Americas Top Öhlins Dealer Pleads Guilty to Tax Fraud

Daniel Laine Kyle of Carmel-by-the-Sea, California – known best for his speed shop, Kyle Racing – pleaded guilty to defrauding the US government earlier this week, after it was found that Kyle had been hiding cash-based purchases made at this business. Dan Kyle Racing is known best for being the largest Öhlins suspension dealership in the United States (if not the world), as the company offered aggressive pricing on the Swedish-born suspension, and was one of the first Öhlins dealers with an online presence in the early days of the internet. According to the plea agreement made between Kyle and the US Attorney’s Office, Kyle pleaded guilty to tax fraud and structuring currency transactions in order to avoid the reporting requirements in the US Tax Code.

The 2017 Saroléa SP7 Is Ready for the Isle of Man TT

The focus for electric motorcycles at the Isle of Man TT may center around Team Mugen’s dual entry with John McGuinness and Guy Martin, but one should not overlook this very attractive entry from Belgium. Saroléa is back for the 2017 Isle of Man TT, continuing with its state-of-the-art carbon fiber chassis goodness and retro fairing design. On board will once again be Dean Harrison, who will be gunning for a podium-finish on the 2017 Saroléa SP7. If looks alone could get you across the finish line, then Saroléa would have our vote. The Belgians have always been in the running for a strong result though, finishing 4th in 2014 and 5th in 2015. Maybe this year will be “their year” at the TT.

India Is Now the World’s Biggest Motorcycle Market

Did you just feel that? That movement was a tectonic shift in the motorcycle landscape, as India just surpassed China as the world’s largest market for two-wheel vehicles. Just how big is the Indian motorcycle market? Last year, over 17.7 million motorcycles were sold in India. That is over 48,000 motorcycles sold…each day. Compared to China, that is a margin of roughly one million motorcycles per year (16.8 million units sold last year). India has seen a sharp rise in the sales of two-wheelers within its borders over the seven years, growing over 32% during that timeframe. Transportation in general has been growing in India, but that growth has been fueled by the country’s two-wheeler market.

The Good, The Bad, and The Ugly About Motorcycle Patents

I am really excited about the Suzuki brand right now. Out of the four Japanese motorcycle manufacturers, the recession affected Suzuki the most, probably more than many people realize, but the Hamamatsu brand is poised to bring out some exciting machines in the coming few years. Could we finally see a turbocharged Suzuki this year though? The rumor mill is pointing to yes…but just pointing, and the reason is because of patents. Much of this internet rumors stems from a flood of patents that have been found, where Suzuki is patenting technology related to turbo-powered engines in motorcycles, or because of other patents that make reference or inference to being part of a turbocharged motorcycle.

No, Royal Enfield Isn’t Buying Ducati

I woke up this morning to a message from a colleague, with a link to a story that linked Royal Enfield to buying Ducati Motor Holding. The story was from a fairly reliable news publication, but the headline read “Royal Enfield Might Consider Buying Ducati Pretty Soon” – the grammarist in me cringed.* “Might consider” is the most nebulous phrase in the English language. Let’s think about that phrase for a moment, as it literally means that you are considering the possibility of considering something. Don’t get me started on the timeliness of “Pretty Soon” in the news realm, as well. Metaphysics and meaningless headlines aside, for our purposes this narrative devolves further in that this story offers nothing new, beyond the story that Reuters published two weeks ago, which set off alarms in the motorcycle industry around the world.

KTM Caught Testing an Electric Street Bike

Spy photos from Austria have caught KTM testing a rather interesting motorcycle – one that does not run on a petroleum-based fuel, but rather it has an electric drivetrain at its core. This isn’t the first time that KTM has experimented with an electric motorcycle, of course, with the KTM Freeride E being available in select markets. However, the machine seen here is a pretty big step forward for the Austrian brand, from its modest electric dirt bike. Using the chassis of a KTM 390 Duke to house the battery, inverter, and motor, KTM’s electric street bike (we’ll call it the KTM E-Duke for now) looks like a rolling mess, but is what you would expect from a project in its early stages of development.

For the Geeks, Your Luke Skywalker HJC Helmet Is Here

I am a solid Star Wars geek, but not in the dress-up and go to a convention sort of way – if you know what I mean. But, this new lid from HJC might have me singing a different tune, as it mimics Luke Skywalker’s X-Wing “Red 5” fighter helmet, in a DOT legal ¾ helmet format. That’s just cool…in a really un-cool sort of way. Based off the budget-friendly HJC IS-5 helmet, this Luke Skywalker replica will cost roughly $180 when it comes out (at a date still to be determined). Additionally, 10 versions of the lid will be signed by Mark Hamill, and auctioned for charity (UNICEF and the Starlight Children’s Foundation), if your geekdom takes you in such a direction (and you have a four-figure wallet).

Hayden: “It’s Clear That There Is A Problem”

Assen had been earmarked as a key round for Honda in its search for competitiveness in WorldSBK. It passed with more confirmation that the team’s struggles will continue. Nine points were all that Nicky Hayden had to show for himself at the end of a trying weekend at the TT Circuit of Assen. The Honda rider was able to show some signs of improved competitiveness at times during the weekend, but overall the same flaws of the Honda Fireblade have been exposed once again. Reliability and inability to bring competitive upgrades to the table cost Hayden dearly at Assen. The week before the Dutch round, the team tested a new engine specification in Portimao and the American came away disappointed with a lack of progress.

The Rise and Fall of Danny Kent

“Danny is probably the most talented rider I have ever worked with,” Peter Bom, Danny Kent’s former crew chief at Kiefer told me several times last year. Bom has seen plenty of talent in his time: he also worked with Stefan Bradl at Kiefer, Chris Vermeulen in World Supersport and World Superbikes, Cal Crutchlow in World Supersport. World champions all, and to this tally he added Danny Kent. Less than a year after helping him win the Moto3 world championship, Danny Kent asked the Kiefer team for a new crew chief, abandoning his collaboration with Peter Bom. Kent felt that Bom had been slow to pick up on the changes in the Moto2 class during Bom’s three years in Moto3. Stefan Kiefer obliged, and Kent started the season with a new crew chief and a Suter Moto2 chassis.

A Short Review of the 2017 Aprilia RSV4 RR/RF

It is a tough gig when you have to ride back-to-back track days at America’s premier MotoGP circuit, but such is the life of a moto-journalist. Our next trip to the Circuit of the Americas sees us on Aprilia’s 2017 lineup for its V4 models, which consists of four machines in total. This review will focus on the 2017 Aprilia RSV4 RR and 2017 Aprilia RSV4 RF, even though the RSV4 provides the basis for Aprilia’s other V4-powered sport bike, the Tuono V4, which we will cover in a separate piece. From our perspective, the RSV4 has long been on our short-list of motorcycles you should have in your garage – and now after riding the 2017 version, we again have the feeling that Italy’s other superbike brand has set a new standard. Hide your wallet from this ride review.

Skully Officially Closes, So Just How SOL Are You Actually?

08/06/2016 @ 3:35 am, by Jensen Beeler35 COMMENTS

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Skully on Friday finally acknowledged what has already been known in the motorcycling community: the company was going out of business. The news comes after a last-minute effort by the remaining management to secure a new round of funding.

With $15 million down the drain, work still to do before the Skully AR-1 would be ready to ship, and a growing group of disgruntled early adopters, Skully’s resurrection was not to be.

Instead in a letter to backers and customers, Skully announced that it would be filing for Chapter 7 bankruptcy, the bankruptcy procedure for companies that are going out of business. This news, of course, directly impacts the thousands of motorcyclists who were expecting to receive a Skully AR-1 helmet.

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MV Agusta In Talks with New Investors

08/01/2016 @ 2:59 pm, by Jensen Beeler6 COMMENTS

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News out of Italy is that MV Agusta is courting not one, but three potential investors that would takeover Mercedes-AMG’s stake in the two-wheeled company.

As we have covered extensively already, MV Agusta is in quite the precarious financial position, with cash flow issues compounding the unhappy marriage between the Italian motorcycle-maker and the German automobile manufacturer.

MV Agusta would like to divest Mercedes from its business, but that comes with complications involving the immediate payback of debts, should Mercedes-AMG’s position in MV Agusta drops below 20%.

In order to make that divesture, MV Agusta would need not only an investor who would bring sizable amounts of cash to the table to keep MV Agusta’s business running, but one who can also cover the €15 million debt whose payment would be triggered by Mercedes-AMG’s business departure.

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Skully Closes Its Doors and Ceases Operations

07/26/2016 @ 2:59 pm, by Jensen Beeler45 COMMENTS

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It was just two weeks ago that we told you about Skully’s investors ousting brothers Marcus Weller and Mitch Weller from the San Francisco startup, and today TechCrunch reports that the motorcycle helmet company will be rather swiftly closing its doors.

A&R readers may remember that Skully’s latest delay to market stemmed from the Skully AR-1 helmet not being ready for mass production, despite the nearly $15 million raised through seed money and a Series A funding round, which was led by Intel Capital.

As such, the closure surely stems from Skully’s investors choosing to shut down the company’s operations, rather than rebuild Skully’s tarnished reputation and retool its product for mass production.

According to TechCrunch, operations at Skully have already ceased, and the website is expected to go offline later today, though as of this writing Skully’s website remains, and its social marketing team is still on Facebook cooling the heels of angry customers.

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Harley-Davidson Takeover Rumors Spur Wall Street, Again

07/07/2016 @ 9:59 am, by Jensen Beeler4 COMMENTS

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If you believed the reports from the financial sector, Harley-Davidson is a prime candidate right now for a hostile takeover by Kohlberg Kravis Roberts (KKR), a global private equity firm.

The news sent shockwaves through Wall Street, with Harley-Davidson’s stock gaining 20% in value in a single day, as investors tried to capitalize on the news.

You are just hearing about this news on Asphalt & Rubber though for two reasons, 1) I’ve been on either a motorcycle, plane, trolley, or car for the past few days (just getting back from Italy), and 2) we have seen this all this before, and it wasn’t pretty.

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Audi Says “Ducati is NOT FOR SALE”

06/16/2016 @ 3:00 pm, by Jensen Beeler11 COMMENTS

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After much buzz and fanfare regarding the future of Volkswagen, which in-turn called into question the future of Ducati, today we finally get a glimpse into how VW is going to soldier forth from the fallout of its “Dieselgate” scandal.

Instead of announcing how the company was going to restructure itself, and review its current business holdings and ventures, as was reportedly widely in financial circles, instead today saw Volkswagen strongly staking its future in electric and autonomous cars.

As the Wall Street Journal reported, this announcement failed to impress analysts investors; but for Ducatisti, some good news does emerge, as Ducati certainly won’t be leaving its home in the Volkswagen Group.

To drive that point further, a Ducati representative confirmed and conveyed to Asphalt & Rubber the words of Audi Chairman Rupert Stadler, who said emphatically that “Ducati is NOT FOR SALE” which is as straight and to the point as you can get.

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More Talk of Volkswagen Unloading Ducati

06/15/2016 @ 7:13 pm, by Jensen Beeler8 COMMENTS

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It seems to come in waves, every time the news cycle picks up Volkswagen’s plight in dealing with “Dieselgate” that talk then shifts to the German powerhouse unloading its smaller holdings, one of which being Ducati Motor Holding.

This latest go-around comes courtesy of Bloomberg, which has Volkswagen CEO Matthias Mueller saying that the automaker’s current portfolio of companies and its overall corporate plan will be re-evaluated over the coming weeks and months.

Tomorrow (Thursday), Volkswagen is slated to make public what this new business plan looks like, but sources say that VW will put all its assets under review, which includes Ducati.

Could this lead to Ducati being divested from Volkswagen’s holdings? The answer is of course murky, but we would be very surprised by the news.

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Polaris in the MV Agusta Acquisition Mix?

05/27/2016 @ 5:57 pm, by Jensen Beeler20 COMMENTS

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If you believe the rumors coming out of Italy, Polaris is poised to save acquire ailing motorcycle manufacturer MV Agusta.

We have documented MV Agusta’s precarious financial troubles already in great detail, and how MV Agusta CEO Giovanni Castiglioni is between a rock and a hard place with his main investor, Mercedes-AMG.

According to the Italian media, and those who repeat their words like parrots, Polaris represents an escape from MV Agusta’s difficult position with the German automobile-maker, though the reality is that nothing could be farther from the truth.

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Help Support Scott Jones and Get Unique Rewards

05/10/2016 @ 3:18 pm, by Jensen Beeler7 COMMENTS

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I know a fair number of photographers whose main body of work is covering motorcycle racing, and the one tune they all sing in perfect harmony is how difficult it is to cover the expenses of traveling to races and then make some profit on top of that.

Some of these photographers do outstanding work, as many of you have seen here on the pages of Asphalt & Rubber, and yet they are trying to survive in an economy where the supply far outpaces the demand.

The demand that exists doesn’t often pay a premium price for premium work, preferring instead to get photos as cheaply as possibly.

This is understandable given that many teams and sponsors in motorcycle racing are themselves operating on shoestring budgets, with some fighting on a race-to-race basis merely to stay involved at their current level of competition. In this, they share something in common with many photographers.

One friend of A&R is the first we know of to use a crowdfunding site called Patreon to help stay involved in MotoGP. Scott Jones is bringing some pretty cool new content to his fans who support him in this way.

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MV Agusta Looking to Part Ways with Mercedes-AMG

04/28/2016 @ 2:01 pm, by Jensen Beeler22 COMMENTS

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The story of MV Agusta continues with even more interesting developments, as the Italian motorcycle manufacturer seems intent on buying back its shares from Mercedes-AMG, and recapitalizing with new investors.

Talking this week to Italy’s Il Giorno, MV Agusta CEO Giovanni Castiglioni said that he is “negotiating a buy-back of shares,” though that might be a task easier said than done for the Italian CEO

This is because MV Agusta’s current financial predicament is due primarily from the company’s massive debt accumulation, which now totals over €40 million.

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MotoGP: Circuit of Wales Under Threat as Welsh Government Refuses to Underwrite Project

04/07/2016 @ 7:51 am, by David Emmett1 COMMENT

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The Circuit of Wales was dealt a significant setback on Wednesday, after the Welsh Economy Minister refused to offer a 100% guarantee for the £357 million development project.

Without the guarantee, the future of the project is now uncertain, with doubts over the willingness of Aviva, a British insurance company, to continue with backing for the project.

After a long period of preparation, which included a Public Enquiry on the transfer of public lands, work was set to start on the circuit, set just outside Ebbw Vale in South Wales. Work had already started to get the site of the circuit ready to start construction.

The final piece of the puzzle had been secured several weeks ago, in the form of financial backing from Aviva. However, the Heads of The Valley Development Company had asked the Welsh Government to underwrite 100% of the investment in the project, with reports in the regional newspaper South Wales Argus suggesting that such demands had come from Aviva.

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