Posts Tagged ‘mv agusta’

Italian Motorcycle/ATV Show Opens in China

June 10, 2010

Friday is Kick-Off Day in Beijing, China, for an innovative new international motorcycle and ATV show and conference driven by—hold on here— the Italian motorcycle industry. “EICMA China—The Motorcycle Show,” runs Friday through Sunday, June 13,2010. It’s the first ever show for EICMA outside of Italy. EICMA is best known for putting on the the world’s largest motorcycle show every November in Milano, Italy, when several hundred thousand consumers and trade representatives walk the floors looking at the latest machines and accessories.

The trade fair and conference being held at the National Agricultural Exhibition Centre of Beijing is an alliance of EICMA and two major Chinese partners: the Chinese Chamber of Commerce for Motorcycle (CCCM) and Genertec Advertising& Exhibition Co.Ltd. The goals of the event are to show foreign products to the Chinese market and to bring together representatives of several countries to discuss powersports issues relating to motorcycles and ATVs.

On the motorcycle side, the 6.5 hour China International Motorcycle Industry Summit will focus on emissions and on building the Chinese market for motorcycles. A motorcycle ban was instituted in Beijing in 1985 and expanded has been expanded to more than 170 cities in China. It’s estimated that the ban reduced sales by 4 million units annually.

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Harley Stock Fever Cools

March 18, 2010

Who is Kohlberg Kravis Roberts & Co. (KKR)?

Investors continued to trade Harley-Davidson (NYSE: HOG) stock in heavier volume than normal on St. Patrick’s Day, but the activity was down sharply from Tuesday’s very heavy activity.

HOG shares were off .17 Tuesday from Wednesday’s close of 28.35 on volume of 4,4558,600 shares, down from Wednesday’s huge volume of 18.4 million. Average daily trading volume over the last three months is 3.6 million shares.

Tuesday’s heavy trading pushed the stock up 1.85 or 7%, but it failed to break the 52-week high of 30.00. The 52-week low is 11.20.

Today’s mid-day trading was in the 28.40 range.

The feeding frenzy was started by rumors that Harley was going to be purchased by Kohlberg Kravis Roberts & Co. (KKR), a huge New York-based private equity firm that specializes in leveraged buyouts (LBO). The international firm, founded in 1976, has more than $50 billion under management and reports it has completed more than $400 billion worth of LBOs.

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Harley Sale Rumors Flying

March 16, 2010

Is Harley-Davidson about to be sold? Could be, because anything is for sale at the right price, but so far the talk is nothing but rumors, and at least one respected securities analyst doesn’t think it’s going to happen.

“In our opinion, any such buyout is highly unlikely ” says Tim Conder of Wells Fargo Securities. “We believe the new management team is highly focused on executing the restructuring of the company. If anything is potentially developing near-term, we believe it could be the company forging a joint venture or fee type of arrangement with a depository institution partner as it relates to HDFS.”

However, HOG shares rose more than 5% to $28.02 today on unsubstantiated rumors the motorcycle maker is the target of a leveraged buyout.

Private-equity firm Kohlberg Kravis Roberts was named as a possible buyer. Officials from KKR and Harley both declined to comment on the rumor.

Trading was three times the normal volume in Harley shares as investors looked for a bargain.

Harley reported a loss of $218.7 million in the fourth quarter. And its new management team has moved aggressively to make changes at the American icon motorcycle company, including dumping two of its motorcycle operations, Buell and MV Agusta. JD

Contact me with story ideas or news tips at 952/893-6976 or jdelmont@dealernews.com.

Investors In Powersports Stocks Enjoyed 2009

December 31, 2009

Harley, Polaris, Arctic Cat Post Hefty Gains

Investors who placed bets on the powersports industry last year at this time— and held steady for the ride through the year— have reason to celebrate tonight. I checked the performance of three of the leading powersports stocks this year—Harley-Davidson (HOG), Polaris Industries (PII), and Arctic Cat (ACAT) and each of them outperformed the Dow Jones Industrial Average (DJIA) by a wide margin in two cases and matching it in the last one.

It wasn’t a smooth ride, however, and it took a firm hand to stay in the game through the sharp downtown in the first quarter.  For example, while the Dow lost 13% in value during the first two months of 2008, Polaris lost 25%, Harley  dropped 21%, and Arctic Cat slipped 20%.

For the year, though, the Dow climbed 1,772 points from 8,776 on Dec. 31, 2008, to 10,548 at the close yesterday. That’s a 20% jump. During the last 52 weeks, the Dow ranged from a low of 6,440 to a high of 10,605.

Polaris, the Minneapolis-based manufacturer of ATVs, UTVs, motorcycles, snowmobiles and electric vehicles, posted the biggest dollar gain during the last year of the three companies I looked at. Polaris common moved from $28.65 on Dec. 31, 2008, to $43 at the close yesterday. That’s a gain of $14.35, or 50.1% over the year. Its 52-week performance ranged from $14.53 to a high of $49.74.

If you would have purchased 1,000 shares of Polaris common stock one year ago, your investment would have gained $28,650, not considering quarterly dividends nor any sales commissions. Now, wouldn’t that provide a nice party tonight.

Securities analysts who follow the Polaris stock like the management team lead by new CEO Scott Wine, and Bennett Morgan, president and COO, and a long-time Polaris executive. When talking about Polaris, investors also talk about its ability to quickly bring new products to market, its efficient operations that emphasize cost controls, and its growing ability to control inventories at the dealer level through its Max Velocity Program (MVP) which allows dealers increased ordering flexibility.

Harley-Davidson gained $8.53, or 50.3%, climbing from $16.97 at the close on Dec. 31, 2008, to $25.50 at yesterday’s close. Harley investors had perhaps the toughest time waiting calmly for gains on the HOG stock as the company reworked its operations in several major steps.

One move with immediate and long-term implications was  the new contract it won with workers at its York, PA, plant that  permits the company to cut loose nearly half the 2,000 employee York work force and move ahead with major physical improvements in the plant. The plant modernization will be aided by a stimulus package from the state of Pennsylvania. Harley said at one point that it was considering relocating the operation to Kentucky.

In its second big reorganizational move, Harley dumped its MVAgusta operation and it closed its Buell sport bike business.

During the 2009 52-week period, Harley stock ranged from a low of $7.99 to a high of $30.00

Arctic Cat common stock is played at a much lower level than either Polaris or Harley, but it, too, posted a nice gain of 20% during the period Dec. 31,  2008, to Dec. 30, 2009. It climbed $4.16 for the year, moving from $4.79 in December 2008 to $8.95 yesterday.

Cat had a tough year, partly because of its dependence on snowmobiles and partly because of the loss of Gander Mountain, its high visibility outdoors retail chain based in Minneapolis. Gander had been carrying Arctic’s ATV and SXS lineup in its major stores. Arctic stock ranged from a low of $2.40 to a high of $9.27 during the last 52 weeks.

Okay, so now you’re probably waiting for my forecast on the performance of these stocks in 2010. Sorry, I don’t have one. After reporting on publicly traded stock for more than 40 years, I’ve come up with one basic rule: Stock market performance doesn’t always reflect corporate performance, especially when you try to tie it to a specific quarter or other reporting period. I don’t have a clue how these three stocks, or the Dow, for that matter, might perform over the next four quarters. And if I did know,  I wouldn’t give that information away; I would charge a lot of money for it. Isn’t that what investment advisors do?

Happy New Year and good luck with your investment decisions. I hope your powersports stocks perform well for you in 2010 as these three stocks did in 2009. JD

Contact me with news tips and story ideas at
976/893-6876 or joe@powersportsupdate.com

Blogs Abuzz About H-D’s Buell Decision

October 15, 2009

Buell_logoHarley-Davidson has carved a lot of pork, and jobs, during the past year, and now the move to end production of the Buell line and sell off its recently-purchased MV Agusta business has people buzzing anew about the way the Motor Co. has chosen to streamline its operation.

Here are some thoughts gleamed from a surf through some of the social networking sites:

Gutted that Harley has pulled the plug on Buell Motorcycles. After all of Erik’s struggles and hard work developing improved product, he deserves better than that. – Kevin

No matter what you think of HD or Buell product, you have to respect Erik Buell’s independent and creative thinking. Sorry to see you go Buell. – Glenn

Victims of Hope and Change? – Robert

I feel for all those who have been laid off … but I keep thinking there is more to come from Buell. – Greg

Buell gone; MV on the block!? Whats next? Price drops on Fatboys and baggers? – Jeffery

Why didn’t they dump their latest European acquisition instead of wiping out more American jobs? As an American manufacturer, it sickens me to see HD become just another company making a profit at any cost. – Chris

A day of mourning for American Sportbikers … regardless of what you ride. Buell, you will be greatly missed! – Brittany

I am truly bummed about Buell going under. I wasn’t a die hard Buell fan but it was nice to see a company like that succeed. – Aaron

It seems that we have let another American Motorcycle Company go by the way side my friends, and what a shame! – Patrick

Learn more about H-D’s decision by clicking HERE.

Harley to Dump Buell, MV Agusta — 9 mos. Earnings Down 71%

October 15, 2009

Harley-Davidson announced its third-quarter results today and BOY do things look ugly.hd

earnings down 71 percent

U.S. retail motorcycle sales down 24.3 percent

To discontinue production of Buell motorcycles.

Remaining inventories of Buell motorcycles, accessories and apparel, while they last, will continue to be sold through authorized dealerships. Warranty coverage will continue as normal for Buell motorcycles and the Company will provide replacement parts and service through dealerships.

Company to immediately begin plans to sell MV Agusta.

More to come later today on www.dealernews.com from Guido Ebert, who is sitting in on third quarter conference call.

Erpelding, Europe’s Keeper of Classic Race Bikes

September 29, 2009

Are you a racebike enthusiast? Happen to be planning a trip to the Nuerburgring in Germany?

erpeldingIf so, you may want to visit former motorcycle and auto dealer and racer Frithjor Erpelding, a man who claims to have the second largest private museum in Europe dedicated to race motorcycles. Located in the Eifel mountain hamlet of Jammelshofen, near the ‘Ring, the museum houses 200-some bikes and a half-dozen of his championship-winning race cars.

Among the units on display: AJS, Aprilia, Ariel, Bimota, BSA, CZ, Egli, Gilera, NSU, Koenig, Moto Parilla, Moto Guzzi, MV Agusta, Matchless, Maico, Triumph, Norton, Greeves, Jawa, Puch, Wanderer, Harris, BSS, Benelli, Laverda, Royal-Enfield, Harley-Davidson, Horex, Honda, Gilera, Kawasaki, Kreidler, Linto, Suzuki, Scott, Seley, Yamaha, Rickman, KTM, Ducati, Montessa, NSU, Vincent, Velocette and Zuendapp, etc.

I asked Erpelding which of the 200 units is his favorite. “The Norton,” he replied without pause. Erpelding has two Norton Manx. “The chairman of Cambridge University recently contacted me, asking if I would sell one of my Manx. I told him ‘No’. He offered Euro 100,000 and I declined. Then he offered Euro 200,000 and I again declined. Finally, I cut to the chase and told him I wouldn’t be selling the bike no matter what the price.”

MuseumBut, Erpelding is willing to sell certain units. He says he recently sold a Vincent to a collector in the United States for Euro 80,000. “He deposited the check in my bank account before even receiving the bike. I called and asked him why he trusted me, and he said, ‘I’ve heard you’re a trustworthy guy’.”

Erpelding is a fella who loves telling his stories. If you’re planning a visit, be sure to leave time to have beer at his Race Museum Bar. He’ll tell you about his run-ins with racer Agostini and Yamaha bosses; his thoughts on Triumph, MZ and KTM; his trips to Goodwood; and his days of racing Honda motorcycles and cars.

Check out Erpelding’s website, which features the full line-up of the museum’s bikes on display.

Texas Bill Requires Training For “High-Performance” Bike Buyers

April 21, 2009

Legislation being considered in Texas would force those who purchase a “high-performance” motorcycle to take a training course within six months of the purchase.
texas
HB 4531, if voted into law, would force all owners and operators of a high performance motorcycle purchased on or after September 1, 2009 to show proof of course attendance upon the request of law enforcement. Violators would be fined between $500 and $1,000.

According to bill sponsor Rep. Norma Chavez (D-El Paso), a “high-performance motorcycle” is any motorcycle “referred to, called, labeled, or described as a ‘sports bike’, ‘sports motorcycle’, ‘high performance motorcycle’, or other similar term, in any materials given to an original purchaser at the time of purchase from any retail seller or contained in the owners manual or guides from the manufacturer.”

The bill is currently being debated in the House Public Safety committee.

MV Agusta’s Massimo Tamburini to Retire

December 3, 2008

This is straight from MV’s site as of today, Dec. 3:

MV Agusta Design Chief Massimo Tamburini will retire from the company, effective Dec. 31, 2008. Tamburini has been with Cagiva since early 1985 and has headed up MV Agusta’s engineering and design center, Centro Ricerche Cagiva, in San Marino for over 13 years, where he and the staff designed what are widely regarded as world-class, premium, high-performance

Tamburini and great mood lighting

Tamburini and great mood lighting

sport motorcycles, including the legendary F4.

“I have dedicated a significant part of my career in motorcycle design to Cagiva and MV Agusta and am immensely proud of the beautiful and thrilling motorcycles we have created,” said Tamburini. “While my decision to retire was extremely difficult to make, I am confident the highly-talented designers and engineers in San Marino will continue the tradition of excellence that is the hallmark of MV Agusta. I have been privileged to realize so many dreams during my years with Cagiva and MV Agusta and look forward to seeing more great things yet to come from the company,” Tamburini said.

Tamburini plans to pursue design interests outside the motorcycle field and to spend more time on his other outside interests.

“Massimo Tamburini is one of the legends of the motorcycle industry and leaves a great legacy at MV Agusta,” said Claudio Castiglioni, MV Agusta Chairman and Director of Motorcycle Research and Development. “The capabilities he built at MV Agusta’s design center are outstanding and his legacy and vision will now be carried forward by the team he assembled and mentored over many years. While we will miss his presence, we respect his decision to retire and wish him all the best for the future,” Castiglioni said.

Wonder if this has anything to do with Harley-Davidson’s purchase of the legendary Italian brand? I’d love to have seen a collaboration between Tamburini and Willie G.

EICMA Filled With Hot Models

November 26, 2008

I attended the EICMA motorcycle show in Milan, Italy, earlier this month. Lots of eye candy … hot new and upcoming models were everywhere. Check ’em out:

dsc_01151 dsc_0118 dsc_0171 dsc_0190 dsc_0198 dsc_0205 dsc_0206 dsc_0211 dsc_0212 dsc_0226 dsc_0228 dsc_0248 dsc_0269 dsc_0278 dsc_0296 dsc_0298 astyle dellorto derbi dsc_0018 dsc_0026 dsc_0050 dsc_0052 dsc_0059 dsc_01181 dsc_0123 malaguti piaggio npa1 sym