The Fruits of Carmelo Ezpeleta’s Grand Plan for MotoGP

Sometimes decisions are a long time in the making. Tech3’s decision to leave Yamaha and sign with KTM may have been made in the space of a few months, but the genesis of that choice, the process that made it all possible is ten years in the making. If MotoGP hadn’t switched from 990cc to 800cc at the start of the 2007 season, if the ban on tobacco sponsorship in sports hadn’t been enforced from 2005, if the financial system hadn’t collapsed under the weight of tranches of “ninja” loans, Tech3 would be a Yamaha satellite team for the foreseeable future. Whether they wanted to be or not. How did MotoGP get to a place where Tech3 could switch to KTM? To make complete sense of the story, we have to go back to the end of the last century.

Here’s How to Race a $20,000 KTM RC390 R in the USA

In case you haven’t noticed, the Supersport 300 class is heating up, and perhaps most interestingly with virtually zero machines with a 300cc displacement…but that is a subject for another time. This has put pressure on KTM to remain at the pointy end of business in the small-displacement category, which has lead the Austrian company to the release of a homologation special for the 300cc class. As such, say hello to the 2018 KTM RC390 R sport bike. A street legal motorcycle, the KTM RC390 R aims to sharpen the points where the entry-level KTM RC390 is a bit dull, namely by using better suspension and new intake trumpets that widen the powerband, but also with a new triple clamp, clip-ons, and levers.

The Future of Fast, A Review of the Alta Redshift MXR

I always joke with industry folk that “it’s called Asphalt & Rubber for a reason,” as I am a dyed in the wool street bike guy. So when Alta Motors invited A&R to ride the new Alta Redshift MXR, I knew there were better people for the job than I. This is where heterosexual life partner Carlin Dunne comes into the mix. On top of being one of the fastest men ever up Pikes Peak on two wheels, as well as the fastest electric motorcycle to compete in The Race to the Clouds, Carlin is an accomplished off-road racer – both with and without a motor between his legs. So, we sent Carlin down to Southern California to ride Alta’s newest machines, and with already a bevy of time in the saddle on electric motorcycles, I can’t think of a better person’s opinion for these electron-powered off-road racers.

What A Trade War Means for Motorcycles

Strangely enough, we have talked about trade wars several times before, here on Asphalt & Rubber, as the Trump administration has been keen to use this tool in its toolbox, often with effects that reach into the motorcycle industry. The first time around, we talked about how the Trans-Pacific Partnership (TPP) affected the motorcycle industry, namely Harley-Davidson, and how the United States’ withdrawal from the agreement would likely be a negative effect for US motorcyclists. We have also had to talk about how fighting over beef imports could lead to possible tariffs on small-displacement European motorcycles in the United States, a tariff that would seriously hurt Piaggio/Vespa scooter sales and KTM dirt bike sales.

KTM and Tech3 Team Up in MotoGP for the 2019 Season

It was a shock to hear that the venerable Tech3 team would be leaving the Yamaha family, come the 2019 MotoGP season, after all Tech3 boss Hervé Poncharal cut his teeth with Yamaha. But, once the news of his move sunk in, we are not surprised to hear that he is headed to KTM for the 2019 season, as was officially announced today (and rumored for well over a week). That is right, for the 2019 MotoGP Championship, the Tech3 team – one of the most regarded satellite teams in the GP Paddock – will be racing the KTM RC16 MotoGP race bike, with full-factory machines from Austria. That last caveat is likely the tipping point and main reason for Poncharal’s switch, with Tech3 long having to put-up with having the leftovers from the Yamaha Racing factory squad.

What If Harley-Davidson and Alta Motors Had a Baby?

With the news that Harley-Davidson has invested an undisclosed sum in electric motorcycle manufacturer Alta Motors, the following concept might seem like a no-brainer. That is because the folks at Carbon Projects invisions the partnership between the two American brands as lending itself to the creation of an electric street-tracker model. Taking the heritage-focused roots of Harley-Davidson, and applying them to Alta’s Redshift platform, the resulting model is quite a looker, if we do say so. Of course, we should remember that Alta has already shown a street tracker concept of its own, displaying the Alta Motors Redshift ST concept at last year’s One Moto Show, in Portland, Oregon.

This Week’s Suzuki Hayabusa Rumor, Redux

In this installment of “This Week’s Suzuki Hayabusa Rumor,” we again take a look at the motor of this venerable sport bike. The rumor going around the interwebs right now is that the 2019 Suzuki Hayabusa will feature a “semi-automatic” gearbox. Side-stepping the part where saying a gearbox is semi-automatic is  a lot like saying someone is “semi-pregnant” (you either are, or aren’t), the rumor stems from a patent filed by Suzuki that shows a gear-shifting mechanism with the foot-shifter that doesn’t require a clutch. If this sounds a lot like an up/down quickshifter system, then you score extra bonus points today for being a rational human being, but you would be very wrong about what this whole rumor should actually be about.

Harley-Davidson Invests in Alta Motors

Harley-Davidson has announced its strategic investment in Alta Motors, which will see the two American companies co-developing two new electric motorcycle models. As one can imagine, the news has big ramifications for both brands. For Harley-Davidson, it means having access to cutting-edge electric vehicle technology, and a technical partner that can help them navigate the coming shift to electric drivetrains. And for Alta Motors the news is perhaps even more impactful, as Harley-Davidson brings not only a key monetary investment into the San Francisco startup, but the deal likely provides access to a variety of assets for Alta, namely purchasing power with parts supplier, access to a worldwide dealer network, and instant credibility with other future investors.

Here Comes a New Complaint About Californian Drivers…

If you are riding in California anytime soon, you might want to think twice before blaming the state’s fleet of drivers, as The Golden State just made it legal for self-driving cars to operate without a human behind the wheel. While similar actions have stalled in the US Congress (the SELF DRIVE ACT is stuck in a Senate committee), states have begun to take matters into their own hands, like they did in Arizona. That is right, the dawn of truly autonomous vehicles has just arrived, and it is primed to change the driving landscape as we know it, which by correlation means changes for the motorcycle community as well. Announced on Monday, the California Department of Motor Vehicles (DMV) approved rules that would make it legal for automated vehicles to operate without a human behind the wheel. 

BMW S675RR Concept by Nicolas Petit

I really like the idea of BMW making a supersport model, to compliment the already potent BMW S1000RR. The category is a tough one though, and it is dominated by the Japanese brands. Maybe, this is why BMW Motorrad is the perfect brand to disrupt the supersport segment. The S1000RR made a killing in the liter-bike space, because it brought European features and performance, at a Japanese price-point. Because of the success that resulted from that formula, maybe the Germans can do the same in the 600cc segment. Putting some pen and paper to this thought, Nicolas Petit has inked together a render of a proposed BMW supersport machine, which he dubs the BMW S675RR.

The Federal Reserve made disclosures today that it quietly made short-term loans to major institutions and Fortune 500 companies during the 2008-2009 economic meltdown. Among one of the companies listed as receiving a 3-month Commercial Paper Funding Facility (CPFF) promissory note from the Fed is Harley-Davidson, which received 33 loans totaling $2.3 billion in aid to meet operational needs. Other companies who received economic help include GE (12 loans totaling $16 billion), Verizon (two loans totaling $1.5 billion). Commercial paper was also purchased from McDonalds, UBS ($74.5 billion), AIG ($60.2 billion) and Dexia ($53.5 billion).

The concept of “buying paper” has been mislabeled by other sources as a bailout from the Fed, despite the fact that loans made by the Federal Reserve differ from the bailouts we saw for the auto and banking industries both by being for a short-term duration, and because they only replaced other short-term cash flow loans that disappeared during the financial crisis (that’s what you get for getting financial news from a motorcycle site that spells Warren Buffett’s name like a meal from which guests server their own food, and then over reports his lending amount to Harley-Davidson by over three-fold).

If anything this news shows the great lengths the Federal Reserve had to take in order to keep the credit market open for major American businesses and institutions. It should be noted that because of the Fed’s efforts these companies were able to receive the cash flow and short-term loans to stay afloat during the crisis, and now that the CPFF program is over, the Federal Reserve reports that it not only was paid back in-full by every borrower, but also made money on the interest of all the loans ($849 million in total).

Continue Reading

Honda COO Sees Industry Wide Slowdown

11/25/2008 @ 4:00 pm, by Jensen BeelerADD COMMENTS

Honda Motorcycle’s COO, Tatsuhiro Oyama is forecasting that there will be worldwide industry drop in bike sales as the credit fiasco finally rears its ugly head in motorcycling. Like the car industry, the motorcycle industry helps move product by offering financing options and extending credit to the purchasers of their bikes. Typically these credit liabilities are flipped to third-party creditors, who handle the debt from there (all unbeknownst to us the consumer), but with the state of economy and the meltdown of the credit industry, many of these creditors are either no long amongst the living, or not taking on any more debt.

Oyama was credited as saying, “There’s been a bit of a lag, but credit is being squeezed. I think if we have flat sales next (business) year we’d be lucky,” adding that forecasts for this year might need adjusting too.

This news leaves companies like GMAC, and in this case Honda, in a lurch. Unable to swiftly exchange the credit liability, they have to be more cautious on who they extend money too. This means more credit refusals, and higher interest rates, which in turn means more people who can’t afford a motorcycle purchase.

At the end of the day, it is Honda and the other manufacturers (except perhaps Ducati) who are left holding the bag with excess product sitting on the showroom floor come December.

There is some good news. Oyama went on to say that the motorcycle business as a whole was holding up better than the car side. So no government bail outs…yet.

Source: visordown