BMW Motorrad acquires Husqvarna Motorcycles.

Munich. BMW will acquire the renowned motorcycle company Husqvarna
Motorcycles. Dr. Herbert Diess, General Director of BMW Motorrad, and
the Italian industrialist Claudio Castiglioni signed a contract on
19.07.2007 in Italy. The contractual agreement will come into full
effect upon final approval of the EU cartel authorities. Both parties
agreed that the purchase price was to remain confidential. For BMW
Motorrad the acquisition of Husqvarna Motorcycles is a logical step in
enhancing the company's activities in the field of light, sporty
motorcycles, which has recently been reinforced with the new models of
the BMW G 650 X series. Commenting on BMW's decision to acquire
Husqvarna Motorcycles, Diess, General Director of BMW Motorrad, stated:
"With the Husqvana models targeted at the sporty competition, we
will be able to extend the BMW Motorrad range to include younger groups
of customers as well as the entire off-road and supermoto sector much
more quickly and effectively than with our core brand alone. This
transaction also provides us with direct access to a worldwide sales
network in the off-road segment." BMW Motorrad plans to continue
operating Husqvarna Motorcycles as a separate enterprise. All
development, sales and production activities, as well as the current
workforce, will remain in place at its present location in the region
of Varese in northern Italy. Just as BMW Motorrad, Husqvarna
Motorcycles is steeped in tradition and one of the most renowned
motorcycle companies in the world. Motorcycles were initially produced
in Sweden from 1903 and in Italy from 1986. Today the company is one of
the leading suppliers of sporty off-road motorcycles. In the course of
its history, Husqvarna Motorcycles has achieved numerous international
racing victories including European and World Championship titles.
BMW Motorrad produced and sold over 100,000 motorcycles for the first
time (production: 103,759 units, delivery 100,064 units) in 2006. The
production program includes only large-volume motorcycles over 500 cc.
BMW Motorrad is the largest European manufacturer in this segment. In
2006, BMW Motorrad achieved sales of 1,265 million euros, with pre-tax
profits of 66 million euros. BMW Motorrad employed an average of 2,816
staff worldwide in 2006. Husqvarna Motorcycles is part of the Italian
company MV Agusta S.p.A. and produced some 12,000 motorcycles in the
capacity range of 125 to 610 cc in 2006. The focus of the company's
model program is on sporty off-road motorcycles which are equipped
solely with single cylinder engines. Husqvarna Motorcycles employed a
workforce of approximately 240 in Italy in 2006.