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H-D TO BUY MV AGUSTA
Last minute reports that Harley-Davidson will acquire Italian bike manufacturer MV Agusta for $70 million Euros ($109 million US) were received just before going to press. According to Wall Street analysts, “MV Agusta manufactured around 5,800 units in 2007, compared to Harley’s 331,000 and represented just 0.1% of the US market. The rationale might be to acquire a brand that can bring sport product to market since that segment, particularly in Europe, is quite different from the cruiser segment. And, it may allow them to pursue younger riders and capitalize on the growing European market. We would not expect MV Agusta to be a positive contributor to cash flow for several years.”
LIQUIDATION OF MOTORCYCLE STUFF DIVISION ASSETS ANNOUNCED
Holger Mohr, CEO of Global Motorsport Group/Custom Chrome, announced that after 37 years of dedicated service to the powersports industry, the company has begun the process of liquidating all inventories of its Motorcycle Stuff division and was scheduled to completely cease those operations by the end of August 2008. “Though our decision was a painful one in that it affected friends and family, it became apparent following the purchase of GMG by DAE-IL USA, Inc., that the Motorcycle Stuff division would not be part of our long-term strategy to increase our focus on our core strengths in the American V-Twin industry and grow our business,” said Mohr. Global Motorsport Group and Custom Chrome will reportedly remain unaffected by this action and will continue to operate and serve the wholesale needs of both franchised and non-franchised American V-Twin dealers.
MICHELIN N.A. TO INCREASE PRICES
“As a result of continuing increases in raw material, energy and transportation costs, Michelin North America is increasing prices,” stated spokesperson Tate Hoxworth. He continued by saying, “Motorcycle, scooter and bicycle tire and tube prices will increase by up to 15 percent on Michelin brand products sold in Canada, Mexico and the United States effective Sept. 1, 2008. All two wheel products delivered after Aug. 31, 2008 will be invoiced at the new price.”
RECALLED SUZUKI MOTORCYCLES
The National Highway Traffic Safety Administration (NHTSA) announced American Suzuki Motor Corp. has recalled 9,109 model year 2008 GSX-1300RK8 motorcycles. According to NHTSA, the recall was issued due to improper routing of the ignition switch wiring harness, which can cause a bent portion of the wiring harness to flex rather than slide when the handlebar is moved from right to left or left to right. “Repeated side-to-side movement of the handlebar and flexing of the bent portion wiring harness can eventually cause the ignition switch lead wires to become cut or broken,” said NHTSA. This can reportedly lead to an intermittent or complete loss of electrical power, which can result in loss of lighting and/or stalling of the engine, increasing the risk of a crash.
WASHINGTON BLAMED FOR HIGH GAS PRICES
“The latest Auto Pulse survey conducted by the Consumer Reports National Research Center shows more than three quarters (77%) of consumers singling out the government’s failure to implement an effective energy policy as a root cause for high gas prices, with many also blaming oil companies (75%) and foreign oil producers (70%),” stated spokesperson Russel Datz. He told us the survey also shows a “critical tipping point” for motorists has been reached, with another important milestone just around the corner. “In the 2007 Auto Pulse survey on gas prices, Consumer Reports found the tipping point at which motorists said they would drastically reduce driving would be $3.50. And they have,” said Datz, “Year-to-date, 20 billion fewer miles have been traveled compared to 2007 for the same period.” He continued by saying already over a quarter of consumers have considered downsizing to two wheeled vehicles. “Among them, 18 percent have contemplated a motorcycle and 14 percent were drawn to motor scooters,” he added.
PERRY SANDS JOINS MAG
Motorsport Aftermarket Group (MAG) President and CEO Brian Etter reported Perry Sands, founder of Performance Machine (PM), will be retiring from day-to-day activities at the company and Sands will instead be joining MAG’s management team. “We are also pleased to announce that Mark Finnie will be rejoining PM as president and will be responsible for all aspects of the business,” said Etter. He continued by saying, “I would like to thank Perry for his dedication, leadership and vision in building PM into the premier brand leader it is today. We are looking forward to working with Perry as we continue to grow all of our MAG businesses.”
COUPLE SUES GOODYEAR DUNLOP TIRES
“A Brighton couple who sustained serious injuries after the rear tire of their 2003 Harley-Davidson Ultra ‘suddenly and catastrophically’ deflated on a Missouri interstate last year are suing Goodyear Dunlop Tires,” reported the Madison Country Record (IL). The paper explained Darla and Michael Green are seeking at least $500,000 in a lawsuit filed in June in Madison County Circuit Court. “They claim their motorcycle went out of control after the tire deflated and wrecked, ejecting both of them ... According to the suit, the tire was manufactured without the rubber skin stock tightly bonded to the carcass ply resulting in the rubber failing to properly adhere to the cords,” it added. Darla Green reportedly suffered severe traumatic brain injury, skull fracture, fractured ribs, fractured left clavicle, punctured lung, lacerated liver, lacerated spleen, laceration to the right eye, multiple severe lacerations and abrasions and loss of vision, while Michael Green was said to suffer from multiple severe lacerations and abrasions and extreme emotional distress.
MYRTLE BEACH MOVES TO END BIKE RALLIES
The Myrtle Beach City Council has passed a property-tax increase dedicated to an anti-bike rally campaign and will begin to enact ordinances that will end motorcycle-related vending inside the city, stated MyrtleBeachOnline.com. The site explained all seven council members voted in favor of the tax increase, which will raise almost $1 million a year. “One mill equals an additional $4 in property taxes for every $100,000 of assessed value for all owner-occupied homes and $6 for every $100,000 assessed value of commercial property and second homes,” MyrtleBeachOnline.com said. The council reportedly voted to cancel all motorcycle-related facilities permits for the month of May, but that ordinance needs a second reading before it is considered official. The council will also vote to change the city’s OZ-50 zoning so vending permits cannot be issued in May, the site told us, adding, “City leaders say they want to actively market May as a family vacation month, replacing bike rally attendees.”
PIAGGIO TO PAY $107M TO CREDITORS & SHAREHOLDERS
Piaggio S.p.A. reported it will pay an estimated $107 million to former Aprilia bank creditors and shareholders, informed an online news site. “Piaggio’s board decided to pay off the warrants in cash rather than issuing Piaggio shares,” it told us, and almost $97.5 million will go to 9,959 Piaggio 2004-2009 warrants that are held by the Aprilia bank, while almost $10 million will be for instruments for ex-Aprilia shareholders. “Tens of thousands of warrants were issued and the remaining 41 outstanding warrant holders have not asked to be reimbursed,” the site concluded.
MAN CHARGED WITH DEFRAUDING MOTORCYCLE CUSTOMERS
“A West Allis (WI) man is accused of defrauding would-be motorcycle buyers out of more than $800,000,” said the Chicago Tribune. The paper explained a criminal complaint alleged that Scott A. Yadro, 50, was operating a business called Milwaukee Motorcycle Company and files say he told investigators that he took payments for motorcycles but didn’t deliver them, deposited counterfeit checks and wrote bad checks. “The complaint says between February 2002 and October 2003, the state Department of Transportation received about 20 complaints from people and businesses across the country claiming they were victims of Yadro’s fraud,” the Chicago Tribune told us. Yadro has reportedly been charged with three counts of theft by fraud and two counts of issuing worthless checks.
MIC EVALUATES REQUEST FOR U.S. ROAD RACING SERIES
The Motorcycle Industry Council, on behalf of its 300-plus members, is evaluating whether to issue a request for a proposal that seeks a series promoter and sanctioning body for a premier professional road racing series in the United States, stated a MIC press release. “The MIC intends to consider input from key industry stakeholders, including racetrack owners, riders, interested sponsors and enthusiast and trade media,” the release explained, adding the MIC wants a series that best promotes rider safety, competition, innovation, racetrack attendance, television viewership and ridership. “The MIC also wants a championship that ultimately benefits the consumer – an exciting, popular series that develops new technology that finds its way to production motorcycles,” it concluded.
Passings
JORGE ARRUES
“A legendary member of San Diego’s motorcycle business and racing community, Jorge Arrues, passed away peacefully on Tuesday evening, June 24th surrounded by his family,” a spokesperson told us. Arrues reportedly immigrated to the U.S. in 1964 and, in 1965, he opened Kon-Tiki Motorcycles in Pacific Beach. Over the years, the business became the national repair facility for Kawasaki’s first super bike, the triple-cylinder H1 model, they explained. The store is said to be under the careful management of his son, Alex, who is said to have revitalized the business after illness forced Arrues to retire several months ago.
August 2008, Motorcycle
Magazine
PHONY JOE ROCKETS SEIZED
U.S. Customs agents recently seized a shipment of counterfeit Joe Rocket leather jackets and Joe Rocket is out to see justice done, the Canada-based manufacturer reports. Fortune was with the makers of Joe Rocket apparel when a customs agent, who wears an authentic Joe Rocket jacket while riding, spotted the knock-offs in a shipment from Pakistan, the firm relates. Randy Robison, President of Joe Rocket's parent company, Robison, Inc., said, “We have invested years of experience developing the Joe Rocket brand into the market leader it is today. Our brand is our livelihood and there is no way I will allow it to be stolen, misused and outright desecrated like this.” Joe Rocket has engaged the services of a patent and trademark lawyer with the firm Harness Dickey to pursue charges against the counterfeiter or counterfeiters unknown. Robison also extended thanks to the sharp-eyed Birmingham, AL, customs agent who spotted the fakes, saying, “The fact that he is a fan and loyal customer of Joe Rocket warms my heart to no end.”
JANKLOW BACK BEHIND THE WHEEL
Watch out for the other guy in South Dakota - it could be the ex-governor, now back behind the wheel after killing a motorcycle rider in 2004. A self-professed speeder and convicted stop-sign runner, four-time South Dakota Governor and one-time Congressional Representative, Bill Janklow has just completed his three-year probation for causing the death of biker Randolph E. Scott, 55, of Minnesota, a crime for which Janklow spent over three months in county lockup on a second-degree manslaughter conviction, according to Web sources. At the time of his trial, Janklow was widely reported in a 1999 speech to have said, “Bill Janklow speeds when he drives - shouldn't, but he does. When he gets the ticket, he pays it,” a line dutifully reported recently by blogger Cyril Huze. Janklow spent 100 days in jail and endured three years of probation for the manslaughter rap, speeding, running a stop sign and reckless driving, sources report, noting a $5,000 penalty for fines and court costs was also tacked on. Huze called the fine “small” and wrote that Janklow “only temporarily had to surrender his law license.” The light sentence was reportedly based on Janklow's lifetime of public service, but nonetheless drew howls of protest from some segments of the motorcycle community. “He just completed three years of probation during which he was forbidden from driving. Now he can drive again,” Huze reported.
“STEP AWAY FROM THE BIKE”
LoJack, which calls itself the leading provider of tracking and recovery systems of stolen motorcycles, issued a report stating newer sport bikes are the most popular theft targets and that stolen bike numbers have risen 135 percent in the last five years, with Florida, California and Texas tops on the list of states with the highest rates of theft. LoJack reports the top five brands thieves steal are Suzuki, Honda, Yamaha, Kawasaki and Harley-Davidson. LoJack asserts four of the top five stolen/recovered bikes were sport bikes and 87 percent of those were 2005/2006 models. “Today's professional thieves view stealing motorcycles as a theft of opportunity and an easy money-making proposition, which is why bike theft is increasing at such an alarming rate,” stated LoJack Chairman and CEO Richard T. Riley. The firm offers an online guide to theft protection called “BikeSmarts” at
www.lojack.com.
A REPO TOO SOON
A Pennsylvania man who thought he was surrendering his bike to a repo man accompanied by a state constable was apparently bamboozled and gave his $30,000 bike up to a pair of crooks, alleges the Beaver County Times. According to the paper's Web site, Michael Grimm had fallen behind on payments for his customized 2001 Harley Road King when the thieves, one of them wearing a “PA State Constable” T-shirt, came knocking and Grimm surrendered the bike. But after his Harley was gone, Grimm became angry because he believed he had another day to make good on his debts and called Harley to complain, the report states. That's when he learned the repossession had not been authorized by Harley representatives and neither did any area repo shops know anything about it, the site reports, noting Grimm and the cops are now looking for the customized ride.
A CASE OF BAD GAS?
In response to the latest penalties levied by AMA Pro Racing due to alleged fuel violations at round three of the AMA Supercross Series in Anaheim, CA, VP Racing Fuels announced it is investigating the situation. “First, we have to determine if the fuels involved were, in fact, off-spec,” said Steve Burns, VP's President and CEO. “With regard to two of the fuel samples involved, it's highly unlikely the oxygen content could measure as high as AMA's lab indicated, so we suspect there may have been some problems with the lab work,” he added. “We're working with the AMA and the teams involved to obtain samples of the alleged 'off-spec' fuel, so we can have tests run by an independent lab,” Burns continued, noting, “We hope everyone involved reserves judgment until this analysis is completed.” VP promised to release the test results when they become available.
DEFENDING THE TLD BRAND
Troy Lee Designs (TLD) has reached an agreement to settle “a patent and trade dress infringement lawsuit” against Viva Motor Sports, Inc., Troy Lee Designs reports, noting that under the terms of the agreement, Viva Motor Sports will stop all sales and advertising of three helmet models that TLD had alleged were “confusingly similar” to its SE helmet. TLD further reports Viva Motor Sports has agreed to pay an undisclosed penalty to the Corona, CA-based TLD. “We are very pleased with the outcome of this case,” stated TLD Product Development Manager Jeff David, adding, “Troy Lee Designs has successfully protected the integrity of the SE helmet's unique design. We work exceptionally hard at creating leading-edge designs for our products and we will continue to enforce our trade dress rights pertaining to our helmets and apparel products.”
MOORES GOES TO KLEMPF'S
Jeff and Pat Moores, mainstays of British motorcycling in the Northeast for 30 years, have moved on. Klempf's British Parts announced it has recently acquired the remaining new inventory, Web site and catalog from Moores Cycle Supply and Jeff and Pat Moores' wholesale distribution arm, J&P Cycle Distributors, in Connecticut, noting owners Jeff and Pat Moores have retired. (Klempf's Mitch Klempf emphasized his firm had not purchased J&P Cycles in Anamosa, IA, which remains in business and is not affiliated with Klempf's.) “We will have more stock and a better Web site to keep vintage British motorcycles alive,” stated a Klempf press release, which asserted the firm has over 18,000 items in stock, both new and used. The Moores Web site stated, “After 30 years in the business, we have retired. Please refer your future business to our friends at Klempf's British Parts.” Minnesota-based Klempf's new Web site is
www.klempfs.com.
HELMET WARS
Riders in Arkansas have not been required to wear helmets since 1997, when the state's helmet law was repealed. But there is a movement afoot to bring mandatory helmet use back, according to
Todaysthv.com, which reported state Senator Kim Hendren is sponsoring the bill. Hendren is quoted as saying, “When a motorcycle's rider has an accident, we the people of Arkansas will take care of that person, whether they have insurance or not. The only thing the people are asking is, we'll do that because we're compassionate, but try to use the safety mechanisms available to minimize that.” Opponents of the legislation told Todaysthv.com statistics have not proven riding without helmets was a legislative misstep. “We all worked to get this helmet [law] removed for 15-plus years at the Legislature and got it done in 1997. So far, statistics have not proven we made a mistake,” said bike shop owner Rodney Roberts, who noted bike rallies at Fayetteville and Hot Springs would suffer if riders were forced to wear helmets.
LANE CIVIL TRIAL DATE SET
“Celebrity motorcycle builder Billy Lane will face his crash victim's family in a civil case in August, but the trial for a DUI manslaughter charge he faces in the Labor Day wreck that killed Gerald Morelock is still pending,” stated the Florida Today newspaper. According to the paper, Morelock's mother sued both Lane and DaimlerChrysler, which provided Lane with the Dodge pickup truck he was driving, a month after the accident. “The family alleges Lane, who police said had a blood-alcohol level of .192 the night of the accident, and DiamlerChrysler, who used Lane's fame to advertise its vehicles despite prior driving citations on Lane's record, are liable for auto negligence,” added Florida Today. Brevard Circuit Judge John Dean Moxley Jr. reportedly denied a motion by Lane's attorney to dismiss the case and has set the trial date for Aug. 20.
HD STRIKE SHORTENS SHIPMENTS
Harley-Davidson announced that union employees at its York, PA, facility, represented by International Association of Machinists (IAM) Local Lodge 175, went on strike Feb. 2. As a result of the strike, Harley-Davidson said it expects to reduce production of engines and transmissions at its facility in Menomonee Falls, WI. In Tomahawk, WI, production of injection-molded components are also expected to be reduced, added Harley. “The Company anticipates that reduced powertrain production could result in temporary layoffs for up to 500 of its approximately 1,500 production and distribution employees in southeast Wisconsin,” noted a company press release. It continued by saying reduced component production in Tomahawk could result in the temporary layoff of up to 240 of the facility's production employees. Harley's powertrain plant in Wauwatosa, WI, is not expected to reduce production at this time, concluded the press release.
PASSINGS
MARCEL FORTNEY, R.I.P.
The motorcycle industry lost one of its best known and most loved veterans with the unexpected passing of Marcel Fortney, 49, who succumbed to a heart attack at his ranch near Templeton, CA, on Jan. 15, 2007. Fortney was most recently the U.S. agent for the Italian helmet maker AGV, working with AGV's exclusive American distributor, Parts Unlimited. “It's unbelievable that Marcel is no longer with us,” stated Parts Unlimited President/CEO Jeff Fox. “I've known him since he was representing Pirelli back in the 1980s and there wasn't a more knowledgeable or personable guy in the business.” Besides Pirelli and AGV, Fortney reportedly had worked in his 30-year motorcycling career for Cycle Guide magazine, Fox Racing, Yoshimura and Artehouse. Fortney's friend Justyn Amstutz, Executive Vice President and COO of National Powersport Auctions, called Fortney, “Calm, cool and creative,” adding, “I just can't believe he's gone. Not only was he a leader in our industry, but those of us blessed enough to also know him as a friend will miss him very much.” Survivors include his wife Christie and 14-year-old daughter Mackie, for whom the Mackie Memorial Fund has been established and to which donations may be made, c/o Mid State Bank, 1207 Maricopa Highway, Ojai, CA 93023.
RACING HALL OF FAMER BARTLETT MARKEL DIES AT 71
Bartlett D. “Bart” Markel, 71, “the godfather of flat-track racing in Flint and one of the greatest racers in American Motorcyclist Association history,” died Saturday, Feb. 3, 2007, reported the Missouri newspaper The Flint Journal. According to the paper, Markel competed in more than 140 AMA Grand National Series races and won the AMA Grand National Championship three times before retiring in 1972. He was reportedly inducted into the AMA's Hall of Fame in 1998. His daughter Stacey Kelly said her father had been in poor health for a while and was with Markel when he died quietly at home, added the Journal. Markel's remains have been cremated, stated the paper, and all contributions are being taken for “The Aid for Injured Riders” fund. More details on Markel's racing history can be found at:
www.motorcyclemuseum.org.
Article By: Motorcycle
Industry Magazine
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