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.

Suzuki Q2 2011 – Profitable for the First Time in 11 Quarters

08/15/2011 @ 5:03 pm, by Jensen Beeler11 COMMENTS

Sometimes when reading the posts made on other motorcycle sites, or the comments by readers across the web, I don’t think there is a full grasp as to how bad the recession was for the motorcycle industry. Granted company’s like Ducati, BMW, and Victory have shown remarkable growth in a down period, but their success, though due in-part to the failures of Harley-Davidson and the Japanese manufacturers, is limited on its bearing to the industry as a whole. This because, quite frankly, these companies comprise only a small portion of the industry’s sales, units, and revenue.

The fact that Harley-Davidson was so close to the brink that they dumped everything outside of its core business is but one sign that motorcycling was in trouble. Another sign would be that Suzuki reportedly didn’t import any new units for the 2010 model years, instead letting local inventories in the US handle the dwindling demand for the company’s motorcycles. The fact that the motorcycle industry as whole almost folded-up on itself like a tin can without anyone making a real fuss about it is perhaps a great signal as to how far various stakeholders heads are buried in the sand. So for our last attempt to put things into perspective, try this one on for size:

For the first time in nearly three years, Suzuki’s motorcycle division has posted a profit…or, the last time Suzuki made money selling motorcycles was Q2 2008 (the same timeframe that Bill Gates stepped down from his daily duties at Microsoft).

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Harley-Davidson Posts First YTD Growth since 2006

07/19/2011 @ 7:31 pm, by Jensen Beeler6 COMMENTS

Harley-Davidson had some good news to report in its Q2 2011 financial report, as the Milwaukee company reports selling 53,599 units to customers in the US during the three-month period, and total of 83,396 units worldwide (120,642 units worldwide so far this year). These sales figures translate into a 5.6% sales increase worldwide, and an even more impressive 7.5% sales bump in the United States market.

While those increases might seem modest, CEO Keith Wandell’s restructuring efforts have clearly been paying off for the Bar & Shield brand as operating income was up 36.8% for Q2, while revenue was up only 18% to $1.34 billion. This is also the first year-over-year quarterly rise for unit sales that Harley-Davidson has seen since the Q4 2006. Read that last sentence again, but it’s sort of a big deal for Harley-Davidson.

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Harley-Davidson Q1 2011 Earnings up 350%

04/19/2011 @ 9:00 am, by Jensen Beeler3 COMMENTS

Before the opening bell on the New York Stock Exchange, Harley-Davidson posted its first quarter numbers of 2011 this morning. Despite earnings being up 350% when compared to Q1 of 2010, Harley-Davidson is showing only a modest turnaround compared to its competitors, as worldwide sales are only up 3.5% compared to last year’s. Still, the company has to be pleased with being back in the black, as Harley-Davidson reported over $119 million in profits (Harley-Davidson made $33.3 million in Q1 2010).

The reason for the less enthusiastic news is because these positive numbers were fueled by the company’s financial services division, which is finally posting profits after nearly collapsing the company during the recession, instead of an increase in bike sales. While Harley-Davidson is touting a 155% revenue increase from the HDFS side of accounting books, it goes without saying that when one does barely any financing in 2010, it’s easy to post results like this. Furthermore, future HDFS financial success is pegged to new Harley-Davidson motorcycle sales, which still show a bleak future.

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Yamaha Stock Drops 10% After Earnings Report

02/15/2011 @ 7:19 am, by Jensen Beeler2 COMMENTS

Investors at the Tokyo Stock Exchange were not happy with Yamaha Motor this morning, as the Japanese motorcycle manufacturer reported its 2010 earnings and 2011 forecast, and promptly saw its stock drop 10%. Despite managing to turnaround its 2010 income from the ¥216.1 billion ($2.5 billion) loss it took in 2009 to a profit of ¥18.3 billion ($219 million), Yamaha only expects to improve on these gains by just over 9% in 2011.

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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.

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Ducati: Bear Market Winner

11/17/2008 @ 9:47 pm, by Jensen Beeler2 COMMENTS

The world markets may be down, and stores may dropping out of business like it’s third period French class, but Ducati is finding the economic downturn to have an upside on its balance sheet.

Ducati’s sales revenue for the first three quarters of 2008 grew by 25% compared to last year’s figures. This means to close to $417MM in revenue for the Bologna Bandits, with their bottom line looking 87% better than before, totaling in at $41MM.

Why now brown cow? Well shipments from Desmo-central to dealer floor rooms has been up by 19% for the year so far, with sales up 8% worldwide. In the meantime, worldwide industry sales are down 6%. Evidently, those cars that people aren’t buying, is not equating into motorcycle purchases (you know…for the mileage advantage) 

The Bologna Boys say they are still on track to achieve a forecast 20% growth in worldwide sales for full fiscal year, up from a predicted 15% sales growth.

How are the other European manufacturers doing? 

KTM has had a 50% drop in operating profit for the full 12 months of its fiscal year, closing the books at $21MM. The House of Orange (not Oranj) is blaming this decline on a bad Dollar to Euro exchange rate, and plans to cut motorcycle production for the 2009 season by 10%.

Piaggio (owner of Aprilia, and most of Europe’s scooters) is also cutting back on production across all its motorcycle and scooter brands after depressing results for the first 3 quarters of 2008. Overall sales were down by almost 6%, falling 10% in Europe, which accounts for about 80% of its bike and scooter sales.

BMW, while slightly more insulated, is feeling the pain too, with global motorcycle sales down by 2.5% in the same period, and profit from bikes falling by nearly 16%.

Source: visordown

In other financial news, the trade-deficit for sportbike hotness in the United States has increased another 300%. Sorry Buell.

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