A few weeks ago, our editor threw his hat into the ring and offered his thoughts regarding how the current state of the economy was affecting motorcycle sales. He then asked our readers to chime in with their own opinions, and offer advice to the industry as to what they felt could be done to turn around sales in this trying economy.
MD will be taking our yearly holiday break — we will be back January 2, 2009. In the meantime, I am leaving you with the pearls of wisdom offered by our readers (unedited, with one exception) to keep you occupied while we are gone. Have a safe and happy holiday season!
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A possibility would be something that the recently unveiled TU 250 from Suzuki is perfect for. Smaller displacement club type events similar to the Vespa scooter groups. Easier to get into and started financially but just as competitive.
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While it’s easy to pinpoint obvious failings by individual manufactures ( Honda’s lack of scooters / dual sport / entry level machines ) a solution for the coming collapse of the entire motorcycle sales business is harder to quantify, much less pinpoint. A toilet-bound economy, tanking gasoline prices and the deathly prospect of deflation mean customers are going to stay on the sidelines awaiting lowered new bike prices OR steal good used machines from owners desperate to raise cash to save their homes or pay the monthlies. In the green/safety oriented world on the other side of this world economic meltdown will be a different selection of cars and motorcycles. History will record that all the greatest cars and motorcycles are in production today. The EU and America’s environmental bedwetters are going to kill the BMW M3’s and Yamaha R1’s that define this late/last performance era. “Buy and Hold” applies to quality stocks AND these last, great machines. It’s all downhill from here.
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The answer is pretty basic for motorcycle manufacturers trying to survive in the US. Aggressively market motorcycles to be far more than just toys. Time to revisit the UJM and the useful sub-500 motorcycle…how many CB350s and Hawks did Honda sell in the age of 750 and 1000 superbikes? How many DT, KE and XL dual-purpose bikes were sold in the 70’s? As much as people
fawn over the superbikes of the era, these previously listed bikes were the cash machine for the industry.
This will require serious effort on the part of the builders to recreate a lost market and generate demand, but it may be their only shot at North American survival. Time to bring back, “you meet the nicest people on a Honda.” No urban hype…no Hip Hop…no outlaw attitude…all generic, middle-America mass-market usefulness, convenience and economy with just enough clean fun. Unfortunately, this is probably not an option for Harley Davidson…they are all about Niche and Style. I can’t see the “Harley
Loyal” supporting the new model move, and I can’t see the members of this newly-required “utility market” wanting anything to do with the Sturgis crowd. It may also be a problem for Ducat and the like, unless they can provide more city accessories and longer maintenance intervals for the Monster line.
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Here in Brazil, the motorcycles are mostly used as means of transport. But the manufacturers are suffering with the crisis and the lack of financing anyway. I think that the reason of the purchase doesn’t change the situation. The manufacturers must prepare themselves to offer good deals when the economy is healed again as they cannot change the situation now.
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I believe sales in the UK are up. http://www.mcia.co.uk/display_article.aspx?OBJ_ID=1181983
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Motorcycle manufacturers need to bring more practical motorcycles into the American market. The economy, fear of high fuel prices, and environmental awareness are all opening up the American mind to strange new ideas. Like the idea that motorcycles can be valid means of transportation and not just expensive toys or fashion accessories.
Using advertising to make consumers aware of the potential fuel mileage of motorcycles is a good first step. Kawasaki has been
particularly aggressive about that. But we also need motorcycles that get great fuel mileage as well as provide comfortable ergonomics, adequate storage space for a commuter, and and carry enough fuel to make through several days of commuting duty before requiring a stop at the gas station.
Scooters and maxi-scooters are often all we are being offered in terms of really practical two-wheeled transportation. I’m glad such vehicles are out there, but there needs to be more motorcycles that have transportation in mind. Fortunately no one needs to reinvent the wheel. There are many practical motorcycles being built and sold right now, for the European market. The time has come to bring more of those bikes here.
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I’d like to see manufactures offer more simple less expensive motorcycles. More of the lines of naked bikes of yesteryear and that would fall in the price range of $4,000 to $6,000 yet that still can satisfy some performance junkies like me.
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Motorcycle Manufacturers need to quit advertising bikes as toys. Advertise them as an form of transportation that is efficient and easy to park. The fun is just a bi-product.
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“… where motorcycles are more often toys than essential transportation …”
Interesting point. Maybe Yamaha is thinking that way too. Their website is running a survey on supersport bikes, and the title says it all: “The dream continues?”. There are questions about pricing and so, which shows that there are some people there worried about it.
http://www.yamaha-motor-europe.com/designcafe/en/opinion/?I.Project=supersport2008&i.user2=ENG
Do the manufacturers have any ‘official’ figures on the sales drop? Just curious, because the car manufacturers are reporting something around 30% drop, muh more in some cases, but I didn’t find anything about motorcycles numbers.
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A big part of the presidential campaign in the US was alternative energy. The federal government should be offering tax incentives to those of us who ride motorcycles. Motorcycles get anywhere from 30-100 mpg, far higher than the average for passenger vehicles.
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It would help if companies like Honda would actually make something exciting to ride! Their bikes are now just like their cars; reliable, dependable, quality build, but one big yawn.
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I think you nailed it on the head. I totally agree that motorcycles are more toys than essential transportation, especially in this country. Introducing practical fuel sipping commuter bikes will only have limited appeal. I don’t know the answer but to me motorcycling was more colorful in the past when many more models of various displacement were offered. A time when small bikes started at 50cc before you got to 500cc there were half a dozen steps along the way. Today one is almost hard pressed to find anything below 500cc and certainly 250cc. But times change. Personally I like the direction the naked bikes are taking. I don’t fancy myself as a weekend “bad-boy” type on his Harley or metric cruiser and as I age the sportbikes are just too knife edge keen. So what’s in between? Rather few options and few that stand out from the others.
Until the whole credit issue heals the sad fact is many will have no other option for payment.
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Here’s the scene: low camera angle, a BMW R1200S sweeps past and carves up a series of bends. The same bike pulls into a parking lot full of boring SUV’s and sedans, the rider sheds his helmet, and pulls his laptop bag from one of the panniers, he nods to some fellow workers, “good morning guys”, and walks toward the office. The half awake group of nerds surveying him, sip their coffee, and one of them asks, “He rides to work?”. One the other guys responds, “Everyday”. The screen fades to black and shows the slogan, ‘Why drive when you can ride? Motorcycles aren’t just for the weekends’.
Motorcycles should be marketed as efficient commuter vehicles rather than as adult toys as they are so often depicted now. Sales actually took a slight upswing when gas spiked a $4/gallon last year. The rational (or rationalization) of this needs to be emphasized.
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Even in the boom times there were too many manufacturers with too many marginal products. As consumers continue to focus on essentials, some manufacturers and many models will be eliminated. Do we really need Benelli? Or the unthinkable, would you really miss Honda? My advice to a manufacturer is to focus on your core business. Then make the best product you can at the best price possible.
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The motorcycle industry should stop trying to sell Americans nothing but overblown, humongous, bigass cruisers, and sportbikes that are too powerful for most of the people that buy them, and start building the kind of bikes that were available in the 60’s and 70’s, i.e, smaller displacement bikes of 250, 400-450 and 500 cc singles and twins (read “standards”) albeit with current technology (F.I. and no drum brakes) and decent fuel economy. Not everyone wants a scooter, but I’ll bet that there are plenty of potential beginning and older riders who would love to have a smaller motorcycle that has enough power that they won’t
outgrow in six months, but if they do they can gradually move up the displacement ladder without having jump to a 1000cc motorcycle all at once if they don’t want to. Japan, Inc. is already producing scads of bikes just like these, but ONLY FOR THE EUROPEAN MARKET. If they were smart they could start offering some of these bikes to American riders, not in a deluge like they normally do, but just a few models to test the waters.
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Manufacturers could do a lot of good if they managed to cut the price of cruisers to reflect reality. Lets face it the sport bikes of the world are much more sophisticated and complex and much better performing than the average cruiser yet the cruiser costs considerably more. Of course maybe they are jacking up the cruiser since they can sell them or it supports the price leader sport bikes. I have no idea I just know I have owned both and I know which one should cost more. So in these difficult times why not bring some reality to the marketplace. It sure has been brought to my wallet. While we are at it, what’s with the price of accessories, they are absurd! I’d by more if they cost a bit less.
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Get the AMA to promote motorcycle safety in high school. It could see an increase in safer riders and a lower percentage in accident statistics, which hurt potential sales. For those who will not ride after the class will at least benefit from the curriculum and be more aware of riders on the road.
Offer test rides for potential buyers. Why do the more expensive Marques (Triumph, Ducati, Harley, etc.) offer test rides, but the Honda, Kawasaki, and Suzuki dealers typically do not? If I can’t ride it, I am less likely to buy it!
Financing is also hard. Unless things have changed, typical factory financing starts off low, but then jumps to astronomical after the first year. If you do not want the motorcycle to be perceived as a toy, don’t treat the financing as a glorified credit card!
Dealerships need to get more involved in the community. Public awareness is a great tool. Harley dealerships at least have group rides and gatherings to promote themselves, the marquee, and the riders. Imports (Japanese) usually do not. Maybe dealerships can sponsor MSF basic riders’ safety class for potential buyers. Give the buyer a reason to come back.
This is not an attack on Japanese motorcycles, I ride a Honda 919. But let’s face it, for too many years these manufacturers even avoided the International Motorcycle show’s demo rides. Honda still avoids it in Long Beach and their Headquarters are 14.1 miles away in Torrance! (yes, I Googled it) Get out of touch with your customers and someone else will take them.
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With the economy the way it is, It may bump start the manufacturers to bring us those one-off bikes they like to tease us with. Motorcycles allow us to forget about low points in life for a while.
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If the motorcycle manufacturers want to take advantage of the opportunity created by the general economic downturn and the prospect of a return to high gasoline prices, they should step back from their two-pronged marketing towards the cruiser and sportbike crowds, and offer – and advertise – affordable motorcycles that are already configured as urban-ready. Most of the manufacturers already have bikes in their lines that could fit the bill with a little help. Lightweight dual-sport bikes could come factory-equipped with lockable hard bags (like you see fitted on KLR650s) and friendlier seat heights, for example. They should start capitalizing on the desirability of bikes with bona fide urban sensibilities, which neither sportbikes nor cruisers can claim.
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Motorcycle sales are down. But I just bought a new 2008 ZX-10R last Friday. Why would I do such a thing? Manufacturer to dealer rebates passed along to the consumer, my friend. Kawasaki had $1050 in rebates on unsold ZX-10Rs. Subtract that from the dealer’s cost – he just wanted the thing off his floor plan – and you get $8,950 for a new Ninja. Offer the rebates and they will come.
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The state of the North American motorcycle market from a consumer’s viewpoint is pathetic.
Technology that is decades old in automobiles is in many cases still not found in motorcycles. ABS is merely trickling in as is fuel injection. Tires have not improved significantly in 40 years. Most bikes are still driven by messy, high maintenance chains.
Artificially low gas prices since the 70s is largely to blame. Motorcycles are viewed as toys rather than what they should be, efficient, economical, environmentally friendly tools for transportation.
Leading the charge to the dearth is the Honda Motorcycle Company. For their customers it’s plastic cruisers or crotch rockets. Anyone looking for something practical can forget it. Honda currently offers no motorcycle between a 223cc wheezer and a 600cc inline four guzzler. Neither is designed for transportation. On the scooter side, things are even worse where Honda offers nothing between 49cc and 650cc.
Technology could have made the difference. If manufacturers offered practical transportation and an alternative to automobiles they would’ve been better equipped to prosper in an economic recession.
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Maybe manufacturers should start making their practical bikes so that they’re even remotely attractive. Take the Kawasaki Versys for example. You’d be hard pressed to find a bike with an uglier visage, but it’s a very practical, sensible bike for every-day use.
The pretty bikes are all too uncomfortable and most are unable to accept hard or soft saddlebags due to tail unit or exhaust design. Practical bikes like the Versys are all too ugly to want to ride on a daily basis.
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More/cheaper entry level bikes (under $3000)
Re-define entry level as 350cc (currently it is 750cc)
Promote a culture where it is OK to be content with a bike 600cc
De-emphasize the crotch-rockets and emphasize utility/fun/economy
A better network for buying / selling used bikes
A better network for maintaining / repairing used bikes
motorcycle awareness in Driver’s training
More off-road, non competitive places to ride
Offer one-day training with class room training, range training, and DEMO rides!
More places to RENT bikes (should be cheaper than renting a car!!)
De-emphasize how a bike “should” sound, or how a bike “should” look
Celebrate everything on two wheels with a motor -
We treat motorcycles as toys because they are. A race replica sport bike is nothing more than a toy. A chromed out cruiser that’s polished more than it’s ridden – another toy. Dirt bikes – again toys.
Build lower priced, more efficient motorcycles with comfortable ergonomics (including real low seat height options), and motorcycles will change from toys to useful modes of transportation.
Perhaps this is a good wake-up call to everyone involved – manufacturers and consumers?
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Manufacturers should focus on value. Building more standards with luggage options, and less focus on specialized designs may help to decrease costs. This could be accomplished using existing developed platforms. Of course the ideal motorcycle for me is not the same as others, but the Honda 919, or Kawasaki ZRX1200 are perfect in my opinion, these types of bikes are able to comfortably transport in an economical fashion, and still provide performance, utility, and style. Honda, should wake up and build a 750cc or 1000cc air cooled retro standard, with modern materials in a classic conservative form. Honda seems to have lost its edge and its innovative character with the death of Soichiro, but is still building reliable rides, despite being long in tooth. Suzuki, has a very good bike in the Bandit 1250, focus on making it more cost and platform competitive, (include touring options) and then make a ditto of it in the 650, or even smaller size. Kawasaki, has given us two excellent parallel twins, make another that is bare bones and retro standard, and make a standard cheaper version of the zzr600, its a solid proven platform that needs no investment, just re-figure the ergonomics. Yamaha, should import the smaller displacement Tenere, and perhaps re-introduce the srx-500 or a similar type. Triumph I think is doing its own thing and is perhaps a bit distracted with the Thunderbird, seems like another milk toast cruiser to me with a British name on it. Harley can really step up with a range of economy standards that are not cruiser derived, simply by changing the sportster’s awful ergonomics to a standard foot peg location(under the seat) and raising the seat height. BMW is just too expensive, period (for most), but will likely continue to thrive since they are showing innovation and market expansion into younger markets. The R1200R is another perfect bike for me, but its cost is prohibitive. Their other standard parallel twin is better cost wise, but is still upmarket compared to say the Bandit 1200, and pales in comparison as far as value. Ducati, Aprilia, Moto-Guzzi, I can’t comment on, but they, like BMW, and Harley, have specific market segments that don’t necessarily include budget oriented riders. Monsters are perhaps the exception, but again the value equation gives them a disadvantage.
I also think they could capitalize on certifying used bikes.
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I am writing you in response to your brief article “A Sorry State of Affairs, But An Opportunity, As Well”.
I am living in Europe, so here the motorcycle is not just for hobby, but a viable alternative to overcome the road blocks and urban traffic.
I think the real problem to the American market is not the credit crisis, but the mindset of the buyers and the particulars of the US market. The biggest chunk of the market is taken by the cruiser segment, which, by definition is more show than go; is not the most practical transportation mean (lack of agility for city riding, fuel consumption, comfort on bad urban roads, too much chrome to maintain and polish). Not to mention that a cruiser is significantly more expensive than a street bike (e.g. the latest Yamaha FZ6R is $2000 cheaper than the latest Yamaha V-Star 950, but it is 10 times better as a bike/transportation). And the Americans favor the “Bigger the better” motorcycles, which are way more expensive to buy and to run.
So the solution to your question is to find the answer to other questions: how one can change the mindset of the American buyer/rider instead of what new models should the manufacturers produce?
There are plenty of models in production which are cost effective, great as transportation and fun to ride (e.g. Suzuki Bandit 650, Honda CBF600, Yamaha FZ6, Suzuki SV650 etc.).
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Sport touring is my preference, so I’ll speak from that perspective. Bigger isn’t always better. Even GM is starting to realize that. It appears that the bike makers are getting GMitis. Get us back into the 1000cc range with a light, fast, nimble, and simple ST bike that doubles as a bike for commuting and short shopping trips. Make them simpler to sevice. We understand your
desire to support your dealers but remember, we own the bikes not them. When you can spend half a day changing plugs on the new Concours or a whole day just checking the valves on most other bikes, that’s just plain wrong.And for us in Canada, quit playing the foreign exchange game and sticking it to us every chance you get. You win no loyalty points there.
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The motorcycle companies, especially the Japanese, should reduce their cruiser market (which I believe caters to riders especially affected by the economic environment) and concentrate on no-so-sporty sport bikes, retro styled JUM’s and modern scooters. They should also immediately cancel motorcycles that don’t sell well and push development ones that do. Stop catering to everyone who wants to be a “today’s” rider and get back to the basics of motorcycling for the true motorcyclist.
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I think motorcycle manufacturers need to promote the more affordable lines of bikes as viable transportation. If people are interested in riding to work every day then they do not want a show bike. They just want something reliable that gets good fuel mileage. In my opinion the “standard” bikes of the past would fit the bill nicely. Something with plenty of power but a no frills machine that costs about $5k. It’s hard to justify buying a $13k motorcycle when you can buy a new car for the same price.
Another item that should be promoted even more is motorcycle safety. A lot of people don’t ride daily because of the increased risk or accidents. Properly trained riders would find it much more enjoyable to ride daily.
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Bad economic times like these call for sound thinking and a calm steady hand, therefore, I think the manufacturers should go into full panic mode. Just kidding. No, I think once the credit crunch is over and consumer confidence is restored things will quickly go back to normal. How long that will take we can only guess. Perception sometimes makes reality. The manufactureres may have to scale back production for a while and I think they should build more functional bikes that get high gas mileage and have accessory luggage racks that can be used to attach hard or soft luggage. Gas prices will most likely go back up so they need to keep that in mind. I’m seeing a bunch of scooters on the road now in addition to motorcycles.
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I recently sold my ’04 Electra Glide & am looking to replace it with a ’09 Road King. Thankfully, this financial quagmire the US is in, that in my opinion has not even come close to bottoming yet, has not affected my job but the value of my brand new house has dropped probably 20% in 1 year! That said, I am in the market for a new H-D but I am waiting for better financing offers before I buy. The best I’ve seen so far is 4.9% & the dealer pays the first 3 payments. Not bad but I’d prefer something like 3.9% or less for 6-7 years.
As far as people buying new bikes in this economic environment… people that ride will always have a bike. A friend of mine is retired & has a 2006 Road King w/sidecar, a 2005 BMW R1150RT & a ’65 Harley DuoGlide… he’s looking at buying a new ’09 Road King to add to his collection. One of the things that has fueled record bike sales over the last 5 years was the ability of homeowners to tap into home equity money to finance new bikes every couple of years or so. That option is gone! In my opinion, the lower the interest rate, the more appealing it is to buy a new bike. Dropping the (MSRP) price of the bike would also help attract buyers. H-D stock has dropped from $42 to $15 over the last couple of months. I want H-D to come out of this strong. I think people will continue to buy bikes but not at the unsustainable levels we’ve seen. Factories are going to have to lower their output & unfortunately, people will lose their jobs. But if the price is right, people will buy!
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I think they need to shift their focus from toys to practical vehicles. For example , instead of having the majority of bikes race replica pure sport bikes or naked bikes with their inherent limitations, they should make bikes with a more street, commuter friendly form. A bike with comfortable, adjustable ergonomics with fairing for good cold and rain protection, heated grips and functional intergrated detachable luggage , good gas mileage that is fun to ride would be heading in the right direction. The BMW F800ST is close to the type but is way too expensive. A bike such as the Suzuki SV650 in the ST form would be ideal and sell for a reasonable price. Bikes of this nature would be practical for daily commuter use and other trips that a car would be ordinarily be used. And, it could also be used for purely pleasure riding.
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Stop selling 200mph bikes. The irresponsible squids that buy these things make costs go up for everybody. Every year I get my insurance bill and it is up another $100. I call to ask why and they tell me it is to cover losses in the sportbike catagory. If one more “stunter”passes me at 100mph on the interstate with his front wheel in the air I’m changing lanes. The police should take the license of anyone acting reckless on a public street. A year for the first offense and 5 years for a second. Yamaha should look into something beside cruisers and rocket bikes. They sell a slew of standards, dualsports and supermoto style bikes overseas, why not here? Because they and the others keep shoving rocket bikes down our throats. Don’t even get me started on Harleys. $11 grand for a Sportster, my 650 single has more HP and cost $4999. Granted it doesn’t have the “look at me factor” but it will travel any type of roads. Alot of the Harley guys I used to ride with don’t anymore because they whine the roads I pick are too bumpy. Shut up and just go park at the bar,leave the riding to the riders. The companies should get back to basics. Good solid bikes at a reasonable cost. These plastic coated things get a couple grand of damage just falling over in the garage. Stop wasting R&D money trying to tweak another ten poines out of a motor that already has more go than an FI jet. Put the money into a decent tunable suspension for an affordable bike, not a $15 grand trackbike wannabe.I have almost 40 years in the seat and I am so disgusted with all the noise and useless speed. I think its about time to sit this one out. I am sorry if I have stereotyped anybody. But hey wake up and look around and tell me if I am wrong.
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think you hit it straight on the head, the main problem with new motorcycle sales is the consumer. Not only are the financial prospects for the average consumer bleaker than in the past years, but I also think that the number of new motorcyclists entering the sport is declining (mostly through anecdotal evidence). I say this as I recently sold a BMW R1200GS and a KTM 950S for very strong sales prices, but they were sold to life long enthusiasts. It’s time for the motorcycle industry to temper the adds showing sportbikes on the track and cruisers out on the weekend with adds emphasizing the value of motorcycles as commuting tools. As long as bikes are toys that are taken out once a month on a sunny weekend, sales will be very volatile in relation to economic upheaval. It’s important to note that the auto companies aren’t doing well either, but as long as bikes are viewed by the consumer as toys the recovery in their sales will lag behind the automobile.
I commute year round in Portland, OR, it can be done in much of the US. Manufacturer’s need to emphasize gas mileage (and improve it), the quality of protective apparel available, ease of parking, etc.
Keep up the good work!
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My point of view regarding this subject is probably somewhat different than most. Motorcycling has gotten so specialized and singular in focus these days, with the additional consequence of the added R & D costs to keep their bikes competitive. The motorcycling press tends to aggravate the situation by focusing mostly on limited function sport bikes, and much less emphasis on multifunction bikes.
My suggestion to the manufacturers is to produce more “do it all” type of bikes, with a more comprehensive line of accessories, which would make it possible to personalize one’s ride without searching for those items in the aftermarket world. The Honda 919 is a perfect example. It was an excellent motorcycle. But, since it wasn’t the nastiest hooligan bike on the street, the motorcycling press didn’t give it much mention, in comparison to a bike like the Speed Triple. And yet, with the right components, it could’ve been transformed into the perfect commuter, tourer, or whatever. But since it was designated a “naked” bike, it was relegated to a limited function in the perception of the consumer.
Lastly, I’d strongly recommend the manufacturers quit allowing the motorcycling press to dictate the models they release. All they’ll continue to get are recommendations for bikes that are fun to test, not own. I suggest they go directly to the buyers. All manufacturers have data bases of people who have purchased new models from them in recent history. Why not ask those who are actually spending their own money? After all, that is the bottom line, isn’t it?
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In my opinion OEM’s need to make their products more versatile, without losing their identity. Because I know Suzuki’s line up the best let me pick on them. If I were in charge, the GSX-R lineup would have a factory kit that could be purchased that would raise the clip-on’s and lower the foot pegs. That would make them more comfortable and give them a larger appeal to riders not interested in dragging a knee. They also have abandoned the off-road market when everyone else has a 250f and a 450 offering, so they need to fit that as well.
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As far as the sport side of things I think they’ve set themselves up nicely. For ’09 Yamaha brought out the FZ6R which is $3,000 cheaper than the R6, while still giving the same “race replica LOOK” to most bystanders. Same for Suzuki bring out the GSX650F for $2,500 less than a GSXR600. Kawasaki redesigned their 250 Ninja with current ninja looks, and their Ninja 650R is a good alternative for someone drooling over race replicas, on a budget but wants to go new.
Perhaps its time for one of the big 4 to try a 400cc sportbike. When you have an R6 making 110rwhp and costing $10,000 I think theres enough room below 110hp and $10k for an R4.
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Where should manufacturers take motorcycling in this difficult economic environment? The industry needs to take a three-pronged approach to the problem.
First, they need to leverage every bit of resources they have to survive the current downturn. That means they need to sell ATVs in season, PWC in season, motorbikes in season, .
Second, the manufacturers need to understand the urgent need to consolidate dealerships to get away from having five different motorcycle shops in every town. In the past, they have shown no willingness to do this in past downturns and the economics of this mistake are killing them.
Third, and most important, the industry needs to attract a new generation of rider/customers. Kids in their late teens/early twenties have no interest in motorbikes! It’s shocking. There are exceptions, of course, but in such small percentages that they merely stand to prove the rule. I have a 16-year-old who is an athlete and through him I come in contact with a large number of kids that age and older. They think people who ride motorcycles are old-timers (Goldwings & cruisers), military (sport bikes), and losers (“mopeds”). It’s a pathetic situation that developed because the manufacturers were making money hand over fist from those demographics while ignoring the rise of a new generation.
So, they need to scrape to survive, reorganize their dealerships, and develop a strategy for cultivating younger customers. At least.
Thanks for asking!
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Motorcycle manufacturers should concentrate on making models that are economical to own, that is, less expensive to buy, insure, maintain and fuel. Simple technology that makes a bike easy to self maintain rather than having to take it to a shop where the technician has to plug it into a computer to diagnose a problem.
Tire manufacturers need to come up with tires that get more than 6,000 miles per tire before replacement. When a new tire costs $200 plus mounting and you ride a lot, tires get expensive quick.
I own a BMW R1200RT. I love the bike, and do most of my own maintenance, but when I have to take it to the shop it seems like I can’t get back out the door for less than $400 -$500 anymore. Those valve adjustment inervals of only 6,000 miles are bogus. Also, in the shop manual for certain procedures they tell you to take it to an authorized dealer and let them perform the job (e.g. brake fluid flush). Can’t BMW figure out a brake system that CAN be maintained with simple tools and procedures? The BMW attitude insults me.
This bike is more expensive to operate than my car!!
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I currently ride several trackdays a year. In an effort to increase my ability I have begun looking at buying a dirt bike. I looked at a specific model at a local dealer and they didn’t want to budge much off the list price. Some bikes in the shop were several years old and still “new”. If this dealer would have been willing to deal a little and move some inventory than I would have made a purchase. It’s a buyers market now and the dealers need to come down to meet the demand. This list price mentality is the same at 4-5 different dealers in my area. With winter setting in I have more time to price shop or look for a used model on ebay or craigslist.
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In current economic, peoples are looking to find a way to spend less and motorcycles are the ideal way to save on fuel and at the same time save the planet.
Motorcycle manufactures should put pressure on governments to promote the use of motorcycle for daily commuters. Manufactures should also produce engine that are more energy efficient and aerodynamic if possible, all this in a comfortable package for all weather and demanding low maintenance cost.
I know this is demanding a lot but I think this is the direction we should take.
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With respect to the demise in motorcycle sales in America, I have the following thoughts:
1) Perhaps it might be productive to have the motorcycle sales force read your article. The men and women selling the prestige brands are even less likely to be interested in making sales these days, i.e, their response to this change in events is to act like their product has become even more exclusive.
2) Not everyone who rides a bike also has a sub-prime mortgage and has just walked away from his house. Some of us have excellent credit and walk into a motorcycle dealership with cash in hand. There are dealers who will not sell a new bike without financing.
3) Because times are tough, salesmen and saleswomen are even more motivated to run every possible scam past the potential buyer, e.g., overcharging for the title fees, miscalculating the sales tax, etc.
4) The sales transaction always starts with the assumption that the prospective customer is too dumb to kill. Believe it or not, I was told that I had to buy during the week of Thanksgiving or lose the opportunity to purchase a leftover ’07 at a modest discount.
I could go on but the point is that I’m interested in buying one of three specific new models offered by three different manufacturers. I’ve got about one more visit to a new motorcycle showroom left in me and then I’m buying a low mileage used bike from a private owner. In business school they have a somewhat sarcastic expression for this: Drive the customer away and you’ll save on overhead.
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MC Daily group, Great website with valuable and accurate coverage of the motorcycle industry!
As I have been riding since 1995 with a ZX6R then ZX10R and now a BMW 1200 for work, I have a few thoughts about the current decrease in motorcycle sales. The American distribution of smaller CC powered sport bikes is slow to catch up with that overseas, especially when compared to the great line offered in Japan. I would love to see CBR 250’s and Ninja 400’s here in the states. Several friends of mine have purchased the latest Ninja 250 which dealers in Las Vegas can’t keep in stock. I think a balance between the 600 and 250cc range would be great especially for those younger riders who can’t afford large insurance or bike payments. I have actually seen an increase in large CC motorcycle riders where I investigate serious injury and fatal accidents. North Las Vegas has seen 6 motorcyclists killed this year which is up from 2007. Half of these were a result of new riders riding high powered machines with fatal reactions to someone pulling out or too much throttle input.
Keep up the good work and thanks.
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Is it possible that motorcycle manufacturers have priced their offerings beyond the reach of the common man? Today, it’s rare to find a new motorcycle for less than $10K after sales tax, freight, and prep are added to the equation. It’s also hard to find a compelling finance offer that isn’t loaded with mid term interest hikes and minimum payment increases. With those considerations, I think it’s hard for existing motorcycle owners to justify the purchase of a new model.
If manufacturers would provide more financial incentives, I think it could help. Why not offer low, fixed-rated financing for extended terms of up to 6 years? Automakers routinely offer sub 5% rates for their offerings. Motorcycle manufacturers rarely go below 8.9% for very short term lengths of 1 to 2 years. That doesn’t make sense to me. And, why do dealers always charge those silly fees for freight, assembly, preparation, and whatever else they might think of? Shouldn’t MSRP include the necessary costs to actually ride the bike away from the dealership? Isn’t that the point of buying a motorcycle? Would they charge me less if I took the unassembled motorcycle home in the shipping crate?
I think it would help, too, if manufacturers sweetened their deals with low-cost accessory add-ons. Many riders add luggage, pipes, chrome, windshields, floorboards, sissy bars, etc. to their bikes post-sale. Why not offer a 50% discount on all accessories at the time of purchase? A lightbar or chrome luggage rack with a retail price of $300 probably has a material and labor cost of $30 bucks. I think manufacturers could easily afford to bargain in this area.
Finally, I think there could be better service-plan incentives offered. For the consumer, there’s nothing worse than shelling out an additional $500 bucks for the requisite ‘initial inspection’ / valve adjustment. That’s baloney. It costs the dealership next to nothing. I think free labor for 2 years should be a standard offering with any new purchase. That leaves the consumer on the hook for a few oil filters, some oil, and possibly a new set of brake pads. Everyone wins.
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The current state of the motorcycling industry is geared towards glitz. Harley Davidson and other American manufacturers showcase big engines and big chrome. Only in the Asian market share can one find practicality without paying for the prettiness of the bike. If the manufacturers are to seriously undertake recapturing a large sales volume, then they have to appeal to the market, which currently reflects the “less is more” philosophy. Less glamour, Less extras, Less excessive power, and More practicality, More rider friendly, and More thrifty. We want a solid, dependable, comfortable, economic ride that we can take out daily without fearing about how much gas we use, or how big a monthly payment we have.
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Perhaps American motorcycle use is by and large a fashion statement, but what isn’t? From Starbucks to Bluetooth, we have all devolved into an image-conscious society of posers. ‘Cept for me, of course!!
The manufacturers have given us increasingly un-utilitarian motorcycle choices for years. With a few exceptions, bikes today have little ability to strap cargo onboard without damaging painted plastic. Heaven forbid the darn thing tumbles off the sidestand. Once upon a time, a motorcycle would begin to look shabby as it aged, but a few well-placed hammer whacks and some emery cloth and paint could make much of it right again. Today, what with the cost of replacement plastic, riders end up jettisoning the shards and riding nekkid.
Re-introducing the UJM, with plain features in durable metal, easy cargo adaptation, infrequent maintenance requirements including high-mileage rubber, and a design that can take minor abuse… I believe there is market potential for such a beast. The manufacturers have long proven the reliability of their drive trains. Now they need to package that in something that is purely utilitarian in form and function.
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Tell BMW to produce the R1200LR (Lo-Rider ’09 Milan show bike).
Tell Ducati the 1100 Streetfighter is 250cc too much: preferred is an 848-based standard maybe retuned for slightly more torque/less peak HP, about 15-20 lbs lighter & w/ far less reciprocating mass vs. the big-bore. The big-bore’s extreme torque is nice but the 848 obviously has decent torque & its lighter weight & lower reciprocating mass makes it even better for most riders most of the time. Every time the rider desires to transition cornering attitude the big-bore torque is unnecessary (just shift the 848 more frequently); the big-bore’s higher reciprocating mass slows it down.
Offer standard ergonomics & offer buyers OEM dealer-installed options such as heated grips, heated seats, side bags & tail trunks (hard & soft) & up to four wind-cheating options: small screen, larger screen & a full sport-touring fairing w/ limited leg protection. Extending the bike’s useful operational envelope & making it more attractive to the people w/ enough money to purchase it & appreciate it increases potential sales. Riders spending this amount of money are older & desiring of comfort.
We are less fooled & swayed by marketing hype because we see it more clearly. We know Ducati released it as a big-bore for the glitter factor & we don’t care. The glitter factor is good to sell bikes, which is Ducati’s goal. But if older, smarter, wiser, more mature riders are less likely to purchase it, then all the hype & glitter fails to sell it. Sadly, Ducati released the wrong product. Members of the Monster forum in which I participate agree w/ my analysis. We like premium performance, yet in spite of our keen interest in the Superbikes we will never buy one because their use is too limited.
Per a high-ranking Ducati ex-employee even good amatuer racers achieve quicker lap times on the 848 vs. the 1098 Superbikes, for the reasons listed above. If actual real-life performance is the actual real-life goal, the 848 is a better bike for riders below professional racers.
Right now, my favorite bike is probably Triumph’s Street Triple R675. Ducati’s 1100 Monster looks better, but I may prefer the Triumph’s lighter weight & lower reciprocating mass. God-willing I’ll find out Spring ’09. No other street-bike-only except the non-existent R1200LR is of interest.
Keep up the great work.
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Motorbikes have become overpriced.
When compared to what you get for an equivalent ammount when buying a car, they have already consigned themselves to the category of expensive toy.35 – 40 years ago they were cheap transport, that can no longer be said in most countries. Suzuki may well be one of the only manufacturers to effectively market decent bikes at remotely affordable prices. But even they start to look a bit of a rip off when you see how much you can buy one of their own cars for when compared to one of their sport bikes.
I believe they have overstated the production and development costs when they are knocking out such a wide range of products at their current rate. If they focussed that energy on products with a lower cost and a longer product life we may get more affordable products.
I have owned 10 bikes over the years, and was looking at buying another soon, but when comparing what I get for my $$$ and weighing it against the needs of my young family, the bike looks like its lost the battle. Gas price isn’t as big a decider once you add a bikes higher running costs (tyres, chains, insurance etc) A sad day maybe, but we all are making decisions on how to best allocate our cash, I suspect I’m not the only one.
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Please discontinue the Litre Sportbike horsepower war. Simply, the only use for current litre sportbikes is the track. Having a 190hp+, sub 400lbs bike these days is pretty easy compared to just 5 yrs ago. Problem is we (the consumer) have no business being on machines that take a professional racer pedigree to operate at full throttle. Also, in America it is increasingly clear that our race tracks are being out powered. The bikes are too powerful for most of the AMA sanctioned tracks. That’s why you are starting to see horsepower limits in Canadian, British, Australian and now AMA/DMG Superbike.
Start marketing lower cc bikes in the US. Europe has pretty cool commuter rides and we never see them because the the marketing geeks from the big players don’t believe there is a market. Well, you can’t market what you don’t sell. Spend three years bringing lower cc bikes into the states and market them to urban meccas as “unconventional” transportation. To introduce more riders market more CVT bikes. I know that motorcyclist out there will scoff, but CVT bikes open a new line of customer. One that wants more than your average scooter can deliver could easily be swayed to the Aprilia Mana 850 or the Can-Am Spyder.
On to Finance: GE Money Bank, HSBC and EagleMark (owned by HD) are the three largest Finance companies of powersports toys in the world. One way to stop the bleeding is to hold the credit limit buy-in to a 670 or better beacon score (credit score) and to make a 10% down paymenmandatoryry. Until we accept that motorcycles are primary transportation for many the finance companies see motorcycles as toys. Start delivering marketing that changes that attitude and within 4-6 years you will see more deals with interest rates similar to the automobile finance market. Don’t expect .09%-5% financing in the bike business until the manufacturers start re-marketing the motorcycle image in the US. Until then we are simply second class financing customers. -
I,m 43 and in the market for a new sport-touring ride,(ST1300) and even though my bussiness is down from past years, I’m ready to buy with some auto style offers, 0% apr for 60 or 72 months etc. If not i’m just going to wait for a clean used one.
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Motorcycle manufacturers should keep on making the motorcycles they are making and not worry about adapting their product lines to the current economic crisis. Any response they make will not be swift enough to have an effect. What they need to do is keep their prices low, and offer the best creative financing options and package deals they can (free gear or service or insurance programs and discounts for example.) I think many consumers in these uncertain times will buy used and cheap rather than new and expensive unless manufacturers and dealers find a way to keep new bikes competitively priced. I have noticed a drop in used bike prices lately that goes beyond the usual winter slowdown, so manufacturers have their work cut out for them. The important thing is not to neglect or abandon the American market. Manufacturers should make sure that enough of their new products still reach American streets to keep awareness and interest in their motorcycles high. When people have money again, they will buy more new motorcycles from these manufacturers.
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Here are a couple of ideas:
Offer buyer incentives ala the automobile industry – I realize they already do a little of this, but perhaps consider
more robust offers – especially on higher-end models where margins are fatter. These could include cash rebates,
zero-downs or zero financing, free gas and maintenance, etc. In other words, help take some sting out of the initial purchase.Here’s another – stop producing so many big, bloated Harley-wanna-be twins and scary-fast, racer-replica sport bikes,
and give us a few cool, bare-bones standards/nakeds. I continue to ride and enjoy my 2000 ZRX1100 because there’s nothing else
out there like it anymore. I, for one, would be thrilled if Honda built a CB1000F based on a detuned RR, or Kawasaki introduced a ZRX1400. At age 51, I’m not yet ready for a fat, slow twin – but I’m past wanting a no-compromise sport bike. Give me practical comfort and utility with a big, honkin torquey motor and racing brakes and I’ll be the first in line (and no, the B-King doesn’t count with me because of the crazy styling and body cladding that does not allow a tall rider a proper fit).Thanks for asking!
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I’ve been riding for 36 years, all types of bikes, all over the world. Ever since I began riding, me and my friends have always found that used bikes were the most affordable. New bikes were out of reach for most of us most of the time, unless we made a foolish purchase of a new one that we regretted later. That brings to mind for example the BMW Lo Rider Motorcycle Daily featured lately, sure I’d love to have one with all the options etc., and a Super Duke, and a…. wait, I had to wake up and stop dreaming. I suggest the American consumers get real too. I guess we’ve led them to build exotic toys rather than transportation for the masses. I’ve owned a Harley an R1, and Ninja, and other big bikes and found they’re more hassle than the “Poser” value is worth. I’ve found I get my pure riding enjoyment just the same on a smaller bike, sometimes even more. Currently I live in Thailand where the 125cc Motorbikes ar! e the most popular. For under $2,000 US you can get a new 125cc pick any, and used goes way down from there. The manufacturers are doing it in Asia, where there is a market for inexpensive bikes, I think the advice needs to go to the customers to create a demand for these type of bikes.
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I think the industry needs to stop with the bigger & faster mentality and focus on just making the bikes better and more reliable in other ways. I am a sportbike rider, but as much as I love MotoGP & WorldSuperbikes, I personally believe the manufacturers have gotten caught up in their own hype about trickle down technology from racing gracing the streetbikes that we can ride. The prices of sportbikes are just going up and up simply so that we can boast that we have the same technology that Rossi and those guys have. But if everyone is honest we don’t really need it unless you are doing trackdays and even then most aren’t fast enough to put all that technology to use.
What I’d like to see is one of the manufacturers set themselves apart by admitting that the modern sportbikes are already way to fast and to powerful and instead of continuing down that horsepower path, try to make the bikes greener and more fuel effecient. To be honest the reason Idid purchase a new bike this year and not purchasing a new bike next year (and I’ve purchased a bike every year since 1998) isn’t because of the economy. It’s because all of the new sportbikes bore me. I don’t find anything inspiring or interesting about any of them. For me they have come pretty close to engineering all the fun out of motorcycling. I don’t need my bikes to go any faster or have more power. I would like to see some freash ideas like Honda USA’s concept sportbike of a few years back put into production. I’d like to see inspired design. Why does it seems only Ducati can make sportbikes that both run & look good? The fad from Japan the past couple of years seems to be the uglier the better.
Motorcycling for me has always been about emotion. Unfortunately I find all the bikes of late simply sterile
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Long time reader, but first time corresponding.
The economic down-turn is driven by two forces – Interest rate and Panic. The interest rate impact will last anywhere between 6 to 9 months. The wounds created by poor decisions are healing and the economy will recover as the Governments around the world are admitting to fault and are and will continue to boost the economy.
Now, for the motorcycles….. Interest rates are reducing and will continue to reduce. Lenders (banks and finance companies) are more controlled (as they should always be) in determining suitable candidates for approved loans. So, with this in place, the impact on Motorcycle sales will pass. The Dot.com crash 8 years ago was also devastating, but things improved and we ventured forward – making the same mistakes in my opinion. This will also improve as “joe public” regains faith in its government and associated institutions and starts re-investing into their futures.
So, to your question, what should the motorcycling industry do – packages. I do not mean lower finance rates as this is how we got into this mess in the first place. I mean package deals which might mean:
- Free luggage
- Free riding gear
- Free servicing for 12 months
- Track day passes
- MotoGP passes
I think you get the picture. People will continue to spend, but will certainly do so in a more controlled manner. Less “greed motivated” purchasing will occur. People will hang onto their bikes a little longer or their riding gear….. So, the motorcycling industry can boost their sales by simply being sympathetic to the public demands – give us the things we want but cant afford (or are too frightened to buy) at no charge – for the time being.
I could certainly go on for hours, but I feel confident you see where I am headed with this. So, please continue doing what you are doing and keeping us informed about the motorcycling industry – from all angles. Great work.
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What do I think motorcycle manufacturers should do to boost sales in the economic environment? I, along with most people in the country, am not buying a new bike at the moment because of lack of security in my job. That being said, in a few months my job will be secure again, and then the major purchasing concern will be finance interest rates. I already have finance accounts with 3 of the big 4 manufacturers, so getting credit isn’t a problem, but interest rates are. I won’t buy a new bike on a 15.99% interest rate loan, just not happening. Honda is the only company giving an acceptable interest rate (3.99%) at this moment, and if the other manufacturers want any chance at my business, they will have to compete. Car manufacturers are managing to give 0.0% rates in these credit crunched times, I feel motorcycle manufactures can do better than 15+% from their loan companies.
In the end, it will take a competitive interest rate to get my business. Thank you for asking .. -
Similar to American auto makers, move away relying on a volume of high $$ machines designed to stroke egos, and not provide more than noise and a lifestyle. While admittedly there will always be a niche market available to those that have the $$, there isn’t the need to rely on those products for the high turnover rate.
Cruisers:
ID more 800-1200 cc “mid range” cruisers for high volume sales…think they have lately with the Vulcan, Boulevard, and Star lineups, just need to market them more now, instead of their top range machines.Tourers:
What the heck happened to the inexpensive tourers? Bring back a powerful, and economical 1000-1200 CC tour rig with comfort and handling, Goldwing style, and price it similar to a cruiser (no need to load up on accessories, but include some high demand items, and id the others as option packages)Sport bikes:
For economies of manufacturing, why can’t manufacturers create 2 lines when they create a sport bike, a SS version (with less aggressive seating position, more fairing coverage ….don’t you DARE detune the engine or handling abilities) , and an RR version (with all components to win races on Sundays)?I think it would be extremely appealing to see a SS version of the GSXR1000 (or insert CBR/YZF/ZX of your favourite capacity) marketed directly beside the race winning version of that same bike. I lean toward the idea of the CBR600, but as good as it is, they’ve admittedly made concessions to make it both street and race worthy at the same time. If you throw in 2 separate suspension package/handlebar/fairing/footpeg/seat sets, you have 2 separate product lines running off the same marketing campaign (your race wins)….This is a no brainer Win-Win to me. I DON”T mean watering down your present model a la different flavors of the YZF/R6….Us old/comfy guys want the latest gee whiz technology too, and we don’t want to go slower than their 20 yr old kids/buddies (at least not on the street….kids can go faster on the track if they’re willing to run the risks).
The Fz line was a good crack but needs engine/brake/suspension mods to run with my buddy’s kids on the street….how about a twin plane crank SS1 alongside an R1 Yamaha?
Don’t mean to sound old, but honestly, why do we need nearly 200 HP? I think the manufacturers missed the mark when they moved superbike racing from 750 up to 1000cc, but until they stop making those big bikes, I’ll keep enjoying the decent handling these things have along with that addictive power….
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By appealing to the image of “bad dude” cruiser riders, and “bad boy” sportbike squids, motorcycle manufacturers have removed themselves from relevance to the average person’s life. Manufacturers need to emulate the old, “You meet the nicest people on a Honda” campaign, and the “Silent Gray Fellow” Harley ads. Show people parking with ease, passing gas stations, riding two up
through the country, putting some groceries in hard panniers, riding to work with a laptop in a courier bag. Show a well dressed wo/man putting on a Aerostich and a grin, getting on a bike, and riding away.…and we need to lobby the politicians to allow lane splitting in every state.
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Bikes are toys in this country, always will be. I just returned from Rome which as anyone who’s been there knows is full of bikes… actually scooters, 10 of which exist for every bike: which is usually a Yamaha FZ1, or similar bargain naked. Those are transportation not toys. Who buys them? People who live in densely populated sections of town (i.e. everywhere). It is worth noting that it doesn’t snow or ice in Rome. So if Harley and others want to make “bikes” that sell to those whose budgets include no room for $10k or $20k toys then they need to make scooters for residents of inner cities in the south and on the west coast.
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A year or so ago, the president of Piaggio came to the U.S to talk not to dealers but to city and state governments about making metropolitan areas more two wheel friendly. Special parking, traffic lanes, registration breaks, a number of ideas to make commuting on two wheels more appealing. This is where I think the major manufacturers should start. Lobby the governments to make the country more two wheel friendly. Make the cities more accessible for those on two wheels.
This has been brought up many times before and the answer is the motorcycle industry needs to slow down promoting nothing but high horsepower motorcycles and add in easy, fun and efficient motorcycles that have style and performance. Yes, Honda has the Rebel 250 and Kawasaki has the Ninja 250, but do you see ad’s for them? I haven’t. Get more novice riders out there and the industry will grow again. Make getting around safer and easier for motorcycles and sales will go up.
In Europe and the rest of the world, small displacement motorcycles are the norm not the exception. In Mexico the police ride 125’s, your Domino’s pizza is delivered on a bike designed by Honda just for that purpose, so is your mail. In Italy beautiful business women ride scooters in dresses. It can be done here.
As the auto industry is seeing sales of big vehicles die off so is the motorcycle industry. The auto industry is trying to go smaller, the bike industry should too. The rest of the world is way ahead of the U.S.
Just my $.02, thanks for asking.
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Concerning motorcycle sales in these troubled times: Value is critical – price is next. I think basic high quality motorcycles under $10K will be where the action is for the next 2-3 years. Retro machines that are reasonably priced may do well, since they appeal to the older and potentially more flush riders. Many folks are realizing too that in the sportbike and standard/naked bike categories, we don’t “need” liter class machines – 500-750cc is plenty to enjoy a nice ride with. Produce something nice (not entry level) for $5-$7K that gets 50 MPG and it should do well.
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What should motorcycle manufacturers offer us to get through these difficult times? Bring back the standard 400cc road bike. No frills, adequate performance, air cooled, reliable and easy to purchase and maintain. I loved my 1981 Honda CB400 Hawk. It was a great commuter, I used it for touring, and it was fun on a twisty road. If someone would build a modern version of this bike, and price it less than $3500 they would sell thousands of them.
Please give it a comfortable seat, sporty but sensible ergonomics, 70 mpg or better, and don’t add a fairing or other body work that would make it more expensive to insure. I make less than 30K a year and I’m sure that there are many riders like me that would love to buy this bike.
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I worked for one of the manufacturers for years, on many different levels. I can tell you that the downturn in the economy is not the only reason things are sour and sales are down. But I will try to focus on the very insightful question: what should they do?
They should use this “down” time to plan, reassess, reconsider strategies — and most of all reconnect not only with the customers but with the spirit of the industry’s founders and visionarys. This industry is built on enthusiasm more than profits, from the dealerships all the way up to the CEOs and stockholders. I’m not suggesting that these large companies should stop thinking about money and planning to make it. I’m asking that they step back and consider why they are in this business at all? There are industries where more money could be made. Most of the big players are already very diversified, so why hold on to the motorcycle-power sports business? I believe that when they find the answers to these questions, they will be led back to the customer and the spirit of motorcycling. And if they plan on enduring this recession, if they plan on still being around when the market cranks back up, they’ll use this time to do some corporate soul searching. I hope the highest paid, most important decision makers at the largest manufacturers in this industry will go for a motorcycle ride. And I hope they will have some real conversations with real customers about their needs, their resources and of course their passions.
Great men built the companies that build today’s motorcycles, in simpler times and on smaller scales. With todays technology and huge, changing markets, there are many of their business strategies todays companies can not use. But to a man, each of them was bold enough to listen to his heart (his enthusiasm) and make brave decisions. In the last recession, the manufacturers made rash, desperate decisions because they were thinking more like a company and less like an enthusiast. I don’t know what it will look like when the manufacturers, at the highest level, reconnect with the spirit of our sport, the philosophies of the founders, and the customers who fund the whole program. But I’m confident it will lead to brave decisions, and that’s what I think we all need from the manufacturers now.
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I think it would be good for the manufacturers to focus more on fuel efficiency and smaller bikes. This would probably be model specific as many motorcycles are clearly toys and will likely stay that way. However fuel efficiency is a good rationale for buying a motorcycle, even if it really is a toy! I suspect motorcycles could get significantly better mileage than they currently do. As soon as the economy even begins to pick up again, gas prices will rise quickly, and we will be looking at $4+/gallon and
motivation for fuel economy will return strongly. Small economical motorcycles are an excellent way to grow the sport. That is how many of us baby boomers got started. Poor motorcycle riding college kids turn into, middle aged Harley and Ducati riders. There has been a proliferation of small motorcycles and scooters coming in from China. I don’t think those bikes get nearly the fuel mileage they could. The big bike manufacturers should get in on this. A quality small bike with excellent performance and
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“We call upon our brilliant readers to offer advice to the industry. Don’t be shy or feel presumptuous. Let us know what you think about where manufacturers should take motorcycling in this difficult economic environment.”
The solution is simple: Stop inviting motorcyclists to focus groups. Invite people who aren’t motorcyclists and find out why they are not. When consumers are facing uncertain, and often rising, gas costs, $20K + economy cars, and are living in fear of being laid off, why are they *not* buying motorcycles? Selling motorcycles in this economic climate should be like selling umbrellas in a rain storm.
I’m betting that non-riders would site all of the following:
1. Difficulty — most drivers don’t know how to drive a manual transmission car. It’s no wonder that they are intimidated by a
vehicle that has separate front and rear brake controls, a hand-operated clutch, a foot-operated gearshift, a throttle twisted by the right wrist, and a design that falls over if you operate those controls wrong. Give them linked, ABS-equipped brakes and automatic transmissions (they sell enough scooters that way).2. Safety — Crashes are on the rise because beginners are no longer learning on appropriate bikes such as the 170lb, 4hp, step-through frame Honda Cubs that are a basic form of transportation over much of Asia (over 118 million sold already). Screw up your throttle/clutch coordination on a 125cc thumper and it stalls. Do the same thing on a race-ready sport bike and you could be in a world of hurt.
3. Image — Many people don’t want to be viewed as leather-wearing, tattooed badasses by their family, friends, and coworkers. Honda sold a lot of bikes combatting that image with their “You meet the nicest people on a Honda” ad campaign in the 60s. The industry needs to work on the image thing.
4. Storage — Why is it that the only bikes that come with decent luggage are huge touring and sport-touring models? Is it so wrong for a guy commuting to work to want a place to tuck his street shoes, laptop, and lunch while he rides in?
5. Convenience — Face it: It’s a lot easier to buckle a seatbelt than it is to don boots, gloves, leather jacket, and helmet. So the industry should be lobbying for laws to increase convenience elsewhere. This could include free covered motorcycle parking in cities and at public transportation lots. It could include lane splitting in states other than California. It could include toll-free use of toll roads by motorcyclists.
6. Economy — Non motorcyclists are astounded that modern bikes often get less than 40mpg. When the bike makes 120hp or more and does 0-60mph in less than 3 seconds, that’s not a surprise. But start building bikes for economy. Stop using tires that cost $300/pair and wear out in under 5,000 miles. Lower the weight, horsepower, and top speed and the tires get smaller and cheaper. There’s no reason a commuter bike should need tires that cost over $120/pair or that don’t
last 10,000 miles.7. Weather — Motorcycle dealers screw this one up. They will try to sell you a helmet when you buy your bike, but how many will try to sell you a rainsuit, heated vest, waterproof boots, winter gloves, or a neck gaiter? Dressed properly, a rain storm or cold front is a minor inconvenience. Dressed wrong, and it’s hypothermia and crashing. Potential riders need to know that it’s possible to ride to work in the rain without looking like a drowned rat when you arrive.
Chevy may sell the Corvette, Dodge may sell the Viper, and Nissan the GT-R, but they’d sell damned few cars if they only listened to the buyers of those vehicles. Motorcycle manufacturers need to start listening to the general public and not the die-hard enthusiasts if they want to survive, and thrive, in tight economic times.
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Serviceability and tire technology seem like great places to start for the motorcycle industry. As it stands, our bikes need a lot of personal care – either through personal maintenance or through shop maintenance. Compared to your average automobile, we spend more time working on our vehicles. Granted, with motorcycles, systems would need to be implemented which helped the owner keep better track of potential issues then, since the service interval would be longer and thus newer riders might be less likely to go over parts of the bike.
As a second issue, sport touring tires (the tires that I assume you’d find on most bikes that would fall in to the commuter category) tend to last anywhere from 6-8k for a rear, even with the dual compound tires. Multi compound tires need more research put in to them in order to provide greater longevity while maintaining the control we have. I’d be happy with 10k tires on my Z750S, but if we could get up in to touring tire levels without losing the handling confidence provided by our sportier tires, I’d be ecstatic.
I believe that these two factors would be large aides in bringing new riders in to the market.
When talking about bringing in new riders, Honda and Aprilia had great ideas with bringing commuter technologies (automatic transmissions) in to the fold, but this R&D needs to continue. What other technologies can be added that are commuter-friendly while not raising the price of the vehicles (for example, Honda’s DN-01 is priced ridiculously high for what the bike provides, and Aprilia’s Mana is notably more expensive than comparable manual transmission models). A modern, more stylish, less scooter-like version of the Pacific Coast would likely be a desirable machine in the market.
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I think there are two potential strategies…one short term and one long term. Short term: Like most other industries, the motorcycle manufacturers will have to bring buyers back into the dealerships with great deals on bikes and reasonable financing terms on all models. I tried in October to buy a Triumph Speed Triple at my local dealer….they wouldn’t discount the bike even one dollar and financing rates were 8%+ (and I have an excellent credit rating)….so as you said not only do we look at motorcycles as toys…the dealers and mfrs price and finance them like they are as well (not all, I know some mfrs are offering interesting financing but nothing long term at a low rate…they all have high interest back ends on them or the lower rates are only for a couple of years – when we all had lots of money this was fine….now that we all are worried about losing our jobs or our 401k has dried up, we are a little more sensible as to what we are willing to pay in financing costs). Needless to say that I didn’t buy in October and now am glad I didn’t….while I am still prepared to buy…it will take a lot better discount and much better rates for me to walk back in today. The US currency has strengthened in the past 6 months (meaning that mfrs will now get more local currency for $1 of US sales) and I think the manufacturers should use this shift in currency to provide temporary price reduction incentives to keep factories running and keep people buying and interested in the industry – this in effect could boost volume and not impact their current local currency profit margin per unit compared to one year ago. Long Term: I think a shift in production to more modern and exciting smaller displacement bikes is key….there are a lot of us that don’t need (can’t use the power anyway) or want to pay for high end high 600cc and 1000 cc models but they are the ones with the most contemporary design….if the mfrs can start to produce 250’s, 400’s and 500’s in Street Fighter, Sport Touring and Sportbike form with decent brakes and suspension at a price point in the $5 – $7k range, I think that would boost the Industry considerably….in terms of bringing new riders to the sport, bringing back old riders and hopefully easing the cost to maintain and insure. We all still want to ride….but we are seeing that people also know when to say enough is enough. The industry no question has offered more technology for the money every year….let’s try for a few years to maintain the current level of technology and reduce the cost to manufacture and therefore the selling prices…..
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Sir, I have been saying it for years, to as many people as I can, we need more 350-400cc bikes! Low seat heights, some weather protection, possibly some storage, and of course performance and low cost would be nice. Ditch the easily damaged street bike plastic, and start using dirt bike substances (newbies tip over now and then). No need for super fat tires, or mind warping radial calipers. Just a modern day RZ350! If the manufacturers look at this economic downturn as an opportunity to introduce new riders to the sport, well, we all know how addictive it is. New riders do not want, nor can they handle 2 liter + cruisers or 150HP sport bikes. Give them what they want. Give them what they *need*. Being in the “beginners bike” market myself (for my daughter) I have looked at everything available. The Ninja 250 is just a bit underpowered (we have ridden one), the WR250X is too tall and under powered. Same with the KLX250SM, and I am sure that the new CRF230SM will be even weaker. The Ninja 500 is just a bit heavy for her, and she really does not take to the cruiser types at all. I have had no luck locating an FZR400 that hasn’t been track beaten and modded beyond street legality. All I am asking for is a one, just one 350-400cc sporty fun ride. Oh, and she won’t be caught dead on anything resembling a scooter!
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To lure new people to the mix, try some new ideas. Maybe copy BMW cars and offer free maintainance for the first 2 years of ownership (limited to 20,000 miles or something) – what would a set of tires and a few oil changes really cost? Especially because outside of FL and CA very few put more than a few thousand miles on a bike per season. How about offering financing like a transportation vehicle instead of a toy? 3 year fixed rate of 9% comes to mind as something livable – not zero down and zero payments for 3 months, then a 22% loan for the balance that really kicks in just as winter approaches. How about test rides? I know that there are massive liability problems, but the European brands seem to manage OK. If you can’t offer blanket test rides for the serious buyer, how about a roving truck with 10 current model year bikes in it that makes stops at various dealers and has a “test ride fleet” to allow people to give a bike a try. Can Am is doing this with their 3 wheeled bikes and their quads, and they are selling better than I ever thought possible. When was the last time that a Honda dealer sent out a mass email saying “Come to _____ Honda next Saturday and test ride one of the exciting 2009 models!” ? And yet I’ve seen that exact thing from Triumph, Can Am, etc. I guess when the same old thing isn’t working, try something new. And as an FYI to Honda – a $15,000 wierd scooter crossover thing isn’t new, it’s dumb.
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The motorcycle companies should do what the car companies did during hard economic times and offer leasing options on the high end (expensive) motorcycles. A lease package would include insurance and maintenance fees to protect the bikes.
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I was reading your article on the economic down turn and how the financing of motorcycles was a problem but that consumer confidence is a bigger problem. I do not agree with that statement at all. I work for a very large independent multi line dealership. We sell Yamaha, Honda, Kawasaki, Suzuki, KTM and Can-Am. Just last night we had a gentleman with a 680 credit score get denied credit. I am sure you realise a 680 credit score is extremely good.
This is the sad state that our lending institutions have become. I just wanted to show you the perspective from a source inside the industry and that people (good people) are wanting to purchase bikes but the lenders are keeping them from that.
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More motorcycles with a low seat height. (30inches) and a “sit up and beg “ seating position. Less maintenance such as belt/shaft and hydraulic valves. Tell Harley to get with the program and lets see the vrod engine in the Fatboy frame, and touring versions. We are sick of the same old air cooled/ridiculous over heating.(and I have been riding HD for over 35 years). Lets see the Rotax water cooled engine in the Buell Ulysses. And most of all, lets see some lighter weight touring machines. The ST1300; Electra Glide; Gold Wing; etc. are terribly heavy. The RT is more like it, but more can be done.
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There is a reason why Honda’s VFR and Suzuki’s SV650 have been so successful. It works well for those who need what it has to offer. Now working from that idea we need to educate the country on the virtues of alternative transportation. That means a motorsickle that works well for their level of confidence instead of trying to appeal to their egos. These are simple machines meant to be alternative transportation. You can still build your high end ego snatchers but for us poor folks we still need the Universal Japanese Motorsickle we grew up on. How many of us grew up riding Davidsons? Not me. I had a Honda 50cc. Then a Suzuki Hillbilly 80cc then a 125cc 250cc 500cc 650cc 750cc 1000cc see a pattern here? My family has been in motorcycling for a century. We have set land speed records and sold bikes to the masses. I am convinced if a new campaign, like you meet the nicest people on a Honda, swept through the Americas young folks would evolve the way we did in the 60s and 70s. Educate the kids and the future will reap the benefits.
Meanwhile the rest of the country needs to adopt lane splitting. If you are sitting in a traffic jam and you see a dozen motorcycles wiz by it won’t be long til you are at the dealer purchasing a new traffic scooter. Kids stuck riding the bus will begin to see Vespas, Rebels and 250 Ninjas parked in MOTORCYCLE ONLY parking at the schools and the epidemic will spread. The more bikes on the road the more auto drivers will pay attention. I am so glad to see Hyosung bikes on the road. This reminds me of when Japan invaded with the motorcycles everyone could afford. These bikes were QUIET! Not intimidating. Ladies were eager to try one. They were light and easy to work on. Where are the American bikes? This is prime time to build the American commuter bike. Right now I need a sub 400 lb commuter with heated grips, heated seat, nice bug screen that actually blocks the wind and is stable in a crosswind, 70 rear wheel hp, air/oil cooled so I don’t have to worry about winter fluids, Brembos, adjustable suspension that will handle rough roads, centerstand, small bags not sea trunks, 100 mpg with choices for CNG diesel or gas, oil filters I can get at the auto store. I want it to last 100k miles, no valve intervals, If I lay it down I want to be able to pick it up and ride away just like my enduro bikes, and be Italian beautiful. My current victim is a Multistrada 1000ds. Poor thing has 47000 miles in 16 months. This bike is almost perfect. We have enough cruisers and sport bikes. Give us a commuter like the V-strom that looks good. Give us the big BMW GS that we can afford. That’s not asking for much. Teach riders in stages. I learned to fly a Cessna 150 before I flew a jet. I learned to ride a Honda 50cc before I got a GSXR750. Back then a dealer would give you a good trade-in deal. They sold you parts at a reasonable price not three times what it’s worth. It’s a motorcycle not a spacecraft. It’s time for the CROSSOVER. Oh and a El Camino to haul it in.
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I think they should consider what Europe has already dealt with, created, in terms of models & trends. They have been at it longer over there than we have!
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What the world needs now is a good, cheap reborn KZ400 or CB350. Back in the day you could buy a brand new reliable motorcycle that could take you anywhere for $1000 and give you 50-60mpg. Whatever happened to the budget motorcycle? The entry motorcycles available today, with the exception of maybe the Ninja 250 are just downright awful commuters.
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A month ago, when this financial mess started getting serious, I was in a dealership looking at a bike. It was a 2008, but there were two of them sitting on the floor, so I figured they would be willing to deal. They weren’t. So I bought a 2006 Pontiac Solstice with every option that I could want (ABS, power windows/locks, leather, fog lamps, cruise control, etc.etc.) and less than 7K miles instead. The car dealership sold me the car for a couple thousand under wholesale price, and I got it OTD for less than I could have gotten a freaking 2009 Chevy Aveo OTD!!!! I have two motorcycle in my garage, and they’re fine. But now I also have a kick sports car instead of another MC. Here’s a suggestion to the manufacturers and dealers out there in MC land; suck it up let go of your old inventory. The money I had been saving for a new MC went instead for a new (to me) full on sports car. I’m digging it.
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Hopefully they have been socking away cash during the good times to run on in the bad. No? Cut prices. Then tell everyone that you have cut prices. That will bring the “on the edge” buyer out. Sell at cost until things get better.
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When you ask what the manufactures can do, they can help change the traffic laws so that we can split lanes in every state. People get so uptight when we split lanes to move up in traffic. Our character as a nation will have to change, the sooner the better IMO.
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I think this is a wake up call for the manufactures to learn how to squeeze out more miles per gallon out of the existing models. Maybe design one or two to get absolutely as much mpg as it can, and clean up the aerodynamics on the rest, with out loosing too much of their power in the process. Also work on getting some more bikes with the lower seat height, that handles the corners better. Just getting 5 more mpg would get peoples attention. And it seems that most bikes should be able to get 10 to 20 more mpg. Anyway, when my economy comes back, I’ll be buying a used bike no matter what the manufactures do. I’m hooked.
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This is an issue that is so multifaceted that the real solution would require revamping the whole AMERICAN motorcycle industry!
- First service departments would need to operate like automotive service departments.
- The manufactures will have to provide bikes that the consumer can live with. Low maintenance, unintimidating, storage, fuel efficiency, etc. The Honda Deauville, PC800 and GL650 Silverwing come to mind.
- Advertising should reflect the value of motorcycles as transportation, instead of grand journeys or track prowess. Advertising should also go beyond traditional motor head venues. Spend advertising dollars on networks like Lifetime, GreenTV, HGTV, etc. and place ads in Newsweek, Woman’s Day, and Time. This would expand the base and bring more people into the fold.
- The industry must support groups like Ride to Work.
- Dealers should train their salesman to guide new riders to appropriate machines. Not to the heaviest or most powerful machine on the floor.
- Companies that also have automotive lines (Honda, Suzuki, and BMW) should market and service motorcycles next to cars, like they do in some other parts of the world.
At the governmental level there are things that could be done too.
- High Efficiency Vehicle (HEV) tax credits for all HEVs. Most bikes are the equal of most hybrids when fuel efficiency, manufacturing, parking, and disposal are taken into account.
- A tiered licensing and training program,(and I hate to say this) more like some of Europe. This would improve safety and rider skill levels over time. It would also force the manufacturers to market better low end machines in the USA.
I ride to work most days as it is, the only time I choose not to ride is when I need to transport more than one child or if it is already raining when I need to leave. I bought my current bike (Concours 14) because most of my travel is alone, it was half the price of a Prius, and could carry what I needed to. If I keep my right wrist under control it comes close to matching the mileage of the Prius too. Also it is just way more fun than a hybrid.
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i will in early 2009 purchase a new yamaha raider. so will a close friend. i currently own a road star warrior.
we plan to give a local dealer, whom i spend a substantial amount of money in service work with a chance not to be a horse’s ass. i do not ask what my bill will be when work is done, “treat me fair” is my response to what it will cost. even when it is more than other folks would charge. i can pay outright for the bike. so can my friend. i own my own business. so does my friend. i do not need to be sold. i sell for a living. so does my friend. will they just give me a price or will they try to broil me? they get the internet just like you and me. if they try to cook us, we will buy via internet. i can get the bike serviced anywhere. can they be mature about a sale as well as a service? we do not want a steal, just fair with no bullshit. that is a suggestion. -
Gee, this is a dumb exercise. The motorcycle industry problems are not product related, and are not intended use related, they are simply economic issues beyond the industry.
The one thing the manufacturers can do is ensure that financing is available for those buyers who are wanting to purchase, even if that means financing the bikes themselves. But the person who is concerned about their job or drop in household income won’t be buying. The boomer who is less than 10 years from retirement and is watching his/her retirement account melt will have to decide if the $20K or so needed for a new HD, BMW or Wing might be better tucked away to support themselves in their 70s/80s.
The reality of the MC industry won’t change even if bikes magically become daily transportation rather than toys. You may have noticed that November sales of the automakers were collectively down about 40%.
The silver lining in the current economy for MC manufacturers? The economy could get so bad that the US and Europe has incomes like Viet Nam and Cambodia, then MCs would become daily transpo and we would be out there with the family piled on to our 125 or, if we’re wealthy, 250, riding down to the market. I’d rather see the industry collapse before it comes to that.
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We can learn a lot from the Italians. Check out this scooter marketing video.
I start every day with motorcycledaily.com. Keep up the good work.
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You have hit the nail on the head with your comments that motorcycles are considered toys. Other than have MIC and other organizations begin a huge PSA campaign, the manufacturer’s cannot do anything. Demand must come from the general public, and right now the attitude of them is “my motorcycle is for fun.” The “Ride to Work” people have seen this for a long time, but no one else in the motorcycling community has put all that much effort into it. It has to be approached on two fronts, convince existing street riders to become “daily riders” and the non-riding public into “riders.” Once you have those two groups moving towards motorcycling, then motorcycle sales can reach levels that are sustainable.
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The motorcycle industry might wish to encourage local governments (particularly in southern and western states) to create sidewalk parking for motorcycles. If cities embrace motorcycles as acceptable means of transportation (rather than being shunned) it just might create more demand.
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I have been watching the motorcycle industry for awhile, well since Regan came into office. He began imposing import tariffs on all vehicles. This saw the increase the cost of motorcycles to nearly double in just 4 years. From 1985 to 1989 the cost of a 125 motocrosser was nearly double, which just so happens being a teenager at that time was my second most desired object the first being girls. Then in the 90’s costs rose up as general inflation and techno gadgetry increase. In the late 90’s comes the green movement. Even though motorcycles are less than 1% of the motorized population we saw everything from weed wackers to crotch rockets going green. With this green movement comes cost. In the 2K generation came the gigantic displacement cruiser wars. Now cruisers have bigger motors than my Hyundai does! Ridiculous. Ask any vet rider who came up in the 70’s if you need a 2000cc cruiser and he will laugh in your face and give you a handful of near death experiences he had on his water buffalo. Now we find ourselves surrounded by all these ego satisfying monsters and no one is buying and the economy is swirling the drain.
Manufactures listen up! People can not afford to ride 8K dirt bikes! We can not afford 18K mega cruisers! People have been putting the ego’s before their finances and we are now paying for it. The average pay that people can fork over (for real life middle class people with families) is 5 to 7K. If you offered a cool bike in that range it would fly off the floor. I am an engineer making the median pay for my area of expertise. I have a family of 7 and a lovely wife, my bike is a 2008 Honda Shadow 750. I tell you I am shocked at how fun it is and what I perceive as a great value. A cool fun bike out the door for 7K and my old lady and I can escape on for hot wings every once and a while. Awesome! I can also ride it to work and get 55MPG and ride in any weather without the fear of death from cold tires.
As an engineer I have to ask myself everyday how can I make this simple? This is what the powers at be need to think of. They need to ask themselves, should we make this sport bike with a 3D map a 2M of RAM ECM and a turbo so it can do 200MPH? Sure what the hell, no one can ride it but it sure will be advanced! Just because you can make something extraordinarily complicated doesn’t mean you should. They need a baseline of bikes that are cool, simple and fun. The XR line is a great example. Bullet proof and an barrel of monkeys to ride. Some innovations here and there? Sure every once in awhile. What about the SV lineup from Suzuki? A hoot to ride! Very simple and fun.
ONE HUGE POINT TO CONSIDER! Hot rodding and customizing will never die! Never ever! My weed wacker is jetted for crying out loud! If you offer a value of a bike and ton of ways to customize it and have a way for people to show it off you are golden! Import tuners, ya those rotten kids turning wrenches and hot rodding cheap affordable cars just like people have been doing for ever. People trick out what they have. They won’t have money for tuning and customizing if they are paying half their salary for their bike! If you make 40K a year and your take home is roughly 30% of that then your favorite ride is 12 to 15K. You are simply screwed. Look at what is coming about on the street and you find out what works. Stunt bikes for instance. More street level customizing for having a crazy fun time. What are they riding? Wrecked sport bikes that cost what? Around 5K or so. Amazing. They put a goofy head light on it and replace the bent stuff and now they are this dangerous and mysterious stunt rider! Incredible! Now if little Jimmy Dingdong dumps his ride he can simply say he was stunt riding and not face the fact he waded a 12K bike. It is plain and simple to me. Enjoying and having fun on bikes is riding. I would have a bike for everyday of the week if I could afford it. Make a bike that every American boy and girl will want to have in their drive way. Old CB’s, old nighthawks, old KZ’s, GS1000’s all those bikes are basic fun bikes to ride. My 84 nighthawk never gave me any problems what so ever and was a hoot to ride and I only paid a grand for it! Give me a name of any dirtbiker that has ridden an XR and not been smiles ear to ear? KDX’s? All of these bikes are cheap dependable and fun.
One last thing, keep our children in mind please! The manufactures need to make affordable bikes for our kids. 1000 to 1200 dollars for a 50! Get real. Families that ride together stay together, help us out!
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In an economic crisis, accompanied by the decline of gas prices, the future does look grim for motorcycle manufacturers. I was sort of hoping that the gas prices would go up to 25 dollars a gallon so EVERYONE would turn to motorcycles.. in a plea to commute to work and back home without getting another mortgage on their house. But, gas is now $1.70 a gallon (3 dollars cheaper in the past few months) and more soccer moms with huge SUV’s are pushing me off the road as they’re applying lipstick and catching up on the latest gossip on their cell phones.
What we need is a new highway, dedicated to motorcyclist only. It would be like the bicycle lane most cities have and the autobahn combined into one. The speedlimit would be 200mph and the speed minimum would be 100mph. Police would enforce the traffic laws but they would be primarily focused on encouraging motorcyclist to speed up (because I would be yelling at them on my Hayabusa).
And speaking of Hayabusa’s.. these models would be dubbed as the new SUV in the motorcycle world (maybe the cayenne turbo of motorcycles). How cool would that be? Oh man, where’s my lotion.
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I’m not so sure there will be much opportunity in this.
First off too many manufactures making products who’s appeal is boutique at best, Bennelli anyone? Every day that goes by, motorcycles lose more and more of there mass market appeal. A lot of the newer Scooters are powerful enough to go on the freeways and the Smart car is almost as easy to park and gets better gas mileage than a lot of full size motorcycles. It gets worse, I have a near perfect driving record, yet I pay and insurance premium for owning a motorcycle that would make you cry, I could insure a car with 3 times the valve of my bike for the same price. Now, I don’t think the big 4 will be killed off but other manufactures might and deservedly so, there is only so many potential customers. I don’t pretend to know what will sell in this economic environment, but more and more it seems like answer is nothing. -
I live in southern Québec, Canada, where summers are short. I use my ZX9R for the sport of it and not for transportation as city commute is not only boring and a lot of trouble (fire up the bike, pack the office clothes, etc) plus rush hour is when most accidents happen…so, when the week-end comes, we hit the back roads, far from the busy city and on lookers. I need the rush of hearing my Kerker pipe howl…the old Kawi pulls like crazy if you give him the right cop free road!
That being said, bike sales in Québec, and all over, are down. I will spare you the details on why license plates for sport bikes have gone from 325$ to 1030$ for summer 2009. Here is my response: Bike prices!
When I started riding bikes in 1984 (I was only 19..) with a used 1977 Yamaha RD400 that I paid $750, a new sport bike ranged from $2000 for an RD 350 to approx $4300 for a Suzuki 1100. I heard some years back that bike manufacturers were deliberately keeping bike prices low back then in order to establish themselves, reach the masses, and that now, prices are what they should be. Well, I haven’t seen financial statements from neither of the four major Japanese manufacturers but when sales are low, one sure way to stimulate sales is to lower prices. Now, manufacturers would say that it is not up to them to lower their prices therefore reducing their profit margin because of a world wide recession, and they are right, and eventually, the economy will pick up.
However, recession or not, I have strong doubts that 15K is the actual price that a motorcycle has to go for. Up here in Canada, a new 1000cc sport bikes is $ 15 300, add to that add 14% sales tax…wheff….It is lower in the states, maybe 11 500K or so, but still. I have trouble coming to grips with the price of a sport bike being the same as a that of a small car…something just seems wrong to me. I think prices are just artificially high, and if they lowered them, they would sell more units, therefore compensating the slimmer margin.
If a new sport bike was in the vicinity of 8 grand (CDN), it would be a whole different story. I recon any business has to be profitable in order to remain open, that being said, the price of a two-wheel machine seems high considering there is practically no body work around it, no air conditioning, no big dashboards or seats etc..none of the bells and whistles that a car has.
Well, simple theory as it may be, it my 2 cents,
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In response to your article about what manufacturers should do while waiting for the economy to recover:
how about making parts available for old motorcycles that are still good and have lots of life left in them?
Many motorcycles are junked or sold because they need some essential part that’s no longer available. Manufacturers could
make these parts available while sales of new bikes are slow. The manufacturers probably wouldn’t make much, if any, profit
on parts for old bikes, but it might keep somebody busy.Even if the parts have to be special order, pre-paid items and priced higher than normal, people like me would buy them.
I would gladly pay a higher price to get brand new, genuine, factory OEM parts for -
The motorcycle industry should focus on making it as easy as possible
for customers to buy new motorcycles.1- The manufacturers should offer incentives and discounts to dealers and dealers need to pass these along to customers.
2 – Low or no interest financing should be readily available.
3 – Don’t raise prices, keep them the same or lower them. (This seems obvious, but so far the manufacturers seem to have raised prices across the board for 2009, in some cases significantly)
4 – Take trade-ins (that are in reasonable shape) from any manufacturer and any year.
5 – Help customers reduce running costs as an incentive to buy now, e.g., offer discounted insurance, free servicing, and steep discounts on oil, tires, and other consumables.Be nice, be helpful, and make it easy. That’s the best way forward in this crisis.
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I have lived in South East Asia for 3 years now. There are millions of people who live their lives on 100cc scooters. I have seen many of these bikes outfitted with cargo side-cars (no seat, flat deck); they are the equivalent of our pickup trucks. I’ve seen a family of six riding a single Honda Dream. They run for years on primitive roads.
How did America get to the point that we need a 700 pound, 1.5 litre bike just to get from A to B? It is true a bike must be able to maintain 70mph on the expressway, but a 400cc scooter can easily do that.
Part of the problem is emission controls. They are totally unnecessary on a small displacement bike and only add to the manufacturing cost.
It seems that 1500cc is needed to transport a gigantic ego. -
While I am not a huge fan of their products, one must admire Harley Davidson marketing prowess and their new Screw it, Let’s Ride campaign aimed at this very topic is great. The other manufacturers should follow their lead.
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At the end of 2008, there are three consumer marketplaces that are experiencing record sales volumes—firearms, precious metals, and emergency storage food. Crisis preparedness is increasingly the theme for those seeking a refuge for their money and comfort from their concerns.
I suggest that the Motorcycle industry push ATV and Dual purpose street bikes. I have pulled my TT 600 and YZ 250 out and prepped them. I would buy larger tanks if I could. I may trade one or both in on a new KLR 650.
If People think they may be looking at ways of getting around roadblocks and checkpoints they will need a vehicle than can travel off road. I am not saying they will need these items but if they are buying guns, metals and emergency food the logical extension to that thought process is an ATV/off road vehicle. Call it the Jericho syndrome but don’t ignore it. Go with it. I would not be surprised to find that these type vehicles are already selling at a brisker pace without any help from the MC industry.
(I was a XXXX Dealer and XXXX Dealer from 1980 -1987 so I know tough times.) -
If bikemakers want to “turn things around” for themselves, they can start by taking product quality and related customer complaints seriously.
Take BMW, whose most recent plague of failed final shaft drives is no isolated, one-off issue. Before, it was the (and per BMW, first non-existent and then rider-inexperience-induced) surging complaints. In neither case did BMW step up to the plate and proactively address the cause. Instead they retreat in denial; it is left to the owner/rider to indulge in peer “group grope” on the Internet and in local clubs to seek out a remedy.
Strangely, BMW seemed to have incidentally corrected the surging issue with the introduction of the dual-spark ignition — emphatically denying that was in any way related to or motivated by the surging “non-problem”. One can only hope that the more recent final drive fiasco will be incidentally corrected by another equally “unrelated” product upgrade.
Until manufacturers behave in a respectful, open and above-board manner with their customers, manufacturers will be left to bemoan the current economic situation while watching their futures wither and customers defect to other more reliable and oft times less costly alternatives…including super scooters, which continue to gain increased favor with many experienced motorcyclists. Two-wheeled transport is leaving the American “life style” genre and is becoming a more mainstream mode of transport in America. This will demand a less casual attitude on the part of motorcycle makers who wish to remain a part of the picture.