Harley-Davidson is planning to divest its Italy-based MV Agusta unit and also discontinue the Buell motorcycles product line, as part of its go-forward business strategy to drive growth through a single-minded focus on the strengths of the Harley-Davidson brand.

Harley-Davidson had acquired the privately-held Italian motorcycle maker MV Agusta in August 2008. The company will now begin looking for a buyer for MV Agusta to continue along the development of the brand.

The discontinuation of Buell motorcycles is expected to result in a reduction over time of about 80 hourly production positions and about 100 salaried positions at Buell. Employment will end for a majority of Buell employees on December 18, 2009.

According to the company, the remaining inventories of Buell motorcycles, accessories and apparel, while they last, will continue to be sold through authorized dealerships. Warranty coverage will continue as normal for Buell motorcycles and the company will provide replacement parts and service through dealerships.

Matt Levatich, president and COO of Harley-Davidson Motor Company, said: "Our objective in acquiring MV Agusta last year was primarily to expand our presence in Europe, and was recognition of MV Agusta’s proud legacy. While growth in Europe and other global markets remains highly important to us, we believe that focusing our efforts on the Harley-Davidson brand is the optimal path to sustainable growth."