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Opinion/Editorial

Rossi, Ducati, & Yamaha: And The Winner is…

By 23 COMMENTS

So what are we to make of Valentino Rossi’s not-so-shocking decision to leave Ducati and go back to Yamaha? The initial reaction from fans and media was that the biggest losers from the move are Ducati as a manufacturer, and Rossi’s reputation as miracle worker when it comes to bike development. There is some merit in both those arguments, but perhaps it is not quite so clear cut as that. Rossi’s two years at Ducati have done a lot of damage to both parties – as well as to MotoGP’s popularity and TV income – but in the end, this move could have some very positive long-term repercussions.

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Opinion/Editorial

Will 2012 Finally Be Husqvarna’s Year?

By 13 COMMENTS

For the past day I have been plunking away at a spreadsheet, adding in values found in several years’ worth of press releases. You see, while most motorcycle manufacturers go out of their way to hide sales information in their media communications, they still leave enough clues that allow one to decipher these pieces of information in their entirety. A monthly figure here, a quarterly result there, a percent gain over last year mentioned, and you’ve got your self five or more months of sales data extrapolated.

That being said, there is no need to go through this much work to know that Husqvarna has been having a rough couple of years. Even by just taking a straw poll from any of the BMW Group’s many glowing sales reports, you’ll find a three to four sentence paragraph outlining the continued disappointment that the Italian-based Swedish brand has brought the German company. Often not even cracking four-digit monthly sales figures, Husqvarna has been on a sales decline that has spawned BMW Motorrad’s decision to push the once dirt-only brand into the street bike scene.

In its most recent media communication, the BMW Group has praised Husqvarna’s sales success over the past two months. With the subsidiary posting a 50% gain in January, and a 2% gain in February, Husqvarna has thus far this year posted a 15% gain over the first two months of 2011. All is well for Zie Germans, no? You know the setup, continue reading for the take-down.

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Opinion/Editorial

At the Intersection of the Future…

By 24 COMMENTS

Despite the fact that the business side of motorcycling is run by a small close-nit group of curmudgeons, Neanderthals, and Luddites, the world outside of motorcycling continues to press on without us.

And while various parts of the motorcycle industry are busy trying to figure out how to adapt to this whole new “internet” technology fad thing (it has only been commercialized for over two decades now guys), the same group of people are busy trying to maintain the same business models and practices that came from the post-World War II economy.

In other words, when it comes to technology and the motorcycle industry, we are all pretty much fucked.

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Opinion/Editorial

Why Today is the Most Important Day for Ducati…Ever

By 32 COMMENTS

The first Ducati 1199 Panigale rolled off the assembly line at Ducati’s Borgo Panigale factory today, officially starting production of the Italian company’s flagship model. While maybe the the production of the first Panigale is not the most newsworthy of subjects, make no mistake at how important this motorcycle is for both Ducati and sport bikes in general going into the future. Featuring a new step in production motorcycle chassis design, we’ve also already talked at length about the number of firsts that the 1199 Panigale is bringing to the production motorcycle market.

With a hybrid chain/gear-driven camshaft, titanium valves, a wet slipper clutch, a ride-by-wire throttle, rider-selectable “riding mode” system, and 15,000 mile major service intervals, the Superquadro v-twin motor alone is a major step for Ducati with its Superbike engine design. And, if you add in the first full-LED headlight on a produciton motorcycle, the first electronically-adjustable suspension on a sport bike, the first motorcycle engine braking control system, as well as the first GPS-assisted data acquisition system for a production motorcycle, the total package of the 1199 redefines the word “superbike” and takes the next logical technological step forward in this market segment.

However features aside, what will truly be the most important aspect of the Ducati 1199 Panigale is whether or not the flagship model can live up to the hype that has been generated around the machine. While most of the attention to-date regarding the Panigale has centered on whether Ducati’s monocoque chassis design can work on the production motorcycle, after it has failed so miserably in MotoGP, the real issue for the Italian brand has nothing at all to do with the 1199’s race track prowess.

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Opinion/Editorial

The Chrysanthemum and the Sword

By 102 COMMENTS

Talking to a colleague the other day, we came to a frank discussion about how the European motorcycle brands weathered the recession better when compared to their Japanese counterparts.

While there are many factors at play in this statement, there is at least a component of truth to the idea that strong brand integration helped spur the Europeans into setting record months, quarters, and years during a global economic downturn, while companies like Honda, Kawasaki, Suzuki, and Yamaha saw their businesses virtually collapse.

It is not that the Japanese manufacturers don’t have strong brands, it is just that their brands stand for something fundamentally different from those being forged by the Europeans.

While companies like Ducati, KTM, and Triumph are building entire communities and lifestyles around their motorcycles (hat tip to Harley-Davidson for showing them how), the Japanese continue to hang their hats on the attributes of their products.

Well-engineered, bulletproof, and relatively cheap, Japanese motorcycles tick all the right boxes when one is objectively measuring a motorcycle, but they are sufficiently lacking when it comes to creating lasting ties to their owners.

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Opinion/Editorial

The Indian Gambit – Polaris Puts Harley-Davidson on Notice

By 27 COMMENTS

Before yesterday afternoon, I had a hard time getting excited about Polaris. I think they make snowmobiles…but I’m not sure. This is how engaged with their brands I was, but of course this has all changed with the news that Polaris Industries, Inc. has acquired Indian Motorcycle for still undisclosed terms. Covering the business strategy side of motorcycling for the past two and a half years, I can tell you that there are few moves or decisions that strike me as truly inspired, but that events of the past 24 hours are surly Mensa-worthy.

Before I can talk about Polaris and Indian, I have to talk about another motorcycle company: Harley-Davidson. Kingdoms are fated to topple, but looking at Harley-Davdion and its dominance in the American motorcycle scene, let alone in popular culture, the legacy of the Milwaukee company seems assured to endure the test of time. So many companies have tried to be the next Harley, and all of their failures reinforce that concept that no company does “Harley” better than Harley-Davidson. Virtually creating the the legacy cruiser segment, and Harley-Davidson’s success in this regard is also the double-edged sword that is slowly prostrating the Milwaukee brand.

If I had to give one piece of advice to a company wanting to compete with Harley-Davidson, it would be real simple: don’t. Seemingly at the risk of painting itself into a corner, Harley-Davidson has refined its marketing message so thoroughly that it has honed in on a particular type of rider, and exhibits such a distinct persona of motorcycling that the company’s identity has found itself heading full-speed down a one-way street of branding. Thus the low-hanging fruit of competing with Harley-Davidson is to go after the brand where it cannot go.

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