Honda & Hitachi Join Forces on Electric Vehicle Motors

News out Japan sees Honda and Hitachi starting a joint venture that will focus on providing motors for electric vehicles. The two companies signed today what they call a “memorandum of understanding, which is the Japanese business version of getting a promise ring to start a future company together. The still unnamed joint venture will be located in Hitachinaka City in the Ibaraki Prefecture, and be initially capitalized with ¥5 billion (~$44 million). Honda Motor Co. and Hitachi Automotive Systems hope to finalize this deal by March 2017, and the new company will have subsidiaries in China and the United States – both of which will have sales and production capabilities.

US Lawmaker Introduces Bill to Close the EPA by 2018

A bill has been presented to the United States House of Representatives that would seek the closure of the Environment Protection Agency (EPA) by 2018. Proposed by Rep. Matt Gaetz (R – Florida), HB 861 will likely be a mixed bag for motorcycle enthusiasts, as it will deregulate environmental restrictions set at the federal level, leaving states to draft or adopt their own provisions, which will likely have a fracturing effect on the regulatory market for motorcycles. But, it will also mean the abolition of EPA regulations that many motorcyclists oppose, like the blending of ethanol in our fuel, and restrictions on noise, emissions, and vehicle modifications.

KTM Invests in Heads-Up Display Company NUVIZ

Heads-up display (HUD) company NUVIZ just took a strategic investment from Pierer Industrie AG, the company behind KTM, Husqvarna, WP Suspension, and others. Today’s news is quite a catch for the San Diego based technology startup, and it bodes well for NUVIZ to bring its heads-up display technology to market. As such, NUVIZ hopes to have a heads-up display unit and connected rider system available in the first half of 2017. NUVIZ has raised roughly $9 million to date, via equity and debt, and our sources tell us that KTM’s purchase into the company has contributed to the lions’s share of that amount – upwards of $5 million, along with a seat on NUVIZ’s board of directors.

Red Bull Honda World Superbike Team Debuts

In an airplane hangar in Austria, Honda’s World Superbike team unveiled its wings…that is to say, the Red Bull Honda World Superbike Team debuted in the energy drink’s Hangar-7 facility in Salzburg today. As the name implies, Red Bull will be the title sponsor for Nicky Hayden’s and Stefan Bradl’s World Superbike title bid this year, on the updated 2017 Honda CBR1000RR SP2. This is the first time that Red Bull has been a title sponsor in the WorldSBK paddock, though the energy drink company’s livery can be seen on variety of bodywork throughout motorsport. “It’s a new year with a new bike, new title partner and new teammate, so there are definitely many changes ahead and a lot of things to look forward to,” said former MotoGP Champion Nicky Hayden.

PJ Jacobsen Gives His First Impressions of MV Agusta

PJ Jacobsen will once again be the sole American representation in World Supersport this year. The New Yorker had his first taste of his MV Agusta F3 in the dry while at the Jerez test, and came away suitably impressed by the bike that has won eight races in the hands of Jules Cluzel in recent years. The 23-year-old tested the bike in Jerez last year in what was seen as a shootout for the ride, but on a damp track he didn’t get a real feel for the bike. “Today was my first day on the bike this year,” said Jacobsen. “I did half a day on the MV last November in Jerez, but it was half wet, half dry so today was good to get out there. It was fully dry so I learned a lot and I’m quite happy with it. The bike is totally different to what I’ve ridden in the past, but the team works really well and they’ve impressed me.”

Check Out the 2017 Honda RC213V

The MotoGP launch season is still upon us, and now that we have seen the teams and bikes from Ducati, Suzuki, and Yamaha – it is time for Honda to take the wraps off the team its campaigning for its title defense. Debuting the 2017 Honda RC213V at a press event in Indonesia, not much has changed outwardly for the 240+ horsepower GP bike, though there a subtle differences to be seen, if you look closely and compare it to last year’s bike. The Repsol Honda fairings cover the biggest change that we know of, as reports from the test tracks confirm that Honda is experimenting with a “big-bang like” firing order on its V4 engine, a change from the “screamer” configuration of last season, which was handful for Marc Marquez and Dani Pedrosa to manage.

2016 Was A Very Good Year for Husqvarna

Last year proved to be a tough year for many brands, especially those with operations in the United States, but that wasn’t the case for Husqvarna. The rebooted Swedish brand is seeing good life while under its Austrian ownership. Making 2016 a very good year for Husqvarna, the brand is reporting a sales increase of a whopping 43% over 2015’s sales numbers. That is no small feat for Husqvarna, as 2015 was already a record year for the dirt-focuses brand, where it saw a 32% increase. Of course in many ways, up is the only direction Husqvarna can go, after its purchase by Pierer Industrie AG. Still, Husqvarna’s figure of 30,700 sold motorcycles in 2016 is a marked improvement from the near 10,000 units it was producing while part of BMW Motorrad.

2017 Suzuki GSX-RR Debuts in Malaysia

Debuting this weekend in Malaysia, the ECSTAR Suzuki MotoGP team has unveiled its team and livery for the 2017 season, which will see Andrea Iannone and Alex Rins riding the update Suzuki GSX-RR race bike. Suzuki has already shown that it has a bike capable of hunting for podiums; and on its best days, it can be a race-winner as well. For the 2017 season though, the Japanese brand hopes to build upon its success in 2016. As such, the ECSTAR Suzuki team has high hopes with the arrival Andrea Iannone, hoping that “Maniac Joe” can add some more wins to Suzuki’s tally. Looking long-term too, the addition of Alex Rins could be strong investment by Team Manager Davide Brivio, with Rins being one of Moto2’s top talents.

OEMs Are Trying to Block “Right to Repair” Laws

Asphalt & Rubber readers should be familiar with how attempts have been made to use the Digital Millennium Right Act (DMCA) as means of limiting how you can work on your vehicles, including your motorcycle. These attempts first started in 2015, and were pushed heavily by John Deere and the automobile lobby. Thankfully, last year the the Librarian of Congress allowed exemptions for vehicles to be applied to the DMCA, which will be in effect for the next two years. Now, the Motorcycle Industry Council (MIC) – a group that represents the interests of motorcycle manufacturers in the United States – is putting pressure on state legislatures and encouraging them to block “Right to Repair” bills that would codify the exemptions made to the DMCA.

EBR Motorcycles Shutting Down, Yet Again

EBR Motorcycles is closing its doors…again. Yes, you heard that right. America’s superbike brand will be winding down its production operations, starting next week, and is looking for a strategic investor to takeover the brand. Liquid Asset Partners (LAP) attributes its decision to shutdown EBR Motorcycles to the company’s difficulty to secure new dealerships, and thus increase sales. As a result, LAP says that its production volume for 2016 and 2017 was below expectations. The company then finishes its explanation for closing EBR Motorcycles with the following line: “the combination of slow sales and industry announcements of other major OEM brands closing or cutting production only magnified the challenges faced by EBR.”

In the Future, Will You Even Wear a Helmet?

01/07/2013 @ 5:29 pm, by Jensen Beeler20 COMMENTS

Human-Head-Motorcycle-Helmet

Here at Asphalt & Rubber, we spend some pixels talking about the finer points of helmet usage, especially when it comes to the debate regarding mandatory helmet laws. Looking at helmets from 50 years ago, and the basic concept hasn’t changed all that much in the time since.

A hard shell, some impact material, and a soft lining mated to a visor and chin-strap system, over the last half-century most of the improvements to the basic helmet design have been for added fit and comfort, or cheaper and lighter materials — even the more creative and innovative designs that are being hocked around the internet right now don’t stray far from the current concept.

Think 50 years ahead though, and it is hard to imagine the same shapes and designs staying constant. In fact, it becomes possible to imagine motorcyclists wearing no helmets at all. No, I am not talking about some sort of libertarian movement that will rush through our political system, freeing us from the shackles of big government.

Instead, I am talking about the true next-generation of safety devices for the gray matter that resides between your ears, which might put the mandatory helmet law debate to rest (well…probably not).

Talk Amongst Yourselves

02/10/2011 @ 1:50 pm, by Jensen Beeler32 COMMENTS

There’s something happening on the electric side of the motorcycle industry, but no one is talking publicly about it. It’s a fragile idea, and it feels like even mentioning it could jeopardize its very existence. Because of this, I’ve wrestled with putting words down to discuss the topic, not wanting to be the person to spoil the whole thing.

However, lately so many influential people involved with electric motorcycles have independently brought up the subject with me that this discussion is not only becoming unavoidable, but perhaps airing the idea out in public will facilitate some sort of greater dialogue between the different parties. The concept that I’m referring to is of course consolidation.

Mission Motors Raises $3.36 Million Round

06/15/2010 @ 6:06 am, by Jensen Beeler6 COMMENTS

Mission Motors has submitted an SEC Form D filing that shows that the San Francisco based company has raised $3.36 million in a $4.67 million investment round. While Mission Motors won’t comment on the SEC filing, the use of the funds is presumably to go towards bringing production of the Mission One and subsequent Mission motorcycles into reality, as the Mission Motors team gears up to bring its creations to market and establish a production facility.

Step Right Up and Get Your Authentic Erik Buell Racing Wheel – Slightly Used from MMP

06/09/2010 @ 8:22 pm, by Jensen Beeler6 COMMENTS

You gotta love Erik Buell. Say what you will about his motorcycles, but the guy and his team live outside of the box, and it’s awesome. When Geoff May had an off at Miller Motorsports Park, and launched his Erik Buell Racing 1125RR into the air, the result was this busted PVM forged magnesium rear-wheel.

While most teams would throw it into the scrap heap, EBR is instead auctioning it off on eBay to help raise the funds needed for a replacement wheel. That’s entrepreneurship at it’s finest folks. The only thing that makes this auction better, is the description that follows.

Mission Motors Changes Management Line-up – Appoints Jit Bhattacharya as Interim CEO

02/11/2010 @ 10:20 am, by Jensen Beeler6 COMMENTS

Mission Motors has announced today that they have replaced co-founder Forrest North in his role as company CEO. The move signals a change within Mission Motors that shows the company focusing on bringing products into production and putting them into consumers’ hands. In their announcement, Mission Motors’ Board of Directors have begun their search for a long-term CEO with experience in product development and automotive manufacturing, but in the interim the company will be headed by its current COO Jit Bhattacharya.

The transition, while seemingly drastic, is one that every startup must face as it moves from a visionary and industry challenging mindset to a functional and operational capacity. This movement in management is one that virtually all startups face at some point or another, and something we’ve talked about here in some detail in our “Tradition is not a Business Model” series, so it’s announcement at this point in time isn’t terribly surprising to this author, and storied lesson in entrepreneurship that transcends even into the motorcycle industry.

Tradition Is Not A Business Model: Mission Motors

10/27/2009 @ 7:10 pm, by Jensen Beeler9 COMMENTS

When is a motorcycle more than a bike? When does the electric motorcycle become more than a powertrain? One of the largest hurdles that electric motorcycles face (along with electric vehicles as a whole) is the public notion that these vehicles are like their internal combustion counterparts, and therefore fit into the same preconceived anatomy of what a motorcycle should look and behave like.

However, with electric motorcycles comes the opportunity to start with a fresh slate on how we move about on two-wheels. If form follows function, then with this new function should come a new form. Yet, I still find it amusing when I see electric motorcycles with fabricated fairing fuel tanks. Granted there is a lot to be said about industrial design and its relation to psychology, but I think this fact illustrates the unfluctuating desire of motorcyclists to make every square bike fit through a round-hole.

Despite this allegory, the motorcycle industry sees electric motorcycle startups challenging a lot of norms that we still cling to desperately in the motorcycle industry. Our final stop in the “Tradition Is Not A Business Model” tour of motorcycle startups, takes us to San Francisco, California and the offices of Mission Motors. Fresh on the heels of Mission’s announcement of the Neimen Marcus Limited Edition Mission One, I got a chance to sit down with company CEO/Founder Forrest North and Product Manager Jeremy Cleland, to talk about how technology changes the way we understand and use motorcycles; and perhaps more important, how manufacturers can design and build better motorcycles better in the future.

Tradition Is Not A Business Model: MotoCzysz

10/20/2009 @ 11:09 pm, by Jensen Beeler21 COMMENTS

Today I want to broach the subject of what it means to be not only a motorcycle startup, but what it means to be an American motorcycle startup. For a majority of our readers, the concept of American motorcycling is something that we have understood since our days as children. No matter how you came to this industry/sport/lifestyle, as a reader of A&R you no doubt have a strong personal compass of what is means to be an American motorcyclist, and it is something that you touch and understand on a daily basis.

The business side of this understanding is less straight-forward though. It is one thing to identify personally with what makes an American motorcycle, but it is a very different exercise to build a product that evokes that same emotion to the mass consumer. This concept becomes even more relevant today, as the motorcycle industry is still recovering from the news of Buell’s closure and Harley-Davidson’s drastic measures to stay afloat. With no precognition of this impending news, I headed to Portland, Oregon to talk to Michael Czysz, CEO of auto-biographically named MotoCzsyz. Czysz’s journey presents a unique story about a company that has twice attempted to create an American-bred sportbike, and as such is the appropriate company in which to frame our topic about what it means to be an American motorcycle startup.

Tradition Is Not A Business Model: Brammo

10/11/2009 @ 2:25 pm, by Jensen Beeler17 COMMENTS

A problem derived using game theory, the Prisoner’s Dilemma was first put forth by Merrill Flood and Melvin Dresher. Adapted over time, the classical prisoner’s dilemma goes like this:

Two suspects are arrested by the police. The police have insufficient evidence for a conviction, and, having separated both prisoners, visit each of them to offer the same deal. If one testifies (defects from the other) for the prosecution against the other and the other remains silent (cooperates with the other), the betrayer goes free and the silent accomplice receives the full 10-year sentence. If both remain silent, both prisoners are sentenced to only six months in jail for a minor charge. If each betrays the other, each receives a five-year sentence. Each prisoner must choose to betray the other or to remain silent. Each one is assured that the other would not know about the betrayal before the end of the investigation. How should the prisoners act?

Making the most rational decision, and acting solely for themselves, the best option for both prisoners is to defect. Under any circumstance, betraying their partner by ratting them out will generate the best possible aggregate result for the prisoner. However, because the choice to defect is both prisoners’s best move, it assures that the outcome will be a 5-year sentence for both of them.

Flood and Dresher’s problem illustrates the challenges involved in acting beyond one’s own personal gain, choosing instead to act for the good of the group. If everyone acted in this non-selfish manner, the group would thrive more richly than it would acting solely in their own individual best interest. But, because of the issue of free-riders, and as this game theory problem illustrates, there are significant hurdles that must be overcome in order to achieve these non-self-serving results.

One of the biggest challenges facing electric motorcycle manufacturers comes in the form of customer education. These companies must wrestle with not only how they convert current internal combustion engine (ICE) motorcyclists to electric motorcycles, but also how they will bring current non-motorcyclists into the industry. Not an easy task to begin with, the problem is compounded by the nearly non-existent marketing budgets these companies operate on. There is no question that there is a need to putt forth the argument for electric motorcycles in the industry, but with making that case comes a marketing decision that exemplifies our Prisoner’s Dilemma problem.

Who will take on the burden and challenge of educating an industry centered around the internal combustion engine, when doing so surely means a great investment in capital and resources, and also when the desired affect will bring no exclusive benefit to the company? That is to say, what company is going to take the time and money to begin changing the way motorcyclists think about motorcycles, and develop a market for electrics, when the return on that investment helps them just as much as it helps their competitor?

Tradition Is Not A Business Model: Zero Motorcycles

10/05/2009 @ 3:32 am, by Jensen Beeler17 COMMENTS

Walking into the office of a company is always an interesting experience. For a company, the work place is the first expression of the company’s culture. Similarly, workspaces are often a reflection of the people that work inside them, an occupational rorschach test if you will. Yet, despite its importance and revealing nature, a company headquarters is rarely experienced by the end-consumer. It is an interesting disparity that occurs in every industry, and the electric motorcycle scene is no different.

Tradition Is Not A Business Model

09/28/2009 @ 2:58 am, by Jensen Beeler10 COMMENTS

In my last year of business school I had to write a business plan in order to officially obtain a concentration in Corporate Innovation & Entrepreneurship. This was before the complete global economic meltdown, and entrepreneurship was still very much a dirty word in the hallowed walls of our MBA program. Many of my classmates were hoping for Wall Street jobs, and the class all-stars were all vying for jobs at the hottest hedge funds, so the idea of starting a company that would likely pay a negative paycheck in its first couple years was very much a foreign concept. It comes as no surprise then that only four or five business plans were submitted for consideration for the course concentration; one of which was mine, entitled Tradition is Not a Business Model – An American Sportbike Business Plan.

In this article, and its subsequent series of articles, I hope to re-examine what it means to start a motorcycle company in the United States. While my original business plan centered around the concept of a traditional motorcycle with an internal combustion engine, this series of articles will instead take the opportunity to look into corporate innovation in the motorcycle industry, through the lens of the newly formed electric motorcycle sector. In what I hope will become a weekly conversation on business in the motorcycle industry, we begin our discussion first with the perspectives of four entrepreneurs, which you’ll see in the coming Sunday Editions of Asphalt & Rubber.