Harley-Davidson has announced its Q1 quarterly earnings today, and the Milwaukee-based company posted a $68.7 million profit. This news comes after Harley-Davidson posted a $218 million loss last quarter, and finished in the hole over $55 million for the 2009 year. Harley’s return to profitability is partially due to the company’s restructuring of its financial services, which are once again generating money for the iconic American brand. Harley-Davidson Financial Services posted a profit of $26.7 million this past quarter, almost a third of HD’s net income in Q1.
Yamaha Motors is set to raise $812 million in capital in order to pursue development and production of fuel-efficient engines, which includes hybrid and electric models. The focus of this new range of Yamahas seems to be destined for emerging markets, but may include technologies that could trickle into more established markets like the United States. Yamaha plans on raising this money by making 63.25 million more corporate shares publicly available for investment.
MV Agusta has issued a press release stating that the Italian brand has seen a 50% increase in unit sales the last three months when compared to the first quarter of 2009. Unfortunately Asphalt & Rubber has no way of verifying if these numbers are accurate, but their release is certainly well-timed with the added talk in the business world surrounding MV Agusta’s divesture from Harley-Davidson.
Was Harley able to turn the brand around? Are the new F4 and Brutale selling like hotcakes? Or is this carefully seeded information to help a deal along? Only time will tell. Photos of the new MV’s after the jump.
Kyalami Grand Prix circuit is likely to host its last World Superbike race for a while this season. Located in Gauteng, South Africa, the Gauteng provincial government has bought out the track’s remaining contract with WSBK in an effort to “re-prioritize” the local government’s budget of local programs. Kyalami was set to host WSBK through 2013, but instead it looks like this will be the South African’s track last season until the Gauteng government becomes financially stable again.
Italian apparel manufacturer Dainese, (who also owns Mavet and AGV) is shutting down its Molvena, Italy plant, and moving the bulk of its production to Tunisia. The move is presumably to help lower costs to the Italian brand, as sales have slumpped during the industry-wide economic slowdown. It’s unclear whether Dainese will open a new factory in Tunisia, or add the capacity to one of its two factories already in the North African country.
Kawasaki has just announced that it will be leaving the AMA Pro Racing series. Citing the economy as it core reason for leaving the American racing series, Kawasaki says it hopes to return to road racing when the economic conditions in the United States allow the company to do so. For the DMG & AMA, this is the second manufacturer that has withdrawn from the now beleaguered racing series, and just a continuation of the momentum that has become AMA Pro Racing’s downward spiral.
Honda has released its second quarter financials, with the highlight (if you can call it that) being a 56.2% drop in their net income. Honda attributes this loss primarily to decreased car sales, and the currency exchange. For its part though, Honda’s motorcycle sales were down only 16.8%, with 2.4 million units sold during Q2.
UPDATE: The bike has now been sold.
We don’t usually post up bikes for sale, but this one seemed like too much of a bargain not to comment on, and in a way it speaks to the current state of the used motorcycle market. A 2004 salvage title MV Agusta Brutale for $4,225, it sounds like one of those bad eBay scams, but reading through this thread on ADVrider, the deal seems not only legit, but also some buyer’s lucky day.
At this point it’s abundantly clear how hard the recession has hit the motorcycle industry, so it doesn’t come with too much surprise that some management types are having to take the fall for the down-turn in profits. For Yamaha Motors President, Takashi Kajikawa, the only silver-lining to the situation is that this isn’t feudal Japan, and no one is offering him a sword to fall on. Unfortunately though, Kajikawa will still have to resign from his position as company President, as Yamaha Motors prepares for a $2 billion loss.
The Piaggio Group has annouced that it has devised a new business plan for its subsidiary, Moto Guzzi. According to Roberto Colaninno, President of the Piaggio Group, the new business plan will ensure that Moto Guzzi releases a new line of motorcycles during the 2011-2012 model year.
Helping fuel this product line extension will be the investment of €12 million that the parent company plans to dump into Moto Guzzi’s coffers, but the money comes attached with some interesting strings from the European Investment Bank. More on this after the jump.