Gasoline demand in the United States hit an all-time high in 2006, and ever since then has been on the decline. Aided by rising prices, more efficient vehicles, and a slowing population growth, the United States as a whole is not only using less gas than before the recession, but we as a country have entered into a continued trend of decreased gasoline demand, which government officials and industry executives believe will be a permanent trend from this point forward. While current usage is about 8% less than the 2006 peak, experts expect to see as much as a 20% reduction in gasoline use by 2030.
This weekend, Fiat and Yamaha unsurprisingly and officially ended their four-year relationship. The first non-tobacco title sponsor in the four-stroke MotoGP category, Fiat joined up with Yamaha in 2007, when MotoGP switched to the 800cc format. Originally justifying the sponsorship as a way to reach a car-buying audience that was younger than Formula 1 fans, Fiat has always had its eye on the Italian rider. That relationship has manifested itself in Rossi testing with Ferrari on numerous occasions, and prompted the nine-time World Champion to consider kart racing after his motorcycling career is over.
The Federal Reserve made disclosures today that it quietly made short-term loans to major institutions and Fortune 500 companies during the 2008-2009 economic meltdown. Among one of the companies listed as receiving a 3-month Commercial Paper Funding Facility (CPFF) promissory note from the Fed is Harley-Davidson, which received 33 loans totaling $2.3 billion in aid to meet operational needs. Other companies who received economic help include GE (12 loans totaling $16 billion), Verizon (two loans totaling $1.5 billion). Commercial paper was also purchased from McDonalds, UBS ($74.5 billion), AIG ($60.2 billion) and Dexia ($53.5 billion).
The concept of “buying paper” has been mislabeled by other sources as a bailout from the Fed, despite the fact that loans made by the Federal Reserve differ from the bailouts we saw for the auto and banking industries both by being for a short-term duration, and because they only replaced other short-term cash flow loans that disappeared during the financial crisis (that’s what you get for getting financial news from a motorcycle site that spells Warren Buffett’s name like a meal from which guests server their own food, and then over reports his lending amount to Harley-Davidson by over three-fold).
If anything this news shows the great lengths the Federal Reserve had to take in order to keep the credit market open for major American businesses and institutions. It should be noted that because of the Fed’s efforts these companies were able to receive the cash flow and short-term loans to stay afloat during the crisis, and now that the CPFF program is over, the Federal Reserve reports that it not only was paid back in-full by every borrower, but also made money on the interest of all the loans ($849 million in total).
According to the NHTSA, motorcycle deaths in the United States dropped by 16% in 2009 compared to the number of deaths in 2008. With 4,462 deaths in 2009 and 5,312 deaths in 2008, this makes for the first time motorcycle death tolls have dropped in the past decade; however federal officials are reluctant to call this a victory in rider safety.
“While we are pleased that the number of motorcycling fatalities dropped dramatically in 2009, a one-year drop isn’t a trend. We need to determine why, and ensure that the decline continues,” said Ed Moreland, AMA Senior Vice President for Government Relations.
After being unable to achieve the racing regulations in World Superbike that it desires, Ducati has announced that it has officially pulled out of WSBK racing in order to focus its technical efforts on MotoGP racing, and bringing new technology to its street motorcycles. While Ducati Corse will continue to provide motorcycles and support to private teams, the Italian company will not field a factory team in the 2011 season.
Although Xerox is apparently still game to foot the bill for Ducati’s WSBK effort, the title sponsor only wishes to do so if the factory team is winning races. This goal becomes increasingly more difficult for Ducati, who is finding the current 1198 Superbike not on equal footing performance-wise with the inline-four Japanese Superbikes. Closing the performance gap for Ducati means either the simple fix of adding larger throttle bodies to the existing race package, or the expensive choice of developing the 1198 motor further.
Kawasaki has released a glimpse to its all new 2011 Kawasaki ZX-10R sport bike with this concept sketch. While it’s hard to say how closely the production bike will be to this still artistic sketch, we do know the new 2011 ZX-10R will have a new motor, new frame, and new suspension.
After holding-off on bringing us new sport bikes for 2010, Kawasaki seems ready to gear up for production again (another sign the economy is getting better), and has seemingly re-done the 2011 Kawasaki ZX-10R from the ground up. Promo video after the jump.
BMW Motorrad is reporting that worldwide motorcycle sales were up 21% for the first five months of 2010, compared to 2009’s numbers. Sales were up 19.3% for the month of May alone, with 12,139 units sold, making for 45,431 units sold thus far in 2010. The newly revised BMW R1200GS/Adventure models account for 3,705 of the motorcycles sold in May, which is up almost 34% from last year.
While the GS comprises almost a third of BMW’s total sales in May, BMW reported that the F and K series motorcycles also showed strong demand in the month as well. Also making a strong showing is the all new S1000RR superbike, which sold 1,345 units in last month for a total of 5,236 units sold this year so far.
Yamaha Motor Company is reporting a ¥7.5 billion ($80.9 million) net profit for its Q1 2010 numbers, which is a marked improvement over the tuning fork brand’s ¥15.8 billion ($169 million) loss in Q1 of last year. Sales for Q1 this year were up 16% compared to last year, for a total of ¥309.9 billion ($3.3 billion) in sales. Volume was also up for the brand by 26%, with Yamaha selling 1.6 million units worldwide. Despite these strong numbers, both sales in Japan (-14%)and the United States (-57.5%) fell for Yamaha in Q1 of 2010.
BMW continues to buck the trend, releasing sales data that shows the Bavarian company getting a 21% sales boost last quarter when compared to Q1 of 2009. The company made €351 million in sales revenue (also up 21%), which came to €32 million EBIT, up 14.3% from Q1 of last year as well. BMW cites strong sales from the S1000RR, and the newly revised R1200GS/RT as being the reason for the strong sales numbers.
The Piaggio Group is reporting an 11.2% increase in its first quarter 2010 sales across its motorcycle and scooter subsidiaries compared to last year’s numbers. The group netted €2.9 million for Q1, which is noticable increase from its €4.7 million loss in Q1 of 2009. For motorcycle sales alone, the company saw a 12.4% increase unit sales, with the European market leading the charge.