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.

Within the motorcycle industry, Asphalt & Rubber has earned itself a reputation for breaking stories from our so-called “Bothan spies”, as insiders often tip us off to intriguing stories and happenings in the two-wheeled realm.

Just a few weeks ago, we got one of those interesting tips, one that said that Dainese was being put up for sale. So, we called the bossman himself, Dainese CEO Cristiano Silei (an announcement too that A&R was able to break because of our Bothan spies), to see what the story was all about, and indeed if the rumors were true.

The call resulted in a terse answer, and perhaps an expected response, but Silei also provided an interesting explanation of Dainese’s current investment position, and what results the company has seen since its purchase three years ago (another story that our Bothans were first to get the word on).

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Report: Harley-Davidson Looking to Buy Ducati

06/21/2017 @ 10:56 am, by Jensen BeelerADD COMMENTS

Rumors and reports continue to swirl around Ducati, as the Italian manufacturer is linked to one brand or another for a potential divestiture from the Volkswagen Group. And now, the latest name being thrown into the hat is none other than iconic American brand Harley-Davidson.

In a report by Reuters, Harley-Davidson is linked to buying Ducati by unnamed sources, with a purchase price that is pegged around €1.5 billion, a number that has been put together by the bean-counting minds at Goldman Sachs.

Volkswagen is said to be taking bids on Ducati this July, which means the fate of the Italian motorcycle brand could be decided by the end of this year.

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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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The speculation about RevZilla and Cycle Gear can stop now, as the brands are finally talking about their plans together for the future.

In a letter posted to RevZilla’s in-house publication, Common Tread, RevZilla CEO Anthony Bucci announces that RevZilla will be acquired by a new holding company, which will also own Cycle Gear.

The holding company’s board of directors will include Bucci, and his fellow RevZilla founders Nick Auger and Matthew Kull, as well as the private equity firm J.W. Childs, which bought Cycle Gear back in 2015.

While Bucci’s letter to RevZilla customers states that the two brands will only be “sister companies” that will operate independently of each other, his FAQ on the subject leaves the door open for collaborations between the two brands, which would be the obvious benefit of their new ownership structure.

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Report: Cycle Gear to Acquire RevZilla?

02/08/2016 @ 10:12 am, by Jensen Beeler68 COMMENTS

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Respected newswire Reuters is reporting that Cycle Gear is close to finalizing the purchase of motorcycling e-commerce giant RevZilla. Citing a source “familiar with the matter” at hand, Reuters suggests that the deal could close in the next coming days, with the new venture worth between $400 million and $500 million.

If true, this acquisition would mark a titanic shift in the motorcycle retail space, with America’s largest brick and mortar chain combining with the industry’s most prominent online parts and apparel purveyor.

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Investcorp Buys 80% of Dainese for €130 Million

11/04/2014 @ 5:50 pm, by Jensen Beeler5 COMMENTS

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A story we have been chasing for some time now, Lino Dainese has finally found a buyer for his namesake company, Dainese. The purchaser is the aptly named private equity firm Investcorp, which is headquartered in Bahrain, and has additional offices in New York, London, Riyadh, and Abu Dhabi.

Buying 80% of the company’s stock for a reported €130 million, Investcorp’s valuation of Dainese would therefore be set at €162.5 million. The other 20% of the company is retained by Lino Dainese, himself.

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Red Bull are poised to make two dramatic announcements over the next two weekends, we can exclusively reveal. At next weekend’s Bahrain F1 race, the Austrian energy drink firm will announce its withdrawal from the premier four-wheeled racing series at the end of 2014.

A week later, at the Austin MotoGP round for which it is the title sponsor, Red Bull is to announce that it is to purchase Bridgepoint Capital’s remaining stake in MotoGP, and take over the running of the series.

Sources in the private finance industry with knowledge of the situation say that Bridgepoint has been looking to rid itself of its motorcycle racing business for some time. The private equity firm had acquired 71% of Dorna in 2006, at the peak of MotoGP’s popularity, reputedly for £400 million.

Since then, they have seen the value of their investment drop, and have been looking to get their money back from the deal ever since. The sale of a 39% stake in Dorna to the Canadian Pension Plan Investment board was the first step in recouping their investment.

That deal was rumored to be worth €400 million, or just over 70% of their initial outlay. Sources with knowledge of the situation say that Red Bull is to acquire the remaining 32% of Dorna for around €300 million , but with full control over the series.

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Dainese Confirms Rumors of Investor Talks

03/10/2014 @ 3:43 am, by Jensen BeelerADD COMMENTS

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Speaking to the VeneziePost (subscription required in order to read the article), Dainese Founder Lino Dainese has confirmed the news we broke last month about the Italian apparel manufacturer being in talks for investment, or possible acquisition.

According to the report, Dainese says the company came close to inking a deal with an unnamed private equity group, but terminated the talks because the parties could not come to terms with their agreement.

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Rumor: Dainese up for Sale?

12/20/2013 @ 5:23 pm, by Jensen Beeler10 COMMENTS

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Motorcycle industry gossip is at a fever pitch this week with speculation that Italian motorcycle apparel manufacturer Dainese is up for sale. Adding credence to that rumors, Asphalt & Rubber has received a number of tips about the possible sale of the company, with a private investment group cited as a possible buyer.

When we approached with this information, Dainese simply said that rumors were simply that, rumors. However it is worth noting that at the helm of the company for the past few months has been interim-CEO Federico Minoli, the same man that lead Ducati Motor Holding to being acquired by Texas Pacific Group, and later took the Italian motorcycle manufacturer public on the New York Stock Exchange.

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Bridgepoint Capital, the private equity firm which owns Dorna and Infront Sports and Media, has sold a 39% stake in Dorna to a Canadian pension fund, Canadian media are reporting. According to a report from Reuters, Canada Pension Plan Investment Board reportedly paid €400 million for the 39% stake in Dorna, and will join Bridgepoint and Dorna’s management – in the figure of Carmelo Ezpeleta – in running the company.

The sum paid for the 39% stake gives Bridgepoint a healthy profit. The UK-based private equity firm purchased Dorna from CVC back in 2006, when CVC purchased the rights to Formula One and were forced by the European Competition Commission to sell the rights to the MotoGP series first. Bridgepoint is said to have paid some £400 million (about €550 million) for the 71% stake held by CVC when they took over the company.

The Canada Pension Plan Investment Board is buying into more than just MotoGP, however. With the consolidation of Infront Motor Sports under Dorna, CPPIB now has a stake in both MotoGP and World Superbikes. This sale also provides the rationale for Bridgepoint’s decision to bring both series under a single umbrella: not only does it add value to the package on offer to CPPIB, but it also eliminates competition between the two series, allowing both to grow without cannibalizing each others audience and potential sponsors.

This, rather than any power struggle between Dorna CEO Carmelo Ezpeleta and Infront bosses Paolo and Maurizio Flammini, is the more important reason for combining the two series. Ezpeleta may have come out on top in that internal power struggle, but it was as a by-product of the proposed sale, rather than as a direct intent.

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