UPDATE: You can find Azhar Hussain’s response to this article on Brammofan.

Last week when I wrote my op-ed, I was content to say my piece on the issue of TTXGP/Mavizen conflict of interest, and then move along with other things. But considering the response the piece got, not only by Azhar Hussain himself, but also by others in the industry, as well as the recent announcements of Zero Motorcycles and Mission Motors entering the TTXGP racing series, I thought I’d give the issue another pass. Ignoring the name-calling, accusations of professional misconduct, and general pettiness that followed, I wanted to address and few things that have developed in this space, and why I’m still thankful the FIM split from TTXGP.

When is a motorcycle more than a bike? When does the electric motorcycle become more than a powertrain? One of the largest hurdles that electric motorcycles face (along with electric vehicles as a whole) is the public notion that these vehicles are like their internal combustion counterparts, and therefore fit into the same preconceived anatomy of what a motorcycle should look and behave like.

However, with electric motorcycles comes the opportunity to start with a fresh slate on how we move about on two-wheels. If form follows function, then with this new function should come a new form. Yet, I still find it amusing when I see electric motorcycles with fabricated fairing fuel tanks. Granted there is a lot to be said about industrial design and its relation to psychology, but I think this fact illustrates the unfluctuating desire of motorcyclists to make every square bike fit through a round-hole.

Despite this allegory, the motorcycle industry sees electric motorcycle startups challenging a lot of norms that we still cling to desperately in the motorcycle industry. Our final stop in the “Tradition Is Not A Business Model” tour of motorcycle startups, takes us to San Francisco, California and the offices of Mission Motors. Fresh on the heels of Mission’s announcement of the Neimen Marcus Limited Edition Mission One, I got a chance to sit down with company CEO/Founder Forrest North and Product Manager Jeremy Cleland, to talk about how technology changes the way we understand and use motorcycles; and perhaps more important, how manufacturers can design and build better motorcycles better in the future.

Today I want to broach the subject of what it means to be not only a motorcycle startup, but what it means to be an American motorcycle startup. For a majority of our readers, the concept of American motorcycling is something that we have understood since our days as children. No matter how you came to this industry/sport/lifestyle, as a reader of A&R you no doubt have a strong personal compass of what is means to be an American motorcyclist, and it is something that you touch and understand on a daily basis.

The business side of this understanding is less straight-forward though. It is one thing to identify personally with what makes an American motorcycle, but it is a very different exercise to build a product that evokes that same emotion to the mass consumer. This concept becomes even more relevant today, as the motorcycle industry is still recovering from the news of Buell’s closure and Harley-Davidson’s drastic measures to stay afloat. With no precognition of this impending news, I headed to Portland, Oregon to talk to Michael Czysz, CEO of auto-biographically named MotoCzsyz. Czysz’s journey presents a unique story about a company that has twice attempted to create an American-bred sportbike, and as such is the appropriate company in which to frame our topic about what it means to be an American motorcycle startup.

A problem derived using game theory, the Prisoner’s Dilemma was first put forth by Merrill Flood and Melvin Dresher. Adapted over time, the classical prisoner’s dilemma goes like this:

Two suspects are arrested by the police. The police have insufficient evidence for a conviction, and, having separated both prisoners, visit each of them to offer the same deal. If one testifies (defects from the other) for the prosecution against the other and the other remains silent (cooperates with the other), the betrayer goes free and the silent accomplice receives the full 10-year sentence. If both remain silent, both prisoners are sentenced to only six months in jail for a minor charge. If each betrays the other, each receives a five-year sentence. Each prisoner must choose to betray the other or to remain silent. Each one is assured that the other would not know about the betrayal before the end of the investigation. How should the prisoners act?

Making the most rational decision, and acting solely for themselves, the best option for both prisoners is to defect. Under any circumstance, betraying their partner by ratting them out will generate the best possible aggregate result for the prisoner. However, because the choice to defect is both prisoners’s best move, it assures that the outcome will be a 5-year sentence for both of them.

Flood and Dresher’s problem illustrates the challenges involved in acting beyond one’s own personal gain, choosing instead to act for the good of the group. If everyone acted in this non-selfish manner, the group would thrive more richly than it would acting solely in their own individual best interest. But, because of the issue of free-riders, and as this game theory problem illustrates, there are significant hurdles that must be overcome in order to achieve these non-self-serving results.

One of the biggest challenges facing electric motorcycle manufacturers comes in the form of customer education. These companies must wrestle with not only how they convert current internal combustion engine (ICE) motorcyclists to electric motorcycles, but also how they will bring current non-motorcyclists into the industry. Not an easy task to begin with, the problem is compounded by the nearly non-existent marketing budgets these companies operate on. There is no question that there is a need to putt forth the argument for electric motorcycles in the industry, but with making that case comes a marketing decision that exemplifies our Prisoner’s Dilemma problem.

Who will take on the burden and challenge of educating an industry centered around the internal combustion engine, when doing so surely means a great investment in capital and resources, and also when the desired affect will bring no exclusive benefit to the company? That is to say, what company is going to take the time and money to begin changing the way motorcyclists think about motorcycles, and develop a market for electrics, when the return on that investment helps them just as much as it helps their competitor?

Walking into the office of a company is always an interesting experience. For a company, the work place is the first expression of the company’s culture. Similarly, workspaces are often a reflection of the people that work inside them, an occupational rorschach test if you will. Yet, despite its importance and revealing nature, a company headquarters is rarely experienced by the end-consumer. It is an interesting disparity that occurs in every industry, and the electric motorcycle scene is no different.

In my last year of business school I had to write a business plan in order to officially obtain a concentration in Corporate Innovation & Entrepreneurship. This was before the complete global economic meltdown, and entrepreneurship was still very much a dirty word in the hallowed walls of our MBA program. Many of my classmates were hoping for Wall Street jobs, and the class all-stars were all vying for jobs at the hottest hedge funds, so the idea of starting a company that would likely pay a negative paycheck in its first couple years was very much a foreign concept. It comes as no surprise then that only four or five business plans were submitted for consideration for the course concentration; one of which was mine, entitled Tradition is Not a Business Model – An American Sportbike Business Plan.

In this article, and its subsequent series of articles, I hope to re-examine what it means to start a motorcycle company in the United States. While my original business plan centered around the concept of a traditional motorcycle with an internal combustion engine, this series of articles will instead take the opportunity to look into corporate innovation in the motorcycle industry, through the lens of the newly formed electric motorcycle sector. In what I hope will become a weekly conversation on business in the motorcycle industry, we begin our discussion first with the perspectives of four entrepreneurs, which you’ll see in the coming Sunday Editions of Asphalt & Rubber.

It looks like there will be a respite over the battle to keep childrens’ dirt bikes on the showroom floors as the Consumer Product Safety Commission and officials representing motorcycle manufacturers and dealers have come to an agreement that will temporarily lift the federal ban on children’s motor vehicles that contain lead. The Motorcycle Industry Council has released at statement of its own about the temporary measure, and while they are pleased with the announcement, they urge Congress to step in and make a more permanent solution for children riders. 

BMW Motorrad USA will show the S1000RR superbike in the United States for the first time this coming Memorial Day weekend at the Miller Motorsports Park World Superbike round, with the bike hitting US dealership floors by January 2010. Pieter de Waal, Vice President of BMW Motorrad USA, has revealed that BMW intends to position the S1000RR against litre-class superbikes from Japan.

Ducati at the Qatar GP race last week release more photos and information on the Desmosedici GP9′s new carbon fiber frame. Ducati calls this “the next step in the advancement” of their GP series motorcycles. The objective behind the new frame is to create a chassis set-up in which each element carries out a specific function, to obtain the desired rigidity with as little weight as possible, thus attaining maximum efficiency.

Entries for the upcoming TTXGP have been announced, and five teams have entered to run the Isle of Man on electric wheels. Mission Motors, EVO Design Solutions, Kingston University, Brammo, and Motorczysz will make up the field. The teams have just 64 more days to get their bikes ready for competition, which could be a tall order for some of them, whose bikes still only exist as CAD drawings.

We have a very reserved opinion on how TTXGP will go down. While these teams have been able to gain a great deal of attention in the blogsphere about their projects, it would seem virtually all of them haven’t actually built even a prototype yet (excluding Brammo). In the tech industry, we call this Vaporware, and with less than 10 weeks before race day, we have a hard time conceiving how all these teams will be able to deliver in this short of a time frame. Never-the-less, the TTXGP will be a big day not only for electric motorcycle racing, but also for electric motorcycles in general. Continue reading for a description of each team from their press releases.