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The Kneeslider

Doers Builders and Positive People

Motorcycle Business Changes

By Paul Crowe

There have been quite a few changes taking place recently in the motorcycle business besides the American IronHorse difficulties. The changes are neither good or bad in themselves, just an indication of the economic conditions affecting many businesses.

Global Motorsport Group, owner of Custom Chrome is going bankrupt. Dae-Il USA, a subsidiary of the Korean Dae-Il that supplies the RevTech engines is in the process of trying to buy Global Motorsports. read

White Brothers has closed its doors and the off-road exhaust business is being taken over by Vance and Hines. read

Ducati is currently entertaining a buyout offer from its major shareholders: read

Combined with Honda pulling up stakes and moving motorcycle production back to Japan, you could say things are changing, or as economist Joseph A. Schumpeter would say, the business is going through a period of “creative destruction.” It may very well be stronger in the end.

UPDATE: Another rumor floating around has been the upcoming sale of the AMA racing properties. A tip earlier this week from John, said NASCAR was buying AMA flat track and today Cycle News reports an announcement will be made tomorrow that a group led by Bill France Jim France will be buying the road racing properties. None of this is official until the announcement is made but it looks like news will be out soon.

Posted on March 5, 2008 Filed Under: Motorcycle Business


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Comments

  1. nicolas says

    March 5, 2008 at 3:20 pm

    Seems like the economy slows down, and not only the custom builders are impacted (of course little cies can feel the heat first), even BMW is reducing it’s workforce in the motorcycle plants.

    Whatever, maybe the good point of this is that it will make the manufacturers think about selling more simple (yet efficient) and fun rides, not electronically driven gas turbine on wheels.

  2. nicolas says

    March 5, 2008 at 4:15 pm

    … and regarding the sale of the racing properties to NASCAR and others, I don’t know yet how it’s working in the US of A, but if we compare this to what happened in Europe recently, the Formula 1 promoters have bought some tracks to upgrade them to to be compliant with 300+ km/h safety specifications but mainly compliant with the gods of business/media/merchandizing, now they are not accessible to the average local competitions …
    I’m a recent US resident, I don’t know much, but it seems to me that NASCAR and consors are not promoting mechanical sports and racing, it’s more a business machine, right ? Not good for the sport …

  3. Chris says

    March 5, 2008 at 4:58 pm

    Sure, makes sense. When times are tight, recreation is one of the first things people cut back on. In the US, motorcycles are generally a luxury, not primary transportation, so it seems logical that people would be spending less money on new motorcycles and their accessories.

    cl

  4. mike says

    March 5, 2008 at 8:51 pm

    about the nascar thing. i thought that bill france died a year or so ago.

  5. hoyt says

    March 5, 2008 at 9:09 pm

    NASCAR –

    Road Racing means left AND right turns, sometimes back-to-back in what is called a “chicane”.

    Speed Channel – this means you can aire something else besides NASCAR practice, qualifying and re-runs of the 70s races. You know, motorcycle racing coverage.

    Even ESPN doesn’t show NFL teams practicing during the regular season.

  6. Luke says

    March 5, 2008 at 11:23 pm

    How am I supposed to take this seriously when I know that Bill France is dead?
    Bill France Jr is also dead.

  7. B. Case says

    March 6, 2008 at 1:12 am

    I believe it’s actually Jim France, Bill Jr’s brother.

  8. kneeslider says

    March 6, 2008 at 5:56 am

    Thanks, Brian. I re-read the Cycle News item and it does say Jim France, though I could have sworn it said Bill, probably just me misreading it. I don’t follow NASCAR but I do seem to remember a plane crash now that everyone is pointing this out.

  9. PO says

    March 6, 2008 at 5:58 am

    Talk about change, I read somewhere that the Chinese Harley is ready for sale in USA. Is this true?

  10. todd says

    March 6, 2008 at 3:27 pm

    Harleys are already built in China and Taiwan for decades now. Even all the aftermarket parts for them come from there too. This is truly a global economy; it doesn’t matter where it comes from or where it’s going any more.

    -todd

  11. hoyt says

    March 6, 2008 at 6:48 pm

    “it doesn’t matter where it comes from or where it’s going any more.”

    Todd – it doesn’t matter if we are not making anything in this country?

    EVERY country has a right to ask that question. It most certainly DOES matter where things come from. Holy f#$%, man.

    The only way a “truly global economy” can work in reality (as some idealogues think it does on paper) is if EVERY country had the same standard of living coupled with f’d’up health care, insane, mis-managed defense budget, poorly managed airline industry requiring handouts, etc.

  12. ROHORN says

    March 6, 2008 at 9:46 pm

    “Harleys are already built in China and Taiwan for decades now.”

    Please post some reputable references supporting that statement, please.

  13. Diesel says

    March 7, 2008 at 5:48 pm

    I wasn’t going to chime in on the “Harleys are already built in China and Taiwan for decades now.” comment, but I also would like proof. Just because they are sold there doesn’t mean they are built there.

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