Registrations in the EU

Registrations in the EU down -1.6% during the first 9 months of 2017

According to the most recent data released by ACEM (the Brussels based international motorcycle industry trade association), combined registrations of motorcycles and mopeds in the EU reached 1,051,606 units during the first nine months of 2017, representing a decrease of -1.6% compared to the same period of the previous year.
Registrations increased in some of the largest European markets, including France (206,596 units, +4.1%) and Italy (197,159 units, +5.7%), but decreased in Germany (149,334 units, -11.3%), Spain (120,302 units, -5.8%) and the UK (85,505 units, -15.7%).
In motorcycle terms, EU registrations were down by -5.1% at 771,327 units during the first 9 months of the year. With 177,336 units (+6.4%), Italy remains the largest European motorcycle market, followed by France (132,950 motorcycles, +2.4%), Germany (126,592 motorcycles, -11.7%), Spain (105,184 motorcycles, -8.5%) and the UK (80,222 motorcycles,
-15.4%).

the figures are only part of the story

Registrations in the moped segment reached 280,279 units (+9.3%) during the first 9 months of 2017, although this is partially due to the Slovenian government mandating all owners of unregistered mopeds to register them in order to update its motor vehicle database.
The largest moped market in Europe is France (73,646 units, +7.2%), followed by the Netherlands (58,672 units, +5.9%), Germany (22,742 units, -9.2%), Poland (20,550 units,
-4.1%) and Italy (19,823 units,
-0.3%).
However, following three years of growth since the market started to recover in the second half of 2013, the official figures for 2017 are misleading, the underlying reality of the situation is much more in line with recent trends.
The Euro 3 pre-registration issue artificially inflated registration numbers at the start of 2016 and, most dramatically, in the final quarter of the year. The apparent decreases in sales in the first four or five months of 2017 take no account of the pre-registered units that dealers were still able to sell, even if they have been increasingly heavily incentivised as the year has gone on.
There is widespread industry consensus, including among the trade associations that, in fact, sales in 2017 will probably actually be ‘flat’, if not up by one or two percent.
This is further evidenced by the cycle of Japanese made motorcycle exports to Europe seen since January 2016. With Honda, Yamaha, Kawasaki and Suzuki +250cc exports running at +26.64 percent through September (the strongest first nine months performance seen since 2010) and accelerating markedly in the third quarter, the market is viewed as having greater strength than the official registration statistics suggest.

TR/MAG in Chapter 11 Bankruptcy Protection Filings

TR/MAG in Chapter 11 Bankruptcy Protection Filings; has new owners

Three and a half years after the owners of Texas based distributor Tucker Rocky merged the business with MAG, the group has filed for Chapter 11 bankruptcy protection in the U.S. courts. 

One of the two largest parts and accessory distributors in the United States, in Europe Tucker Rocky is best known for its ownership of brands such as MSR (Malcolm Smith Racing), Answer, ProTaper, QuadBoss, Biker’s Choice, Firstgear, Speed and Strength, BikeMaster and more.
MAG, with whom Tucker Rocky merged in early 2014, is the owner of internationally recognised manufacturers and brands such as Vance & Hines, Performance Machine, Roland Sands Design (RSD), Kuryakyn, Progressive Suspension, Mustang, J&P Cycles and UK based Renthal, best known for their off-road handlebars and sprockets.
In what the company describes as implementation of a “comprehensive, consensual recapitalisation” (aka a “Pre-Pack”), the “leading independent manufacturer and distributor of branded aftermarket products and online retailer for the powersports industry” seeks to “eliminate approximately $300 million in debt through a debt for equity exchange supported by in excess of 90 percent of the principal amount of the Company’s prepetition first lien secured lenders and its asset-backed lenders”.
The remaining debt burden the group is carrying (said to be in the region of $100m to $150m) is being recapitalised by a consortium of new owners that will be led by equity investors Monomoy Capital Partners, BlueMountain Capital and Contrarian Partners.

MAG CEO Andrew Graves: “Through this process we will deliver a balance sheet that allows us to more effectively compete in today’s evolving powersports market. MAG’s businesses will continue to operate unaffected and the company has sufficient liquidity to fund operations”

Andy Graves, CEO, said that the new owners “have deep experience in consumer products and lifestyle companies including distribution, retail and manufacturing. We are encouraged to have access to the resources the new owners bring, by their passion for the powersports industry, and for their shared vision for MAG’s future. Looking forward, MAG will be able to more aggressively capitalise on market and growth opportunities given our strong balance sheet post recapitalisation.”
Speaking about the group’s emergence from its protection filings, what led the business to this point and what this means for the future of the group, Graves said: “Through this process, we will deliver a balance sheet that will allow us to more effectively compete in today’s evolving powersports market.
“MAG’s businesses will continue to operate unaffected, and the company has sufficient liquidity to fund operations. Customer service and sales will continue, employees will receive wages and benefits as before, and vendors and suppliers will be paid in the ordinary course of business going forward.”

When Indianapolis based Tucker Rocky owner Lacey Diversified merged the business with MAG (April 2014), it created one of the largest parts and accessory manufacturing and distribution groupings the motorcycle industry has ever seen

“The company expects to move through this process quickly, and emerge in the first quarter of 2018 as a stronger, better capitalised and competitive company.” To support operations through this process, MAG has secured up to $135 million in debtor-in-possession (DIP) financing from certain of its current secured lenders.
“The U.S. powersports market has been in persistent decline for the past few years,” said Graves. “In response, MAG has been working diligently to adjust to the changing landscape and has implemented many initiatives to parallel today’s market. Unfortunately, the company’s long-term debt continues to be an impediment to success.
“As such, we believe that by availing the company of the chapter 11 process, MAG has chosen the most efficient and expeditious way to right-size its balance sheet for the long term, so that we remain an industry leader for many years to come.  We and our key creditors are committed to what will hopefully be a short bankruptcy case.”

Comment by Editor-in-Chief, Robin Bradley

Great Show… don’t be fooled by the market stats!

This year’s EICMA was the best ‘Milan Show’ experience we here at IDN have had for at least a decade. To judge by the smiles on the faces among the exhibiting vendor community, we are not alone in that opinion. The show was busy and, compared to recent years full, with a lot less open spaces in the halls. Some of that may be a result of better show floor planning but, mostly it has to do with a larger exhibitor count.
While there are still a growing number of once regular exhibitors who are staying away, and while there still is turnover with more regulars leaving the show again this year, returnees and a slew of new businesses meant there was plenty for dealers to see – and that included a major outbreak of new motorcycle models and new parts and accessory product introductions, more than I can remember for a long time.
While it is the new bike launches by the major manufacturers that are the “sexy headline” from the organiser’s perspective, in motorcycle terms it was the higher than ever number of new, comeback and start-up brands that is the real story in terms of industry (and show) health. There are an ever-increasing number of Asian manufacturers making an ever more convincing play for a place in the European motorcycle market, an ever-increasing number of three and four-wheel vehicle projects (European and otherwise) and an ever-increasing number of E-vehicle brands, all adding to an increased critical mass.

‘V to V’ is our new black
New products mean increased investments in marketing and R&D. These have always been the twin pillars of downturn survival, and of prospering, once better times return. The relativities of business performances can be very precisely calibrated against investments in brand profile and new product initiatives through any soft market, and in the more favourable economic conditions we see in the Euro currency zone in particular now.
There is no question that the vendors we now see “shaking trees” at industry events such as EICMA and INTERMOT are those who have been, and now are consistently, making those investments.
The same is just as true in parts, accessory and apparel terms, and in case anyone thinks that shapes and colourways are the only new product options left for a mature industry, think again. We may think that we have seen it all before, that there is only so much left to be invented, but capitalism and the history and evolution of commerce doesn’t work like that.
Advances in manufacturing techniques and efficiencies, materials developments and use and, above all, the impact that the electronics industry is having on the transport industry, are all conspiring to create what eventually will be judged to have been a fundamental re-boot.
One fuelled almost entirely by the expectations that the emerging generations of consumers who know only a digital world are having on riding and ownership expectations. Their transition from screen potatoes to gainful employ to consumers, and therefore to fully functioning citizens, is as assured as that of any generation. As usual it will be their values that will pave the way to a mid-21st century motorcycle industry that in its own way will be just as radically different to the one that those same processes shaped in the 20th century.
They will make their own experiences, and a fair proportion of them will buy into doing so on two wheels, provided we give them the equipment that meets their expectations, which we now are starting to do. As consumers, and nobody must overlook the fact that they are going to be not just the largest consumer cohort ever to emerge, in numerical terms, but also the most “savvy” in terms of what their money is buying them.
For our future generations of customers, premium will be the new entry level and experience the new buying hot button. However, they will be the ones deciding what that experience is, what it looks, feels, tastes and smells like, not the vendor.
The only limitations they will be prepared to buy into is that of their own imaginations, not that of the factory’s kit. Inspiring those imaginations is the “new black” where marketing is concerned, and their visions of what lies beyond product purchase will define new product features.
Impressive though the developments taking place right now are in the context of the past 30, 40 and 50 years, and equally impressive though those currently being talked about for the near to mid-term future also are, we are still only at the start of this story. So, I think that much of the speculation about where transport policy will take us in the next 30, 40 and 50 years is misplaced. A more meaningful analysis would be of where consumers will want to take their transport policy – if we have one then, it is ‘V-to V’, that is our new black!

EICMA 2017 review

Barkbusters Handguards: Owner Matt Phillpott (left) and Operations Manager Rob Veljanoski. Eicma 2017 saw Barkbusters Handguards take the opportunity to showcase to the world the prototype for a new product concept to be released in mid 2018, the “AERO-GP” lever guards. The Australian designed and manufactured range of Barkbusters Handguards is “uniquely designed for trail, adventure and road bikes. Full wrap around aluminium handguards can help protect the bike’s levers from crash damage, and the range of impact resistant plastics can be tailored to offer defence from the elements for the rider’s hands.” There are universal mounts for all standard 22 mm (7/8”) and tapered handlebars, but further to this the unique area covered by Barkbusters is the extensive range of bike specific hardware kits for the adventure sector. An easy to navigate product finder is available at www.barkbusters.net



Andreani: The company’s award-winning DB4 test bench is an advanced “Suspension Dyno” that has been in development for several years. Described as a significant advance on the original DB3 design introduced eight years ago, “we have rebuilt the entire concept,” Giuseppe Andreani says. “Our engineers have developed new software and hardware, with the software marking the revolution. We focused on precision, ease of reading, managing and comparing data. The DB4 gives technicians the final tool needed for them to develop and test materials, specifications and performance. It features optimised design, engineering and software.” The powerful 4 kW powerful motor, the load cell that allows reading up to 5.000 Newton force, the 800 mm side rods and the simple and versatile software are all said to make the DB4 “easy to use, but very accurate”; www.andreanigroup.com

 

Venhill Engineering: Max Adams, Managing Director. Recent new products from the British control cables and accessory specialist include a range of smooth action replacement clutch cables for all generations of Yamaha’s YZF-R1. Noted for its massive range of cable colour options, all Venhill cables are designed and made in the UK. The light and durable cables feature a smaller conduit to reduce weight, increase flexibility when routing and provide an improved, smoother operation compared to the OE version, without compromising strength or performance. The cables feature the much-needed additional length to route around the R1’s starter motor, so that when at rest on full lock, there is no binding/pinching on the starter socket. Each one features high quality Featherlight abling - marine-grade stainless steel inner wire for minimum stretch and a Teflon liner for minimum friction and a lighter action, removing the need for lubrication; www.venhill.co.uk

 

RD Moto: Martin Drasnar (left) and Petr Holoubek. Latest products from the Czech parts and accessory specialist include crash protectors, levers, crash frames, engine covers, tuning accessories and travel bags for the Yamaha MT-07 and other top-selling street and sports models; www.rdmoto.eu
 

Cardo Systems: Latest products from the ‘Scala Rider’ bike communications and entertainment systems specialist include the rugged Q-solo Bluetooth communicator for solo riders, Freecom 4 and Packtalk DMC (Dynamic Mesh Communication) based Bluetooth communication systems; www.cardosystems.com
 

Galfer: The latest news from the Spanish brake pads and discs manufacturer includes women’s MX World Championship success with Kiara Fontanesi and a second consecutive KTM A-Class Supplier Quality Award in recognition of the performance and consistency of the Wave and round discs they supply for several KTM-Husqvarna road and off-road models; www.galfermoto.com

 

Preston Petty Products: Manufactured by Polisport at its injection moulding facilities in Portugal, this reborn PPP line is available through its worldwide network of importers. Preston Petty was a legendary 1950s/1960s off-road racer and United States AMA Hall of Fame Inductee (1999) who started his own moulded plastic parts business in the late 1960s. A decade later he sold it to Scott, but the brand and product line disappeared quite soon after when Scott filed for bankruptcy. With Preston Petty’s consent, current brand owner Paul Stannard (seen here) acquired the rights to the lapsed brand name, and in 2010 brought back a Preston Petty products line of MX fenders, using an injection moulding company in Italy, and now with the backing and collaboration of Polisport, who bring distribution as well as plastics manufacturing technology to the partnership. With Polisport’s production quality, many enthusiasts hope the Preston Petty Product line will emerge again as a “go-to” for seemingly indestructible MX fenders and more. For now, the brand’s range will comprise two front fenders (MX front fender; Muder front fender), two rear fenders (IT rear fender; MX rear fender – already developed and produced by Polisport), number plates and headlights (halogen and LED units). New products for the growing vintage off-road market will be added soon; www.polisport.com
 

GIVI: The company’s ‘Ultima T’ luggage range is a “new line of waterproof bags that offer the best performance in terms of protection and comfort, suitable for the most adventurous trips.” The range has medium to large capacity options, protective stiffening panels and a modular fixing system. The UT805 saddle bag is a new introduction to the line, and was just one of the many soft bag models presented at EICMA. Others include the versatile Canyon GRT709 side bags from the Gravel-T line, which is waterproof and equipped with a new hooking system. The TanklockED was also presented, a fastening system for tank bags now fitted with a lock; www.givi.it

Italian motorcycle registrations

Italian motorcycle registrations +11.7% to October

According to the latest data released by ANCMA (the Milan based motorcycle industry trade association for Italy), the Italian motorcycle market is bucking the trend seen in much of Europe, with new motorcycle registrations up by +34.59 percent in October (5,194 units), having been +35.14 percent in August 2017 (4,311 units) and +13.40 percent in September (5,898 units).

They are running at +11.74 percent for the year-to-date at 77,489 units so far in 2017.
Allowing for mopeds and low cc scooters, overall PTW registrations in Italy were +22.59 percent in October (13,909 units, having been -0.51 percent/16,371 units in September and +13.49 percent/11,729 percent in August). They are running at +7.91 percent for the year-to-date at 191,183 units for the first ten months of 2017.
Scooter sales in Italy are +5.45 percent for the period January to October at 113,694 units; Honda’s SH 150/300/125 variants are the top-sellers (28,742 units YTD between them); followed by Piaggio’s Beverly 300 ABS (6,938 units), the Yamaha XMax 300 (5,031 units) and the TMAX 500 (4,011 units).

News Briefs

German motorcycle industry magazine Bike & Business will stage its annual industry conference and awards at its Würzburg headquarters on 23 November.

It has emerged that while serious bids were indeed received for the sale of Ducati, the powerful German unions, who account for half of the seats on owner Volkswagen’s advisory board, were united in opposition to the sale. Bajaj Auto and the Italian Benneton investment fund were believed to have been favourites to win the bidding war for Ducati, with some reports suggesting that Royal Enfield owner Eicher Motors increased its initial par bid of € 1.5m to some € 2m.
Slated for January 14 – 16 at Stoneleigh Park, near Coventry in the UK, Motorcycle Trade Expo 2018 reports that over 90 percent of available booth space was already sold by the end of September.

Premier Helmets is the latest to be hit by counterfeiters, with a fake helmet site using cloned images of Italian vendor PMR’s genuine Premier brand helmets. The company points out that unless the website is clearly loading as www.premier.it , then it is not their genuine, official site.

Dutch apparel manufacturer Rev’It! and Italian accessory designer Rizoma have joined forces, with Rev’It! USA taking over exclusive rights to distribute the Italian hard parts brand’s products in the United States and Canada from the Rev’It! USA headquarters at Brooklyn.

Japanese exports to Europe

Japanese exports to Europe +65% to Q3

The latest data released by JAMA (the automotive trade association in Japan, which includes representation of motorcycle manufacturers among its membership) shows exports of 250cc+ Japanese made motorcycles to Europe up by 64.97 percent in September 2017 (11,985 units), having been up by +31.71 percent in June, +36.05 percent in July and +37.99 percent in August.

They are running at +26.64 percent for the first nine months of 2017 at 159,244 units, the best first nine months since 2010. This gives credibility to the widespread view that sales in Europe this year are better than the registration statistics suggest as Japanese exports reflect a production wind-down towards the end of 2016 as Euro 3 2016 inventory became an issue.
For the full year 2016, exports of 250+cc motorcycles to Europe were +18.83 percent at 180,290 units – the best full year performance experienced by the Japanese factories in Europe since the 201,000 exported in 2010, but still a long way south of the 420,000 exported in 2007 and 461,000 in 2000.
Motorcycle shipments from Japan to the USA were +8.40 percent for September at 5,564 units (+1.79 percent in July and +28.27 percent in August) and are running at +1.55 percent for the first nine months of the year (51,689 units), reflecting the ongoing decline in domestic U.S. “metric” registrations.
Worldwide Japanese manufactured 250cc+ motorcycle exports were +46.72 percent in October (25,530 units), having been +31.87 percent in July and + 28.88 percent in August. At the end of September, they were running at +19.26 percent YTD (272,089 units), the best first nine months figure since the 308,751 units recorded in 2009.
Total Japanese made PTW exports to Europe were +41.25 percent in September (+21.50 percent in July, +22.14 percent in August) at 13,015 units, and are running at +21.77 percent YTD (170,440 units – the best first nine months since 2010 (189,319 units).

Stylmartin

‘Matrix’ touring boot

At EICMA Stylmartin unveiled this new leather touring boot, specifically created for long-range touring and on/off-road use, with a black anodised metal toecap and screw kit for easy attachment to the outer sole.

The snug fitting PPE certified  ‘Matrix’ is waterproof with “an excellent level of protection”. It has a charcoal grey two-tone effect leather upper, stitched to a Vibram sole, with an anatomic and exchangeable footbed.
The boot is closed using two adjustable, self-blocking levers, assisted by an upper hook and eye adjustment. Other features include a waterproof and breathable lining, armour on both sides of the ankle and a protective strip for the shin and calf bone. The brand logo is heat-printed, and the boot complies with the EN 13634:2015 European standard.
www.stylmartin.it

EICMA 2017

Regardless of the official figures, this year’s EICMA was an excellent show

This year’s EICMA marked a clear turning point in the fortunes and trends in the Italian market, and for EICMA, in what, hopefully, it is a foundation for continued expo and Italian market growth for years to come …

The attendance statistics issued by EICMA are notoriously “loose”, shall we say; indeed, it has been a characteristic of all Italian show organisers for decades.
The trade association does not always issue attendance figures (which is usually a sign that visitor or exhibitor numbers, or both, were down) and when it does, the use of statistics is so selective and so inconsistent that it makes year-to-year comparisons difficult.
 
+24% increase in attendance

In the specific case of EICMA there were next to no statistics issued for 2016, and no more than three or four expo news releases have been made at all in the 12-month cycle since – those that have been made have been ‘random’ in the content at best!
However, after three days at EICMA, this year three facts were obvious.
First, for the first time in a decade the show had a really positive vibe, reflecting the fact that the domestic Italian market and the vendors who sell there had definitely got smiles on their faces at long last. Ironically in a year that has been a tad ‘tricky’ elsewhere in Europe, but regardless, the parts, accessory and apparel sectors appear to be in good shape even if there is still oversupply - but when haven’t there been more vendors than any national market or specialty discipline could realistically support?
Second, either there is someone new planning the use of space, or exhibitor numbers were genuinely up this year. The show occupied most of seven halls, with much less vacant space than has been the case for the past six or seven years.
Third, and I guess it is largely because the organisers continue to be hopeless at, and have no interest or incentive in “policing” the theoretically targeted specialist admittance that is supposed to characterise the Tuesday and Wednesday, the attendance during the first three days was certainly up. Reports suggest that the show was full on Friday, Saturday and Sunday too.



+28% international attendance

It therefore came as no surprise that a full attendance news release was made within 48 hours of the show closing its doors and one that, for once, backed up the hyperbole with some (still carefully managed) attendance statistics – so in recognition of a successful week for the motorcycle industry in Italy, here are the primary take-aways from their release.
This was the 75th EICMA, staged in its 103rd year, and the organisers claim it ‘registered’ “absolute records” and that it “confirms exponential growth with all the indicators positive. A great success with the public, recording a 24% increase in attendance”.
The release does not associate an attendance number with that percentage, either overall or otherwise. Therefore they are able to avoid breaking cover about last year’s number (which patently was way down on 2015) or the downward trend (despite the Italian trade association’s assurances to the contrary) that has been underway for anything up to a decade.
Indeed, the often quoted 500,000 plus numbers have long been unreliable - with total attendance likely to be in the region of 300,000 to 350,000, and attendance by people of riding age more probably in the region of 250,000 to 300,000 – which is still a mighty number, no question, but if wrong, then I invite ANCMA/EICMA to follow the example set by INTERMOT, AIMExpo and other national and international motorcycle industry shows around the world to declare and prove their numbers.
The release goes on to declare that 2017 has seen record numbers of visitors, though appear to be saying that the +24 percent is a comparison with 2015 and is therefore a two-show cycle trend.
Which, if true, is great, but why the continuing obfuscation ANCMA? Apparently, there were “over 150 innovations and world premieres presented at EICMA this year”, which doesn’t need to be accurate for anyone doing its job there to be able to confirm that yes, there were a lot of new model launches and a noticeable uptick in new parts, accessory and apparel introductions.
 
+20% exhibitor numbers

In terms of the increased exhibitor numbers, the statistics continue to be woefully distorted by way exhibiting own and third party brands are catalogued, with EICMA claiming that there were 1,713 “exhibitors present” when both direct and indirect “exhibitors” are (pointlessly) counted. However, EICMA has always been consistent in this idiosyncrasy, so even if the claimed +20% in exhibitor numbers (from 43 countries) over the recorded 2015 number (there they go again) is misleading, there’s no question that there were more than in 2016, a year that appeared to mark a nadir for the show (hence it being airbrushed from their statistical history).
EICMA says that “no less than 61% of the exhibiting companies came from abroad” (really?) and that the “net occupied area” increased by +15% (over 2015 presumably). Personally, I find it hard to believe that the actual number of individual vendor (aftermarket and OE) exhibit decisions can have been much more than a more realistic 700 to 800 (net of own and third-party brands), and if more than half of those exhibit decisions were made by non-Italian companies, then the figure is distorted by the numerically high number of small booths bought by Asian businesses.
 
+15% exhibit area

They go on to say that “participation by trade professionals recorded an important double-digit increase of foreign professionals” at +28% - well, if that is true, and it might be, then that has to reflect as much on the decline in international industry attendance witnessed throughout the past ten years, and on the conspicuously increased number of Asian component maker booths as on anything else.
“These extraordinary results confirm that the strategy outlined by the President of EICMA, by the executives and by all the members and manufacturers of the sector, is successful: based on innovative communication activity which focuses on internationalisation. A journey that began 103 years ago, and which today has made the show a privileged point of reference in the world of two wheels and a model of success to export.”
 
61% of exhibitors were ‘international’

Okay, so now I get it – failure to issue regular news releases and communiques and undertake any advertising (trade or consumer) outside Italy (as far as I could determine) is an innovation. Right, okay, glad we got that cleared up!
“The International Bicycle and Motorcycle Show is confirmed as the most important event in the world for the whole industrial chain of two wheels. An appointment that cannot be missed, a new model characterised, today, by a strong international connotation,” said Antonello Montante, President of EICMA S.p.A.
“The records of this 75th edition make it the best in recent decades from all points of view: the number of exhibitors, the surface area occupied, the attendance by professionals and the public. The show confirms Milan as the world capital of the two wheels. A model that is synonymous with excellence, Italian know-how, and which today is a reality and a great asset for the whole country.”
Well, with apologies to Antonello Montante, and to Gianluca Mammoliti, the press officer who can only play the cards he’s dealt, for my sceptical and less than reverential tone - it is nothing personal, I assure you - regardless of the hyperbole and largely meaningless statistics (you wait years for some and then wonder why!), I will, however, wholeheartedly concur that is was an excellent expo and however the numbers are arrived at, for sure shows the Italian market to be moving in the right direction.

Motorsport Aftermarket Group

TR/MAG in Chapter 11 Bankruptcy Protection Filings; has new owners

-    Motorsport Aftermarket Group implements debt recapitalization
-    Over $300 million of debt to be eliminated
-    Operations unaffected, customer services continue uninterrupted

The following is the full, unedited text of a press release received at the International Dealer News office on Wednesday November 15, 2017

COPPELL, Texas, Nov. 15, 2017
Motorsport Aftermarket Group (“Company” or “MAG”), a leading independent manufacturer and distributor of branded aftermarket products and online retailer for the powersports industry, today announced it is implementing a comprehensive, consensual recapitalization to eliminate approximately $300 million in debt through a debt for equity exchange supported by in excess of 90 percent of the principal amount of the Company’s prepetition first lien secured lenders, and its asset-backed lenders.
“Through this process, which we have been working very hard on with our key lenders to accomplish over the past month, we will de-lever our balance sheet allowing us to more effectively compete in today’s evolving powersports market. MAG’s businesses will continue to operate unaffected and the Company has sufficient liquidity to fund operations. Customer service and sales will continue, employees will receive wages and benefits as before, and vendors and suppliers will be paid in the ordinary course of business going forward,” said CEO Andrew Graves.
To implement the recapitalization, the Company and certain of its affiliates have filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the District of Delaware. The Company expects to move through the process quickly, and emerge in the first quarter 2018 as a stronger, better capitalized and competitive company.
To support operations through this process, MAG has secured up to $135 million in debtor-in-possession (DIP) financing from certain of its current secured lenders.
“The U.S. Powersports market has been in persistent decline for the past few years. In response, MAG has been working diligently to adjust to the changing landscape and has implemented many initiatives to parallel today’s market. Unfortunately, the Company’s long-term debt continues to be an impediment to success,” added Graves. “As such, we believe that by availing the Company to the chapter 11 process, MAG has chosen the most efficient and expeditious way to right-size our balance sheet for the long term so that we remain an industry leader for many years to come.  We and our key creditors are committed to what will hopefully be a short bankruptcy case.”
Key Elements of the Recapitalization:
•Employee wages and benefits will be paid in full in the ordinary course without interruption.
•Customer orders will be fulfilled consistent with past practice without delay or disruption.
•Vendors and suppliers will be paid timely and in full going forward.
•Company will emerge with new owners and a new board of directors.

Monomoy Capital Partners, BlueMountain Capital and Contrarian Partners will lead the new owners group, and have deep experience in consumer products and lifestyle companies including distribution, retail and manufacturing. “We are encouraged to have access to the resources the new owners bring, by their passion for the powersports industry, and for their shared vision for MAG’s future. Looking forward, MAG will be able to more aggressively capitalize on market and growth opportunities given our strong balance sheet post recapitalization,” said Graves.
“Importantly, MAG is very appreciative of its employees who have remained committed and professional during what has been a challenging few years. Moreover, we are grateful to our valued vendors and suppliers who have remained our partner, and we thank our customers who continue to trust and rely on us. We look forward to continuing to work together for many years to come,” added Graves.

MAG CEO Andrew Graves - “Through this process … we will de-lever our balance sheet allowing us to more effectively compete in today’s evolving powersports market. MAG’s businesses will continue to operate unaffected and the Company has sufficient liquidity to fund operations.”

Stat Facts

ACEM Stats
 
Highlights from the latest data from ACEM, the Brussels based international trade association, for the second quarter and first half year of 2017 …

Combined registrations of motorcycles and mopeds in the EU (all PTWs – Powered Two Wheelers) reached 682,008 units during the second quarter of 2017, representing a decrease of -3.0% compared to same quarter of the previous year.

Italy was the best performing market with 137,483 units sold (+5.9% compared to Q2 2016). 

Registrations also went up in France (134,036 units, +4.5%). 

This contrasts with the situation in other large European markets such as Germany (102,929 units, -12.6%), Spain (76,558 units, -5.3%) and the UK (56,677 units, -14.1%).

In motorcycle terms, registrations of motorcycles in the EU reached 520,846 units during Q2 2017 (-4.9% compared to Q2 2016). 

The Italian motorcycle market is currently the largest in Europe with 124,913 units registered in Q2 2017 (+6.6% compared to the same quarter of the previous year). 

Motorcycle registrations also increased in France (91,494 units, +2.6%), but decreased in Germany (88,322 units, -12.3%), Spain (67,373 vehicles, -8.1%) and the UK (53,549 units, -13.4%).

Registrations of mopeds in the EU increased by +3.66% (161,162 units), led by strong growth in the two largest European markets - France (42,542 units, +9%) and the Netherlands (37,032 units, +8.4%).

Moped registrations declined in Germany (14,067 units, -14.8%), but remained stable in Poland (12,586 units, +0.5%) and Italy (12,570 units, -0.5%). 

Total registrations of electric mopeds, motorcycles and quadricycles reached 13,089 units during Q2 2017, an increase of +30.5% compared to Q2 2016 (10,576 units). 

A total of 10,204 electric mopeds and 1,995 electric motorcycles were registered in Europe (+78.1% and +23.5% respectively), whilst figures for electric quadricycles went down from 3,232 in Q2 2016 to 1,610 units in Q2 2017 (-50.2%).
www.acem.eu

BMW Motorrad

BMW presents the R 1200 RS ConnectedRide at CMC Conference 2017

At the CMC Conference 2017 (Connected Motorcycle Consortium - 12 October at BMW World, Munich) BMW Motorrad presented its R 1200 RS ConnectedRide prototype, “giving visitors of a look into the future of motorcycle safety systems”.

In addition to a crossing and left-turn assistant it features a large number of further systems designed to prevent accidents between motorcycles and passenger cars. Other traffic users who are about to disregard the right of way are warned as well as the motorcycle rider. This dangerous situation is detected and warning measures are initiated thanks to Vehicle to Vehicle Communication (V2V), based on a cross-manufacturer communication standard and extremely high-precision localisation via D-GNSS (Differential-Global Navigation Satellite System).
In 2016 the CMC (Connected Motorcycle Consortium www.cmc-info.net) was founded by BMW Motorrad, Honda and Yamaha with the aim of promoting Cooperative Intelligent Transportation Systems (C-ITS) for motorcycles with as many cross-manufacturer standards as possible. The only cross-manufacturer consortium for motorcycle safety worldwide has been steadily gaining significance.

The CMC takes special account of the requirements specific to motorcycling in view of the highly dynamic development of automotive safety systems. This above all includes Vehicle to Vehicle Communication which has not taken motorcycle-specific safety aspects into consideration sufficiently so far. The CMC Conference 2017 centred on the speeches by and the exchange of information with Pedro Barradas of the Directorate General for Mobility and Transport of the European Commission (DG MOVE) and Dr. Ulrich Veh, Security Director of the European Automotive Manufacturers’ Association (ACEA) as well as Antonio Perlot, Secretary General of the European Motorcycle Manufacturers’ Association (ACEM).
Host and new CMC President Prof. Dr. Karl Viktor Schaller, Head of Development at BMW Motorrad said that “Our aim is to promote the comprehensive use of cooperative safety systems for motorcycles at an early stage in order to exploit their potential for increasing safety as well as riding pleasure. This is why we are inviting other companies to join in.”
In addition to providing the opportunity for intensive dialogue, the CMC will focus on joint motor show appearances as well as events in 2018 in order to actively illustrate the latest safety system developments for two-wheeled vehicles. A foretaste of what is to come was given at the CMC Conference 2017 by the BMW R 1200 RS ConnectedRide prototype and two prototypes based on a Honda CRF 1000 L Africa Twin and a Yamaha Tracer 900 using a common architecture.
The next important date in the CMC calendar is the ITS World Congress from 29 October to 2 November 2017 in Montréal, Canada. This will be the world’s biggest event focussing on intelligent transport systems and services. At the round-table-talk on 1 November, the CMC will conduct an in-depth discussion on the topics of connected networking and V2V communication with experts from the US, Europe and Taiwan.

TCX

‘Rush’ performance boot

Part of TCX’s 24/7 Performance line, the ‘Rush’ boot “offers comfort and protection even for the longest rides”, according to the Italian manufacturer.

Features include a frame-gripping “soft touch” matt microfiber and perforated suede chamois leather combo upper; a soft and comfortable mesh fabric internal collar and a durable, wear-resistant all-uses sole with anatomic and replaceable footbed.
The internal lining is made of AIR TECH breathable fabric, making the ‘Rush’ particularly suited for spring and summer riding; the specially designed structure is embellished by air vents in the ankle area and “micro-piercings” to give a sporty look; it is fastened by laces and a Velcro band. ‘Rush’ features reinforcements in the toe, ankle and heel areas and is CE certified according to the new EN 13634:2015 regulations. Available colours are black and black/white.

TCX S.r.l.
www.tcxboots.com

K-Tech

Triumph/Yamaha shocks, KTR-4 race forks

British suspension manufacturer K-Tech has multiple new product offers for their dealers as we head into the 2018 season, among them new gas-filled Razor and Razor Lite shock applications for the Triumph T120, Street Twin and Thruxton, said to deliver “improved comfort, handling and precision adjustment” for “Hinckley Twin owners.”

Razor for Triumph Twins

Described as “styled to blend in with the Bonneville’s retro lines, both the Razor and Razor Lite come in a subtle and traditional black finish, yet contain the latest in suspension technology. Designed in the UK using our extensive experience in the race paddock, both are nitrogen-filled, providing more consistent internal pressure as the damper operates, for a smoother ride.”
Rebound damping on the Razor and Razor Lite is adjustable by hand – no tools required – using a dial at the base of the shock absorber. Length can also be adjusted by up to 10 mm, simply by turning the nuts above the spring, (one turn = 1 mm, so it is easy to measure).

KTR-4 front forks

Razor shocks feature a piggyback reservoir, with an additional hand-dial at the collar, for quick and easy compression damping adjustment. Both Razor and Razor Lite units are direct replacements for the original equipment and available for the T120, Street Twin, Thruxton 1200 and the Scrambler (up to 2015).
Also seen here, K-Tech’s latest generation Razor-R and Razor-R Lite shock absorbers are now available to fit Yamaha’s Hyper Naked, Sports Touring and Sports Heritage 700 and 900 cc models. 

Razor shock absorber

Direct modification-free replacements for the original equipment shock absorbers, both models have internal reservoirs to separate the nitrogen gas from the damping oil for more consistent control. Length and rebound damping adjustment are straight forward, and the Razor-R has a hose-linked remote reservoir for compression damping adjustment.
At the top-end of the K-Tech range, KTR-4 front forks use their patented, championship-winning DDS (Direct Damping System) technology, which has been designed to compete at the highest levels of motorcycle racing. The DDS pressurised damping system uses 20 mm displacing pistons to create a high flow of oil through the 32 mm control valves to give precise damping control.
The design is said to eliminate cavitation, making the system very stable under extreme conditions; the damping circuits are designed to work independently to improve the dynamics and response time. The system is pressurised by a spring force, keeping it stable under all working temperatures.
They have 0.5 kg less unsprung mass than their previous KTR-3 forks, 10% more flex, and are now 1 kg lighter.

K-TECH SUSPENSION
www.ktechsuspension.com

Vance & Hines

Raceshop Components by Vance & Hines

Best known for their market leading performance exhausts, founders Terry Vance and Byron Hines’ origins are in drag racing and race engineering tuning.
Vance & Hines’ new Raceshop Components engine parts programme leverages that heritage to present a range of high-performance options for many of the market’s most popular late model performance bikes.

“Manufactured with state-of-the-art equipment, utilising stringent quality control procedures to significantly improve all components for prolonged durability and reliability, whether building a street performance engine or a drag motor, Vance & Hines engine components are drop-in upgrades providing needed stability while reducing premature wear.
For Kawasaki’s ZX-10R engine, Raceshop high performance valves are “machined to exacting tolerances” and available for ’11-‘16 models for both intake and exhaust positions, and offered in either stainless steel or titanium.
Precision CNC-machined from a chrome coated stainless one-piece forging for higher strength and durability, the micro-polished stem means a smoother finish with less friction, resulting in improved performance. The high-grade alloy is designed to withstand high heat and maintain roundness. Multi-angle back cuts are designed to deliver enhanced flow, and the titanium valves are said to offer approximately 10 g in weight reduction compared to the OE valves, reducing valvetrain stress and allowing the engine to rev higher for more power. 

Vance & Hines’ 5 mm machined valve keepers for ‘99-‘16 Hayabusa models have been precision-machined on a high-speed Swiss screw from 1144 aerospace grade steel. Designed for high-performance applications and high-tension valve springs, they are said to deliver superior performance compared to stamped OE valve keepers.
They have been heat-treated and black oxide finished for improved corrosion resistance, have tolerances of +/-.001 for precision fit and are sold as pairs or complete sets (16 pairs).

VANCE & HINES
www.vanceandhines.com

AIMExpo 2017 review part 2

GIVI: Recent new products from the Italian luggage to helmets to windshields manufacturer include their S410 universal trolley base for their Monokey top cases, luggage and accessories kits for bestselling current models such as the Z1000SX, 50.5 ‘Tridion’ thermoplastic I303S Bluetooth intercom- ready sport touring full face helmet, plus additions to their universal fit soft luggage ranges, including the new Ultima-T and Gravel-T (off-road) ranges; www.givi.it

 

Barnett Tool & Engineering: The leading Californian clutch and cables specialist was founded in 1948, and with Collen Barnett-Taylor and her husband Mike Taylor at the helm, the company is still owned and operated by the founder’s family; www.barnettcables.com

 

Andreani Group: Distributed in the United States by Fast Bike Industries, the Italian suspension specialist’s fast-growing range of Misano drop-in front cartridge kits and advanced suspension workshop and tuning products are making Andreani an increasingly popular choice with dealers in the United States; www.andreanigroup.com, www.fastbikeindustries.com

 

Puig Hi-Tech Parts: Five years on from the opening of their North American headquarters and warehouse at Orlando, Florida, the Barcelona based ‘Motoplastic’ parts and accessory manufacturer continues to see sales grow with exports to more than 60 countries worldwide. Their “Virtual Wind Tunnel” developed screens and windshields programmes are driving sales, with aerodynamically and ergonomically correct designs available for most popular makes and models. Their latest product news includes the GT and F1 and mirrors - “a balance between simplicity and dynamism”, offering “low weight and high modularity due to 30 mm extension and three axis of rotation. CNC-machined from billet aluminium, they are available in anodised finishes; www.puig.tv

 

TecMate: Manufacturer of the market leading OptiMate programme of battery chargers, diagnostic and maintenance systems for AGM, GEL, and standard lead acid batteries and are leading the crusade to educate the market about the advantages and safe and proper use and maintenance of lithium (LiFePo4) batteries for powersports applications; www.tecmate.com

 

UFO Plast: Founded in 1977, Italy’s leading motocross apparel and accessories specialist says it is now the largest manufacturer of OEM replacement plastic parts in the world. Sold in the United States by Illinois based TUF Racing; www.ufoplast.it

 

SBS: The big news this year from the leading Danish brake pad manufacturer concerned their entry in to the brake disc market. Chief Sales Officer Christel Munk Pedersen said: “These new discs are made here in Europe with designs that are based on our extensive race and street knowhow and experience.” The programme comprises three lines - a Standard range, which meets the demands for OEM replacements that offer durable and comfortable braking; the SBS Signature discs – specifically designed to increase brake feel, performance, comfort and looks; and an oversized discs line especially for off-road use. “We have been in braking for more than 50 years and offer the most comprehensive brake pad range in the market. By adding brake discs as well as brake shoes and accessory parts such as brake pins, we are now able to offer a very strong and attractive product portfolio, underlining our status as the brake specialist; www.sbs-friction.dk

Andreani

Can suspension tuning and diagnostics ever get any better than this?

Italian suspension specialist Andreani’s DB4 test bench is now ready to ship and is a major step forward from the DB3 that Giuseppe Andreani introduced eight years ago.
“We have rebuilt the entire concept,” Giuseppe says. “The new DB4 is an evolution of our previous experience with our DB3, which was for the last eight years one of our best suspension machines. Our engineers have developed new software and hardware, with the software marking the revolution.

“We focused on precision, ease of reading, managing and comparing data. This is giving the suspension technicians the final tool to develop and test material, and my technicians, together with the engineers, worked on a professional and problem-free software and hardware.”
This new suspension dynamometer features optimised design, engineering and software. The 4kW powerful motor, the load cell that allows reading up to 5.000 Newton force, the 800 mm side rods and the simple and versatile software are all said to make the DB4 “easy to use, but very accurate”.
“The process is very simple: turn on the dynamometer, adjust the stroke you need according to the suspension that has to be measured (it is adjustable from 20 to 100 mm), fix the suspension on the machine, adjusting height and position according to the stroke, then enter the required speeds and cycles for each speed, and start the test. The powerful 4kW AC motor allows you to test shock absorbers and forks in a wide range of speed and loads, choosing between several stroke settings.”
DB4 advanced features allow any suspension operator to visualise real time shock and fork load vs velocity graphs, compare different click settings and valving options, measure dynamic suspension parameters and detect any operating anomalies.

It includes a state-of-the-art, real-time dedicated controller board that ensures a stable and reliable automatic and deterministic data acquisition, while the software provides an intuitive graphical user interface for data acquisition and simple but powerful tools for suspension analysis. It is compatible with the most common operating systems, and, as it is plug-and-play, does not require a dedicated laptop. 

“The graphs and numerical outputs of the software and its sophisticated algorithms allow you to fully characterise the suspension thanks to peak velocity, load displacement and instantaneous velocity graphs,” says Giuseppe. In addition to the viscous response of the suspension, a suspension dyno provides the following outputs: gas preload, mean gas-spring rate and static friction.
Custom versions of the software can include hysteresis analysis, dissipated energy and damping coefficient calculations.

 
ANDREANI GROUP INTERNATIONAL
www.andreanigroup.com

Hevik

Hevik all-condition rainwear system

Hevik’s top-of-the-range ‘Rainstop’, ‘Twister’ and ‘Dry Light’ rainsuits, high-visibility jacket and trouser options, plus shoe and glove covers completing the offer, provide dealers with a one-brand system of options that will keep their customers dry (and seen) in all conditions.

Aimed at long distance riders, Hevik says ‘Rainstop’ can stand a pressure equal to an 8,000 mm water column even after many hours spent in the rain, maintaining high breathability thanks to the use of polyurethane coating (PVC-free ‘Ripstop’ Nylon). The jacket has an internal waterproof pocket, strap adjusters at the waist, a fold-away concealed hood and a strap central closure with double fastening and air vents on the back. 

The trousers have an elasticated waistband and strap adjusters at the bottom of the leg. Both garments have yellow fluorescent inserts to enhance active safety. The suit is sold in a compact waterproof bag that can be stored in a backpack or under the saddle.
For commuters, the ‘Twister’ waterproof suit has features that “are above the average” for such a garment as it can stand a pressure equal to a 5,000 mm water column, and therefore provides the necessary water resistance during medium or longer journeys in the rain. Made of Nylon PVC, matched to a mesh lining, ‘Twister’ offers the same wear features as the ‘Rainstop’.

‘Dry Light’ is “ideal for urban use” and made from windproof and waterproof fabric (polyester with PVC coating on the outside with an internal lining). Its waterproof level (it can stand a pressure equal to a 3,000 mm water column) is enough to withstand rain during short urban trips. The jacket has a central zipper opening protected by a hook and loop fastening strap, a non-removable hood that folds into the collar and closure at the wrists with elastic and strap. Trousers have an elasticated waistband and strap regulation at the ankles.

HEVIK S.r.l.
www.hevik.com