Tag

business

Browsing

While we’re still poring over Harley-Davidson‘s annual report, making Excel spreadsheets, and winning at bullshit bingo, a couple interesting facts have struck us about the company and some of the trends it is experiencing. While it’s been mostly doom and gloom around Harley-Davidson in 2010, the Milwaukee-based company does appear to be solely in business because of the strong cost-cutting CEO Keith Wandell has been able to achieve during his tenure. Despite the moaning and groaning from the Bar & Shield loyal about Wandell’s non-motorcycle riding lifestyle, the CEO knows how to trim the fat, which is exactly what this HOG needed. Find five interesting facts for you to mull over this weekend after the jump.

Victory Motorcycles is looking to continue its strong sales growth by taking its Harley-Davidson alternative of a product line to the Indian market. Expecting to enter India in Q2 of 2012, Victory will first import fully-assembled motorcycles into the huge Indian market. Victory also plans on setting up an assembly plant, so the company can import partially-constructed machines into the country, and thus sidestep the massive tariffs India levies on fully-assembled motorcycles imports.

Moto Morini’s bankruptcy has been going painfully slow, but it’s all about to come to a head, as the Italian company will be put up on the auction block April 13th. The Super-Saver Moto Morini package includes all the appropriate intellectual property, assets, and equipment (sans motorcycles, which are being sold separately) for the cool sum of €5.5 million. Should no one want the whole kit ‘n kaboodle, a cheaper price of €2.6 million will be set for the production complex with two years use included. These prices are of course the auction’s guide prices.

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.

The news coming out of the Santa Cruz area today is that there’s been a management shake-up at Zero Motorcycles, as multiple people at the top of the company’s leadership have been given pink slips, including company Founder & CTO Neal Saiki. Recently talking to PlugBike.com‘s John Adamo, Zero Motorcycles CEO Gene Banman denied that Saiki had been let go from the company, saying that Saiki’s absence at the company was due to his child’s recent birth and Saiki’s desire to spend time with his newborn.

However multiple sources close to the company have confirmed to Asphalt & Rubber that Neal Saiki was a part of a larger management shake-up that was precipitated by the company’s lead investor. With many of the terminations expected to be finalized next month, and spanning more than one division at the California-based startup, there appears to be a considerable personnel and culture shift occurring at Zero at this point in time.

There’s something happening on the electric side of the motorcycle industry, but no one is talking publicly about it. It’s a fragile idea, and it feels like even mentioning it could jeopardize its very existence. Because of this, I’ve wrestled with putting words down to discuss the topic, not wanting to be the person to spoil the whole thing.

However, lately so many influential people involved with electric motorcycles have independently brought up the subject with me that this discussion is not only becoming unavoidable, but perhaps airing the idea out in public will facilitate some sort of greater dialogue between the different parties. The concept that I’m referring to is of course consolidation.

Monthly sales reports are becoming a more common occurrence from motorcycle OEMs who are actually starting to crawl out of the lower circles of motorcycle industry hell (makes you wonder about the companies not making press releases though, huh?), and accordingly BMW has posted its January 2011 numbers, which shockingly again show strong figures. Selling 4,714 units in January 2011, BMW Motorrad posted a 23.6% sales increase over January 2009’s numbers (3.814 units). Achtung!

Here’s one to wrap your mind around: Suzuki sold more motorcycles in the last 9 months of 2010 than it did in same time period in 2009, but somehow managed to make less money on those sales. Selling 975,000 units in Q2-Q4 of 2010, Suzuki scored an encouraging 6.1% sales increase, but the Japanese company made only ¥186.3 billion in revenue ($2.26 billion USD), which was down 4.6% from the ¥195.2 billion ($2.37 billion USD) made in the same timeframe in 2009. Puzzling, no?

Yamaha recently announced that it will be closing its factory in northeastern Spain, and consolidating the production into its Saint Quintin plant in France. The move comes as a result of Yamaha feeling the pain from the dwindling global demand for motorcycles, resulting in the Spanish plant having considerable excess capacity in its production.

Located near Barcelona, Yamaha’s Spanish Palau-Solita i Plegamans facility is capable of producing 130,000 units per year, but only managed 96,000 in 2010. The plant’s closure will affect 420 jobs, and Yamaha management has already reportedly confirmed that they will be forgoing any bonuses for the first half of 2011, and will be taking a healthy pay cut (15%-30%) during the same time period.

Harley-Davidson has instructed its dealers not to talk about how sales have been throughout the recession, but the news that 36 dealerships have closed in the past year, and more closures are expected in 2011, speaks for itself on how sales have been. On a conference call with analysts CFO John Olin said, “This contraction was expected and in-line with our desire to modestly consolidate our U.S. dealer network in response to lower overall volume since the economic downturn took hold,” which is a very glossed over way of saying that American brand has become too bloated over the past years, and needs to go on a diet.

Harley-Davidson expects to ship between 221,000 & 228,000 motorcycles worldwide in 2011, which is up 8% over last year’s figure, but still pales in comparison to the numbers the Milwaukee brand was posting before the economic collapse (303,479 in 2008). Since 2006, sales at Harley-Davdison have continued to slide, but the most dramatic affect was in 2010, where sales were down 30% compared to before the recession (over 36% in the domestic market).

Zero Motorcycle continues to raise money despite the wallowing economy, dropping another $2 million into its war chest during a $2.4 million round. The news of this funding comes shortly after we’ve gotten word that the Santa Cruz company plans on building a production facility for its electric motorcycles, and as of yesterday secured distribution in Mexico. While Zero hasn’t said what it plans to do with these newly acquired funds, we imagine the purpose will go something along the lines of the famous Daft Punk song “Harder, Better, Faster, Stronger”.