Imagining the 2018 Suzuki RM-Z450 Supermoto

It is a tremendous shame that the options for a road legal supermoto for are so limited, with the venerable Suzuki DR-Z400SM being the only offering in the 450cc on-road class. For virtually a decade, Suzuki has left the DR-Z basically unchanged – as it has done with many of its sport models – so we would love to see Suzuki and other manufacturers give this space more attention (a hat tip to Husqvarna for bringing the track-only FS450 to market, long with the 701 Supermoto). Although you can wake-up the DR-Z400 with a few simple modification, and there are a bevy of aftermarket kits that can punch the 398cc machine out in size, what we really want from Suzuki is a proper 450cc street supermoto – one that doesn’t stray too far from the brand’s current strong motocross offering. So, when we saw this little bit of Photoshop work by the folks at the German Suzuki dealership of DSR-Suzuki, we got a little excited.

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.

Harley-Davidson Returns to Profitability

04/20/2010 @ 2:32 pm, by Jensen Beeler19 COMMENTS

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.

How to Save Harley-Davidson – Step 2: Shift Your Product Lineup into New Segments

04/07/2010 @ 5:54 am, by Jensen Beeler66 COMMENTS

35 motorcycles, 7 model lines, 4 chassis, 3 motor families, & 1 market segment, that’s Harley-Davidson’s product line by the numbers. Where many large production motorcycle companies might have 30 or so motorcycles that span the entire gamut of motorcycling’s different sub-markets, Harley-Davidson has put all of its eggs in the heavy cruiser market. This singular pursuit of one market segment has not only been the cause for Harley’s success, but also a significant contributing factor to the company’s recent downfall, which has led to a recently rumored leveraged buyout.

As the old idiom goes, one should not put all their eggs in one basket, which is exactly the faux pas being committed here by Harley-Davidson in its product offering. Businesses, especially public ones, should always have an eye on sustained long-term growth, and a key element to that goal is a well-diversified position in their appropriate industry. Taking this lens and applying it to Harley-Davidson, one can immediately see a portfolio that has been extensively mismanaged by focusing on only one segment of the total motorcycle industry: the heavy cruiser market.

What this has effectively created is a motorcycle company that looks like Alfred Hitchcock’s take on Baskin Robins: 31 flavors, but they’re all Rocky Road.

How to Save Harley-Davidson – Step 1: Redefine and Reposition The Way You Market Your Brand

03/08/2010 @ 6:50 am, by Jensen Beeler112 COMMENTS

Blasphemy, heresy, stupidity, sacrilege, un-American, and downright irreverence. Go ahead, get all those words out of your system. I’ll wait.

The default opinion of marketers, analysts, and the general population is that Harley-Davidson has one of the strongest brands in the United States, this being confirmed by the fact that every business student in America has studied Harley’s marketing efforts if they’ve ever taken a brand management course. So why would I start a three-part series on how to fix Harley-Davidson by arguing to change one of the most revered marketing houses in the motorcycle industry?

Giving credit where credit is due, Harley-Davidson, or I should say its admirers in business school academia, wrote the book on demand generation marketing geared towards the baby-boomer generation. However, in defending this market position, Harley-Davidson has painted itself into a corner by only engaging a very small segment of the population with its product. Unless they redefine and reposition their company image and who it resonates with, Harley-Davidson is going to watch the continued erosion of its footing in the motorcycle industry, and also the continued deterioration of its only industry leading quality: its brand.

Harley-Davidson Reports Devastating 89.7% Annual Income Loss for 2009 – Made $70 Million Last Year

01/26/2010 @ 4:18 pm, by Jensen Beeler12 COMMENTS

For the Buell and MV loyal, Harley-Davidson’s latest earnings report should provide all the information as to why the Milwaukee manufacturer had to close and sell those brands respectively. Reporting a nearly 90% loss in annual income, Harley-Davidson earned only $70.6 million in 2009, compared to the $684.2 million Harley earned in 2008, which results in a staggering loss of income for the iconic motorcycle company.

For Q4 of 2009, Harley-Davidson actually operated in the red, and lost $218.7 million in net income by staying in business (Asphalt & Rubber actually made more money during the same time period than Harley-Davidson did, if that puts things into perspective). Additionally, Harley-Davidson is reporting a $147.2 million loss in revenue during its fourth quarter operations. The loss is associated with the reduction in production, and the $167.1 million in restructuring costs incurred because of the closure of the Buell Motorcycle brand.

Harley-Davidson Forty-Eight: The Gen-X Sportster

01/22/2010 @ 1:04 pm, by Jensen Beeler56 COMMENTS

The Harley-Davidson Sportster Forty-Eight (or is it 48?), has made its way out of Milwaukee in time for the 2010 model year. Based on the Sportster 1200 platform, the Forty-Eight is the latest addition to Harley’s “custom” offering. It differs from its Nightser et al counterparts with a bobber meets cafe racer appeal, but keeps the ubiquitous orange and black color schemes.

Harley-Davidson to Sell MV Agusta

10/15/2009 @ 2:44 pm, by Jensen Beeler4 COMMENTS

MV-Agusta-for-sale-Harley-Davidson

In conjunction with Harley-Davidson’s Q3 financial results, and shutting down of Buell Motorcycles, the Milwaukee motorcycle manufacturer is announcing that it will be selling Italian sportbike manufacturer MV Agusta.

Harley-Davidson bought MV Agusta just under a year ago, and assumed a substantial amount of debt from the beleaguered company. This past quarter, Harley-Davidson recorded a one-time fixed-asset impairment charge of $14.2 million related to Buell and a goodwill impairment charge of $18.9 million related to MV Agusta.

Buell Motorcycles To Go Out of Business

10/15/2009 @ 2:24 pm, by Jensen Beeler22 COMMENTS

After releasing grim third-quarter financials today, Harley-Davidson has also announced that it is discontinuing Buell Motorcycles. In a somber video (posted after the jump), Erik Buell confirms the news, and praises the Buell team for taking on the industry giants with “this little American sportbike company.” Buell will continue to sell its motorcycle stock, and Harley-Davidson will continue to honor any warranties and part needs for Buell motorcycles.

Harley-Davidson RIFs Another 1,000 Employees

07/16/2009 @ 5:46 pm, by Jensen Beeler1 COMMENT

Harley_davidson_XR_1200_Trophy_1_G_header1000x500

With its second quarter sales dropping 35%, Harley-Davidson is going to be trimming its ranks in order to stay afloat. The Milwaukee based company will inject 700 hourly-wage workers, and 300 salaried workers into the ranks of the unemployed, with possibly more joining them in the future. These reductions come after Harley-Davidson earlier this year announced it was eliminating 1,400-1,500 hourly production positions in 2009-2010 along with 300 salary positions.

Promotions: The Only Way to Sell Harley’s Right Now

05/29/2009 @ 9:32 pm, by Jensen Beeler2 COMMENTS

harley_davidson_nightster-promo

At the end of last year, we announced Harley-Davidson’s promotion where if you bought a Sportster motorcycle (sadly, not the XR1200), you could receive the MSRP value of the bike if you traded it in the following year for “bigger” model.

The promotion was such a great success apparently, that now that it has ended, Harley-Davidson sales have slumped off.

Harley-Davidson Responds to NY Times Article

04/01/2009 @ 12:22 pm, by Jensen Beeler5 COMMENTS

harley-davidson-screw-it-lets-ride

You may remember the NY Times article that we mentioned a few days ago that was critical of the company’s current status and direction. In response to the NY Times article, Harley-Davidson is running the above ad in an attempt to provide a counter-argument to the criticism that the company is on shaky ground.

It should come with little surprise that Harley-Davidson is again playing on Patriotic themes and rhetoric that shifts the focus from the fact the company has serious issues ahead of it, and to date not clear plan on how they are going to overcome them. In addition to this ad, a message was sent out to all Harley-Davidson employees, read it after the jump.