2013 Husqvarna 650 Terra

[eakins]

Originally Posted by Beemermcr

Just dropped off my Terra to Ricochet here in Salt Lake for them to prototype a Skidplate for the 650! Looking forward to seeing their solution for all the exposed lines --

http://utahsportcycle.com/index.html

Full disclosure: for giving up my baby for a week, I will get a "smoking' deal" on the prototype.

Paul

anything less than a free part for you is a rip off. that's how it works.

[eakins]

directly taking on the Japanese is keeping the price low. and where it's produced is a huge part of that equation? even though it's not Indian owned, i'm guessing it will be produced there.

Originally Posted by Beemermcr

Several things stand out (rough numbers):

Last year:

BMW sold 1000 fewer bikes than KTM (105k to 104k, iirc)
- KTM knows how to sell at least as well as BMW (I know KTM average price is lower, so BMW sales are higher)
- meaning that the new owners know at least as much as BMW about selling bikes

Husqvarna sold @10k bikes, (iirc) and the new owners state they want to take that to 20k/year, directly taking on the Japanese.

My Terra is 4719, based on VIN, so they made and shipped about 5k units in less than half a year; I hear rumors that Husky sales were up 20+% in last quarter, due mostly to the Terra. I hear that January was even stronger--

IMHO, it makes no sense to discontinue (or fail to secure the supply line for) the best selling product in a business you buy; a bike that can apparently single-handedly get you to 20,000 bikes this year, as long as you can ramp up production. Oh, and is positioned directly to steal sales from out-dated KLRs, DR650s, etc.

I doubt we see the Terra an "orphan", dumped or given back to BMW --- makes no business sense. I that counts in today's market ----

Paul

[mario33]

Originally Posted by eakins

directly taking on the Japanese is keeping the price low. and where it's produced is a huge part of that equation? even though it's not Indian owned, i'm guessing it will be produced there.

So its better to get your own one now. Still Italian ;-)

Mine arriving in a week. And I'm completely unfazed by rumours. It's a nice bike, there's legal obligation to supply parts for 10 years, aftermarket exists already (to the level I need it). I'm OK with it...

[WVdyhrd]

Originally Posted by mario33

So its better to get your own one now. Still Italian ;-)

Mine arriving in a week. And I'm completely unfazed by rumours. It's a nice bike, there's legal obligation to supply parts for 10 years, aftermarket exists already (to the level I need it). I'm OK with it...

I would love to see the legal precedent for this

But, the company was SOLD (fact not rumor) not dissolved. Different people own it now, but it has all been done by professionals. I'm sure they will continue to support their customers.

Trust me, as someone that has access to both systems, KTM's CEO can only improve the support not degrade it.

[SCExpat]

Originally Posted by gunnerbuck

Maybe BMWs U.S. price point on these bikes allows for little profit when compared to their other models... In other words they were put out at a break even price to try to entice potential Japanese model buyers over and even with big sales do little for the bottom line...

I have heard complaints from prospective buyers North of the US border that they are being ripped off... The Canadian dollar has been on par or higher than the US buck and yet these bike are priced much higher {+$2000?} up here...

The bikes sell for different prices in different countries due to taxes. A big factor in my move from Brazil back to the states. 100% import tax makes things cost double. The straw that broke the camels back was when I needed new tires for my 2010 DL650 (about $18K new) and the Anake II cost about $300....EACH! No vaseline.

[gunnerbuck]

Originally Posted by SCExpat

The bikes sell for different prices in different countries due to taxes. A big factor in my move from Brazil back to the states. 100% import tax makes things cost double. The straw that broke the camels back was when I needed new tires for my 2010 DL650 (about $18K new) and the Anake II cost about $300....EACH! No vaseline.

Yes vaseline, the taxes {13 %} get added on after the $2000 price difference...

To tell you how bad it is, cars built in this country are cheaper to buy in the U.S.

[Murphy Slaw]

Wow.....

[kawagumby]

Originally Posted by Beemermcr

IMHO, it makes no sense to discontinue (or fail to secure the supply line for) the best selling product in a business you buy; a bike that can apparently single-handedly get you to 20,000 bikes this year, as long as you can ramp up production. Oh, and is positioned directly to steal sales from out-dated KLRs, DR650s, etc.

I doubt we see the Terra an "orphan", dumped or given back to BMW --- makes no business sense. I that counts in today's market ----

Paul

My thoughts exactly....all the hand-wringing is an exercise in speculative negativism.

[mario33]

Originally Posted by itsatdm

I don't know if you can claim that the Terra is the biggest selling model based on a vin number. They could be issued sequentially over all the bikes or blocks set aside for that purpose. What I read was there were 1,351 sold through Dec 2012. Less than the number of Husky Nuda models at 1,936.

Nuda was sold through the whole year. TR - only 3-4 months, multiply that by 4 and potential yearly sales are over 5k pcs. And assuming its just starting - might be much more... Comparing apples to apples - TR sold 3x better than Nuda, nearly half of total number husky sells yearly.

[lightfighter]

can someone change the name of this thread to "corporate strategy and international sales theory"?

[mario33]

Originally Posted by itsatdm

With all this potential profitability, why did BMW sell it.

My theory is - they cant deal with true off-road bikes (bmw's own 450 example comes to mind). And potential benefits from costly R&D are not showing up in crisis-ridden world (eg. Nuda). TR alone couldnt save the P&L. Strategy was right for BMW parthership but sales didnt get momentum yet.

[ducnut]

Originally Posted by lightfighter

can someone change the name of this thread to "corporate strategy and international sales theory"?

I'm waiting for a mod to come along and ban every poster who's off-topic.

[mrt10x]

Originally Posted by gunnerbuck

Yes vaseline, the taxes {13 %} get added on after the $2000 price difference...

To tell you how bad it is, cars built in this country are cheaper to buy in the U.S.

but wait.. you get "free" health care.. so it all works out.

[wolftrax]

Think I'll mosey on up to Asheville Tuesday and have a look at one of these. Though I love my Tenere, have to admit that it's a tad bit on the heavy side picking up out of the dirt. If this bike is half as good on the road as the Tenere I may be trading.

[DirtyOldMan]

Originally Posted by lightfighter

can someone change the name of this thread to "corporate strategy and international sales theory"?

No shit!
This thread could now suck-start a Harley.

In an attempt.to change direction, I could only get 2.4 gals in the tank with 140 miles on the trip meter last fillup. I think that's 58 mpg. Gotta 're-check that but if true that's pretty close to a 200 miles range.
Discuss.