BMW Motorrad released yet another glowing sales report, as the German brand continues to build steam and market share in an otherwise luke warm and uncertain marketplace. Boasting a 1.8% worldwide sales increase in February and a 5.6% year-to-date (YTD) sales increase, BMW Motorrad has sold 12,078 motorcycles worldwide thus far in 2012. While the gains are modest at best, the news that BMW has found a way to grow despite the economy is something we have talked about ad nauseam. As such, I almost skipped this press release all together for our coverage, but then I saw a quote from Hendrik von Kuenheim, BMW Motorrad’s General Director.
After much speculation that MotoGP would forego stopping in Portugal this year, the premier motorcycle racing series will keep five stops on the Iberian peninsula on its 2012 MotoGP Championship calendar after all. With the Portuguese GP struggling to make ends meet, it was thought that Estoril would be dropped for 2012, as it seemed increasingly clear that the local government was not going to step in and help subsidize the cost of hosting MotoGP in Portugal. Coming to some sort of accord with Dorna & the FIM, MotoGP has confirmed that Estoril will remain on the schedule for this year, though its future is certainly still tenuous.
BMW Motorrad crushed it last year by posting its best sales year ever, and finishing in sales 6.4% over 2010. With the United States being one of BMW’s largest motorcycle markets, it comes as no surprise then that the German brand posted strong sales here in the US. Up 7.4% over last year, BMW Motorrad USA continues to weather the rough economy for the Bavarians, which is perhaps unsurprising considering how zie Germans have faired the past few years.
What is surprising though is which model topped BMW’s sales sheets, and in case you are blind and didn’t see this story’s headline, it was not the venerable GS. Taking the superbike fight straight to the Japan’s backyard, the BMW S1000RR again dominated sport bike sales again in 2011, and was BMW’s top-selling model across its whole motorcycle line-up (I’d love to see the profits per model on this though). Proof that when German engineering is coupled with Japanese pricing a consumer hit is born, the S1000RR should continue to be a potent bike in 2012, as BMW Motorrad has given the liter bike a mild update for its third year of production.
A mixed quarter for BMW Motorrad, as the Bavarian company has once again posted a positive sales quarter of 6.5% growth over Q3 2010, despite losing money overall in the current inclement financial weather. Selling 28,862 units in this year’s third quarter, BMW Motorrad’s sales, as usual, were primarily carried by the BMW brand, which sold 26,312 motorcycles.
Perhaps lending even further credibility to the business case for the Husqvarna Nuda 900, the Swedish motorcycle brand accounted for only 2,550 units in Q3 2011 (or just under 9% of total sales, for those keeping score). Independently, the BMW motorcycle brand was up 7.4% over last year’s same time period, while Husqvarna sales were down 1.9%. BMW & Husqvarna sold 24,493 & 2,601 units respectively during last year’s third quarter.
Sometimes when reading the posts made on other motorcycle sites, or the comments by readers across the web, I don’t think there is a full grasp as to how bad the recession was for the motorcycle industry. Granted company’s like Ducati, BMW, and Victory have shown remarkable growth in a down period, but their success, though due in-part to the failures of Harley-Davidson and the Japanese manufacturers, is limited on its bearing to the industry as a whole. This because, quite frankly, these companies comprise only a small portion of the industry’s sales, units, and revenue.
The fact that Harley-Davidson was so close to the brink that they dumped everything outside of its core business is but one sign that motorcycling was in trouble. Another sign would be that Suzuki reportedly didn’t import any new units for the 2010 model years, instead letting local inventories in the US handle the dwindling demand for the company’s motorcycles. The fact that the motorcycle industry as whole almost folded-up on itself like a tin can without anyone making a real fuss about it is perhaps a great signal as to how far various stakeholders heads are buried in the sand. So for our last attempt to put things into perspective, try this one on for size:
For the first time in nearly three years, Suzuki’s motorcycle division has posted a profit…or, the last time Suzuki made money selling motorcycles was Q2 2008 (the same timeframe that Bill Gates stepped down from his daily duties at Microsoft).
BMW Motorrad continues to post improved sales in 2011, as the German manufactuer is showing a 2.1% increase for last month’s sales compared to June 2010. Selling 11,831 motorcycles in June of this year, BMW has sold 141,913 motorcycles in the first half of 2011, which means 6.3% more Bavarian motorcycles have been sold in Q1 & Q2 of 2011 compared to last year. BMW’s Boxer series is unsurprisingly leading sales for the company, fueled by the best selling big-displacement motorcycle in the world: the R1200GS.
BMW is reporting strong sales from the K1600 series as well though, with 1,255 units sold since its Spring 2011 debut. While BMW says that the new six-cylinder tourer is exceeding expectations, Husqvarna’s paltry 450 units sold last month is perhaps a bit of disappointment. Husky sales were down -57.3% for June, while year-to-date sales were down -24.2% with only 3,530 units sold in the first half of 2011.
More bad news from the business sector this week, as reports are starting to come in that Big Dog Motorcycles has shut its doors after being taken over by the company’s creditors. With the banks halting the production line, this is effectively the end of one of the largest (if not the largest) custom motorcycle builders in the world. Cyril Huze broke the news on his blog on Monday that the company had closed its doors, but Big Dog President Mike Simmons denied that news on Monday.
However Big Dog dealers have since confirmed that company owner Sheldon Coleman has contacted them, informing them of the bank’s take over, and that the business and production would be ceasing. Coleman is reportedly planning on starting a new company that would supply parts to current Big Dog owners.
When Ducati Corse announced that it had “partnered” with Mercedes-Benz’s in-house tuning brand AMG at the LA Auto Show, the deal raised a few eyebrows and sent shock waves across the keyboards of journalists as everyone asked themselves “what could this all mean?!” At the time it was obvious that the AMG brand would be featured on the Desmosedici GP11 race bikes of Nicky Hayden and Valentino Rossi, and that the sponsorship was just one of many that Ducati had secured, likely having something to do with a certain nine-time World Champion.
However the deal still stuck out as more than a straight advertisement transaction, with Ducati even saying that the relationship would be reciprocal, with the Bologna Brand helping hock a few Stuttgart Sleds in Mercedes-Benz’s ad campaigns. We got our first taste of how that cross-pollination of a partnership would look almost immediately after the announcement, with the two brands engaging in a sort of teaser video of what was to come further down the road (road…get it? ha!).
Then of course more recently we got another taste as the Ducati Superbike 848 EVO made a cameo appearance in a commercial that pitted it against a Mercedes-Benz C63 AMG Coupe. A lesser known fact to the public, but one readily apparent to journalists who attended the Ducati Diavel launch in Los Angeles, was that Mercedes-Benz has been supplying AMG-tuned vehicles to Ducati to use at press, media, and public events.
While it would seem that the two premium brands are exploring the limits of their marketing synergy, and how two wheels can compliment four wheels, and vice versa, reliable sources close to Asphalt & Rubber have revealed that the partnership goes deeper than just a joint-marketing campaign, and is in fact a part of an elaborate purchasing agreement that sees Mercedes-Benz acquiring Ducati Motor Holdings should certain criteria be met.
Investors at the Tokyo Stock Exchange were not happy with Yamaha Motor this morning, as the Japanese motorcycle manufacturer reported its 2010 earnings and 2011 forecast, and promptly saw its stock drop 10%. Despite managing to turnaround its 2010 income from the ¥216.1 billion ($2.5 billion) loss it took in 2009 to a profit of ¥18.3 billion ($219 million), Yamaha only expects to improve on these gains by just over 9% in 2011.
Monthly sales reports are becoming a more common occurrence from motorcycle OEMs who are actually starting to crawl out of the lower circles of motorcycle industry hell (makes you wonder about the companies not making press releases though, huh?), and accordingly BMW has posted its January 2011 numbers, which shockingly again show strong figures. Selling 4,714 units in January 2011, BMW Motorrad posted a 23.6% sales increase over January 2009’s numbers (3.814 units). Achtung!