A BMW Scrambler Cometh?

It appears that BMW Motorrad wants in on the retro-styled scrambler game that Ducati and Triumph are playing, and is looking to use its R nineT platform to do the job. The scrambler model, which has already been previewed to BMW’s European dealers, would be just the first of several budget-oriented models to come from BMW, all of which would be based off the BMW R nineT. The scrambler is expected to debut later this year with its 100hp air-cooled engine, while the other models, namely a café racer model, will come in 2016. Fueled on by the sales success of its customization projects, Roland Sands is said to be attached to the BMW project, which is logical since the American designer was part of the initial BMW R nineT design team.

Erik Buell Speaks About EBR Ceasing Operations

Posting on the EBR Facebook page, Erik Buell has made the closest thing to a press statement about the company’s cesasation of operations and pending receivership. First thanking fans for their support, the EBR CEO goes on to explain that the company took on too many tasks for its limited resources, which in-turn has caused EBR to excede its abilities and acquire massive amounts of debt (reports put the figure at $20 million). Buell hopes to see EBR through the receivership process, and to “maximize the value from EBR to benefit all”. In typical Buell fashion, he leaves the possibilities for the future open. You can read the full statement after the jump.

Erik Buell Racing Ceases Operations

News being broke by the Milwaukee Journal Sentinel says that Erik Buell Racing has ceased its operations. The East Troy company plans to also file for protection from creditors under Chapter 128 of Wisconsin’s bankruptcy code. Under Wisconsin law, EBR will be placed into receivership (the company will be run by attorney Michael S. Polsky), and ultimately bids will be made on purchasing the bankrupt company. If no bids are made, the company’s assets will be auctioned off, with the profits going to EBR’s creditors. Though a shock to the whole industry, as well as EBR dealers, the news is perhaps unsurprising given EBR’s lack of success both on the race track and on the dealership floor, the latter being the more important metric.

The Handbuilt Show 2015 – Keeping Austin Weird

Just as it is easy to compare Austin to Portland, one can do the same with the One Show and the Handbuilt Show — in fact, you’ll even find some of the same machines at both events (and that’s not a bad thing). Despite the One Show being our home event, the subtle differences between the two motorbike exhibitions make the Handbuilt Show the superior night out, in our opinion…even if only by a thin margin. Nestled in the painfully hip downtown area of Austin, the Handbuilt Show is free to the public, and offers a little bit of something for every kind of motorcycle enthusiast: sport bikes to street-trackers, cruisers to café racers…there was even a slammed to the ground scooter this year.

Laia Sanz Drops HRC for KTM in Enduro and Rallies

A bit of shocking news in the rally raid world, as Laia Sanz has jumped ship from HRC to KTM for the Women’s Enduro World Championship. The move means Sanz will also compete as a factory KTM rider in the various FIM World Championship rallies, including the Dakar Rally, though only where the schedule permits, as the Women’s Enduro World Championship is her racing priority. Sanz has 13 women’s world titles to her name, and she has won Women’s Enduro World Championship for the past three years in a row. Sanz is one of the leading women in bringing females into motorcycle racing, and she she is also an accomplished rider when competing against the boys. She finished 9th in the 2015 Dakar Rally, where she also scored a Top 5 stage finish — the highest a woman has ever achieved in the event.

MotoAmerica Races Will Air on CBS Sports, A Week After

We’ve gotten more than a few emails (thanks!) from American road racing fans about how to watch the inaugural MotoAmerica race on TV. These eager beavers were quick to point-out that CBS Sports Network has no listings for the Austin round this weekend, with only a season preview listed next week, on April 15th. A quick email exchange with MotoAmerica confirms that the Austin round will be shown a week late, as will the rest of the 2015 rounds. The series hopes to change that for the 2016 season. Fans will also be disappointed to learn that the Austin round will not even be streamed live over the internet, though that option will added for future rounds this season, likely starting at Road Atlanta, MotoAmerica’s next stop.

Is Brammo Racing at the Isle of Man TT?

Our Bothans had been hinting at a secret entry in the TT Zero event at the 2015 Isle of Man TT, and it seems that entry could be Brammo. The tip-off comes courtesy of renowned road racer Lee Johnston, who tweeted that the weather in California was just fine…while sitting next to the Brammo track trailer, and with a Brammo Empulse RR beside him (pictured above). There is really only one reason why “General Lee” would be testing the American outfit’s electric race bike, and that’s if the now R&D company wanted to go head-to-head with Mugen, Saroléa, et al. Many will remember that Brammo participated in the 2009 Isle of Man TT, at the inaugural TTXGP event, and finished 3rd with a 75 mph lap.

Cristiano Silei Becomes Dainese’s New CEO

Our sources are reporting that Cristiano Silei, former Ducati VP of Sales and Marketing, has been tapped to become the new CEO at Dainese S.p.A. Silei will takeover the head position from Frederico Minoli, who many Italian motorcycle fans know as the former CEO of Ducati Motor Holding. Loyal Asphalt & Rubber readers will remember that the aptly named Investcorp recently purchased 80% of Dainese’s private stock, for €130 million, leaving Lino Dainese as the 20% minority shareholder. Frederico Minoli was instrumental in helping Lino Dainese sell his namesake company, and it is perhaps now unsurprising that the former Ducati CEO has pulled from the bench Italian marque for his replacement.

2015 Saroléa SP7 Electric Superbike Debuts

Belgian outfit Saroléa is back for the 2015 Isle of Man TT, after debuting the 2015 version of its SP7 electric superbike this past weekend. If you’re saying to yourself that the 2015 model looks very similar to the 2014 model, you are in fact correct, though the bikes are not actually identical. The 2015 Saroléa SP7 has improved aerodynamics (namely a slimmer body), a revised center of gravity (for better handling), a reduction in weight (more carbon fiber and titanium parts), and proprietary fiber optic network that connect the vehicle control unit to the battery management system. All of those changes are good for a 22 lbs overall reduction, but the biggest change though for 2015 is the new motor, which was built in-house and is rated at 150hp (down 25hp from last year’s machine).

HRC Confirms Stoner Was a Candidate to Replace Pedrosa

Casey Stoner was a candidate to replace the injured Dani Pedrosa. The Australian had discussions with HRC about stepping in to take Pedrosa’s place during his absence. In the end, it was decided that a return would not be possible at such short notice. It was decided that Hiroshi Aoyama would be a better choice of replacement in the circumstances. When we asked via email whether Honda had had discussions with Stoner over replacing Pedrosa, Repsol Honda team principal Livio Suppo confirmed that they had. “We spoke about the possibility for Casey to replace Dani,” Suppo admitted. But Stoner would have faced major challenges replacing Pedrosa for the next two MotoGP rounds.

The Great Distribution Experiment is Over

04/12/2011 @ 1:27 pm, by Jensen Beeler12 COMMENTS

As we write the timeline on the evolution of the electric motorcycle, the bullet points for 2011 will note a few key events, and one of them surely will be the adoption of a traditional sales distribution scheme. It’s not a sexy event, but it’s an important one in the growth of this side of the industry. You see when resourced-backed electric motorcycle manufacturers entered the scene, the idea was that a new drivetrain meant a new set of rules, and from that a new playbook was drafted. The idea of selling electric motorcycles at traditional motorcycle dealerships was abandoned, and in its place these companies tried new approaches — some clever, and some not so much.

Direct-to-consumer sales approaches, online purchasing, ad hoc customer sales leads, and even Best Buy all entered into these new models of how to get a motorcycle into a purchaser’s hands…and they all failed. It is no small feat to start a motorcycle company, and it is an even taller order to make an electric one. Not only do you have to sell your would-be-buyer on the features of your motorcycle, but you then also have to sell them on why their purchase should be an electric motorcycle, and not its ICE equivalent.

The undertaking of proving out a new method of selling motorcycles is a burden in its own right for an established motorcycle manufacturer, let alone a startup, so its failure should come as little surprise to those in the industry with this experience. It is therefore not surprising that we get news that both Zero Motorcycles and Brammo have abandoned their previous sales distribution schemes, in favor of adopting a more traditional dealer network approach.

Michigan Eyes Dropping Helmet Law…Again

04/06/2011 @ 7:43 pm, by Jensen Beeler24 COMMENTS

Twice now Michigan has come close to repealing its helmet law for motorcycles, with both instances being vetoed by Democrat Gov. Jennifer Granholm. But now with Gov. Granholm no longer in office, and with Republicans also having control over the legislature, the stars have seemingly aligned for the state’s riders to make another bid on nixing the law.

I should preface that there are two separate proposals being lobbied in Michigan. First there is House Bill 2008, submitted by Rep. Richard LeBlanc, and the Michigan State Senate has its own bill to contend with, Senate Bill 291, which is co-sponsored by five Democrat and twelve Republican State Senators. The bill in the Senate is your typical approach to helmet laws, and holds that anyone who is over 21, and has either passed a motorcycle safety course, or had a motorcycle endorsement for two years, can ride a motorcycle without a helmet.

Ducati’s Deal with the Devil: A Business Case for the Diavel

03/07/2011 @ 4:38 pm, by Jensen Beeler35 COMMENTS

If you had told me a few years ago that Ducati would build a cruiser-segment motorcycle, I probably would have called you a couple cylinders short of a v-twin. Up until recently, mentioning the thought of the Bologna brand chasing after Harley-Davidson riders would have invited fisticuffs in most Italian motorcycle cafés. And even despite the launch of the Ducati Diavel, you can start a heated debate among loyal Ducatisti by bringing up Italy’s latest power cruiser.

Make no mistake, the 2011 Ducati Diavel is a controversial motorcycle…and that’s putting things lightly (at worst it’s a complete dilution of the Ducati brand). If the Diavel is Ducati’s deal with the Devil, then let me play the Devil’s advocate for a moment, and put forth the business case about why this motorcycle had to be built, and what it means to the Ducati brand — minus the pandering to the Ducati faithful.

Let’s Hype This Bitch! – 60 Day Wait for the 2010 Ducati Multistrada 1200

05/24/2010 @ 2:30 pm, by Jensen Beeler10 COMMENTS

Ducati has reported that the first 500 initial pre-orders for the 2010 Ducati Multistrada 1200 have been filled, and there is now a 60 day waiting period for the new sport-tourer. Citing a strong reception to the Multistrada’s “four-bikes-in-one” capability, Ducati sees an additional 500 units to be sold in the coming months. This last statement seems sort of like a no-brainer, after-all another 500 bikes will be sold eventually, right?

Actually, the entire statement is sort of strange when you consider what 500 pre-sold orders really entails in a markets like the United States & Canada. With a plethora of dealers in these countries, the reality is that this statement amounts to dealerships pre-selling their initial inventory, which consisted of one or two motorcycles. Yes, the Ducati Multistrada 1200 is sold-out for the next two month, but when you ship only 500 units to the entire North American market, you can almost guarantee being sold out on a bike during its release, right?

For The Sake of the Game [Updated]

12/09/2009 @ 2:51 pm, by Jensen Beeler27 COMMENTS

mavizen_08

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.

Tradition Is Not A Business Model: Mission Motors

10/27/2009 @ 7:10 pm, by Jensen Beeler9 COMMENTS

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.

Tradition Is Not A Business Model: MotoCzysz

10/20/2009 @ 11:09 pm, by Jensen Beeler21 COMMENTS

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.

Tradition Is Not A Business Model: Brammo

10/11/2009 @ 2:25 pm, by Jensen Beeler17 COMMENTS

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?

Tradition Is Not A Business Model: Zero Motorcycles

10/05/2009 @ 3:32 am, by Jensen Beeler17 COMMENTS

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.

Tradition Is Not A Business Model

09/28/2009 @ 2:58 am, by Jensen Beeler10 COMMENTS

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.