California Formalizes Lane-Splitting Law

It finally happened, Governor Jerry Brown signed AB 51 into law, making California the first state to put lane-splitting on its books. Lane-splitting has always been legal of course (despite what other headlines might suggest), though was legal only by a technical loophole in the California Vehicle Code (CVC). The passage of AB 51 now formally adds lane-splitting as a condoned practice by the CVC; and more importantly, it expressly allows government agencies, like the California Highway Patrol, to create and teach best-practice guidelines. AB 51 still creates some basic jurisprudence issues, like granting legislative powers to the executive branch, but many in the pro-lane-splitting movement seem to look past that issue, instead focusing on what it brings to motorcyclists.

EPA Slaps Harley-Davidson with $12 Million Fine

The EPA DOJ have just come to a settlement agreement with Harley-Davidson, which sees the American motorcycle manufacturer agreeing to pay a $12 million fine for its Screamin Eagle “super tuner” devices. Also in the agreement, Harley-Davidson agrees to spend $3 million to mitigate air pollution (through a project to replace conventional woodstoves with cleaner-burning stoves in local communities), as well as to stop selling, buy back, or destroy any illegal devices that increase air pollution from the company’s motorcycles. While not quite the Dieselgate scandal that caught Volkswagen circumventing EPA emission standards, Harley-Davidson’s “super tuners” do provide an aftermarket solution for motorcyclists to circumvent the emission devices on their motorcycles.

Moto3: Sky VR46 Fires Romano Fenati

As expected, Romano Fenati has been formally released from his contract with the Sky VR46 team. The Italian was suspended from the team after an incident at the Red Bull Ring in Austria. That was a temporary measure, but it has now been made permanent. Fenati was released for behavioral issues. The Italian had been abusive towards members of the team, and had not behaved in a professional manner. The incident in Austria was just the latest in a long line of breaches of behavioral conduct, which included confirmed reports of verbal abuse and unconfirmed and unsubstantiated reports of physical conflict. The Sky VR46 team have announced that they will be bringing Lorenzo Dalla Porta in to join Andrea Migno and Nicolo Bulega in the Moto3 team.

Two New BMW R nineT Models Coming

Filings with the California Air Resources Board (CARB) suggest that BMW Motorrad has two more variations of its retro-styled motorcycle line coming to the USA: the BMW R nineT Pure and the BMW R nineT Racer. These two bikes would join the other two air-cooled models we have already seen from the Germans, the base model BMW R nineT and the recently released BMW R nineT Scrambler, which debuted at EICMA last year. Our friends at Motorcycle.com spotted the CARB filings, and believe one of the machines will be based off the BMW Lac Rose concept – an ADV throw-back to when the Dakar Rally actually raced to Dakar. The other model though, could be anyone’s guess, as BMW hasn’t dropped any other concepts or hints in the past months.

Q&A: KTM On-Road Technical Director Sebastian Risse – The Development of the KTM RC16 MotoGP Bike

Sebastian Risse is the man behind the KTM RC16 MotoGP bike which was presented on Saturday at the Red Bull Ring. An automotive engineer by training, Risse has been with KTM since 2008. He started out as a crew chief and chassis analyst on KTM’s now defunct RC8 Superbike project, but when KTM returned to Grand Prix racing in 2012, Risse took charge of the Moto3 project, which has gone on to be the benchmark in the class. Risse is currently head of all of KTM’s roadracing activities, and has overseen and led development of the RC16 MotoGP bike. After the KTM RC16 was presented, we spoke to Sebastian Risse about the differences and design choices which went into the bike.

Here’s a Custom Ducati XDiavel by Roland Sands Design

In the event’s 76-year history, this year marks the first time that Ducati has ever participated at the Sturgis Motorcycle Rally – the Italian company hoping to showcase its Harley-Davidson alternative, the Ducati XDiavel. Helping fuel that fire was a collaboration between Roland Sands Design and Ducati, which has given way to the creation of a one-off XDiavel with the usual RSD touches. This means a flowing single-piece body, the addition of a 19″ front wheel, and shotgun-style exhaust are added to the already stylish XDiavel. The RSD Ducati XDiavel is then finished off with metallic flake paint job, along with the usual bits and bobs from the RSD catalog. There is a lot of “Southern California” transmitted through RSD’s design into the Italian-born XDiavel.

2017 KTM RC16 Officially Debuts

The Austrian GP might be tomorrow, but today the news is all about MotoGP’s newest entrant, KTM Racing. The Austrian team used its home to debut officially its MotoGP program, showing the KTM RC16 MotoGP race bike in its officially Red Bull livery for next year. The livery itself is what you would expect between at KTM/Red Bull collaboration, with the same blue and orange paint scheme as can be found on the Red Bull KTM Moto3 squad. The big difference of course is the rumored fire-breathing, 270hp, V4, engine, which Bradley Smith and Pol Espargaro will attempt to tame. The bike’s next outing will be at Valencia, where Thomas Lüthi and Mika Kallio will ride with the MotoGP-regulars once again, competing as wild card entries.

MotoGP Considering Team Communication via Dashboards

Dorna is considering allowing communication between teams and riders via the dashboard. At a meeting today between Dorna and the teams, initial discussions took place over a system to allow teams to pass very brief messages to the dashboard of the bikes. The ability to pass messages between team and bike has been made possible thanks to the transponders currently being used in MotoGP. Those allow for a very limited and very short burst of communication as the bikes pass the timing loops at the track. Race Direction is currently using the system to pass signals to the dash in the case of a red flag, black flag or ride through penalty, but the system would also allow teams a limited ability to pass messages to the riders.

Norton Announces V4 Superbike, Again

A year ago, to the day, Norton announced that it was working on a street-going superbike that featured a 200hp, 1,200cc, V4 engine. Now, Norton confirms that news, saying that we will see the limited-production (200 units) machine later this fall. Yay. On the bright side, Norton posted a concept drawing of the new bike to its Facebook page, giving us at least something new to whet our appetites on the new motorcycle. The concept looks very similar to the sketch we saw last year, making today’s new a little bit about nothing. But, our friends at MotoFire report that Norton is still working on a 650cc project, which will debut later this year as well.

Is This the 2017 Yamaha YZF-R6?…Nope

Someone is trying to pass off the above photo as the eagerly awaited 2017 Yamaha YZF-R6 – unfortunately, it’s a fake. I’m actually surprised this piece of photoshop has some legs, and is making its way around the internet, considering how obvious the forgery. To verify its authenticity, all one would have to do is to compare the above photo with photos of the current generation Yamaha YZF-R1. Contrasting the two, it’s clear that the chassis and exposed parts of the engine are right off the Yamaha YZF-R1 (it’s easiest to see on the swingarm). The real smoking gun though is that the forger used a Yamaha press photo as their base. I was able to find the base photo, which clearly shows that the five-spoke wheels on the alleged R6 are in the exact same ones from a R1 press photo.

MotoGP Will Be Broadcasted in HD – 3D to Follow?

03/24/2010 @ 4:20 pm, by Jensen Beeler8 COMMENTS

Dorna Sports has announced that this year’s MotoGP season will be shot in HD and broadcasted in high definition where available. After suffering through years of regular definition coverage that was often grainy and poorly saturated (there’s a reason MotoGP bikes have bright colors), race fans will hopefully be able to see their favorite riders lap the track in more clarity. Bonus for us American viewers, SPEED Channel has agreed to carry the races on its HD channel.

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 Saves York, Pennsylvania Plant

12/05/2009 @ 11:12 am, by Jensen Beeler3 COMMENTS

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Harley-Davidson announced this week that it was able to come to an agreement with its York, Pennsylvania plant employees and union members, thus allowing the plant to remain open and producing motorcycles. The move wasn’t easy though as half of the plant’s employees will lose their jobs in order to keep the Shield & Bar in the Springettsbury Township area.

An Easy Decision: Harley-Davidson Circles the Wagons Around Milwaukee

10/16/2009 @ 9:01 am, by Jensen Beeler7 COMMENTS

What do you do when the financial arm of your company goes from making $100 million a year to losing $100 million a year? Why you kill off two other brands in your company of course. That is the move the Keith Wandell and the Harley-Davidson board of directors made yesterday with their announcement of shutting down Buell, and selling off MV Agusta. Realizing that the Harley-Davidson brand accounts for the majority of Harley-Davidson Inc.’s income, Harley-Davidson executives saw there being little choice but to sacrifice its other two holdings to save their namesake.

Harley-Davidson RIFs Another 1,000 Employees

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

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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.

Harley Davidson Makes First Influences on How MV Agusta is Run

05/14/2009 @ 10:40 am, by Jensen Beeler1 COMMENT

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Things have been quiet on the Italian front after Harley-Davidson acquired premium sportbike manufacturer MV Agusta last year, with the American company apparently leaving the brand alone for a while after its purchase. The company we love to hate from Milwaukee has finally started to make some changes in the old Italian brand, drawing a clear line between what product lines will focus on a premium road bike experience for the rider, and what products will be developed for track day weaponry for the weekend warrior.

Tough Times Ahead for Harley-Davidson as Riders Get Older

03/26/2009 @ 1:31 pm, by Jensen Beeler5 COMMENTS

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The New York Times ran a great article this week about the challenges facing Harley-Davidson, both from the current economic depression, and more generally as the quintessential Harley rider gets older in age. In summation, Harley-Davidson dealers around the US and overseas are seeing sales drop dramatically as people scale back their expensive purchases, and as the access to credit becomes increasingly difficult. There’s no real surprise there, and any hardcore fan will be quick to tell you that Harley will be back on top once this financial turmoil is over. However, looking farther down the road at Harley-Davidson’s long-term business position, there is additional trouble brewing as well. Baby-boomers account for the majority of Harley sales, and they are getting older. The NY times ends there with its commentary, but we think there’s more to the story on Harley-Davidson and the American bike market in general. 

 

Warren Buffett Invests $300MM in Harley-Davidson

02/04/2009 @ 12:43 pm, by Jensen BeelerComments Off on Warren Buffett Invests $300MM in Harley-Davidson

Harley-Davidson has announced that Warren Buffett’s Berkshire Hathaway group will invest $300 million in the motorcycle maker through a purchasee of senior unsecured notes that will mature in 2014. These funds match a similar investment by Davis Selected Advisers, L.P., which is already the largest shareholder of the company’s stock. Harley-Davidson will use the money to bolster its lending services, hopefully making it easier for the troubled motorcycle maker to lend cash to consumers. In exchange, Berkshire Hathaway will reportedly receive a lucrative 15% annual interest rate on the cash infusion.

The markets have responded to the news rather favorably, with Harley shares hitting $13.56 in trading yesterday afternoon – a 14% increase from where they started yesterday. Just about a week ago, Harley-Davidson announced a plan to shed 10% of its workforce. This move marks the first time that Buffett has ever invested in the company.

Harley-Davidson Stock Shares Tumble

01/13/2009 @ 11:11 am, by Jensen BeelerComments Off on Harley-Davidson Stock Shares Tumble

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Harley-Davidson (HOG) shares dropped 12% Monday as financial analysts grew bearish over motorcycle purchases in 2009. Sparking the plummet, Goldman Sachs downgraded Harley’s shares to sell, lowered its target price to $11, and cut its 2009 profit outlook by 50%. Goldman analyst Patrick Archambault said he expects Harley’s retail bike sales to fall by 30% this year, making it the worst year for new registrations since 1982.

Part of the reason for the downgrade is becauset Harley-Davidson CEO, James Ziemer, said last month that he plans to retire from his 40 years of service with Harley in 2009, and on Thursday last week, Sy Naqvi stepped down as interim president Harley’s finance unit.

Another concern has been Harley-Davidson’s financial services division. The division is expected to make less revenue in 2009 off of sales, lose more money on delinquent loans, and be stuck with loan obligations because of a frozen LBO and secondary loan markets.

Source: Visordown

Harley-Davidson Guarantees the Value of Newly-Bought Sportsters Upon Trade-in

12/26/2008 @ 10:12 pm, by Jensen BeelerComments Off on Harley-Davidson Guarantees the Value of Newly-Bought Sportsters Upon Trade-in

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Harley-Davidson is getting creative with selling motorcycles, and we here at Asphalt & Rubber like it. HD must really want to capitalize on those sales, as it’s just announced a unique incentive to purchase a new Sportster, or alternatively to trade in your recently purchased model. 

All new 2008 and 2008 Sportsters, bought between December 26, 2008 and March 31, 2009, will be sold with a guarantee that Harley-Davidson will offer the full MSRP of the bike when traded in for a larger bike, within on year of the original purchase. The offer does not apply to the new XR1200, and the bike bought after the trade-in must be a Dyna, Softail, VRSC, or Touring model. 

Economically, this is an interesting deal. Harley-Davidsons, unlike most other marquees, generally appreciate in value over-time. This is mostly a function of long-waiting lists, and difficulty of purchasing abroad. Regardless, its a bonus point for buying the Milwaukee brand. The Sportster line, being at the bottom of the Harley totem pole, is the most susceptible to having this trend end with the economic crisis. This promotion, effectively squashes that possibility for the time being. Anyways, for the average consumer, revile in the fact that an otherwise depreciating object will hold its value for the next year minus the rate of inflation, and in the event of deflation in the value of the dollar, will actually be a decent investment. Booyaca!

Source: Harley-Davidson via Autoblog