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That Harley-Davidson has been working on a small-displacement motorcycle for street rider is not a well-kept secret.

The project involves a collaboration with Chinese motorcycle manufacturer Qianjiang Motors, but the fruits of that labor have been slow to reveal themselves.

Like many of Harley-Davidson’s planned future models, the alleged “XR338” is at best MIA, and at worst DOA.

No one seems to know the next move from Harley-Davidson, including the Bar & Shield brand itself, which has been extremely terse about the details of its “Hardwire” business plan.

To help nudge them along the way, A&R contributor Michael Uhlarik has been working with Italian design show Engines Engineering (E&E) on an XR338 flat track concept for the street.

Harley-Davidson’s move into China is making big waves, and for obvious reasons. The Bar & Shield brand is on a mission to turnaround its business fortunes, and the American motorcycle maker is looking for green pastures in the Asian market, starting with China.

To make this move though, Harley-Davidson has teamed up with the Qianjiang Motorcycle Company, which known better in the Western world as the owner of Benelli Motorcycles.

That link might be an important one, as Ben Purvis from BikeSocial has pointed out. This is because the peculiar 338cc displacement that Harley-Davidson’s plans to use surely points to a Benelli lineage, and tips us to how Harley-Davidson could enter into China faster than expected.

Sometimes, you need to put something into the universe to see it happen, and it was just two days ago that we were speculating on rumors about Harley-Davidson’s plans for a small-displacement machine, likely headed for the Asian markets.

Today, we get confirmation of that news hearing that the Bar & Shield brand will collaborate with the Qianjiang Motorcycle Company to build small-displacement motorcycles targeted at China and the rest of the Asian continent.

The bike will be 338cc in displacement, and be released first in China, with the other Asian markets to follow.

The story of Italian motorcycle companies falling into bankruptcy is not a new one, but Benelli’s version of the narrative is a strangely interesting departure from the norm. Let us explain.

Things apparently kicked off when Benelli failed to pay WP Suspension roughly €120,000 for suspension pieces. WP eventually took Benelli to court, despite the Italian company’s commitment to repay its debt.

An Italian court in Pesaro then declared Benelli bankrupt, and ordered the sum owed to be paid. Somewhere in this process, some of Benelli’s completed motorcycles were seized by a trustee, as collateral for payment.

This spurred Benelli’s Chinese owners, the Qianjiang Group, to release a statement after the court’s ruling, saying that the Italian brand is strong, and has ample cash on-hand to repay its debts (rumored to be in the €1 million range), and has already begun doing so.

Chinese motorcycle manufacturer Qianjiang Motor, which in 2005 acquired the Pesaro Benelli, is now investing an additional $26 million into Benelli to help revitalize the Italian brand.  Talking at a press conference two days ago, Qianjang General Manager Haimei Yan stated that “[although] we have not yet turned a profit in the budget, we are here to stay, and believe in the company.”