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Harley didn't calculate savings before killing Buell, hopes business as usual leads to financial recovery

Harley_Q3_2009.jpgHarley-Davidson has no idea how much money, if any, it will save by killing Buell. Discussing the decision, Harley CFO John Olin says, “We have not quantified the benefits of increased focus on [the] Harley-Davidson brand as a result of discontinuing Buell nor included any potential savings in our restructuring estimates.” So how does the company plan to dig itself out of its current financial hole (net income has fallen 71.4 percent so far this year compared to the same period during the already abysmal 2008)? By building more large-capacity tourers and cruisers and offering more performance add-ons and accessories, that’s how. Oh, and they’ll be shutting down Sportster production for the rest of the year too.
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