Yamaha Caught Improperly Testing Emissions in Japan

The Japanese automotive industry is being rocked by an emissions and fuel efficiency scandal right now, and it involves the Yamaha Motor Company motorcycle division as well. All told, five of the eight automotive companies in Japan have been found incorrectly testing and reporting the emissions and fuel mileage of their vehicles. The scandal started in 2016 with Mitsubishi, which lead to findings last year where Nissan and Subaru were found manipulating the results of their emission results. These findings then caused the Japanese government to require other automotive companies in Japan to check their testing operations. Upon this internal review, Mazda and Suzuki found and reported that their cars had been improperly tested, with Yamaha finding similar results with its motorcycle standards testing.

Kawasaki Ninja H2 Gets Updates & More Power for 2019

The Kawasaki Ninja H2 is already a beast of a motorcycle, and for the next model year, this supercharged hypersport is getting a bevy of updates. The biggest change will be the power output, with Kawasaki bumping the H2 from 200hp to 228hp, all of which while keeping the bike’s Euro4 compliance rating and current fuel efficiency rating. The power increase comes from technology developed for the Kawasaki Ninja H2 SX sport-tourer. Namely, the H2 gets a new air filter, intake chamber, spark plugs, and ECU. The 2019 Kawasaki Ninja H2 does not get the SX’s balanced supercharger, however. Other changes include the use of Bridgestone RS11 tires, as well as Brembo’s new Stylema calipers, which first debuted on the Ducati Panigale V4 superbike, and offer superior cooling to the outgoing Brembo M50 calipers.

MondialMoto Working on a V5 Superbike

Remember when the Honda RC211V was the fire-breathing of the MotoGP Championship? One of the more intriguing attributes of HRC’s creation was its unique V5 engine. Despite press speculating that a V5-powered Honda superbike was coming, such a machine never made it to production. This irked the folks at MondialMoto (no relation to FB-Mondial, though the choice in names is eyebrow raising), which now wants to bring a V5 superbike to market. Announcing their V5 superbike project, this thought by MondialMoto is an interesting proposition, though we suggest curbing the enthusiasm that is surely to come. First, the good. At the core of the concept is a 1,000cc V5 engine with a 75.5° cylinder head angle.

Ducati Sales Down 7.4% Worldwide So Far In 2018

More doom and gloom for the motorcycle industry, as Ducati Motor Holdings sales are slumping for the 2018 model year. Selling 32,250 motorcycles so far this year, the Italian brand is short 7.4% the volume it sold this time last year. To translate unit sales into fiat currency, the 32,250 motorcycles sold equals €448 million in revenue going into Audi’s coffers. Of note, Ducati’s revenue contribution to Audi AG accounts for 1.4% of the automaker’s total revenue. For the second quarter of this year, Ducati sales were down 8.9% compared to Q2 2017. This means that 20,319 Ducati motorcycles were sold in Q2 2018, compared to the 22,300 sold in Q2 2017. All segments for Ducati are down, except for its “Sport” category (SuperSport and Superbike models), which is up 29%.

The High Fives Heard in Milwaukee

There were high fives heard all over Milwaukee last week. Reading the headlines and stories that came from Harley-Davidson’s Mega Monday announcement, one could only conclude that the American icon was back. They did it. They were showing signs of life again. Boomshackalacka. No one saw an adventure-touring bike with knobby tires coming from the Bar & Shield brand, and the idea of a sport bike from Harley-Davidson seemed inconceivable just over a week ago as well. Milwaukee even impressed with its more “core” offerings, with the Harley-Davidson Custom being perhaps the first cruiser we would want sitting in our garage. It looks gorgeous, and is just sporty and modern enough to be “a real motorcycle” in our eyes…we think.

Ducati’s Project 1309 Reveals a New Diavel Coming

We didn’t hear too much about “Project 1309” from World Ducati Week 2018, which is surprising considering what the past has shown us about Ducati’s secret reveals, but the Bologna brand was once again giving a teaser to fans in Misano. In the past, World Ducati Week has been the place where Ducati showed us the first Scrambler model, and last year the event debuted the return of the Ducati SuperSport. This year, it is another new bike. A new Diavel, to be precise. Set to compliment the current XDiavel model, the new Diavel features the same 1,262cc DVT engine with variable valve timing, but puts it into the more sport Diavel riding platform. This means tucked in feet on rearsets, rather than the XDiavel’s foot-forward controls.

VW CEO Outlines Two Possible Futures for Ducati

The Clash’s hit song “Should I Stay, Or Should I Go” might perhaps perfectly fit the business situation for Ducati, within its parent company, Volkswagen AG. The Italian motorcycle brand’s status in the German conglomerate has for the past few years been held on a tenuous string. Rumor about its divestiture, its selling to another company, are constantly dogging the iconic brand. Talking to Bloomberg TV after Volkswagen’s quarterly earnings report, VW CEO Herbert Diess explained that there are two paths forward for Ducati, and one of them includes selling Ducati to the highest bidder. “We have to look which is the best ownership for Ducati,” said Diess to Bloomberg.

KTM’s Counter-Rotating MotoGP Engine Debuts at Brno

Ever since Jerez, when the Red Bull KTM Factory Racing Team debuted a new engine with a counter-rotating crankshaft, fans and journalists have been asking when factory riders Pol Espargaro and Bradley Smith would be able to use the new engine on a race weekend. KTM test rider Mika Kallio had been very positive about the engine during the Jerez weekend, and Smith and Espargaro had spoken in glowing terms about it after the Jerez test. KTM’s response was always that it would not be ready until at least after the summer break. Reversing the direction of crankshaft rotation is not as simple as sticking an intermediate gear between the crank and the clutch, to allow the crank to spin in the opposite direction while maintaining forward thrust.

Retro Livery Pops on the Suzuki GSX-R1000R Superbike

We are big fans of the creations that Team Classic Suzuki has been churning out. Stop what you’re doing right now, look at this Katana race bike, and try to disagree with our enthusiasm. It cannot be done. Taking their touch to the current Suzuki GSX-R1000R superbike, we see what this tire-shredder would look like in a retro-mod livery that is inspired by the bodywork found on the original GSX-R750. So far it sounds like the bike is a one-off, done by our friends across the pond, but we think Suzuki should seriously consider some throwback paint schemes in its lineup. Until then, items of note include a number of tasty Giles-made bits, straight from the Suzuki performance catalog, otherwise the bike shown here is pretty much stock.

BMW Plans To Launch Nine New Motorcycles

It might be still be summer, but our eyes are looking ahead to the new bike season in the fall and winter, where the major motorcycle manufacturers will debut their new motorcycles for the future. The big trade shows to watch are INTERMOT and EICMA, as these have traditionally been the venues of choice for new model unveils, prototype teasers, and concept debuts. One brand that is certainly going to be showing us some new motorcycles is BMW Motorrad, with the German company saying that it plans to launch nine new models in 2018. What those nine models will be is up for conjecture, though we have some good ideas, and some bad ideas, on what they could be. Let’s take a look.

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If you believed the reports from the financial sector, Harley-Davidson is a prime candidate right now for a hostile takeover by Kohlberg Kravis Roberts (KKR), a global private equity firm.

The news sent shockwaves through Wall Street, with Harley-Davidson’s stock gaining 20% in value in a single day, as investors tried to capitalize on the news.

You are just hearing about this news on Asphalt & Rubber though for two reasons, 1) I’ve been on either a motorcycle, plane, trolley, or car for the past few days (just getting back from Italy), and 2) we have seen this all this before, and it wasn’t pretty.

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The speculation about RevZilla and Cycle Gear can stop now, as the brands are finally talking about their plans together for the future.

In a letter posted to RevZilla’s in-house publication, Common Tread, RevZilla CEO Anthony Bucci announces that RevZilla will be acquired by a new holding company, which will also own Cycle Gear.

The holding company’s board of directors will include Bucci, and his fellow RevZilla founders Nick Auger and Matthew Kull, as well as the private equity firm J.W. Childs, which bought Cycle Gear back in 2015.

While Bucci’s letter to RevZilla customers states that the two brands will only be “sister companies” that will operate independently of each other, his FAQ on the subject leaves the door open for collaborations between the two brands, which would be the obvious benefit of their new ownership structure.

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LVMH to Acquire the Deus Ex Machina Brand?

12/02/2015 @ 11:34 am, by Jensen Beeler13 COMMENTS

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Like the word “cool” itself, it is hard to describe what exactly Deus ex Machina is, especially to the uninitiated. The motorcycle/surf lifestyle brand is 10 years old now, and will go down in moto-history as being partially responsible for the “post-authentic” motorcycle movement.

The easiest explanations is that the Deus ex Machina brand is known both for its two-wheeled creations, and also its destination stores in Sydney, Bali, Japan, Los Angeles, and Milan.

In talks now with L-Capital, the private equity arm of LVMH (which is better known for its Louis Vuitton, Moët, and Hennessy brands), Deus ex Machina looks to be the second major exit for its founder and majority shareholder Dare Jennings, who sold his Mambo brand to Gazal Corporation back in 1990.

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China Set to Buy Pirelli for €7.1 Billion

03/23/2015 @ 1:15 pm, by Jensen Beeler29 COMMENTS

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China National Chemical Corp (ChemChina) is set to buy into tire-maker Pirelli, with what is currently a €7.1 billion deal. The move would put the 143-year-old Italian company in Chinese ownership, with ChemChina being the majority and controlling shareholder.

ChemChina had planned to offer €15/share to existing Pirelli stock owners, but that number may have to be lifted after a recent rally in the stock’s price. Once the deal concludes though, it is expected that ChemChina will take Pirelli private once the buyout is complete.

The impetus for the buyout is that Pirelli’s knowledge making tires would be a huge asset to ChemChina’s current tire production, not to mention that Pirelli’s free production inventory could be used to make other ChemChina products.

The deal would also give Pirelli a strong footing in the massive Chinese tire market, a significant leg-up in Asia for the Italian brand over its other European competitors.

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After reporting 22% growth in Q1 2014, Giovanni Castiglioni had some closing words about the rumors that Fiat could acquire MV Agusta — a popular rumor that has been swirling around in the press the last two months.

Denying outright that MV Agusta had, or was in, talks with the Fiat-Chrysler group about an acquisition (some reports linked even MV Agusta to being bought by Fiat-owned Ferrari), Castiglioni said the Italian company solely was focused on building growth, and building motorcycles.

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Husqvarna Sold, But to Whom?

01/30/2013 @ 10:43 am, by Jensen Beeler12 COMMENTS

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The Brits over at MCN broke the news last night that Husqvarna was about to be acquired by KTM. Since M&A’s are a rarity in this industry, the news was certainly interesting, but given that the beleaguered Husqvarna brand has been such a pox on BMW Motorrad with its dwindling dirt bike sales, and that the German company has been embroiled in trying to transition the Italian-based Swedish brand into the on-road segment, now seems a peculiar time for the BMW Group to unload Husqvarna…or that anyone would even be interested in purchasing the company.

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Polaris Acquires KLIM Technical Riding Gear

12/06/2012 @ 11:04 am, by Jensen Beeler6 COMMENTS

Polaris Industries continues to be the 800 lbs gorilla of corporate M&A in the motorcycle industry, and the American firm reinforced that fact today after it announced the acquisition of KLIM Technical Riding Gear. Known for its superb snow and off-road gear, KLIM is a strong apparel brand that matches up well with the core Polaris’s core business of ATVs and snowmobiles. While terms of the acquisition are not being discussed, KLIM is expected to clear $30 million in revenue in 2012.

In its statement, Polaris says that it will operate the KLIM brand in conjunction with the other existing Polaris apparel brands. Additionally, KLIM will continue operations at its Rigby location, and will retain the company’s current staff members. Planning to invest further in KLIM’s infrastructure, Polaris intends to establish the Rigby facility as its “new apparel Center of Excellence,” thus centralizing the company’s apparel manufacturing efforts.

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Audi Bought 100% of Ducati’s Stock

04/19/2012 @ 2:48 pm, by Jensen Beeler19 COMMENTS

With the Volkswagen Group’s Board of Directors meeting done, ahead of the company’s shareholder meeting which is also now complete, details of Audi’s acquisition of Ducati are starting to emerge.

Paying €860 million ($1.1 billion) for the Italian motorcycle company, perhaps the biggest shocker to come from Audi’s acquisition is not the price, but the unconfirmed reports that Audi AG has bought 100% of the Ducati’s stock, meaning Borgo Panigale will now come under complete German control.

This news means that Audi not only bought out the 70% ownership of Investindustrial, but also the 30% remainder that was held by private equity fund BS, the Hospitals of Ontario Pension Plan, and other minority shareholders.

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As expected from yesterday’s news, Audi’s Board of Directors has approved the German car company’s acquisition of Ducati Motor Holding. While the grumblings from Ducati owners have already emerged over the news breaking yesterday, in reality the move is a boon for Ducati, which will receive access to an almost limitless bank account, global business expertise, and advanced manufacturing techniques.

Selling 42,000 motorcycles last year, Ducati has typically struggled to sell more than 30,000 units annually, a figure which is highly regarded as the Italian company’s break-even point. Historically selling under that amount, Ducati has racked up considerable debt from its operation, hence why nearly a quarter of the company’s purchase price is going to its outstanding financial liabilities.

For Ducati owners and Ducati fans around the world, the acquisition by Audi and the Volkswagen Group should be met with more resounding praise, as it means an increased layer of stability has been added to the Italian brand. While the hyperbole has been flowing online, we imagine that the first motorcycles sales success to come from the company post-acquisition will silence any resistance to the company’s new German ownership.

As irrelevant as that metric actually is in business terms, the reality is that Audi’s influence over Ducati will take several years to be fully realized, as it takes a considerable amount of time for new products to come to market, and business plans to be implemented. Press releases from both Investindustrial and Audi are after the jump.

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Audi Buys Ducati for $1.1 Billion

04/17/2012 @ 10:14 am, by Jensen Beeler14 COMMENTS

UPDATE: Audi’s Board of Directors has announced its approval of the acquisition of Ducati.

According to reports, Audi has finished its acquisition of Ducati Motor Holdings, to the tune of €860 million ($1.128 billion), and will announce the purchase tomorrow at is annual shareholders meeting. The deal reportedly sees Audi, through its parent company the Volkswagen Group, acquiring Ducati for roughly seven times what it earned in revenue last year, but Audi is also assuming all of Ducati’s debt, which has been rumored as high as €200 million, making the revenue multiple significantly smaller.

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