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It was nearly a month ago that we heard that Spanish firms Gas Gas and Ossa had merged their operations in order to take on the difficult economic climate in Spain. The firms’ business position should be even stronger now, as Gas Gas has acquired the IP from Moto Italia, the holding company of Husqvarna’s remains.

When KTM’s Stefan Pierer acquired Husqvarna through his Pierer Industrie AG company, he did not buy all of the once Swedish motorcycle brand from BMW Motorrad. What wasn’t transferred into the Austrian company’s control was left behind as a new company, Moto Italia, which now will find a new home in Spain with Gas Gas.

In case you didn’t hear the news, Husqvarna will enter the Moto3 Championship this year; and like the 2014 Husqvarna dirt bike line, the Swedish brand’s name will basically be painted onto the Austrian company’s machinery.

The move is an interesting one for the Husqvarna brand, as the company is about to start a new chapter in its already interesting story. The acquisition of Husky by KTM’s Stefan Pierer essentially consolidated the premium dirt bike segment into one company, and his efforts also brought about the reunification of Husaberg and Husqvarna.

A day after the provisional entry lists for the Grand Prix classes were released by the FIM, and there’s one change already. Today, Husqvarna announced that they would be joining the Moto3 world championship, and fielding a factory team.

The Red Bull Husqvarna Factory Racing team will be run by Aki Ajo, and have Danny Kent as rider. Furthermore, Husqvarna will also be providing support for Niklas Ajo in the Avant Tecno team.

One of the more eye-catching things we saw today at the EICMA show (besides the Triumph Tiger 800 XC SE), the Husqvarna 701 Concept is an homage to the Swedish brand’s past, and a signal to its future. Truly Scandinavian in its aesthetic, the modern, yet simple, lines of the Husqvarna 701 provide a unique approach to the very cookie-cutter supermoto segment.

Featuring a 650cc single-cylinder four-stroke engine, Husqvarna says that the concept is good for 75hp and “outstanding” torque. Built with a chromoly steel trellis frame, WP Suspension, and Brembo brakes, the real eye-catcher is the custom Akrapovic exhaust and its integrated bodywork shroud.

The seat is made of multiple materials, and is designed to have grippy spots for where the rider sits under braking and acceleration, and slippery spots for where a rider needs to move along the seat unimpeded. We aren’t huge fans of the LED headlight, but otherwise it is a nice concept by Husqvarna.

Will the folks at Husqvarna create an on-road machine in the future? Certainly not. A supermoto perhaps though? Time will tell. Photos of the machine, taken in-person by yours truly, are after the jump.

The future of Husqvarna is an interesting one to mull over right now as we gear-up for the EICMA show in Milan, Italy next week. Recently acquired by KTM’s Stefan Pierer, through is Pierer Industrie AG company, Husqvarna finds itself now merged into Husaberg, as KTM has consolidated its splintered dirt bike brands back into one cohesive effort.

That move alone in an interesting one, as Husqvarna had begun tackling the on-road world while still under the stewardship of BMW Motorrad — releasing models like the Husqvarna Nuda 900 and concepts like the Husqvarna Moab. The brand now seems destined to stay in the dirt though, but that isn’t keeping Husqvarna away from releasing prototypes and concepts at EICMA, as it seems to do every year.

Ever since Pierer Industrie AG bought Husqvarna from the BMW Group, there has been a great deal of speculation as to how the Italian-based Swedish-born brand would fit within the KTM empire. With zie Austrians needing another dirt bike marque like a hole in the head, it was curious to see KTM add a third off-road brand name to its stable of two-wheeled machines.

Adding even more intrigue to the situation, Stefan Pierer announced that he would discontinue Husqvarna’s pursuit of on-road machines with his acquisition, starting with the Husqvarna Nuda 900, and that he would also be closing down the bulk of the brand’s very beleaguered Italian operations, much to the chagrin of local officials and worker unions.

Now, the next chapter of Husqvarna is set to unfold, with the announcement of a new company, Husqvarna Sportmotorcycle GmbH, which unsurprisingly will be based in Mattighofen, Austria and will build off the technology that Husaberg has developed, while using the more recognizable Husqvarna name.

Stefan Pierer’s acquisition of Husqvarna continues to baffle me. You will note I say Pierer, and not KTM, bought Husqvarna, since the Austrian CEO used Pierer Industrie AG in the transaction as a means to help side-step European antitrust issues. After all, we can’t have Europe’s largest dirt bike manufacturer, nay largest total motorcycle manufacturer, gobbling up even more brands in the two-wheeled world. But, I digress.

For as big of an issue as it might be that KTM, by proxy, has swallowed another dirt bike brand, I still do not understand the thinking behind this madness. Dropping to four-digit yearly sales, it wasn’t until BMW started taking the off-road brand into the on-road market did signs of growth appear again at Husky.

Developing three road bikes (Husqvarna Nuda 900, Husqvarna Strada 650, & Husqvarna Terra 650), with three more concepts waiting in the wings (Husqvarna Moab, Husqvarna Baja, & Husqvarna E-G0), it is with even more confusion that we learn that Pierer & Co. intend to kill the Husqvarna Nuda project and its other street siblings.

Only a couple of months after Husqvarna?s sale by BMW to Austria?s Pierer Industries, the storied motocross brand is once again making headlines, unfortunately of the wrong sort.

Reports from the La Provincia di Varese website, Varese News, as well as motorcycling’s GPOne are saying that the acquisition of Husqvarna has revealed significant problems with massive unsold inventory, labor, and the existing business plan.

As of Monday the 22nd of April, Pierer Industries announced that the factory will be closed until further notice, and let go all of the 211 factory workers employed by Husqvarna. The only staff remaining are in the sales and marketing departments, about 30 people.

With the sale of Husqvarna to Pierer Industrie AG, the 2013 Dakar Rally marks the last time that the BMW Group will collaborate with Speedbrain GmbH for its rally and off-road racing duties — a partnership that has lasted since 2006.

Helping commemorate their last outing together, the Speedbrain’s factory-backed Husqvarna team has put together a little tribute video of its final Dakar campaign. Will the team live on with another brand? Only time will tell, but it would seem BMW’s off-road racing days are over.

Calling it a “strategic realignment” for BMW Motorrad, the BMW Group has confirmed the rumors and sold Husqvarna Motorcycles to Pierer Industrie AG, the holding company of KTM CEO Stefan Pierer. Saying the parties would not disclose the terms or purchase price of the transaction, the press release from BMW Motorrad was surprisingly light on any actual information.

Touting BMW’s commitment to urban mobility and electric vehicles, the German company will now focus solely on the BMW Motorrad brand. With reports saying that BMW Motorrad will not venture back into the dirt bike market, the company will maintain its on-road focus for the foreseeable future.

The Brits over at MCN broke the news last night that Husqvarna was about to be acquired by KTM. Since M&A’s are a rarity in this industry, the news was certainly interesting, but given that the beleaguered Husqvarna brand has been such a pox on BMW Motorrad with its dwindling dirt bike sales, and that the German company has been embroiled in trying to transition the Italian-based Swedish brand into the on-road segment, now seems a peculiar time for the BMW Group to unload Husqvarna…or that anyone would even be interested in purchasing the company.