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Piaggio Group Reports Unit Sales Up 5.9% So Far This Year

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While the rest of the industry walks on pins and needles, the Piaggio Group is celebrating a strong first-half to the 2019 sales year, with overall unit sales up 9.2%.

That number isn’t just all Vespa scooters though (however, the Italian brand does sell quite a few of those), as Piaggio reports that its motorcycle sales saw a 14% bump in gross revenue.

The Italian conglomerate pegs the new Moto Guzzi V85 TT for the sales boom over last year, which is quite a feat since 2018 was a strong year for the Piaggio Group as well.

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News

Harley-Davidson Sales Continue to Sink Worldwide

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Harley-Davidson is reporting its first-quarter results for 2019, and as you might expect, the Bar & Shield brand continues to sink with its worldwide sales figures. As such, Harley-Davidson saw sales decrease worldwide by 3.8% in Q1 2019, with US sales down 4.2% compared to the same time last year (international sales were down 3.3%).

This news continues a trend for Harley-Davidson, as it continues to see its sales figure moving downward, which is following the overall trend in the US motorcycle industry, where sales are down 4.7% in Q1 2019.

From a relative point of view, this news is perhaps not so bad for Harley-Davidson, as it outperformed the market (though it owns a considerable size of the relevant segments), and in the process of that, the American brand picked up marketshare in its home market

This is of course the business equivalent of escaping being eaten by lion, by merely out-running the person fleeing next to you.

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Racing

Bridgepoint Capital Sells Dorna…To Itself, Explained

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Motorcycle racing is a profitable business, it turns out. The leading UK financial paper Financial Times reported yesterday that Bridgepoint Capital, the private equity firm that owns Dorna, among many other assets, has hit upon a relatively novel way of paying out investors, by transferring the roughly 40% of Dorna that it owns between one Bridgepoint fund and another. 

The proposed sale is a result of a review carried out by merchant bankers Lazard at the end of last year, with the aim of fixing a value and finding potential buyers. According to the FT, several private equity firms expressed an interesting in buying Bridgepoint’s stake, including former owners CVC. 

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News

Report: More Americans Behind on Car Loans Than Ever Before

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Here is some interesting automotive news for you that has bearing over our two-wheeled world, as CNN is reporting that more Americans are behind on their car loans than ever before.

The news accounts for two trends that we are seeing in the United States. One, the decline of automobile ownership; and two, the rising debt load amongst citizens, especially millennial buyers.

What this translates into the car world – namely that buyers are increasingly defaulting on their auto loans – likely bears the same reality in the motorcycle industry, since so many motorbikes are bought through financed payment schemes.

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News

Moody’s Upgrades Piaggio’s Credit Rating to Slightly Less Horrible

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 Today’s headline is all about Moody’s upgrading Piaggio’s credit rating to “Ba3” – up from its previous “B1” rating.

I understand that financial credit rating systems aren’t exactly your typical fare on a motorcycle news site, so stay with me here for a minute.

The basic gist is that moving from a B1 rating to a Ba3 rating takes Piaggio beyond the threshold of being “highly speculative” investment opportunity to “non-investment grade” business in the eyes of investors.

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News

Yamaha Plans to Fund Startups with $100 Million War Chest

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It surprising to us that there is so little investment in technologies and business in the two-wheeled space by the established players.

Maybe it is the conservative nature of the motorcycle industry, or maybe it is because motorcycle companies are just miserably bad at corporate development. Whatever the reason may be, it makes today’s headline an intriguing one.

This is because Yamaha Motor Corp. in Japan has just set aside $100 million to invest in technologies and business startups, over the next 10 years. 

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News

MV Agusta Gets €40 Million in Cash…And a New CEO

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MV Agusta has raised an additional €40 million in funding, the Italian firm reports, bringing its total in fundraising to €50 million over the last 12 months, as the company moves past its previous financial troubles.

With the capital increase comes a change in the leadership structure at MV Agusta, with Giovanni Castiglioni continuing as the company’s President, while investor Timur Sardarov takes on the role of the company’s new CEO and Chairman of the Board.

This arrangement should mean that Castiglioni will focus on the day-to-day business of MV Agusta and its product lineup, while  Sardarov will mind the company’s financial future and big-picture strategy, including the company’s new business plan.

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News

Harley-Davidson’s Q3 US Sales Down Another 13%

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Another sales quarter, and another report of dwindling sales from Harley-Davidson. The details of the news are the same as well, as sales in the United States continue to disappear, while sales abroad improve modestly.

As such, Harley-Davidson is reporting a 13.3% sales drop on motorcycle retail sales in the United States (36,220 units), with international sales up 2.6% (23,006 units), both compared to Q3 2017. This means that Harley-Davidson’s total sales are down 7.8% for Q3 2018, with 59,226 units sold.

Comparatively, the relative market for Harley-Davidson (bikes 601cc or more in displacement) were down in sales for Q3 2018, to the tune of 9.8% – though we should note that the Bar & Shield brand accounts for roughly half of this relevant market.

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News

Alta Motors Ceases Operations

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Bad news from San Francisco today, as we learn that Alta Motors has ceased business operations, effective immediately, sending the company’s staff home as the electric motorcycle manufacturer looks for future funding.

Talking to an anonymous source, Asphalt & Rubber has been told that Alta Motors is in the midst of a strategic wind down, as it looks for an outside acquisition or investment.

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News

Ducati Sales Down 7.4% Worldwide So Far In 2018

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More doom and gloom for the motorcycle industry, as Ducati Motor Holdings sales are slumping for the 2018 model year. Selling 32,250 motorcycles so far this year, the Italian brand is short 7.4% the volume it sold this time last year.

To translate unit sales into fiat currency, the 32,250 motorcycles sold equals €448 million in revenue going into Audi’s coffers. Of note, Ducati’s revenue contribution to Audi AG accounts for 1.4% of the automaker’s total revenue.

For the second quarter of this year, Ducati sales were down 8.9% compared to Q2 2017. This means that 20,319 Ducati motorcycles were sold in Q2 2018, compared to the 22,300 sold in Q2 2017.

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