BMW buys Husqvarna. September 2007

The agreement signed between Dr. Herbert Diess, General Director of BMW Motorrad and Husqvarna boss, Claudio Castiglioni of MV Agusta, will see BMW buy the Husqvarna brand, production facilities and also take charge of all staff at Husqvarna's factory in Varese, Italy. Don't expect to see any "badge-engineered" BMW dirt bikes, though. BMW has gone on record as saying they will run Husqvarna as a separate brand, in a similar vein to their treatment of the Mini automotive brand.

BMW has stated the takeover was a logical step in growing its share of the motorcycle market, especially in what they see as the "youth" sector of supermotard and sports-oriented dirt bikes. Husqvarna's larger than expected (32%) rise in pre-tax profits is believed to have also been a key factor in making the dirt bike brand a more attractive buying proposition. Husqvarna's pretax profit last year of US$231 million was partly due to their own acquisitions (garden sprinkler and hose firm, Gardena, and earthmoving equipmant firm, Komatsu Zaedong), but Husky did post a 1% sales increase and 5% operating profit increase. Gardena also posted a profit in the US, in a market sector that experienced an overall downturn. Aside from handing BMW a ready-made successful brand, Castiglioni believes the sale will allow him to focus on building the presence of MV Agusta and Cagiva (which weren't part of the Husky sale) in international markets, while also freeing up more capital for their own future model development.

Australian Husqvarna distributors, the Paul Feeney Group, have issued a release to allay any fears intending Husqvarna purchasers or current owners may have over the brand's future. "I believe that BMW's plans and involvement will be a notable enhancement for the future of Husqvarna", Feeney stated. "I can confirm that the Paul Feeney Group will remain the Australian distributors for Husqvarna motorcycles and will also continue to use our extensive, reputable dealer network."