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Announced last night at the L.A. Auto Show, Ducati and AMG (Mercedes-Benz’s tuning house) have formed a partnership between the two brands the will first manifest itself by having the German car tuner sponsoring the Italian company’s MotoGP team. Rumored for over a month now, this announcement finally puts to bed the speculation that Fiat would sponsor Ducati now that Valentino Rossi has joined the Rosso Corse team, and is also the first official sponsorship announcement for Ducati Corse’s 2011 season.

With Rossi healing his wounds back in Italy, Nicky Hayden was on hand for the event with a Ducati Diavel and Mercedes-Benz CLS 63 AMG on stage with him. Asked what he thought about the partnership, Hayden replied, “Well, if this is my company bike and this is my company car, I’d say I’m doing pretty well.” We’d tend to agree.

According to Indian publication Bike Advice, Bajaj is looking to cultivate its relationships with KTM & Kawasaki further, hoping to create a three-way alliance that would build off the strengths of each company. Since 1986 Bajaj has had technical ties to Japanese manufacturer Kawasaki, with Bajaj paying royalties to Kawasaki for basing its creations off Kawasaki designs. Bajaj and Kawasaki also share distribution channels, with Bajaj motorcycles being sold at Kawasaki dealerships, and vice versa.

In 2007 the Indian manufacturer bought a 17% stake in KTM (Bajaj has since increased its stake in the Austrian company to 35% in 2008, with further investment plans rumored), which allowed Bajaj access to Europe and KTM access to India. Bajaj has also gained some of KTM’s knowledge on two-stroke motors, while KTM has seen the small-bike specialist help them with its soon-to-be released KTM 125 Duke project.

With all these relationships being fostered, and obvious synergies existing, Bajaj wants to take its relationship with each company to the next level (in America we call that Third Base), and change the level of collaboration so it goes three-ways. The affect would be a merger, without the merger.

It’s hard to make strategic business partnership announcements sound sexy. Between all the hyperbole about how two companies are going to shift the industry paradigm and synergize the supply chain matrix, the average consumer’s eyes glaze over, and drool starts seeping out from the corners of their mouths. So bear with us on this one, because the announcement (or is the term Brammouncement?) of Brammo and Flextronics is an important one not only for the Ashland based company, but also for the electric motorcycle industry as a whole.

Some of the biggest problems facing any startup in the motorcycle industry are distribution and assembly. With the demand for electric motorcycles being a global issue, electric motorcycle startups, which are based primarily in the United States, have to not only grow their businesses domestically, but perhaps more importantly they need to foster a presence abroad in foreign markets.

With Europe and Asia easily out-pacing the demand in the US for electric transportation, an issue of contention for cash-strapped startups like Brammo has been how to grow globally and effectively with their limited budgets. The solution in this case for Brammo, is partnering with Flextronics, and using their scalable global production facilities.

Oklahoma powersports startup US Highland recently announced they have one or two deals in the works. First they have a “tentative agreement” with a “global OEM” to license their motor technology. They are also discussing a deal to build bikes for a company to rebrand. It is unclear if the “global OEM” interested in their engines is the same one looking to rebrand the Highland machines.

However, both deals could bring US Highland from it’s original plan of building 700 motorcycles in 2010 and 1500 motorcycles next year to 20,000 units per year by 2012. To accommodate this growth US Highland will hire 200 to 300 people at their Oklahoma headquarters by the end of 2010. Hear more about US Highland and see the full press release after the break.

pensive-valentino-rossi

You may remember that , sponsoring the Rossi/Lorenzo duo in MotoGP. While Petronas has worked with Yamaha for eight years in a variety of fields, this marks their first collaboration with them in MotoGP, and it is costing them a pretty penny: $24 million for three years, or $8 million a year. For this sum, Petronas branding will appear on the Fiat Yamaha team’s bikes, equipment, and uniforms. Looking closer at the deal we see how large of a deal this is when compared to other similar sponsorships in MotoGP, while also at the same time, how the actual sum paid might be much less than $24 million.