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.

Dorna Sports Fined For Tax Evasion

03/01/2016 @ 3:36 pm, by David Emmett5 COMMENTS

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The Spanish Supreme Court has imposed multi-million dollar fines on Dorna Sports and its executives for tax offenses arising out of the sale of shares in 2003 and 2004.

The court found that Dorna CEO Carmelo Ezpeleta and COO & CFO Enrique Aldama had simulated the sale of shares in order to avoid paying income tax and to receive undeclared dividends from the shares the two men hold.

The ruling of the Division of Administrative Litigation of the Supreme Court was that Dorna Sports S.L. sold shares to a separate company owned by the same partners (including Ezpeleta and Aldama) who were selling the shares.

The share purchase was financed using debt held in part by the partners who owned the company buying the shares. Dorna claimed that this was a form of leveraged recapitalization, but the Supreme court disagreed with that assessment.

In reality, the Supreme Court ruled, Dorna and its executives were pursuing a means of receiving hidden dividends.

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Suzuki & Volkswagen Finalize Their Divorce

02/23/2016 @ 3:17 pm, by Jensen Beeler6 COMMENTS

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The last we checked-in with the Suzuki/Volkswagen divorce, the German automobile maker was ordered by the London Court of International Arbitration to sell its 19.9% stake in the Japanese manufacturer (worth $2.8 billion at the time).

That was back in September 2015, and now that ordered has finally been fulfilled, with Volkswagen completely divesting itself from Suzuki – a move that has been four years in the making.

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The Unpopular Argument That the EPA is Right

02/17/2016 @ 12:49 pm, by Jensen Beeler136 COMMENTS

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Last week, we published the story about how the EPA was laying claim to emissions regulation on production vehicles, even when they were being used privately for off-highway uses, such as racing.

This news sent a shockwave through the motorcycle and automotive communities, because this viewpoint from the EPA would drastically change not only the racing and track-enthusiasts landscape in America, but also the aftermarket sales of performance parts that are sold through the “race only” loophole.

As you can imagine, two-wheel and four-wheel enthusiasts were incensed over this revelation from the EPA, and I am sure a number of pitchforks were sharpened in the process.

So against my better judgment, I want to put forward to you an idea that I already know that many of you will disagree with out of hand: the unpopular argument that the EPA is right about all this.

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Erik Buell Racing Sold at Third Auction, Will Live On Again

01/14/2016 @ 2:38 pm, by Jensen Beeler48 COMMENTS

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Don’t believe everything you read on the internet today. Much like the spirit of its riders, Erik Buell Racing refuses to go quietly into that good night. After two failed receivership auctions, the brand has now been acquired for $2.05 million via a third auction held Wednesday, and seems set for another revival.

The winning party of this latest auction is the same winner from the second auction, Liquid Asset Partners – the same company that liquidated Buell Motorcycles when it was shutdown by Harley-Davidson, which makes for some interesting trivia.

Walworth County Circuit Judge Phillip Koss approved the winning bid today, despite a similar bid from Bruce Belfer, the first auction winner. According to a report by the EBR receiver, Belfer’s bid did not conform to the terms of the auction, and thus was not recommended to the court.

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Injuries Soar After Michigan Helmet Law Repeal

01/11/2016 @ 12:23 pm, by Jensen Beeler64 COMMENTS

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The link between helmet laws and motorcyclists fatalities may seem intuitive and obvious, but now because of a study published in the American Journal of Surgery we have scientific proof that helmets save lives.

The study focuses around Michigan, which repealed its mandatory helmet law (thanks to help from the AMA) in April 2012, and has since had three riding seasons with a greatly reduce helmet-wearing requirement.

After the repeal, motorcyclists in Michigan can now ride without a helmet if they are over 21-years-old, have had their license for at least two years, and have at least $20,000 in additional medical insurance coverage.

Postulating that legislatures made a mistake in that repeal, the basic conclusions from the study are that the state has seen an increase in injury severity for motorcycles, a higher in-patient mortality for motorcyclists, and worse neurological damage for motorcyclists.

While those are all painful logical results, the numbers paint an even more grim picture.

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Dainese Responds to Alpinestars Regarding Airbag Lawsuit

12/29/2015 @ 11:12 am, by Jensen Beeler4 COMMENTS

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Roughly two weeks ago, we broke the story that Alpinestars and Dainese were headed to court over the alleged patent infringement that was occurring between the two brands’ airbag technologies. That report has since spurred a pair of press releases from the two brands on the subject.

First to respond was Alpinestars, which released a statement that clarified that the lawsuit in Italy centered around the material of the airbag. Alpinestars also offered correction to our report, saying instead that that no legal action had occurred in the German market.

Dainese has now released its own statement on the matter, which insists that legal action was indeed taken in the German market – the Court of Munich ultimately granting an injunction on the sale of Tech-Air products in Germany – and Dainese restates that legal action is underway in Italy.

You can read Dainese’s full statement after the jump. We’ll reiterate what we first said when all this started: the outcome of this legal battle will have big consequences in the motorcycle industry. Stay tuned, we doubt this is far from over.

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Two Enthusiasts Podcast – Episode 13 – Good Pornography

12/29/2015 @ 12:01 am, by Jensen Beeler6 COMMENTS

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Apologies, apologies, apologies for our tardiness in keeping your Two Enthusiasts Podcast addiction flowing, but never fear…Episode 13 is here, and it’s a good one.

In it, we run through some of the upcoming events in the moto-industry, one of which we will cover at length in Episode 14. We also tackle the looming sale of Deus Ex Machina to Louis Vuitton, and what it means for the beard and flannel crowd in the two-wheeled space.

And lastly, we give an update on the R1 recall and discuss the intricacies of US lemon law – though listeners should note that some of what we talk about regarding the recall has already been addressed by Yamaha, in the time it took us to get this show posted (we will wrap-up our R1 recall coverage in the next show as well).

All-in-all, we think Episode 13 is a pretty good show from the Two Enthusiasts Podcast crew.

As always, you can listen to the show via the embedded SoundCloud player, after the jump, or you can find the show on iTunes (please leave a review) or this RSS feed. Be sure to follow us on Facebook and Twitter as well. Enjoy the show!

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Alpinestars Issues Press Release Regarding Airbag Lawsuit

12/23/2015 @ 7:19 pm, by Jensen Beeler4 COMMENTS

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Last week we broke the story that Alpinestars and Dainese were headed to court over their respective airbag suit systems. In response to that story, and the subsequent retellings of that story on other sites, Alpinestars has issued a press release that further clarifies, corrects, and explains the situation between the two companies.

The first big takeaway from Alpinestars’ statement is that at issue in the patent infringement suit is actually the material of the airbag itself, i.e. the actual physical material used in the bladder that holds the air. This corrects the information A&R received that at issue was the algorithm used to detect a crash.

The second big takeaway from the Alpinestars press release is that German retailers were directly contacted by Dainese, and told to cease and desist from offering the Alpinestars Tech-Air Street system.

This action resulted in some retailers pulling the product from their shelves, but Alpinestars says that no legal action has taken place in the German market, and that the company continues to offer the Tech-Air Street in Germany.

You can read Alpinestars full press release after the jump. Asphalt & Rubber will be sure to keep you apprised of further developments regarding this story, as it unfolds.

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Alpinestars & Dainese Head to Court Over Airbag Systems

12/17/2015 @ 12:13 pm, by Jensen Beeler26 COMMENTS

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Airbag technology is the future of safety in the motorcycle industry, of this much I am certain.

Intelligent airbag suits allow for a level of impact protection previously unheard of in the motorcycle industry, or any industry for that matter, and the effects are already obvious both at the pinnacles of our sport and at the consumer level.

The business side of all this is incredibly lucrative, especially for companies who are inventing in this space and patenting their work. As such, it should probably not surprise us to learn that Alpinestars and Dainese have headed to court over their two respective airbag brands: Tech Air and D-Air.

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Erik Buell Racing Bid Contested, Headed Back to Court

12/14/2015 @ 8:22 pm, by Jensen Beeler29 COMMENTS

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The receivership of Erik Buell Racing continues to go on, as the company’s second round on the auction block ended with no fruitful resolution.

It was hoped that Monday would see the announcement of a Erik Buell Racing’s new owner, after the auction on Thursday seemed to show that a new bidder, Liquid Asset Partners LLC, had snatched up the American motorcycle effort and had plans to liquidate EBR’s assets.

However, it appears that the winning bid on Erik Buell Racing’s liquid assets has been contested by previous auction-winner Bruce Belfer and potential-bidder US Heritage Powersport. Accordingly, a new date in court set for January 14th, 2016 and formal motions to be submitted by January 4th, 2016.

This means that the ongoing saga and future of the Erik Buell Brand will continue, well into the start of the new year.

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