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Craft and Punishment

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A Tale of Twisted Fates of Artisans Deus Ex Machina was arguably the most popular and most impressive global brand for custom built motorcycles. Deus Ex Machina was built upon the development and creation of custom motorcycles. A clothing line got added for those fans of the brand who found it more satisfactory to order a Deus tee-shirt. This motorbike brand is now a luxury apparel handling the biggest names in fashion, peddling dreams to people, nay, to the masses. “Deus Ex Machina makes high-end motorcycles and loses money on each one” announced the newspapers. “That’s why we make clothing,” said Deus founder and owner Dare Jennings in that news report. “Otherwise, we’d go broke.” How could this be true? Why would one of the most successful and iconic custom motorcycle brand of the 21st century lose thousands of dollars on every bike they sell? CLICK HERE To Read this Photo Feature Profile of Deus Ex Machina. * * * * * * * * * * * * * * * * * * * * * * * * Click to Sign up for the Weekly Newsletter from Bikernet Blog for free. Stay updated, stay ahead of the curve.

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Used Volkswagens and Autonomous Cars

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This is for those committed to keep driving alive Never Stop Driving ! Two things are on my mind: A recent sale of a used Volkswagen and a podcast in which Elon Musk said Tesla cars will have Level IV autonomous capability in 2023. I think the two are related. Let me explain. While I would not mind an autonomous pilot myself from time to time, I am first and foremost a driver. The one thing I’ve had in common at all my gigs is that I have no off-hours from cars. I spend nearly every waking minute either working on cars; driving cars, whether around town or, my favorite, long road trips; racing; or passing on my enthusiasm. Your humble narrator fathoms deep in the car thing. –by Larry Webster from Hagerty.com Read this Editorial Article on Bikernet.com by Clicking Here. * * * * If you haven’t already, Check Out the Brand New 5-Ball Racing Garage Online Shop !!! CLICK HERE: You will find unique Motorcycling Gear designed by Lifelong Bikers & Custom Builders. Riding Free for 25 Years, celebrate Bikernet.com

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Motorcycle dealers in Canada blame rising insurance for drop in sales

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by Gillian Francis from https://leaderpost.com “I’m not going to say it’s all because of SGI, but I’d say three-quarters of it is.” In just over three years, Robb Hertzog, owner of the Regina motorcycle dealership Prairie Harley Davidson (click here), estimates he’s lost well over $1 million worth of sales. “I’m not going to say it’s all because of SGI, but I’d say three-quarters of it is,” he said in an interview Thursday, adding that skyrocketing insurance rates for motorcycles are leading to a decline in the amount of customers he receives. Hertzog is one of many business owners in the motorcycle industry who have voiced concerns about the increasing expenses for bike owners. SGI is considering upping insurance rates again, by 15 per cent for insurance premiums greater than $1,000 and by $25 to $150, for those that total $1,000 or less, leaving businesses with increasingly dire prospects. “They just can’t afford to ride anymore,” Hertzog said. “My younger clients are just not getting into it because when your monthly rate is as much or more than your loan payments, it makes it very, very difficult.” Earlier this week, an SGI spokesperson told the Leader-Post that increasing fees are part of a plan to rebalance insurance rates. This would lead to an annual rate decrease for some types of vehicles and in an increase for vehicles like motorcycles that are perceived to have higher accident risk. A latest proposed rate increase is being reviewed by The Saskatchewan Rate Review Panel. Insurance rates for new models with large engines, like Harley cruisers, can range from $2,000 to $3,000 per year. While this is enough to dissuade individual motorists from buying, there is also a chain reaction that extends to other parts of the industry as well. Hertzog explained the number

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Why shortages of a $1 chip sparked crisis in the global economy

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by Bloomberg from https://auto.economictimes.indiatimes.com The chip crunch was born out of an understandable miscalculation as the coronavirus pandemic hit last year. When Covid-19 began spreading from China to the rest of the world, many companies anticipated people would cut back as times got tough. To understand why the $450 billion semiconductor industry has lurched into crisis, a helpful place to start is a one-dollar part called a display driver. Hundreds of different kinds of chips make up the global silicon industry, with the flashiest ones from Qualcomm Inc. and Intel Corp. going for $100 apiece to more than $1,000. Those run powerful computers or the shiny smartphone in your pocket. A display driver is mundane by contrast: Its sole purpose is to convey basic instructions for illuminating the screen on your phone, monitor or navigation system. The trouble for the chip industry — and increasingly companies beyond tech, like automakers — is that there aren’t enough display drivers to go around. Firms that make them can’t keep up with surging demand so prices are spiking. That’s contributing to short supplies and increasing costs for liquid crystal display panels, essential components for making televisions and laptops, as well as cars, airplanes and high-end refrigerators. “It’s not like you can just make do. If you have everything else, but you don’t have a display driver, then you can’t build your product,” says Stacy Rasgon, who covers the semiconductor industry for Sanford C. Bernstein. Now the crunch in a handful of such seemingly insignificant parts — power management chips are also in short supply, for example — is cascading through the global economy. Automakers like Ford Motor Co., Nissan Motor Co. and Volkswagen AG have already scaled back production, leading to estimates for more than $60 billion in lost revenue for the industry

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Harley borrows Detroit’s used-car playbook to pursue younger riders

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from https://www.channelnewsasia.com Harley-Davidson has decided the best way to get younger customers to buy a new motorcycle is to sell them a used one first. The Milwaukee-based company plans to roll out a certified pre-owned bike program, known as H-D Certified, adapting a strategy carmakers have been following for years to position well-tended used vehicles as a substitute for low-margin, “entry-level” new models. Harley’s embrace of used bikes is part of a new five-year turnaround strategy under Chief Executive Jochen Zeitz, and is the latest effort to expand the brand’s appeal beyond middle-aged and affluent riders. The 118-year-old American brand has been steadily losing US market share amid declining retail sales for six years. But the demand for used Harleys, which are less expensive, has remained strong. Some dealers told Reuters that pre-owned bikes last year outsold new ones by three-to-one. Melissa Walters, owner of a Harley dealership in Fresno, California, says the coronavirus pandemic has led to an increased demand for outdoor recreational activity, but dealers are hard-pressed to find bikes to sell to customers. “People are tired of staying home,” she said. “They want to go out and do something.” That sentiment was echoed by over a dozen dealers in six states. Data from industry consultant JD Power shows Harley was the most sought-after brand in the used big bikes market last year, boosting bets the certified program will draw in new customers. For Harley, it offers a way to build brand loyalty and attract new customers without engineering and manufacturing new lower-cost bikes, which tend to have lower profit margins. “We believe this program will drive Harley-Davidson desirability, increase sales and margins, and enhance the overall customer experience while supporting growth,” Zeitz told Reuters. Under the pre-owned bike program, which was revealed last month, Harley will certify

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Harley-Davidson swings to Q2 loss, plans overhaul of operating model with new 5-year plan

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by Ciara Linnane from https://www.marketwatch.com Harley-Davidson Inc. shares HOG, -0.75% slid 2.9% premarket Tuesday, after the iconic motorcycle company swung to a loss in the second quarter and unveiled an overhaul of its business that will see it exit certain markets and streamline its product line. Milwaukee-based Harley swung to a loss of $92 million, or 60 cents a share, in the quarter, after a profit of $196 million, or $1.23 a share, in the year-earlier period. Its adjusted loss per share came to 35 cents, short of the FactSet consensus for earnings of 11 cents a share. Revenue fell 47% to $865 million from $1.633 billion, ahead of the $761 million FactSet consensus. U.S. motorcycle sales fell 27% to $31.3 million, EMEA sales fell 30% to $11 million and Asia Pacific sales were down 10% to $6.9 million. The company is not offering guidance, given the uncertainty created by the pandemic. Harley is planning a ‘Rewire’ restructuring of its global operating model, that will impact all areas of the business from commercial operations to center-led support functions. That process will build to a new five-year plan, to be called ‘Hardwire.’ “Building on our strong brand legacy, we are reinvigorating our core profit driving business — powered by our strongest dealers, most exciting products and careful inventory management, while focusing on the most important opportunities for future expansion,” Chief Executive Jochen Zeitz said in a statement. The plan includes 700 job cuts that were previously announced and a streamlining of motorbike models by about 30%. The company will focus on about 50 markets in North America, Europe and Asia Pacific that currently account for most of its volume and growth potential. The company is planning a marketing campaign featuring “Aquaman” actor Jason Momoa. The company expects too save $250 million

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Harley-Davidson’s stock tanks as motorcycle sales continue to slide

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by Paul R. La Monica from https://edition.cnn.com/ New York (CNN Business)Harley-Davidson has a big problem. Americans aren’t riding its trademark hogs nearly as much as they used to do. Shares of Harley-Davidson (HOG) fell 3% in early trading Tuesday after the company reported sales and earnings that missed Wall Street’s forecasts. The stock is now down more than 10% this year. Most alarming: Demand for Harley’s bikes continued to fall in the United States — even as they rebounded overseas. Harley’s retail sales in America were down 3% in the fourth quarter. That’s the 12th consecutive decline. US sales fell more than 5% for the full year. Sales were up slightly internationally, led by a more-than 6% jump in Asia. But that wasn’t enough to lift Harley’s worldwide motorcycle sales, which fell 1.4%. The weakness in Harley’s home market is particularly disappointing given that the United States and China have now reached a “phase one” trade truce. Harley has been complaining about tariffs put into place by the Trump administration for the past few years. President Donald Trump has also been critical of the fact that Harley — based in Milwaukee — had shifted some of its production outside of America to avoid tariffs in Europe that were put into place on the company in response to US tariffs on steel and aluminum. Trump even supported a boycott of Harley by US consumers in 2018. But Harley clearly has bigger problems than global trade policy. The company is trying to revitalize its sales with the launch of its LiveWire electric motorcycle. Harley CEO and president Matt Levatich struck a hopeful tone in the company’s earnings release. “We see 2020 as the pivotal year in the transformation of Harley-Davidson. This year we will broaden the reach of our brand and build

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