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Harley-Davidson () 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

2009-bmw-g650gs

Earilier this year BMW replaced the F650GS, its single-cylinder go anywhere bike, with de-tuned version of the F800GS. This also meant a shift from the single-cylinder motor, to the 800’s parallel twin. Police and military buyers have apparently groaned loud enough to BMW that they are bringing back the old F650GS, but under the g650GS model name.

The reasoning behind this is that police and military buyers still have plenty of old F650GS’s in their fleet, as well as plenty of spares for them. Instead of having to build support chains for a new model like the new F650GS or another brand, they would much rather keep on trucking with their tried and true single-cylinder workhorse. BMW apparently was happy to oblige.

The G650GS will be identical to the old F650GS, which means 50hp, 40lb/ft motor, laced with a 19″ front wheel, and five-speed gearbox. Price is rumored to be about 15% less than the 2007 model, which is an added bonus. The G650GS will also be available in the American markets.

Bajaj, the Tata of the motorcycle world, has purchased an additional amount of KTM’s stock, raising its interest in the Austrian company to 25.86%. Bajaj had previously owned just over a 20% stake in the orange brand, and is indicating that it is not content with just its current amount.

This news comes with little surprise as Bajaj has telegraphed this acquisition and intent already when it gobble up an additional 14% of the company back in 2007. Rumors are now already forming as to whether Bajaj will try and consume a majority stake in KTM’s stock.

J.D. Power and Associates has just released a report that details some of the major reasons why motorcycle buyers purchase one bike over another. After talking to over 3000 customers in September and October, the report outlines four major factors for purchasing desiions, namely: why a buyer bought from one brand rather than another. The short answer is: The Dealer, the long answer is after the jump.

 

General Motors CEO Rick Wagoner mentioned last week that, in addition to selling the HUMMER brand, other assets were being evaluated for sale, as well. GM has announced that it is selling all of its remaining stock in Suzuki. GM owns about 3% of the Japanese automaker’s traded stock making the cash infusion come in around $230 million.  More after the jump.

 

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.

There were 876 crashes this past GP season. That’s a lot.

Between free practices, qualifying, and races, the 125cc, 250cc and MotoGP series racked up 30% more crashes than last year, with an average of 48 crashes for each race weekend. It should be noted that this was the wettest season in the history of the series, with 16 out of 18 race weekends having at least one day of rain in the official three days of racing. While the rain certainly is a factor, it should also be noted that Randy de Puniet crashed 22 times this season, and only took his shirt off twice.

The crash numbers for the past seasons for the quant-jocks in the room:

1999 – 565
2000 – 633
2001 – 634
2002 – 646
2003 – 705
2004 – 706
2005 – 737
2006 – 647
2007 – 672
2008 – 876

Source: GPone

At least Randy looks really, really, really ridiculously good looking when he crashes.

I can imagine how the converstion between Wayno and Stevo went (well they are from Far North Queensland). That is Stephen Rothwell and Wayne Wright from The Two-Stroke Shop. It’s safe to say it ended with “Let’s build the bike that should have been”.

They set about getting a 500cc two-stroke built to slip into Apilia’s RS250 frame. The RS250 is an excellent bike. It’s good looking, has great handling and will stop on a dime. But! There’s always a but. In standard trim it’s powered by a Suzuki RGV250 engine. Not that the engine is all that lacking and can still scare most people, this bike with a 500cc 2-stroker now becomes a capable weapon ready to tackle modern 4-stroke sport bikes.