Ride in Peace, Nicky Hayden

It is with a heavy heart that we report the passing of Nicky Hayden today, the American motorcycle racer finally succumbing to the injuries he sustained on Wednesday, at 7:09 PM CEST. The former-MotoGP Champion was struck by a car, while he was training on his bicycle near the Rimini coast. After the incident, Hayden was ultimately treated at the trauma center at the Bufalini Hospital in Cesena, where he later passed away. While motorcycle fans around the world have been hoping for good news throughout this past weekend, and looking for signs that Nicky’s condition would improve, today Nicky’s race ended, with his family and friends at his side.

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.

Harley-Davidson Returns to Profitability

04/20/2010 @ 2:32 pm, by Jensen Beeler19 COMMENTS

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.

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How to Save Harley-Davidson – Step 2: Shift Your Product Lineup into New Segments

04/07/2010 @ 5:54 am, by Jensen Beeler66 COMMENTS

35 motorcycles, 7 model lines, 4 chassis, 3 motor families, & 1 market segment, that’s Harley-Davidson’s product line by the numbers. Where many large production motorcycle companies might have 30 or so motorcycles that span the entire gamut of motorcycling’s different sub-markets, Harley-Davidson has put all of its eggs in the heavy cruiser market. This singular pursuit of one market segment has not only been the cause for Harley’s success, but also a significant contributing factor to the company’s recent downfall, which has led to a recently rumored leveraged buyout.

As the old idiom goes, one should not put all their eggs in one basket, which is exactly the faux pas being committed here by Harley-Davidson in its product offering. Businesses, especially public ones, should always have an eye on sustained long-term growth, and a key element to that goal is a well-diversified position in their appropriate industry. Taking this lens and applying it to Harley-Davidson, one can immediately see a portfolio that has been extensively mismanaged by focusing on only one segment of the total motorcycle industry: the heavy cruiser market.

What this has effectively created is a motorcycle company that looks like Alfred Hitchcock’s take on Baskin Robins: 31 flavors, but they’re all Rocky Road.

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How to Save Harley-Davidson – Step 1: Redefine and Reposition The Way You Market Your Brand

03/08/2010 @ 6:50 am, by Jensen Beeler112 COMMENTS

Blasphemy, heresy, stupidity, sacrilege, un-American, and downright irreverence. Go ahead, get all those words out of your system. I’ll wait.

The default opinion of marketers, analysts, and the general population is that Harley-Davidson has one of the strongest brands in the United States, this being confirmed by the fact that every business student in America has studied Harley’s marketing efforts if they’ve ever taken a brand management course. So why would I start a three-part series on how to fix Harley-Davidson by arguing to change one of the most revered marketing houses in the motorcycle industry?

Giving credit where credit is due, Harley-Davidson, or I should say its admirers in business school academia, wrote the book on demand generation marketing geared towards the baby-boomer generation. However, in defending this market position, Harley-Davidson has painted itself into a corner by only engaging a very small segment of the population with its product. Unless they redefine and reposition their company image and who it resonates with, Harley-Davidson is going to watch the continued erosion of its footing in the motorcycle industry, and also the continued deterioration of its only industry leading quality: its brand.

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Harley-Davidson Reports Devastating 89.7% Annual Income Loss for 2009 – Made $70 Million Last Year

01/26/2010 @ 4:18 pm, by Jensen Beeler12 COMMENTS

For the Buell and MV loyal, Harley-Davidson’s latest earnings report should provide all the information as to why the Milwaukee manufacturer had to close and sell those brands respectively. Reporting a nearly 90% loss in annual income, Harley-Davidson earned only $70.6 million in 2009, compared to the $684.2 million Harley earned in 2008, which results in a staggering loss of income for the iconic motorcycle company.

For Q4 of 2009, Harley-Davidson actually operated in the red, and lost $218.7 million in net income by staying in business (Asphalt & Rubber actually made more money during the same time period than Harley-Davidson did, if that puts things into perspective). Additionally, Harley-Davidson is reporting a $147.2 million loss in revenue during its fourth quarter operations. The loss is associated with the reduction in production, and the $167.1 million in restructuring costs incurred because of the closure of the Buell Motorcycle brand.

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Harley-Davidson Forty-Eight: The Gen-X Sportster

01/22/2010 @ 1:04 pm, by Jensen Beeler56 COMMENTS

The Harley-Davidson Sportster Forty-Eight (or is it 48?), has made its way out of Milwaukee in time for the 2010 model year. Based on the Sportster 1200 platform, the Forty-Eight is the latest addition to Harley’s “custom” offering. It differs from its Nightser et al counterparts with a bobber meets cafe racer appeal, but keeps the ubiquitous orange and black color schemes.

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Harley-Davidson to Sell MV Agusta

10/15/2009 @ 2:44 pm, by Jensen Beeler4 COMMENTS

MV-Agusta-for-sale-Harley-Davidson

In conjunction with Harley-Davidson’s Q3 financial results, and shutting down of Buell Motorcycles, the Milwaukee motorcycle manufacturer is announcing that it will be selling Italian sportbike manufacturer MV Agusta.

Harley-Davidson bought MV Agusta just under a year ago, and assumed a substantial amount of debt from the beleaguered company. This past quarter, Harley-Davidson recorded a one-time fixed-asset impairment charge of $14.2 million related to Buell and a goodwill impairment charge of $18.9 million related to MV Agusta.

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Buell Motorcycles To Go Out of Business

10/15/2009 @ 2:24 pm, by Jensen Beeler22 COMMENTS

After releasing grim third-quarter financials today, Harley-Davidson has also announced that it is discontinuing Buell Motorcycles. In a somber video (posted after the jump), Erik Buell confirms the news, and praises the Buell team for taking on the industry giants with “this little American sportbike company.” Buell will continue to sell its motorcycle stock, and Harley-Davidson will continue to honor any warranties and part needs for Buell motorcycles.

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Harley-Davidson RIFs Another 1,000 Employees

07/16/2009 @ 5:46 pm, by Jensen Beeler1 COMMENT

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With its second quarter sales dropping 35%, Harley-Davidson is going to be trimming its ranks in order to stay afloat. The Milwaukee based company will inject 700 hourly-wage workers, and 300 salaried workers into the ranks of the unemployed, with possibly more joining them in the future. These reductions come after Harley-Davidson earlier this year announced it was eliminating 1,400-1,500 hourly production positions in 2009-2010 along with 300 salary positions.

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Promotions: The Only Way to Sell Harley’s Right Now

05/29/2009 @ 9:32 pm, by Jensen Beeler2 COMMENTS

harley_davidson_nightster-promo

At the end of last year, we announced Harley-Davidson’s promotion where if you bought a Sportster motorcycle (sadly, not the XR1200), you could receive the MSRP value of the bike if you traded it in the following year for “bigger” model.

The promotion was such a great success apparently, that now that it has ended, Harley-Davidson sales have slumped off.

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Harley-Davidson Responds to NY Times Article

04/01/2009 @ 12:22 pm, by Jensen Beeler5 COMMENTS

harley-davidson-screw-it-lets-ride

You may remember the NY Times article that we mentioned a few days ago that was critical of the company’s current status and direction. In response to the NY Times article, Harley-Davidson is running the above ad in an attempt to provide a counter-argument to the criticism that the company is on shaky ground.

It should come with little surprise that Harley-Davidson is again playing on Patriotic themes and rhetoric that shifts the focus from the fact the company has serious issues ahead of it, and to date not clear plan on how they are going to overcome them. In addition to this ad, a message was sent out to all Harley-Davidson employees, read it after the jump.

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