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 Sued by Flextronics for Owed Money

09/24/2016 @ 3:09 am, by Jensen Beeler7 COMMENTS

marcus-weller-skully

Things keep getting worse motorcycle helmet startup Skully, as its production partner Flextronics has filed suit for money and materials allegedly owed it.

According to court documents, Flextronics is demanding payment of roughly $2 million dollars – $505,703 in past-due bills, $514,409 in unpaid bills, and another $1.5 million in what Flextronics calls “materials and inventory related to the Skully project.”

This lawsuit is the second legal action taken against Skully since the company laid off its workforce and shut its doors for lack of funding.

Continue Reading

Former Skully Employee Alleges in Lawsuit that Executives Used Corporate Funds as “Personal Piggy Banks”

08/08/2016 @ 7:27 pm, by Jensen Beeler31 COMMENTS

piggy-bank-2

The story of Skully is starting to sound more and more like a script for a soap opera, and today’s installment sees former Skully employee Isabelle Faithhauer bringing suit in the San Francisco County Superior Court against Skully and its founders Marcus Weller and Mitchell Weller.

Faithhauer is the former-assistant to Skully CEO Marcus Weller, and for a time, served as the company’s bookkeeper. In her complaint she alleges that Skully wrongfully terminated her, and brings several other causes of action that are related to that wrongful termination.

However in her filing with the court, Faithhauer also lists a number of incidents where Marcus Weller and Mitchell Weller allegedly used company funds to buy exotic cars, rent expensive apartments in San Francisco, and travel around the world.

If true, this sort of spending could help explain why Skully ran out of capital, and then officially closed its doors last week, despite having raised roughly $15 million from investors and would-be customers.

You can read the full filing of Faithhauer’s complaint against Skully and the Wellers here, which is a PDF hosted by the San Francisco County Superior Court and a public record.

Continue Reading

Dainese Responds to Alpinestars Regarding Airbag Lawsuit

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

Dainese-D-Air-Race-airbag-suit

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.

Continue Reading

Alpinestars Issues Press Release Regarding Airbag Lawsuit

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

alpinestars-tech-air

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.

Continue Reading

Alpinestars & Dainese Head to Court Over Airbag Systems

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

alpinestars-dainese-lawsuit

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.

Continue Reading

How Harley-Davidson Got Sued Over ABS Brakes & Why You Can’t Buy an Airbag Leather Suit in the USA

06/30/2014 @ 9:03 pm, by Jensen Beeler57 COMMENTS

lady-justice

I was reading DealerNews last week when I stumbled across a brief story about how Harley-Davidson was being sued by a couple, because the Bar & Shield brand did not offer the 2012 Electra Glide Classic with an anti-locking brake option.

The lawsuit comes about as a couple was riding two-up on their motorcycle in Texas, when a car suddenly cut in front of them. Locking up the wheels of the Harley-Davidson, the motorcycle fishtailed out of control, and flung the couple quite some distance. They are subsequently suing Harley-Davidson for $75,000 in damages.

I can already foresee the pro-business comments below this article, deriding these motorcyclists for a series events that amount to “their fault” for their medical and financial woes — after all, it was they who chose to buy a motorcycle without ABS, right?

Legal scholars, and those familiar with tort law and product liability in the United States though, will see the case quite differently. And barring specific details and circumstances, the conclusion to this lawsuit will almost certainly side with the complainants, not Harley-Davidson.

Continue Reading

Kevin Schwantz and COTA Settle Their Differences

03/27/2014 @ 12:46 pm, by Jensen Beeler18 COMMENTS

kevin-schwantz-cota-scott-jones

A very exuberant Kevin Schwantz has just left the following message on Twitter; “GREAT news to share about @circuitamericas!!!!!!” Great news indeed, as the 1993 500GP World Champion has reached an agreement with the Circuit of the Americas race track, which ultimately sees Schwantz becoming a track ambassador for COTA.

The agreement puts to rest over a year’s worth of media and legal positioning between the two parties, which arose from a business transaction that would have seen Kevin Schwantz as the promoter of the Red Bull Grand Prix of the Americas.

Schwantz then sued COTA after the circuits administration cut Schwantz’s 3fourTexasMGP company out of the promotional deal for the MotoGP round, and dealt directly with Dorna instead. The result of the fallout lead to a fervor from loyal American road racing fans, some of whom boycotted the race last year.

That all seems to be behind them now though, as Schwantz and the Circuit of the Americas have come to agreement over the dispute, which sees Kevin Schwantz becoming the official ambassador to the Circuit of the Americas race track, where he will promote the MotoGP round, and we presume that some money will change hands in the process.

Continue Reading

Kevin Schwantz’s Schwantz School on Hiatus for 2014

03/11/2014 @ 12:28 pm, by Jensen Beeler1 COMMENT

kevin-schwantz-suzuki-rgv500-froggstomper79

The Schwantz School will be on hiatus for the 2014 riding season, says the riding instruction school. The press release for the track school lists Kevin Schwantz’s “travel/racing schedule and other factors” as the reason for the school’s hiatus. Schwantz is slated to compete in the Suzuka 8-Hour endurance race with the Yoshimura Suzuki Legends team in July.

The MotoGP Legend also is to be a “Guest of Honor” at the Classic Motorcycle Festival at Donington Park in August, and there is possibility Schwantz will be racing in England in September as well. As for the “other factors” mentioned, Schwantz is quoted as wanting to spend time in his recently remodeled home in Austin, Texas.

Continue Reading

Momoto Sues Petronas for $83 Million over Petronas FP1

10/28/2013 @ 11:41 am, by Jensen Beeler14 COMMENTS

Troy-Corser-James-Haydon-Sepang-Petronas-FP1-WSBK

The story that surrounds Petronas and its ill-fated Petronas FP1 World Superbike project is one full of intrigue, and was seemingly put to bed long ago when the Malaysian oil giant folded its motorcycle business and racing plans in 2006.

The story was brought back to life though when a bunker full of Petronas FP1 street bikes was discovered in the UK. The bikes have their own intriguing story of how the Malays did, or did not, “bend” the homologation rules for WSBK, and how the machines then found their way to be forgotten in a bunker in Essex.

With that discovery, new life was spurred into the Petronas FP1, whose fire-breathing three-cylinder engine and powder blue paint scheme has tantalized the fancy of collectors worldwide for some time now.

This gave birth to the Momoto MM1 project, an outfit that bought the 129 derelict Petronas bikes, and rebranded them for sale just last year. That venture has hit a snag though, as taxes and duties for a vast majority of the machines were apparently not paid, which resulted in the Malaysian government seizing all 129 motorcycles, which in-turn has lead to a recent lawsuit for RM260 million ($83 million USD).

Continue Reading

MotoGP: Austin GP in Doubt as Schwantz Sues COTA

09/08/2012 @ 4:38 pm, by David Emmett18 COMMENTS

The chances of a MotoGP round taking place in Austin, Texas seem further away than ever. Yesterday, Kevin Schwantz filed suit against the Circuit of the Americas (COTA), claiming an attempt to fraudulently deprive the 1993 500cc World Champion of the rights to organize the MotoGP race that would be held at the circuit outside of Austin, Texas.

In the lawsuit, Schwantz accuses COTA of going behind his back to arrange a deal directly with Dorna to organize the Austin round of MotoGP, while Schwantz’ company, 3fourTexasMGP, has a ten-year contract to organize the race. In a statement issued tonight by the circuit press office, COTA denies that Schwantz holds any rights to organize the event.

Continue Reading