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.

Here is a common joke that you will often hear: "How do you make a small fortune in the motorcycle industry? Start with a large one." Well, the next time you hear the lead-up, here is a new punchline for you: "Sell a limited edition model."

Motorcycle manufacturers have been onto this gag for a while now, offering limited edition, numbered for collectors, pure unobtanium motorcycle models to the well-heeled masses.

There may not be that many people that can afford a motorcycle that costs as much as a modest house, but there enough of these people in the world that selling a couple hundred expensive superbikes a year is a pretty trivial feat - it helps too that many of these enthusiasts are return-customers too.

Take the case of Ducati, as our Bothan spies have provided us with some interesting information about the Borgo Panigale brand. Last year, the Italian company made more money on its special edition superbikes, than the regular models it sells.

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What We Are Reading – The Money Racing Edition

05/14/2018 @ 7:53 pm, by Jensen BeelerADD COMMENTS

It has been a busy month since our inaugural edition of “What We’re Reading” column, so there is plenty to catch-up on reading-wise. Again, our reading list spans stories that go between the motorcycle industry and also non-endemic media outlets.

This edition focuses heavily on the racing world, and in it we get a glimpse into the world of the MotoGP Championship, from the riders’ perspective. We also see what’s happening in the automotive industry, as well as the media landscape as a whole.

Many of our stories can be brought back to the motorcycle industry, as our industry faces analogous problems to other sectors. Of course, some of the pieces made our list simply because I thought they were interesting and thought-provoking.

Part clearinghouse for stories that we will never get our full attention, and part book club for our loyal readers who are doing their best to survive the work day, say hello to the next installment of the “What We’re Reading” column series.

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This Week’s “Ducati for Sale” Rumor

04/16/2018 @ 9:19 am, by Jensen BeelerADD COMMENTS

The Volkswagen Group got a new CEO last week, and in less than seven days, that news has already sparked renewed rumors in the German automobile conglomerate divesting itself of Ducati Motor Holdings.

For those who have been following Ducati’s saga, there was much talk last year of Volkswagen selling off a number of its other brands, all under the reasoning that the German company would need to raise capital to cover its mounting Dieselgate liabilities.

The logic for that reasoning wasn’t sound, but the actions were certainly there, with Volkswagen tendering offers from a number of would-be suitors

There was a fly in the ointment though: Volkswagen’s labor unions, who control half of the VW Group’s board seats, and were vehemently opposed to any brand divestitures.

Because of the unions, any sale – including Ducati’s – was a non-starter for the Volkswagen executives, though that didn’t keep the warring factions from trying. By the end of last year though, it seemed we had put this issue to bed. 2018, however, is a new year.

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The Yamaha Corporation announced today that it will be selling 8 million shares of its holdings in Yamaha Motor Co., a movement of shares that will see roughly 2.3% of the voting power in the powersports company changing hands.

This deal is expected to close on December 4th, and the Yamaha Corporation says that it will be selling its position to various unnamed securities companies, presumably to then be sold on the open market.

At the current market price for Yamaha Motor stock, this deal should be worth close to ¥26 billion, and ¥18 billion after tax expenses have been factored.

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Ducati Divestiture Seemingly Stalls Out

09/06/2017 @ 10:51 am, by Jensen BeelerADD COMMENTS

For the past few months, talk of Ducati’s divestiture from the Volkswagen Group has grabbed the attention from news outlets and Ducatisti alike, as the future of the Italian motorcycle company seemed uncertain.

Internally, a power struggle was a play, with Audi keen to unload Ducati from its books, but lacking the support from upper management in the Volkswagen Group.

Talks reportedly hit the skids once it was realized that the Volkswagen labor unions, which control half of the seats on the Volkswagen Group management board, weren’t onboard with divesting Ducati from the holding group.

This is probably information that investors would have liked to know, before they spent the time and resources putting together purchase proposals for Audi’s consideration.

Now, with no change in the position of VW’s labor unions, and with the possibility of an internal consensus seemingly out of sight, it seems talk of Ducati’s divestiture have stalled, with little chance of them resuming this year.

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Investors Leveraging MotoGP for Sizable Payout

04/12/2017 @ 2:09 pm, by Jensen Beeler17 COMMENTS

According to several reports in the financial sector, the investors behind Dorna Sports S.L. are readying themselves for another sizable payout from the media rights holder for the MotoGP and WorldSBK Championships.

Using a bit of financial finesse, the move would see Bridgepoint Capital and the Canada Pension Plan Investment Board (CPPIB) – the two major investors in Dorna Sports – taking roughly €889 million off the books of the Spanish media company, according to Reuters.

As such, today’s news would make this the third time that Bridgepoint and the CPPIB have raided the piggy bank for motorcycling’s premier racing series, having done similar deals in 2011 (€420 million) and 2014 (€715 million).

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Norton Gets £3 Million to Increase V4 Production

04/12/2017 @ 11:27 am, by Jensen Beeler5 COMMENTS

If you have had your eye on a Norton V4 superbike recently, you might not have to wait as long for it to arrive, as the British marque has secured £3 million from the Santander Corporate & Commercial bank.

The debt investment will allow Norton to triple its production rate on the V4 SS and V4 RR models, and also allow for the company to hire 40 new employees for the job. Additionally, according to Norton this will allow the company to increase its production volume to 1,500 motorcycles per year.

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Ducati released a new financing program this week, maybe you saw the announcement already. If you even bothered to read one of the copy/paste jobs on this announcement, you probably got three sentences into it, and then realized you just lost a minute or two of your life, which you will never get back.

It is hard to make this topic sexy, and motorcycle journalists are lazy creatures (myself included)…which is why you probably just saw the press release reprinted on a website, with some Ducati advertising placed next to it, just for good measure.

The Ducati Premier Financing program is a big deal though, just not in a way that is immediately sexy to the casual motorcycle buyer.

In realities, Ducati Premier Financing is not that different from the BMW 3asy Ride financing program, in that it is a finance plan that is not too dissimilar from a leasing program, and it is aimed at making the monthly payment on a motorcycle incredibly affordable*.

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From Russia with Love, MV Agusta Finds New Money

11/20/2016 @ 1:05 pm, by Jensen Beeler19 COMMENTS

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Last week, I was ready to start polishing the obituary for MV Agusta – the Italian company seemingly in an impossibly terminal state.

Italy’s Guardia di Finanza had found that the Italian company had been using the social security contributions of its workers to pay down the money owed to parts suppliers (something MV Agusta disputes is the case), and earlier this year MV Agusta CEO Giovanni Castiglioni was investigated for irregularities on his tax return.

All of this is on top of the ever precarious financial situation MV Agusta has been in for the past year, which has resulted in the company looking to restructure its €50 million debt in the Italian court system, furlough a good portion of its workforce, and reduce its production volume to roughly 9,000 units per year.

Now it seems MV Agusta’s fortunes are changing, with the Italian motorcycle maker signing an agreement with the Black Ocean investment group to recapitalize MV Agusta.

Details of the pending transaction haven’t been released, but we can assume that the increase in capital will help ease MV Agusta’s relationship with suppliers, get workers back on the assembly line, and continue the development of new models.

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Right Now Is the Best Time to Buy A New Motorcycle

10/26/2016 @ 12:18 pm, by Jensen Beeler50 COMMENTS

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With all the new motorcycles for the 2017 model year debuting right now, it might seem counter-intuitive that this would be the right time to make a trip down to your local motorcycle dealership, but it is. Let me explain.

After seeing a modest rebounding of sales and momentum from the recession, this year has been a stumbling block for the motorcycle industry, with sales at the beginning of the year building slowly, before tapering off later in the summer and early fall.

Economic indicators are up, unemployment is down, but the third quarter results from around the industry are pointing to the US motorcycle market taking a market contraction for 2016. The reason for this is uncertainty.

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