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Opinion/Editorial

The Chrysanthemum and the Sword

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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

Some Closing Thoughts About Marco Simoncelli

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It has taken me a week to collect my thoughts and process the passing of Marco Simoncelli, the San Carlo Gresini Honda rider that lost his life during the MotoGP race in Malaysia. I’m not one of those journalists that can belt out some poignant thoughts on an event immediately after it happens, nor did I personally know Simoncelli well enough to offer a comprehensive anecdote on the man’s short but distinguished life. Having only met and talked to Marco briefly a few times, I cannot shed some deeper insight regarding who he was as a man, stripped away of all the pomp, prestige, and PR spin of the premier class.

I’ve heard the MotoGP paddock described as a family or village, so as one of its most recent members, this tragedy both cuts me deeply, but yet also seems like a distant and surreal event. Perhaps it will affect me more as I travel to Valencia this week, or perhaps I will continue to feel as if I am on the outside looking in at cataclysm of grief that has befallen friends, acquaintances, and strangers. Time will tell in that regard, and I’ll leave it to those masters of the pen who are better suited to the task to account for the young Italian’s life and racing career.

Instead my closing thoughts about Marco Simoncelli are a mixed commentary of life, tragedy, and where we go from here.

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Opinion/Editorial

MotoGP Owners Looking to Buy World Superbike

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Bear with us on this one, as it’s a bit convoluted. Bridgepoint Capital, a private equity firm based out of London, owns Spanish company Dorna Sports SL. Dorna, which as you might recall is the media rights holder and promoter for MotoGP, the motorcycle Grand Prix World Championship that we all know and love. Meanwhile World Superbike is owned in majority by Swiss company Infront Sports & Media, and in minority by the Italian-born Flammini brothers, with the latter group still handling WSBK’s media promotion.

Now according to reports, Infront Sports & Media is up for sale, and one of the three alleged bidders is Bridgepoint Capital (circle back to the second sentence in the first paragraph if you got lost on the way here). This means that potentially the twice-removed owner of MotoGP could potentially own a controlling stake in the Championship’s rival series: World Superbike. There are still a number of “if’s” in whether Bridgepoint will come through as a buyer on Infront Sports & Media, but ownership of both series by the same party, even at a removed distance is worth some general discussion.

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Opinion/Editorial

The Indian Gambit – Polaris Puts Harley-Davidson on Notice

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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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Opinion/Editorial

The Great Distribution Experiment is Over

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As we write the timeline on the evolution of the electric motorcycle, the bullet points for 2011 will note a few key events, and one of them surely will be the adoption of a traditional sales distribution scheme. It’s not a sexy event, but it’s an important one in the growth of this side of the industry. You see when resourced-backed electric motorcycle manufacturers entered the scene, the idea was that a new drivetrain meant a new set of rules, and from that a new playbook was drafted. The idea of selling electric motorcycles at traditional motorcycle dealerships was abandoned, and in its place these companies tried new approaches — some clever, and some not so much.

Direct-to-consumer sales approaches, online purchasing, ad hoc customer sales leads, and even Best Buy all entered into these new models of how to get a motorcycle into a purchaser’s hands…and they all failed. It is no small feat to start a motorcycle company, and it is an even taller order to make an electric one. Not only do you have to sell your would-be-buyer on the features of your motorcycle, but you then also have to sell them on why their purchase should be an electric motorcycle, and not its ICE equivalent.

The undertaking of proving out a new method of selling motorcycles is a burden in its own right for an established motorcycle manufacturer, let alone a startup, so its failure should come as little surprise to those in the industry with this experience. It is therefore not surprising that we get news that both Zero Motorcycles and Brammo have abandoned their previous sales distribution schemes, in favor of adopting a more traditional dealer network approach.

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Opinion/Editorial

Michigan Eyes Dropping Helmet Law…Again

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Twice now Michigan has come close to repealing its helmet law for motorcycles, with both instances being vetoed by Democrat Gov. Jennifer Granholm. But now with Gov. Granholm no longer in office, and with Republicans also having control over the legislature, the stars have seemingly aligned for the state’s riders to make another bid on nixing the law.

I should preface that there are two separate proposals being lobbied in Michigan. First there is House Bill 2008, submitted by Rep. Richard LeBlanc, and the Michigan State Senate has its own bill to contend with, Senate Bill 291, which is co-sponsored by five Democrat and twelve Republican State Senators. The bill in the Senate is your typical approach to helmet laws, and holds that anyone who is over 21, and has either passed a motorcycle safety course, or had a motorcycle endorsement for two years, can ride a motorcycle without a helmet.

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Opinion/Editorial

Do Something Good for Japan, & Yourself. Buy Honda Stock

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As we sit halfway around the world, essentially powerless to change the events unfolding in Japan, there still comes the feeling that we should be doing something, anything, to aid the people affected by the recent 9.0 earthquake, subsequent tsunami, and unfolding nuclear disaster.

Rising to a call of action, Moto for Japan is an effort by a group of motorcyclists that donates money to the American Red Cross via an inspired charitable platform developed by none other than Hollywood’s Edward Norton. The effort has been making the rounds on the internet the past two days, and its creators, Greg Hatton and Jon Bekefy, should be praised for their thoughtful thinking.

Perhaps a different take on how to best bring aid to Japan, I got an interesting message from Mark Gardiner, who pointed out “Japan is not Haiti. By the time we can actually deliver bottled water and blankets to the scene, people will have walked to parts of Japan that are relatively unscathed. If you want to help Japan, buy Honda stock.” I think ‘The Backmarker’ is grasping a key point here, and with permission, we’ve reproduced his article on the subject as a guest post after the jump. – Jensen

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Opinion/Editorial

Ducati’s Deal with the Devil: A Business Case for the Diavel

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If you had told me a few years ago that Ducati would build a cruiser-segment motorcycle, I probably would have called you a couple cylinders short of a v-twin. Up until recently, mentioning the thought of the Bologna brand chasing after Harley-Davidson riders would have invited fisticuffs in most Italian motorcycle cafés. And even despite the launch of the Ducati Diavel, you can start a heated debate among loyal Ducatisti by bringing up Italy’s latest power cruiser.

Make no mistake, the 2011 Ducati Diavel is a controversial motorcycle…and that’s putting things lightly (at worst it’s a complete dilution of the Ducati brand). If the Diavel is Ducati’s deal with the Devil, then let me play the Devil’s advocate for a moment, and put forth the business case about why this motorcycle had to be built, and what it means to the Ducati brand — minus the pandering to the Ducati faithful.

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Opinion/Editorial

Are Electronics the New Horsepower?

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The news of the 2011 Aprilia RSV4 R APRC got me thinking today about where the sport bike market is headed from a big picture perspective.

The sport bike market has been dominated the constant need to develop motorcycles with more power, less weight, and new performance enhancing technologies, and you’d be hard pressed to find a year where the bike with the most horsepower wasn’t the top-seller in this category (case in point: the complete sales domination of the BMW S1000RR during 2010).

For years the motorcycle manufacturers, especially the Japanese, have been painting themselves into a corner by constantly having to one-up each other with horsepower figures in order to sell motorcycles in this segment.

With bikes like the 2011 Kawasaki Ninja ZX-10R approaching the 200hp barrier, the question about “how much power is enough?” has been cropping up, and it certainly could be that we’re approaching the point in time where the relevancy of this metric is losing it’s power (pun moderately intended).

So what will be the new kingmaker for sport bikes? The electronics package.

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Opinion/Editorial

LCR Honda: This is How You Launch a MotoGP Team

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Testing has already gotten underway and concluded at Sepang today, meaning the teams of MotoGP have released their livery for the next season with varying degrees of fanfare and showmanship. It’s no surprise then that we found a couple photos of the LCR Honda RC212V adorned with a seductive Playboy bunny affixed to it, in what surely has to be the best GP team launch in 2011.

If you read Asphalt & Rubber on a religious basis (we are your motorcycling zen temple, right?), you’ve likely divined by now that I’ll chastise just about any company that uses the premise that “sex sells” (nothing boils my blood more than this cleverly short, yet misguided maxim), and that I love a good scrappy startup that’s got more hustle than funding (case in point: A&R is a penniless motorcycle startup trying to make it in this crazy online world).

So how does a the multi-million dollar motorcycle racing team with half-naked women draped all over their machinery get such accolades from our humble motorcycle blog? Because LCR Honda is the epitome of innovation on the business side of MotoGP racing.

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Opinion/Editorial

Let’s Hype This Bitch! – 60 Day Wait for the 2010 Ducati Multistrada 1200

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Ducati has reported that the first 500 initial pre-orders for the 2010 Ducati Multistrada 1200 have been filled, and there is now a 60 day waiting period for the new sport-tourer. Citing a strong reception to the Multistrada’s “four-bikes-in-one” capability, Ducati sees an additional 500 units to be sold in the coming months. This last statement seems sort of like a no-brainer, after-all another 500 bikes will be sold eventually, right?

Actually, the entire statement is sort of strange when you consider what 500 pre-sold orders really entails in a markets like the United States & Canada. With a plethora of dealers in these countries, the reality is that this statement amounts to dealerships pre-selling their initial inventory, which consisted of one or two motorcycles. Yes, the Ducati Multistrada 1200 is sold-out for the next two month, but when you ship only 500 units to the entire North American market, you can almost guarantee being sold out on a bike during its release, right?

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