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.”

From Russia with Love, MV Agusta Finds New Money

11/20/2016 @ 1:05 pm, by Jensen Beeler19 COMMENTS

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Last week, I was ready to start polishing the obituary for MV Agusta – the Italian company seemingly in an impossibly terminal state.

Italy’s Guardia di Finanza had found that the Italian company had been using the social security contributions of its workers to pay down the money owed to parts suppliers (something MV Agusta disputes is the case), and earlier this year MV Agusta CEO Giovanni Castiglioni was investigated for irregularities on his tax return.

All of this is on top of the ever precarious financial situation MV Agusta has been in for the past year, which has resulted in the company looking to restructure its €50 million debt in the Italian court system, furlough a good portion of its workforce, and reduce its production volume to roughly 9,000 units per year.

Now it seems MV Agusta’s fortunes are changing, with the Italian motorcycle maker signing an agreement with the Black Ocean investment group to recapitalize MV Agusta.

Details of the pending transaction haven’t been released, but we can assume that the increase in capital will help ease MV Agusta’s relationship with suppliers, get workers back on the assembly line, and continue the development of new models.

Right Now Is the Best Time to Buy A New Motorcycle

10/26/2016 @ 12:18 pm, by Jensen Beeler50 COMMENTS

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With all the new motorcycles for the 2017 model year debuting right now, it might seem counter-intuitive that this would be the right time to make a trip down to your local motorcycle dealership, but it is. Let me explain.

After seeing a modest rebounding of sales and momentum from the recession, this year has been a stumbling block for the motorcycle industry, with sales at the beginning of the year building slowly, before tapering off later in the summer and early fall.

Economic indicators are up, unemployment is down, but the third quarter results from around the industry are pointing to the US motorcycle market taking a market contraction for 2016. The reason for this is uncertainty.

Polaris in the MV Agusta Acquisition Mix?

05/27/2016 @ 5:57 pm, by Jensen Beeler20 COMMENTS

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If you believe the rumors coming out of Italy, Polaris is poised to save acquire ailing motorcycle manufacturer MV Agusta.

We have documented MV Agusta’s precarious financial troubles already in great detail, and how MV Agusta CEO Giovanni Castiglioni is between a rock and a hard place with his main investor, Mercedes-AMG.

According to the Italian media, and those who repeat their words like parrots, Polaris represents an escape from MV Agusta’s difficult position with the German automobile-maker, though the reality is that nothing could be farther from the truth.

MotoGP: Circuit of Wales Under Threat as Welsh Government Refuses to Underwrite Project

04/07/2016 @ 7:51 am, by David Emmett1 COMMENT

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The Circuit of Wales was dealt a significant setback on Wednesday, after the Welsh Economy Minister refused to offer a 100% guarantee for the £357 million development project.

Without the guarantee, the future of the project is now uncertain, with doubts over the willingness of Aviva, a British insurance company, to continue with backing for the project.

After a long period of preparation, which included a Public Enquiry on the transfer of public lands, work was set to start on the circuit, set just outside Ebbw Vale in South Wales. Work had already started to get the site of the circuit ready to start construction.

The final piece of the puzzle had been secured several weeks ago, in the form of financial backing from Aviva. However, the Heads of The Valley Development Company had asked the Welsh Government to underwrite 100% of the investment in the project, with reports in the regional newspaper South Wales Argus suggesting that such demands had come from Aviva.

MotoGP: Has Jorge Lorenzo Signed with Ducati Corse?

03/31/2016 @ 6:21 pm, by David Emmett17 COMMENTS

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That this Silly Season – the (bi)annual round of rider contract negotiations – was going to be remarkable has been obvious for a very long time.

Only very rarely have the contracts of nearly every rider on the grid ended at the same time, leading to a frenzy of speculation and rumor about who could and will be going where for the 2017 season.

That this year is special was made obvious at Qatar, where both Valentino Rossi and Bradley Smith announced they had already signed two-year deals for 2017 and 2018 before the flag had even dropped for the first race.

Jorge Lorenzo has been the key figure in this year’s Silly Season, however. Of the four current MotoGP Aliens, he is the most likely to move, and to be offered big money to do so.

Valentino Rossi is nearing his retirement, and his long-term future is tied up with Yamaha, so re-signing with the Japanese factory was a no-brainer.

Marc Márquez may leave Honda at some point in his career, but at the moment, he has too many ties binding him to HRC.

Dani Pedrosa may be a proven winner, but he is the only one of the four not to have won a championship. It is Lorenzo who is attracting all of the interest.

It now appears that Lorenzo’s future may already be settled. Well-informed sources inside the paddock have told me that Jorge Lorenzo has already signed a deal with Ducati, and perhaps at a record price.

Certainly at a price which Yamaha would be unwilling – and probably unable – to match.

No, MV Agusta Hasn’t Declared Chapter 11 Bankruptcy

03/28/2016 @ 6:26 pm, by Jensen Beeler8 COMMENTS

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Despite what you may have read, MV Agusta isn’t declaring protection from creditors under Chapter 11 of the United States Code. But, we can understand the confusion.

Just so we are clear, by definition Chapter 11 bankruptcy proceedings are a figment of American law. Since MV Agusta is an Italian company, it would be fundamentally wrong to say that MV Agusta Motor S.p.A. was seeking a protection under the US Code that pertains to bankruptcy.

The branch of MV Agusta that would be able to file for Chapter 11 would be MV Agusta USA, but the US subsidiary is not embroiled in MV Agusta Motor’s financial troubles, which makes the use of the term incredibly inaccurate.

The Precarious State of MV Agusta

03/23/2016 @ 2:02 pm, by Jensen Beeler39 COMMENTS

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MV Agusta as a motorcycle company has always seemed to have feet of clay, especially when its financial future is concerned. Today is no different, as MV Agusta has announced its intentions to restructure its debt, in order to keep the company afloat.

Afloat is an interesting phrase, as the storied Italian brand has changed hands four times in the past 12 years, with two of those purchase prices being a token euro, as MV Agusta’s liabilities far outstripped the company’s assets and holdings.

Fast-forward in time and it would be easy to say that not much has changed, as MV Agusta now has €40 million in liabilities on its balance sheet, all non-essential staff have been furloughed, the production lines in Varese recently have been motionless.

While this seems like more of the same from MV Agusta, the situation is far more complex, and for once in its lifetime, it isn’t MV Agusta’s lack of sales that are to blame. In fact, it’s the opposite, as it is MV Agusta’s success in growing its motorcycles that is the cause of its current financial situation.

That might seem like a counterintuitive notion, but if you understand the relationships between chickens, eggs, and which came first, then you will understand the situation at hand here with MV Agusta.

And while this impasse isn’t a new one in the business world, it doesn’t change the fact that the future of MV Agusta is in a precarious state.

Bell Helmets Acquired by Vista Outdoor

02/25/2016 @ 11:20 am, by Jensen Beeler6 COMMENTS

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With RevZilla joining forces with Cycle Gear and Motorcycle USA shutting down this week, it has been a busy month for the business side of the motorcycle industry. Now we have more news to report, as BRG Sports, owner of the Bell Helmets brand, has sold its action sports business to Vista Outdoor.

The move adds some of the BRG Sport brands: Bell Helmets, Giro, Blackburn, and C-Preme, into Vista Outdoor already extensive lineup of impressive outdoor and shooting brands, such as Bollé, Bushnell, CamelBak, and Federal Premium.

MotoGP, WSBK, & MotoAmerica Exclusively on beIN Sports

02/24/2016 @ 12:24 pm, by Jensen Beeler48 COMMENTS

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If you are an American who was hoping to see motorcycle racing on basic cable, we have bad news for you all three major series – MotoGP, World Superbike, and MotoAmerica – will air exclusively on the premium TV network beIN Sports this year.

The deal with beIN Sports mimics similar deals we have seen Dorna cut elsewhere abroad, where the media rights holder of both MotoGP and World Superbike favors deals with premium television companies over basic broadcast stations.

These deals usually mean more money for Dorna, though come with the downside of fewer viewers for the sport of motorcycle racing.

Suzuki & Volkswagen Finalize Their Divorce

02/23/2016 @ 3:17 pm, by Jensen Beeler6 COMMENTS

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The last we checked-in with the Suzuki/Volkswagen divorce, the German automobile maker was ordered by the London Court of International Arbitration to sell its 19.9% stake in the Japanese manufacturer (worth $2.8 billion at the time).

That was back in September 2015, and now that ordered has finally been fulfilled, with Volkswagen completely divesting itself from Suzuki – a move that has been four years in the making.