Investors Leveraging MotoGP for Sizable Payout

According to several reports in the financial sector, the investors behind Dorna Sports S.L. are readying themselves for another sizable payout from the media rights holder for the MotoGP and WorldSBK Championships. Using a bit of financial finesse, the move would see Bridgepoint Capital and the Canada Pension Plan Investment Board (CPPIB) – the two major investors in Dorna Sports – taking roughly €889 million off the books of the Spanish media company, according to Reuters. As such, today’s news would make this the third time that Bridgepoint and the CPPIB have raided the piggy bank for motorcycling’s premier racing series, having done similar deals in 2011 (€420 million) and 2014 (€715 million).

Norton Gets £3 Million to Increase V4 Production

If you have had your eye on a Norton V4 superbike recently, you might not have to wait as long for it to arrive, as the British marque has secured £3 million from the Santander Corporate & Commercial bank. The debt investment will allow Norton to triple its production rate on the V4 SS and V4 RR models, and also allow for the company to hire 40 new employees for the job. Additionally, according to Norton this will allow the company to increase its production volume to 1,500 motorcycles per year. “Having developed and pre-sold a huge number of bikes, we needed the funding to be readily available to pay for tooling, stock and people to allow production to move from 40 bikes per month to in excess of 130 bikes with effect from summer 2017,” said Stuart Garner, CEO of Norton Motorcycles.

Is The 2018 BMW HP4 Race About to Debut in China?

After this year’s April Fools hijinks, we have a whole new respect for the cunning that resides at BMW Motorrad, and the Germans seem to be honing that trait even further today. Announcing its plans for the upcoming Auto Shanghai 2017 later this month, BMW lists a number of four-wheeled news items for the Chinese auto show, and then casually slips-in at the end of the press release that we should expect a big unveil from BMW Motorrad. The statement reads that “the highlight of the BMW Motorrad stand is the world premiere of one of the most exclusive models ever offered by BMW Motorrad,” which is terse, though given what we know about the Bavarian brand, it should be easy to guess what they are hinting at.

Vyrus 986 M2 Street Bike Now Priced at €38,000

It is apparently more difficult to sell a kidney than I had previously thought (type o- / non-smoker / non-drinker…if you happen to be in the market), which isn’t good news when you are trying to get together some scratch for a Vyrus 986 M2 – the hottest supersport we have ever seen. Making matters worse is that Vyrus got in touch with A&R, updating us with their latest pricing structure for their Honda-powered hub-center steering masterpiece, which now comes with a price tag of €37,940 for the street bike, and €27,930 for the street bike kit. That is quite the change from the originally quoted €25,000 street bike model and €16,000 kit, and there is good reason for that, say the folks at Vyrus.

You Didn’t Know You Missed It, But the Honda NM4 Is Back

You probably didn’t even realize that the Honda NM4 was missing from Honda America’s model list for 2017, but the polarizing motorcycle is back for the 2018 model year. The first 2018 motorcycle to be announced so far this year from Honda, it probably helps that the Honda NM4 is featured in the Ghost in the Shell movie, which stars Scarlett Johansson. Laugh if you want, but the NM4 is a surprisingly pleasant to ride, even if you aren’t dressed like the Caped Crusader. As such, the Honda NM4 represents a tradition of motorcycles from Big Red that have pushed that boundaries of not only what we visually accept a motorcycle to look like, but it also blurs the distinctions we make between different motorcycle segments.

US Senate Establishes Motorcycle Caucus

The motorcycle industry has found more allies on Capital Hill this week, with the creation of the first “motorcycle caucus” in the United States Senate. Established so motorcycle manufacturers and motorcyclists would have a greater voice in the upper chamber of the American legislature, the Senate Motorcycle Caucus is the work of Senators Joni Ernst (R-Iowa) and Gary Peters (D-Michigan). Motorcyclists typically aren’t single-issue voter – not for issues pertaining to motorcycles, at least – but with several important political issues currently affecting the motorcycle industry, the formation of the Senate Motorcycle Caucus comes at an advantageous time.

Husqvarna Two-Strokes Get Fuel-Injection Too

We shouldn’t be surprised to hear that Husqvarna will be following suit with its Austrian sibling, and adding fuel-injection to several of its two-strokes enduro motorcycle for the 2018 model year. After a long history of rumors and development, KTM finally debuted fuel injection for a production two-stroke model just a few weeks ago, using the technology on two of its upcoming enduro models, the KTM 250 EXC TPI and KTM 300 EXC TPI. Husqvarna will use the same technology for its own motorcycles in the same segments, announcing today the the all-new 2018 Husqvarna TE 250i and 2018 Husqvarna TE 300i enduro models with transfer port injection.

Opinion: The Danger of Expanding the MotoGP Calendar

It is looking increasingly like the Chang International Circuit in Buriram, Thailand will be added to the MotoGP calendar for the 2018 season. I understand from sources that there was a significant hurdle to be overcome: circuit title sponsor Chang is a major beer brand in Thailand, and a rival to the Official MotoGP Beer Singha, also a major beer brand in Thailand and further abroad. The race can only happen if a compromise has been found to accommodate this conflict. This is good news for Thailand, and good news for fans in Asia. The World Superbike round at the circuit is always packed, and MotoGP should be even more popular. It is hard to overstate just how massive MotoGP is in that part of the world.

Source Says New Suzuki GSX-R600 in 2019

Two weeks ago we shared with you a report done by Australian Motorcycle News, which said that we would see a new GSX-R750 in the next two model years, but the report also suggested that the GSX-R600 would not see an update in that same timeframe. That caught one of our Bothan spies a bit off-guard, as they are certainly someone who would know the real story and AMCN’s article didn’t jive, so they reached out to our Two Enthusiasts Podcast to give us the scoop, and correct the news. As such in Episode 48 then, Quentin set the record straight and broke some industry news, saying that we would see an all-new 2019 Suzuki GSX-R600, with Suzuki’s team in Hamamatsu showing commitment to the supersport market.

Pint-Sized Honda 150SS RACER Debuts in Bangkok

The Honda Grom was a huge success, no one can discount that. The pint-sized two-wheeler is ideal for developing countries that need cheap and versatile people-movers (on a budget). And, the Grom has also shown similar success in markets like the United States and Europe, where it is considered a fun and unassuming motorcycle to add to the garage. Seeing that success, Honda has been trying to tapp that same vein with its latest batch of concept creations. So today, we bring that latest effort, the Honda 150SS RACER concept, which is like the Grom’s cafe-racing sibling from the neo-retro future. Unveiled in Bangkok by Honda Thailand, the 150SS RACER looks like it is ready for its wedding day, as it is sporting something old, something new, something borrowed, and something blue.

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.

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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.

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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.

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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.

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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.

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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.

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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. 

 

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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.

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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