Posts Tagged ‘PPM’

U.S. Firm To Buy International Scooter Business

May 13, 2009

Agreement in Principle Is Confidential

Joe Delmont

Joe Delmont

A major international manufacturer plans to sell its scooter business to a U.S. company, possibly as soon as next week, according to insiders at the companies.

The parties have an agreement in principle, but are waiting for  attorneys to complete their work dotting the “i’s” and crossing the “t’s” before announcing the deal. When the lawyers are finished, Dealernews will have all the details for you right here.

The seller, a diversified manufacturer,  has been in the scooter business for some time and has an extensive scooter operation, but is choosing to allocate its resources elsewhere, I’ve been told.

The U.S. buyer has experience in the powersports industry and could add considerable manufacturing and retailing expertise to this valuable brand. It’ll be interesting to see how the pending deal affects U.S. scooter market shares this year, since a recent research report suggests there could be a slowdown in U.S. scooter sales.

U.S. Retail Scooter Sales

U.S. retail scooter sales by non-traditional manufacturers— that’s primarily non-MIC reporting companies located in China and Taiwan— increased 155% last year to 250,000 units, according to research compiled by Power Products Marketing (PPM), a Minneapolis research firm that specializes in the powersports industry.

The company estimates that total retail scooter sales last year were 327,000 units, up 114% over U.S. retail sales in 2007.

The outlook for 2009 isn’t quite so promising, says Matthew Camp, the report’s author, since many U.S. distributors carried over high levels of inventory from last year. However, says Camp, U.S. scooter sales could still hit 200,000 units, a level not seen for two decades. Except for last year, of course.

We’ll present a complete report on 2008 U.S. Scooter sales and Camp’s 2009 forecast here soon. Watch for it. JD

Contact me with news tips and story ideas
at 952/893-6876 or joe@powersportsupdate.com.

Let’s Get Started

January 22, 2009

Welcome to Minnesota Man’s blog.

I’ve done plenty of writing over the years—starting with an old Royal upright typewriter— so I’m excited to see how this new venue works. I’ll be writing about the business of motorcycles— building them and marketing them and selling them around the world, from Santa Anna, Calif., to Shanghai, China. And I’ll be writing about all of the related businesses associated with motorcycles— dealerships, and OEMs, and aftermarket manufacturers and distributors. You name it.

I won’t be writing much about the mechanical aspects of motorcycling because I’m really not very good at that. In fact, my wife doesn’t even want me to have tools around the house. After 41 years of wedded bliss, she knows that I generally hurt myself or break something when I get involved in “handyman” projects.

So, I’ll be writing about the people of motorcycling and the business trends and events that I see.

I’ll also be analyzing and questioning news items that I read and tidbits that I pick up during my editing duties for Dealersnews magazine. I write a monthly column for the magazine and I post items on the http://www.dealernews.com website. I’ll be talking to OEMs, dealers, and other folks who work in the industry. And I’ll be talking with customers, as well, to discover what makes them happy and not so happy.

I’ll be about writing about interesting people I meet and about business activities—some will impress me and others will puzzle me, especially the way they do—or don’t— provide customer service.

I’ll be writing about people such as my friend Frank Esposito who has been named president of Kendon Industries, Inc., the Anaheim manufacturer of motorcycle trailers and related equipment. I haven’t talked with Frank about Kendon, since he just took the spot. But I’ll catch up with him soon. Frank spent a number of years in top spots at Custom Chrome and Tucker Rocky.

I’ll also be writing about information that’s developed by my friends at Power Products Marketing (PPM), a Minneapolis research firm that tracks production and retail sales figures of powersports products in North America. Many of the trends these guys identify are truly astounding, especially as they apply to non-MIC companies.

And I’ll comment on published reports from sources like websites and blogs, the Wall Street Journal, the Economist magazine, analyst reports, SEC filings, PPM reports, motorcycle trade and consumer mags and Chinese newspapers and news sources.

I’ll be posting a couple of times each week.

Oh, and I’ll certainly be writing about items that you bring to my attention. Remember, this isn’t a one-way communications street; I’m looking forward to hearing from you.

That’s enough promises and enough words for the first time out. Let’s get started; meet me here again tomorrow. Thanks for your interest. JD

Contact me with news tips and story ideas
at 952/893-6876 or joe@powersportsupdate.com. Thanks