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.

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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The Subtle Big Deal That Is Ducati Premier Financing

03/02/2017 @ 7:24 pm, by Jensen Beeler42 COMMENTS

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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Polaris in the MV Agusta Acquisition Mix?

05/27/2016 @ 5:57 pm, by Jensen Beeler20 COMMENTS

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If you believe the rumors coming out of Italy, Polaris is poised to save acquire ailing motorcycle manufacturer MV Agusta.

We have documented MV Agusta’s precarious financial troubles already in great detail, and how MV Agusta CEO Giovanni Castiglioni is between a rock and a hard place with his main investor, Mercedes-AMG.

According to the Italian media, and those who repeat their words like parrots, Polaris represents an escape from MV Agusta’s difficult position with the German automobile-maker, though the reality is that nothing could be farther from the truth.

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MotoGP: Circuit of Wales Under Threat as Welsh Government Refuses to Underwrite Project

04/07/2016 @ 7:51 am, by David Emmett1 COMMENT

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The Circuit of Wales was dealt a significant setback on Wednesday, after the Welsh Economy Minister refused to offer a 100% guarantee for the £357 million development project.

Without the guarantee, the future of the project is now uncertain, with doubts over the willingness of Aviva, a British insurance company, to continue with backing for the project.

After a long period of preparation, which included a Public Enquiry on the transfer of public lands, work was set to start on the circuit, set just outside Ebbw Vale in South Wales. Work had already started to get the site of the circuit ready to start construction.

The final piece of the puzzle had been secured several weeks ago, in the form of financial backing from Aviva. However, the Heads of The Valley Development Company had asked the Welsh Government to underwrite 100% of the investment in the project, with reports in the regional newspaper South Wales Argus suggesting that such demands had come from Aviva.

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MotoGP: Has Jorge Lorenzo Signed with Ducati Corse?

03/31/2016 @ 6:21 pm, by David Emmett17 COMMENTS

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That this Silly Season – the (bi)annual round of rider contract negotiations – was going to be remarkable has been obvious for a very long time.

Only very rarely have the contracts of nearly every rider on the grid ended at the same time, leading to a frenzy of speculation and rumor about who could and will be going where for the 2017 season.

That this year is special was made obvious at Qatar, where both Valentino Rossi and Bradley Smith announced they had already signed two-year deals for 2017 and 2018 before the flag had even dropped for the first race.

Jorge Lorenzo has been the key figure in this year’s Silly Season, however. Of the four current MotoGP Aliens, he is the most likely to move, and to be offered big money to do so.

Valentino Rossi is nearing his retirement, and his long-term future is tied up with Yamaha, so re-signing with the Japanese factory was a no-brainer.

Marc Márquez may leave Honda at some point in his career, but at the moment, he has too many ties binding him to HRC.

Dani Pedrosa may be a proven winner, but he is the only one of the four not to have won a championship. It is Lorenzo who is attracting all of the interest.

It now appears that Lorenzo’s future may already be settled. Well-informed sources inside the paddock have told me that Jorge Lorenzo has already signed a deal with Ducati, and perhaps at a record price.

Certainly at a price which Yamaha would be unwilling – and probably unable – to match.

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No, MV Agusta Hasn’t Declared Chapter 11 Bankruptcy

03/28/2016 @ 6:26 pm, by Jensen Beeler8 COMMENTS

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Despite what you may have read, MV Agusta isn’t declaring protection from creditors under Chapter 11 of the United States Code. But, we can understand the confusion.

Just so we are clear, by definition Chapter 11 bankruptcy proceedings are a figment of American law. Since MV Agusta is an Italian company, it would be fundamentally wrong to say that MV Agusta Motor S.p.A. was seeking a protection under the US Code that pertains to bankruptcy.

The branch of MV Agusta that would be able to file for Chapter 11 would be MV Agusta USA, but the US subsidiary is not embroiled in MV Agusta Motor’s financial troubles, which makes the use of the term incredibly inaccurate.

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The Precarious State of MV Agusta

03/23/2016 @ 2:02 pm, by Jensen Beeler39 COMMENTS

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MV Agusta as a motorcycle company has always seemed to have feet of clay, especially when its financial future is concerned. Today is no different, as MV Agusta has announced its intentions to restructure its debt, in order to keep the company afloat.

Afloat is an interesting phrase, as the storied Italian brand has changed hands four times in the past 12 years, with two of those purchase prices being a token euro, as MV Agusta’s liabilities far outstripped the company’s assets and holdings.

Fast-forward in time and it would be easy to say that not much has changed, as MV Agusta now has €40 million in liabilities on its balance sheet, all non-essential staff have been furloughed, the production lines in Varese recently have been motionless.

While this seems like more of the same from MV Agusta, the situation is far more complex, and for once in its lifetime, it isn’t MV Agusta’s lack of sales that are to blame. In fact, it’s the opposite, as it is MV Agusta’s success in growing its motorcycles that is the cause of its current financial situation.

That might seem like a counterintuitive notion, but if you understand the relationships between chickens, eggs, and which came first, then you will understand the situation at hand here with MV Agusta.

And while this impasse isn’t a new one in the business world, it doesn’t change the fact that the future of MV Agusta is in a precarious state.

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