The deal is done. BMW has confirmed the sale of Husqvarna to KTM. BMW has agreed with Pierer Industry AG (a separate company that 51% owner of KTM, CEO Stefan Pierer owns) to sell the struggling off-road motorcycle manufacturer. This is a big surprise given BMW's significant investment to bring Husqvarna street bikes to market.

In the press release BMW states the realignment of its brand and the selling of Husqvarna was for ‟urban mobility and e-mobility reasons”, essentially to focus their two wheel efforts on their own namesake. Both companies have agreed not to disclose the purchase price.

The deal appears to be somewhat secretive. The press release doesn't mention what the new relationship between Husqvarna and KTM will be or for that matter how KTM will play with the 47% owner of KTM, Bajaj Motorcycles. No word yet on KTM's reasoning for purchasing Husqvarna. Coincidence or not, KTM motorcycle sales rose over 30 percent to 100,000+ bikes in 2012 with a very strong showing in India, which happens to be the home country of partner Bajaj.

Husqvarna started making motorcycles in Sweden almost 110 years ago. The marque has switched company ownership several times, most recently to BMW in 2007, Cagiva-MV Agusta group in 1986 and as far back as 1977 to Electrolux. The vehicles are currently produced in Cassinetta di Biandronno, Italy. No news on whether or not KTM plans to move production to Austria - yet.

For those that are confused the deal is as followed:

KTM is owned by CEO Stefan Pierer (51%) and Bajaj Auto(47%)

100% of Husky was purchased by Stefan Pierer's separate company Pierer AG

For more on Husqvarna and KTM check out these posts:

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  • nick303
  • 2013-02-01T12:57:17-05:00

I am a little surprised that BMW are selling the brand off after what seems like no time at all since they acquired them. It seemed like a relatively good fit for BMW (although I was a little unsure why they wanted to stray from focusing purely on the BMW brand), but clearly it's no longer in tune with their plans for the future. All fine and good. Let's not forget that KTM also own another Swedish motorcycle brand... Husaberg! I believe the 'bergs are all manufactured in Austria now, but have some operations that remain in Sweden? Seems to me that KTM (or is it more accurate to state "KTM affiliated companies") have now collected the Japanese alternative European dirt bike companies? I say, yes and it's a nice collection.

 
  • alex
  • 2013-01-31T12:28:24-05:00

Now, that is a strange thing. Firstly, it was always odd that BMW bought husky in the first place. Secondly, what is KTM going to do with it? Maybe there's some secret sauce they want (Husky's always seemed lighter than KTMs to me, for example). Whatever, I hope they manage to stick around and stay unique.