According to Polaris Industries, Victory motorcycle sales were up 48% in the second quarter of 2010. Polaris’ on-road division, which is essentially the Victory cruiser brand, posted sales of $15.5 million, up from the $10.5 million in sales the company did in Q2 2010. In North American, sales for Victory cruisers were up 10% over last quarter, the third quarter in-a-row of sales growth for the brand.
We’ve gotten more than a few emails from readers between the ages of 18-30 saying they’ve been approached at motorcycling events by market research company representatives working for Harley-Davidson. In conjunction with beefing up its Sportster line-up (the goto motorcycle at Harley-Davidson for catering to Gen-Y/X riders) with more youth-oriented motorcycles, Harley-Davidson is clearly trying to latch onto a new generation of rider.
Looking for the next generation of rebels, Harley’s focus lately has been on the skateboarding inclined, hoping perhaps that the demographic’s lifestyle of “skateboarding is not a crime” is a value that transfers over easily to two-wheeled transportation. Of course this marketing effort wouldn’t be complete without a new ad campaign, and Harley is clearly making ads for the customer it wants, not the customer it has.
Giving credit where credit is due, this is one of the better ads to come out of the Milwaukee brand. Check the video out after the jump, and note how many times you see a woman behind the handlebars.
Harley-Davidson is further consolidating its business categories, as the Milwaukee brand announced last week that it would be discontinuing its sidecar line. Interest in Harley-Davidson sidecars has been waning over the years, and with the introduction of the Tri-Glide family of trikes, Harley-Davidson has seen its sidecars sales plummet. The 2011 model year will be the last year the Harley-Davidson sidecars will be available, and the company plans on shutting down production once the forecasted 2011 number of sidecars is finished at the factory.
After Asphalt & Rubber broke the news about the MV Agusta purchase last week, many of the details about Harley-Davidson’s sale of MV Agusta to the Castiglioni were known or rumored at the time of the purchase’s announcement later in the day; however the exact figures and terms of the agreement were not officially known. Having filed the appropriate forms with the SEC, Harley-Davidson (a publicly traded company) has had to disclose the terms of MV Agusta’s sale, which don’t paint a favorable picture for the Milwaukee brand, but show how Castiglioni “bought” his company back despite bids coming from other parties.
There has to be a bevy of high-fives going on in Milwaukee right now, as Harley-Davidson has finally unloaded MV Agusta from its holdings (we broke the news on the purchase earlier this morning). Harley-Davidson bought MV Agusta for $109 million back in 2008 (most of which was bad debt), and now just a little over two years later is making a tidy profit of…well, nothing. After wiping the books clean, investing in new infrastructre, and getting MV Agusta back on track with an all new model line-up (with a bike on the way), Harley-Davidson saw a paltry sum of €1 cross its desks. Harley-Davidson shares are down 3.5% as of this writing.
Instead Harley-Davidson is calling things even with the Castiglioni family, who would have seen a stock pay-out had the company exchanged hands with another buyer, like TPG for instance. The Castiglioni’s stock was worth somewhere between €20-€30 million, and now with 100% ownership, the Italians are free to once again run MV Agusta into the ground, just like they did leading up to 2008.
Harley-Davidson & MV Agusta press releases are after the jump. One interesting point of note that taking the helm of MV Agusta is former Ducati General Manager and Chief Engineer Massimo Bordi. Bordi was once offered the job of CEO at Ducati, but turned it down, and the position was filled by Gabriele del Torchio, Ducati’s current CEO. Bordi’s last item of business at Ducati was trying to sell the Italian brand to Harley-Davidson, which makes for some good irony in today’s announcement.
UPDATE: The deal is now done, with Harley-Davidson issuing a press release.
Expected to be closed within hours, Harley-Davidson is on the verge of selling MV Agusta to Claudio Castiglioni. Castiglioni was able to leverage the purchase of MV Agusta by using the funds that would have been generated by his stock buy-out, which is rumored to be between €20 – €30 million. Castiglioni is today’s big winner in the deal, as the Italian is basically buying back the company he sold to Harley-Davidson for pennies on the dollar, while Harley-Davidson is left holding the tab on a hefty purchase price and cash infusion into the Italian company.
Zero Motorcycles has secured a $900,000 grant from the California Energy Commission for the company to begin development of a new advanced compact electric powertrain. The city of Santa Cruz is matching the grant with an additional $900,000; and with other contributions, Zero has raised a total of $1.84 million dollars. This figure would seem to be in addition to the $5.5 million the company raised earlier in the year. The powertrain Zero is developing is rumored to have multiple speeds, and we wouldn’t be surprised if it was water-cooled.
Honda has closed its books for the first quarter of 2010, and the company’s motorcycle, scooter, and ATV sales are up 28.2% over Q1 of 2009. Selling over 2.8 million units (compare that to Q1 2009’s 2.25 million units), Honda’s sales created $3.7 billion in net sales. Honda reported $3 billion in net sales during the same time period last year. While the Asian markets powered most of Honda’s sales, North American sales were up 11% to 60,000 units sold.
Benelli has announced that Claudio Consonni has taken-on the role of Technical Director at Benelli QJ. As a former manager of Yamaha Motor Italy, Consonni was repsonsible for the tuning fork brand’s production, research & development, quality after sales divisions over his 20 years at Yamaha…all things Benelli needs in spades right now as its Chinese owners look to turn-around the company.
UPDATE: Michael Lock has announced that he has taken on the role of Chief Marketing Officer (CMO) at Think, an electric car manufacturer.
Asphalt & Rubber broke the news last week that Michael Lock was leaving Ducati North America before the company even knew it, and now the news that Michael Lock is leaving Ducati North America is finally official. Leaving the company in two weeks at the end of July, Lock will be moving on to pursue other interests.
Ducati Holdings Vice President of Sales Cristiano Silei will takeover at Ducati N.A. in the interim, as the company looks for a new CEO. With such short-notice on Lock’s departure, we’re left pondering why the successful CEO is leaving the company, more as we find it. Press release after the jump.
UPDATE: Moto Morini’s liquidator has now announced that all the available units have been sold.
As the dust continues to settle around Moto Morini, the Italian marque sees an expiration date looming in its future. Pushing its final days into September of this year, as the company looks for a new potential buyer, assets of this motorcycling misadventure continue to be sold. While many were upset at Moto Morini closing its doors, the good news is that the company has an ample stock of bikes, which it is now selling for severely discounted prices.