After first saying it would be business as usual, Team Hero EBR has regrouped and found that it will not be continuing in the 2015 World Superbike Championship.
Though a change in announcements, the news is perhaps unsurprising considering the state of EBR and the economic troubles reportedly faced by Hero MotoCorp.
The team quotes the “recent bankruptcy of EBR and the re-prioritizing of efforts by title sponsor Hero” as the cause of its withdrawal, with Pegram Racing hoping to announce its future racing plans soon.
“This is a really hard pill for us all at Pegram Racing to swallow, as we always live by the philosophy of Never Give Up,” said team owner Larry Pegram.
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).
Satellite BMW World Superbike team, Reitwagen Motosport BMW, is a no-show this weekend at Monza, the second race in a row the team has failed to show up for. According to rider Andrew Pitt, the team is experiencing financial difficulties, and has been unable to contact the team, who have “gone into hiding” according to the Australian rider.
Italian newspaper Il Sol 24 Ore is reporting more rumors about MV Agusta divesture and the company’s possible suitors. As we’ve reported already, there’s been some speculation that Paolo Berlusconi might be interested in the Italian brand, but he’s also been linked to another Italian company looking for a home. Now coming out of the woodwork are some new names, with links to Ducati & MV Agusta.
Harley-Davidson has announced its Q1 quarterly earnings today, and the Milwaukee-based company posted a $68.7 million profit. This news comes after Harley-Davidson posted a $218 million loss last quarter, and finished in the hole over $55 million for the 2009 year. Harley’s return to profitability is partially due to the company’s restructuring of its financial services, which are once again generating money for the iconic American brand. Harley-Davidson Financial Services posted a profit of $26.7 million this past quarter, almost a third of HD’s net income in Q1.
Yamaha Motors is set to raise $812 million in capital in order to pursue development and production of fuel-efficient engines, which includes hybrid and electric models. The focus of this new range of Yamahas seems to be destined for emerging markets, but may include technologies that could trickle into more established markets like the United States. Yamaha plans on raising this money by making 63.25 million more corporate shares publicly available for investment.