Motorcycles and Economics

[Smithers]

Soooo this is a pretty hot topic of discussion. How has the motorcycle industry been doing in all of this economic turmoil? Not all that well. Suzuki pulled their support from the AMA Motocross schedule due to slowing economies around the world and GM desperately needing to sell their stake IN Suzuki. SO Suzuki had to come up with the coin in order to get the stock instead of letting it fall to the open market. What a lame turn of events.



GM makes Suzuki buy back their stake of shares. (http://money.cnn.com/news/newsfeeds/articles/apwire/c8a441b5e73838687de57595c58a7dfd.htm)
Suzuki forced to go on a diet and pull out of some US Racing. (http://www.superbikeplanet.com/2008/Jun/080607d.htm)

[Smithers]

Even more evidence of Suzukis withdrawel from AMA. They want the rules their way and now they are getting beat over the head with shrinking budgets.

American Suzuki to Withdraw? (http://www.cyclenews.com/ShowStory.asp?HeadlineID=12404)

[digglah]

GM Selling stock, to raise money, is pretty much a sign of the times for the auto industry. They are on the brink of extinction in "Detroit." While Suzuki is actually increasing production in many markets this year (India & China), to compensate for last years issue of not having enough inventory to cover demand. Although the trickle down effect will surely hit them.

Pulling out of AMA on the other hand, is very Ferrari of them...
http://www.rediff.com/sports/2008/oct/28fer.htm

[Smithers]

It's pretty depressing that racing cars has become so commercial and such a business that it's impossible to compete against THE team with the most money. Back in the day it was all driver... or at least MOSTLY driver that commanded the lead in a race series. Money ruins everything.

[Smithers]

WOW so Honda has pulled from F1 Racing!! It's a HUGE drain on any MFG for sure but wow I can't believe it. And how check out the status of their MOTO GP program. What a bummer! Well they aren't yanking their team fully but they are going to be counting the pennies! READ THE COMMENTS as the first one is something to really think about...

http://www.motorcyclenews.com/MCN/sport/sportresults/mcn/2008/December/8-14/dec0908-honda-considering-motogp-cuts/

Boy I sure can't wait until this economic recovery. Can you imagine how it will be when things bounce back flooding the market with tons of money? It's hard to imagine such a recovery but everyone loves to spend and I don't think anyone will learn their lesson until they are peeling potatoes and scavenging for trash to burn to stay warm... and I don't see that ever happening.

[Smithers]

I never would have seen this happening. Spencers school going under, wow. Why? I dunno and I won't guess. All I can say for sure is that there is a money shortage not because of customers or the economy though. It seems from my reading through these links that the money is just not going to the right places... EMPLOYEES AND PAYING THE BILLS. So where is the money going? Your guess is as good as mine. I actually stumbled across this situation because I saw Chelee Spencer (the wife) advertising an '07 Honda HRC 600RR on Superbikeplanet.com classifieds. (http://superbikeplanet.com/classifieds/ce?action=showAd&adId=6600)

http://www.fourwheelperformance.com/phorum/news_spencer.jpg


I had to look a little deeper into why this bike was up for sale. With all the clients and instructors in the Spencer loop you wouldn't think that a bike like that would have to be advertised online to sell. Kinda weird, so I had to snoop around and see what was going on. Have a look at what has been going on in Freddie Spencers race school. (http://www.roadracingworld.com/news/article/?article=34774) Article is from Roadracing World. And a little speculation from the members of Sport-Touring.net. (http://www.sport-touring.net/forums/index.php?topic=32331.0) Maybe I should ask Chelee herself and send a friend request to her on Facebook. (http://www.facebook.com/people/Chelee-Spencer/583989611) :rolleyes:

FastFreddie.com (http://www.fastfreddie.com/) Don't bother clicking, it is unavailable.
Freddie Wiki page (http://en.wikipedia.org/wiki/Freddie_Spencer) In case you're not a real rider and you don't know yet. :D
AMA Motorcycle Hall of Fame Info on Freddie (http://www.motorcyclemuseum.org/halloffame/hofbiopage.asp?id=275) Some great pictures.

[Smithers]

WRC World Rally Championship in bad shape. I just can't realize a WRC without Subaru. It's just shocking to hear this news about them pulling out. I'm sure it's only temporary but it's a shock no less. I can see motorcycle mfg's dropping support temporarily but SUBARU? They don't race anything else and they are extremely successful. Maybe they want to go full out or nothing? Bad news nonetheless. Let's hope they return quickly.

http://uk.eurosport.yahoo.com/16122008/58/subaru-follows-suzuki-wrc.html

[Smithers]

On "Factory Team" In AMA Roadracing for 2009

http://www.roadracingworld.com/news/...?article=35171 (http://www.roadracingworld.com/news/article/?article=35171)
http://www.cyclenews.com/ShowStory.asp?HeadlineID=13267

Torrance CA: American Honda announced today that it will withdraw Team Honda from participation in the 2009 AMA Roadracing Series. This was an extremely difficult decision to make as the racing spirit reaches to the very core of Honda.

The primary factor contributing to this decision is the current global economic situation and its impact on Honda. Although Team Honda will not be in attendance, Honda will continue to be represented in AMA Roadracing through our ongoing support of both the Erion Honda Racing and Corona Honda Racing teams.

[Smithers]

And despite the harsh economic times Aprilia Announces New AMA Pro Racing Program, With KWS. (http://www.roadracingworld.com/news/article/?article=35212) Chip Spalding the team manager at KWS Motorsports has announced the news that they are now a Factory Aprilia Racing Team. They'll be running the RSV1000R in Daytona Sportbike in 09 with two riders and in the future 2010 the RSV4 in Superbike! Good luck guys!!
Factory Aprilia Millennium Technologies Debuts at Historic Daytona 200

NEW YORK, NY – December 18, 2008 – Aprilia USA, the North American importer and distributor of Aprilia sport bikes, announces the debut of an all-new factory-sponsored road racing team in the new 2009 AMA Daytona SportBike class, part of the 2009 AMA Superbike Championship series. The Factory Aprilia Millennium Technologies team will be managed exclusively by KWS Motorsports and will compete on the Aprilia RSV 1000R. The 12-race Daytona SportBike class premieres at the historic, first-ever night-time running of the Daytona 200 at Daytona International Speedway, March 6.

With the debut of Italy’s Max Biaggi and Shinya Nakano onboard Aprilia’s much anticipated new RSV4 superbike in the 2009 World Superbike series, Aprilia USA is considering its rookie season on the Daytona SportBike circuit as an important American circuit test bed for 2010.

“With a new team structure, new riders and the new RSV4 en route for 2010, a season’s worth of preparation with KWS and real-world racing experience for Aprilia USA at this level has tremendous benefits,” said Rick Panettieri, brand manager, Aprilia USA. “The current-model RSV has long been respected for its race-bred DNA and its precise and predictable handling under even the most aggressive riding conditions, which has made it a favorite among track day enthusiasts. We chose KWS Motorsports as a racing partner for their expertise in creating top-performing race and production bikes. This will ensure that the RSV is tuned to give the competition a real challenge.”

http://www.fourwheelperformance.com/aprilia/apriliaracing_kws_racing.jpg

[Smithers]

Despite hard economic times HONDA is doing "OK" with their motorcycle sales. This is the key factor in their success since the beginning and the people in charge know this. It has been mentioned in their comments regarding their scaling back of production of automobiles. They know that their motorcycles are the backbone of their existence I agree. Yes they capitalized on their early success and really showed people how to build cars.

Now check this article out:
Honda Sells Its 60 Millionth - Yes, Millionth - Super Cub (http://blog.wired.com/cars/2008/05/honda-sells-its.html)

I read this news months ago but I felt it was a good thing to reflect upon considering the economic times. From the Wired article:

The Cub isn't very fast and it isn't very pretty, but it's everything you need in basic transportation - cheap, efficient and damn near indestructible. It'll take as much abuse as you can throw at it and, like Max Mosely (http://blog.wired.com/cars/2008/04/max-mosleys-kin.html), come back for more. You can even toss it off a building and it'll start right up.

[Smithers]

Here is a very lengthy article put together over at MotorcycleDaily.com. (http://www.motorcycledaily.com/24december08_asorrystate_rr_p1.htm) Click here for a bunch of very interesting responses from readers. (http://www.motorcycledaily.com/24december08_asorrystate_rr_p1.htm) I'm not kidding... 5 long pages worth.

Get ready to read a TON of responses from their readers about the economic times and how the motorcycle industry should adapt.

To give you a quick overview of the topic at hand (the economy) the article starts out like this:
A few weeks ago (http://www.motorcycledaily.com/30november08_asorrystate.htm), our editor threw his hat into the ring and offered his thoughts regarding how the current state of the economy was affecting motorcycle sales. He then asked our readers to chime in with their own opinions, and offer advice to the industry as to what they felt could be done to turn around sales in this trying economy.

[Smithers]

WOW I have an interesting link but it has to do more with autos... but it just goes to show how things have calmed down in the automotive industry in the last couple of years.

An article about the 11 Most Depressing Things at The Detroit Auto Show this year. (http://jalopnik.com/5132122/the-11-most-depressing-moments-of-the-2009-detroit-auto-show?skyline=true)

[Smithers]

And back to motorcycles... and motorcycle racing to be more specific. This kinda shocked me but it makes more sense as energy drink manufactures are just making more and more money... kinda like the tabaccoo company's were so successful back in the 80's. Valentino Rossi gets a huge sponsorship deal with Monster Energy. (http://www.sportbusiness.com/news/168643/monster-energy-drink-sign-valentino-rossi)

And who has Monster Energy been behind recently? John Hopkins of course. A lot of people don't think he's anything special and are assuming he's been dropped by Monster but that doesn't seem the case. (http://moto-racing.speedtv.com/article/motogp-source-monster-money-to-rossi-in-not-hopkins-money/)I'm sure he's taking a paycut (maybe not?) but he's still on the Monsters good side. The link here just tells that Rossi's contract doesn't seem to be coming out of Hopkin's contract money. (http://moto-racing.speedtv.com/article/motogp-source-monster-money-to-rossi-in-not-hopkins-money/) It's just great to see such a large sum of money going into the sport when others are pulling back.

[Smithers]

Guy and Gals I've been hearing a LOT about the government proposing to pay people to bring in their old cars to have them destroyed in exchange for a voucher towards the purchase of a new vehicle. I think this is a HUGE mistake and only benefits the upper classes in America. There is NOTHING wrong with many of the older cars as they are often built better and less complex then newer cars.

WHY NOT just stimulate the economy with other policies geared at putting money back in people's wallets so they can FIX their cars? NOPE, all they want to do it spur sales of new vehicles and force people to buy buy buy!

Have a look through this article that I'm reposting from RockAuto.com's (http://www.rockauto.com/Newsletter/index.html)website. It's written by Tom Taylor of RockAuto.com. (http://www.rockauto.com/) I stand behind his thinking and there are tons of other educated industry people who feel just the same.

Are US government agents coming to seize my great granddad’s double-barreled, Parker shotgun from where it hangs above the fireplace? No, according to the Automotive Aftermarket Industry Association (AAIA), the government might first be coming after my ’89 Ford Country Squire!
The latest economic stimulus plan being considered by the US Congress could include money to pay owners of older cars to exchange their vehicles for vouchers that would be used to obtain newer, more fuel efficient vehicles. The old cars would be crushed.
California and other individual states have dabbled in vehicle retirement programs for the last twenty years. Get older, higher polluting, gas guzzling vehicles off the road by paying the owners something like $1000. The idea sounds appealing to some politicians’ constituents, but the programs usually fizzle out or are never implemented because they are too costly and unmanageable.
AAIA members are concerned because repairable cars and rebuildable parts would be destroyed. I think it is always a huge waste of natural and financial resources to turn a functioning vehicle into a compressed cube of junk.
It is also a myth that older, “clunker” cars are inherently bad because they pollute and guzzle gas. I paid $1200 for my ’89 Ford Country Squire seven years ago. It seats eight, gets over 20 miles per gallon (20 mpg) on the highway and weighs 1000 lbs. less than some new mini-vans. It does not leak a drop of anything and has a catalytic converter, oxygen sensor and plenty of other emissions parts. My wife’s little ’87 Mazda has a 1.6L engine and gets over 30 mpg! Crushing these cars and building new cars from scratch using today’s technology would not help the environment nor reduce gasoline consumption.
The impact would also be far-reaching and difficult to predict. There would be fewer inexpensive used cars for the low-income people many politicians claim to protect. Exports of used cars might decrease and the US trade deficit would increase. Even smash-up derby teams would have trouble finding cars to race!
If the government wants to subsidize new vehicle sales, then it should do it without hiding behind the false fig leaf that crushing older cars is wise and good. If you are feeling politically active, the AAIA has a neat web site for sending letters on this topic to senators and congressional representatives: http://capwiz.com/aftermarket/home/. Just to be safe, I am going to dig a hole in the backyard big enough to hide my old Ford. But I might leave my wife’s Mazda 323 out in the open if it gets me a voucher I can exchange for a new Dodge Challenger 6.1L Hemi!
Tom Taylor,
RockAuto.com

[Smithers]

Ok now this is getting weird considering Honda owns the racetrace as it was built by them as a test track in the 1960's. I thought the Suzuka 8 Hours was the Japan Superbowl. Does Honda really want to give up racing? Not at all. Honda has pulled their team off the roster obviously, the world economy is down. Also their top riders riding WSB will also be busy as the Brno WSB race and Suzuka 8hr are on the same days.

IMO it's just the perfect storm that has stacked up against Honda. It's a bummer but they will be back. Here are my favorite two motorcycle news websites reporting on this recent announcement: MCN (http://www.motorcyclenews.com/MCN/sport/sportresults/mcn/2009/January/19-25/jan2309-honda-withdraw-suzuka-8-hour-factory-backing/) and some comments by Hell For Leather.com (http://hellforleathermagazine.com/2009/01/honda-quits-suzuka-8-hours.html#more)

And for a little history.. some past results of the Suzuka 8hr World Endurance Motorcycle Race: http://www.motorsm.com/motorsport/moto/Suzuka_8_Hours/default.htm

Interesting note - the track itself 5.864 km Suzuka circuit owned by Honda

Wikipedia page on the Suzuka Circuit - http://en.wikipedia.org/wiki/Suzuka_Circuit