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Posts Tagged ‘BMW Motorrad’

The heavyweight motorcycle market is approximately a $4 billion market.  Harley-Davidson is the market segment share leader with 2010 revenue of $3.14B.

Last week Polaris (CEO – Scott Wine) announced the acquisition of Indian, the nation’s oldest motorcycle brand. Indian’s best-selling model, the Chief, became known for the Red Indian logo on its fuel tank.  After twice filing for bankruptcy the manufacturing of Indian motorcycles restarted three years ago in Kings Mountain, NC.  The terms of the acquisition from British investment firms Stellican Ltd. and Novator Partners LLP were not announced, but given the strong brand portfolio of Indian I’m sure it didn’t come at garage-sale prices!

Polaris entered the heavyweight motorcycle market about 12 years ago and of the Polaris $2B in annual sales, about $82M comes from Victory motorcycles.  The Indian brand will help the company build on the Polaris’ presence in the market and directly compete with Harley-Davidson in the heritage brand sub-segment with its classic style.

Clearly the motorcycle landscape is changing and if you need further evidence just look at the recent announcement by BMW Motorrad who saw a 12.3% growth in the last financial year and sold 110,000 motorcycles.  They announced that Hero Motors (India company), as the sole supplier who will provide gearboxes for BMW’s motorcycles.  Not only are they the supplier, but Hero provided the engineering and developed the advanced technology for all BMW transmissions.

According to this Sioux City Journal article,  the U.S. production of Indian Motorcycles will shift to Polaris Industries’ Spirit Lake plant later this year.  Polaris is based in Medina, Minn., and they will close the existing Indian manufacturing plant in Kings Mountain in the next two to three months.

Photo taken at and courtesy of Indian booth.

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It was a Dark Sky Film made in 1970.

The film also appeared under the title Nam’s Angels.  The plot included a biker gang, the Devil’s Advocates who were recruited by the CIA to execute a daring rescue behind enemy lines in Cambodia. After customizing their Yamahas into combat-ready death machines, the gang roars into action on this unlikely suicide mission. Heavy casualties ensue. I kid you not.

I’m not sure if the movie did much if anything to propel Yamaha sales, but this week there are reports the Japanese motorcycle maker (Yamaha Motor) has plans to close seven factories globally with a loss of 1,000 jobs.  This is all in an effort to bounce back from a  Y216.1 billion ($2.7 billion) annual loss in 2009.  Yamaha is the world’s second biggest motorcycle manufacturer after Honda and this streamlining is in addition to a previously announced 10% reduction in the company’s global workforce of 17,000 which is underway.  This is Yamaha’s first loss in 26 years.

Specific plant closure include 5 of its 12 domestic factories by 2012, all in Shizuoka prefecture (central Japan) who now produce parts for motorcycles, marine products and buggies.  In addition, Yamaha will close a motorcycle factory in Italy and a marine products plant in Florida.

It looks like the only motorcycle manufacture beating down the 2009 slowing motorcycle trend was BMW Motorrad.  New products like the K1300GT, S1000 RR Superbike along with the opening of 8 new dealers in the past 5 months has them bullish on the future.

An interesting side bar on The Losers — it’s playing on a television in the background of a motel-room scene between Bruce Willis and Maria de Medeiros in Pulp Fiction. Clearly Quentin Tarantino is one of its fans.

Photo courtesy of Dark Sky.

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