase Harley-Davidson's exposure to general adverse economic and industry conditions and adversely impact Harley-Davidson, Inc.'s earnings per share. Furthermore, Harley-Davidson may have challenges successfully integrating or profitably operating the business of MV Agusta Group.

Financial Contact:
Amy Giuffre (414) 343-8002

Media Contact:
Bob Klein (414) 343-4433

Halojumper
07-11-2008, 17:34
So does that mean that Harleys are now going to be fast and handle well or are MV's going to be loud, unreliable and slow?

dakotasdad
07-11-2008, 18:31
What????? Harley buys Italian company. Huh?

Great, now I have to pick another naked bike to covet.

fnfalman
07-14-2008, 08:15
Harley and Italian motorcycles aren't exactly strangers to each other. Remember the Aermacchi dealie?

I just cringe to think that an MV Agusta Brutale would now gain another 200-lbs and five acres worth of chrome though.

Halojumper
07-14-2008, 08:45
Harley and Italian motorcycles aren't exactly strangers to each other. Remember the Aermacchi dealie?

.

Was that the 350 Harley used to sell?

fnfalman
07-14-2008, 11:49
Was that the 350 Harley used to sell?

And the cute moped thingies.

Cryptoboy
07-15-2008, 10:48
So does that mean that Harleys are now going to be fast and handle well or are MV's going to be loud, unreliable and slow?

Unreliable? Are you still living in the 70's? Harley's are as reliable (if not more) than Honda's these days! I see more metric bikes on the side of the road than Harley's, especially newer ones! :shocked:

It's an interesting move (HD was looking at Ducati last year). The rumors are that they are going to be pushing a water-cooled motor into the touring line, and it doesnt' sound like they are pushing the V-Rod motor towards that end Who really knows? HD is very tight-lipped, the CIA could probably take some hints from them about keeping secrets! :rofl:

Halojumper
07-15-2008, 17:42
Unreliable? Are you still living in the 70's? Harley's are as reliable (if not more) than Honda's these days! I see more metric bikes on the side of the road than Harley's, especially newer ones! :shocked:
:


While they have certainly improved, they are still nowhere near the reliability of Hondas. As far as what you see on the side of the road, I'm afraid I'll have to disbelieve you on this one. I spend a lot of time on roads, both in the car and on the bike and almost never see broken down metrics. I'll be you can guess which ones I do see, though I must admit that it is not as prevalent as it one was, say in the 70's.

Cryptoboy
07-15-2008, 22:21
While they have certainly improved, they are still nowhere near the reliability of Hondas. As far as what you see on the side of the road, I'm afraid I'll have to disbelieve you on this one. I spend a lot of time on roads, both in the car and on the bike and almost never see broken down metrics. I'll be you can guess which ones I do see, though I must admit that it is not as prevalent as it one was, say in the 70's.

You can disbelieve all you want, I just don't see many Harley's on the side of the road. I've stopped to help out a few guys now, one was on an R1, the other was on a Suzuki (Sv650? Can't remember the exact model, but it wasn't a full fairing bike).

You can also check some stats on the reliability. I forget which magazine that it was (it was either Motorcyclist or Cycle World a few years ago, I usually buy one or the other when I travel), but they rated all the bike makers, and Honda and Harley were neck in neck for the top reliability! You can try to knock Harley's all you want, but the Twin Cam's are some of the best motors out there now for longevity. Not many other bikes out there (other than the Goldwings) with over 100k miles.

Just the way it goes!

Halojumper
07-15-2008, 22:42
Not many other bikes out there (other than the Goldwings) with over 100k miles.

My own experience is that, in general, I see more miles being put on big bore metrics than on most Harleys. That doesn't mean that some people don't know some Harley riders who put on high mileage, but they are, by far, the exception.

Just the way it goes!

Exactly

Cryptoboy
08-06-2008, 10:50
My own experience is that, in general, I see more miles being put on big bore metrics than on most Harleys. That doesn't mean that some people don't know some Harley riders who put on high mileage, but they are, by far, the exception.


My experience has been just the opposite. The only people I know that have over 50k miles on a bike are on Harley's, other than my father in law, and he's on a GW. There aren't a whole lot of metrics out here that I've seen (metric cruisers at least. Plenty of sportbikes!), or they must not ride the same routes!

Kinda funny too, since my first post, I've seen a few bikes on the side of the road, and all have been metric. :cool:

Halojumper
08-06-2008, 20:54
My experience has been just the opposite. The only people I know that have over 50k miles on a bike are on Harley's, other than my father in law, and he's on a GW. There aren't a whole lot of metrics out here that I've seen (metric cruisers at least. Plenty of sportbikes!), or they must not ride the same routes!

Kinda funny too, since my first post, I've seen a few bikes on the side of the road, and all have been metric. :cool:


Do you think that goes across all motorcyclist or just the group you hang out with?

White Buffalo
08-16-2008, 15:33
While they have certainly improved, they are still nowhere near the reliability of Hondas. As far as what you see on the side of the road, I'm afraid I'll have to disbelieve you on this one. I spend a lot of time on roads, both in the car and on the bike and almost never see broken down metrics. I'll be you can guess which ones I do see, though I must admit that it is not as prevalent as it one was, say in the 70's.As biased as I actually am, truth is truth,

I was hangin with a few bros just today who's bikes had 140,00 and 300,000 on the motors. The guy with a 140k on the clock was on a twin cam 88. The guy with 300k was a guy on a shovel he's owned since 74, he rebuilds the top end every 100k and hasn't done much of anything to the bottom. Don't believe the hype. This year alone, I've done 15k on my twinky and it hasn't left me stranded once. My buddy's honda shadow 1100 only has about 30k on the clock and he's having issues left and right. Real world experience, and we're all everyday riders, none of my bros own cars (their ol ladies do though).

as always though, YMMV.

Halojumper
08-16-2008, 18:12
As biased as I actually am, truth is truth,

I was hangin with a few bros just today who's bikes had 140,00 and 300,000 on the motors. The guy with a 140k on the clock was on a twin cam 88. The guy with 300k was a guy on a shovel he's owned since 74, he rebuilds the top end every 100k and hasn't done much of anything to the bottom. Don't believe the hype. This year alone, I've done 15k on my twinky and it hasn't left me stranded once. My buddy's honda shadow 1100 only has about 30k on the clock and he's having issues left and right. Real world experience, and we're all everyday riders, none of my bros own cars (their ol ladies do though).

as always though, YMMV.

While I don't doubt what you experience, I doubt that a couple of examples is enough to generalize it to most.

White Buffalo
08-16-2008, 18:43
While I don't doubt what you experience, I doubt that a couple of examples is enough to generalize it to most.
Fair enough, I could give a few more examples, but it won't change peoples minds on things, so that's cool. FWIW, I'm not a harley or nothing guy, I just have a ton of bros and the majority of them ride harleys. Heck, we just did an 883 to 1200 conversion on my buddy's evo sporty chopper... only reason we did it was to get a bit more juice out, very cost effiecient hp gains. His 883 had probably close to 70,000 and the inside looked very runnable still... lotta life left in it. Ya just gotta take care of your stuff, I honestly believe that's where harley got it's bad wrap... people not willing to take the time and do the things shovels and pans needed done to them on a regular basis.