SHERIDAN, WYOMING – Mar. 4, 2025 – Shortly after taking over U.S. sales of BMW automobiles from independent distributor Max Hoffman in 1975, BMW of North America initiated the process to do the same for the motorcycle side of the business. This move marked a significant shift in BMW Motorrad's distribution and sales strategy in the United States.
The Legacy of Butler & Smith
BMW had been exporting motorcycles to the U.S. since 1950. Initially, dealers ordered bikes directly, with Oscar Liebmann's AMOL Precision becoming the first official BMW motorcycle dealer in the U.S. in 1950. Later, distribution rights were assigned to the V. Harasty organization and then, in 1954, to the Butler & Smith Trading Company.
On February 19, 1954, Butler & Smith president Alfred Bondy informed dealers that the company was BMW’s official U.S. importer. Bondy stated, “The first BMW motorcycles will arrive in a few days. A large quantity of BMW parts is on order from the factory, and we hope that our reputation for fast and complete NSU parts service will soon apply to our BMW parts service.” Initially handling the East Coast, Butler & Smith eventually took over nationwide distribution in 1969, establishing a new headquarters in Norwood, New Jersey, in 1970.
Butler & Smith played a crucial role in adapting BMW motorcycles to American preferences. They ensured that BMW built bikes suited for long-distance touring, a popular use in the U.S. John Penton's 1958 record-setting ride from New York to Los Angeles on an R 69 highlighted the reliability of BMW motorcycles. Thanks to Butler & Smith, BMW motorcycles were offered with options like dual seats, higher handlebars, and accessories like saddlebags and fairings.
The Rise of Butler & Smith's Racing Efforts
Under Dr. Peter Adams, Butler & Smith became active in racing. The company formed a sophisticated race team led by Udo Gietl and Todd Schuster. In 1971, they campaigned a 750cc machine in the AMA’s Formula 750 class. In 1976, their modified R 90 S bikes finished 1-2 in the inaugural AMA Superbike championship, with Reg Pridmore taking the crown.
BMW NA's Takeover
In 1980, BMW of North America took over the Butler & Smith operation. Dr. Adams had resisted the takeover, filing a lawsuit in 1978, but BMW NA prevailed. The new division was led by vice-president Jean-Pierre Bailby, with Joseph Salluzzo as national sales manager and Rolf Kettler as marketing manager.
“At that point, all of the employees in sales, parts, and service were Butler & Smith employees, wondering what happens next,” said Rob Mitchell. “Eventually, people from BMW NA started filling some positions. I came about six months later to head up advertising and promotion, taking over from Rolf Kettler, who’d been sent over temporarily from Germany. I’d been in sales training, and I got hired because I was the only person at NA who rode motorcycles. It was a real trial-by-fire.”
BMW NA modernized operations, including sales, distribution, financing, and technical training. They also reduced the number of U.S. dealers from around 300 to 150. “Like Hoffman, Butler & Smith would sign you up as a dealer if you purchased $500 worth of parts and a [BMW] sign,” Mitchell said. “I visited one dealer in upstate New York that was in an extension of his house, and which had a dirt floor in the workshop. Once BMW NA put certain operating requirements for corporate signage, inventory, facilities, and technical training—all the normal dealership stuff—dealers like that, who weren’t willing to step up and make the investment, fell away.”
Growth and Evolution
Replacing Butler & Smith with a modern subsidiary yielded benefits. “Back in the old days, you’d pick up the telephone and order a bike from Butler & Smith. Now you had a modern business culture for ordering bikes and parts, signing up for technical training, all of that. Some dealers were upset that they could no longer continue the way they had before, but those who stayed on found they could offer a lot more to customers. And the customers got way better support, too. It’s much better to go into a dealer and see dozens of new bikes rather than just one, plus accessories and people anxious to help you.” Mitchell said.
Documents within the BMW Archive record declining export volumes to the U.S. in the mid-1970s: 10,553 units in 1974; 9,256 units in 1975; and 7,539 units in 1976. Mitchell believes Butler & Smith was selling around 2,500 motorcycles per year when BMW NA took over.
In 1985, BMW NA sold 5,597 motorcycles in the U.S., followed by 6,078 in 1986. A new ad campaign with the slogan “The Legendary Motorcycles of Germany” helped boost sales. More importantly, new models like the R 80 G/S and the K bikes contributed to BMW NA’s success.
BMW Motorrad Today
Today, BMW Motorrad USA offers a wide range of motorcycles, from the G 310 R and GS to the M 1000 RR. In 2023, BMW Motorrad produced 209,257 bikes, with 17,017 delivered to customers in the U.S., its third-largest market. While this constitutes a small fraction of the half-million-plus motorcycles sold in the U.S. last year, BMW riders remain among the industry’s most dedicated.
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