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Happy Holidays Bikernet Weekly News for December 3, 2020

By | General Posts

As you know by now, life is nuts and then you die. We’ve actually had the best life has ever had to offer in the history of mankind. Nothing could be as cool or as safe as we have seen it in our lifetime.

LET’S CELEBRATE—All we are capable of doing, all our friends and all we’ve been able to do in this amazingly short chunk of history.

Ride fast and free, forever! And happy holidays!

–Bandit

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Royal Enfield is coming after Harley-Davidson

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In its last financial year before the pandemic struck, Enfield company sold about 824,000 bikes globally. Harley, by contrast, shipped about 218,000.

Last year Enfield company doubled the size of one of its three factories, bringing overall production capacity to 1.2 million motorcycles a year.

To build buzz Enfield company has tried marketing to American customizers and flat-track competitors, and in 2018 it put Cayla Rivas, a teenage motorcycle racer, on a souped-up Continental in pursuit of a speed record for its bike class—and compelling footage for YouTube. (She hit 157 mph on Utah’s Bonneville Salt Flats.)

Although it may sound counterintuitive, “the U.S. and Europe are very important” to making Enfield the aspirational bike of choice for the developing world, he says.

Lal wants to be as big a player in the West as possible, but he argues that Royal Enfield doesn’t necessarily have to sell that many bikes in developed countries for the strategy to be considered a success. What it does need to do is move enough to give them a patina of cool at home and in other emerging markets, such as Southeast Asia.

Read the full article at Bloomberg. Click Here.

Players dominating Electric Bike Market

By | General Posts

by Joe D’Allegro from https://www.cnbc.com

  • Harley Davidson and Honda are among the dominant motorcycle makers with big plans in electric bikes.
  • Harley also recently announced that it is spinning off a nascent electric bicycle business.
  • Uber is among the top investors in electric scooter company Lime, which just posted its first quarterly profit, while competitor Bird is reportedly planning to soon go public via a SPAC.
  • NIU Technologies, which makes smart scooters, has seen its share price soar.

Tesla reached a $500 billion market valuation this week, a sign of its dominance in the electric vehicle market. But Elon Musk has shown no real interest in one growing EV segment: battery-powered scooters and motorcycles. An accident he suffered as a youth on a motorbike — nearly fatal, Musk has said — turned him off two-wheelers, for now. But the manufacturing of battery powered bikes is growing and consolidating, which means it’s likely to produce one or more dominant players in the years to come.

The electric motorcycle and scooter market reached $30 billion in 2019, according to a June 2020 report by Preeti Wadhwani and Prasenjit Saha from the research company Global Market Insights (GMI). They estimated that the market — which includes everything from large motorcycles meant for interstate cruising to tiny stand-up scooters as used by Lime and Bird — will grow more than 4% annually for the next few years and hit $40 billion in 2026.

Concerns over vehicular emissions, increasing consumer awareness about air pollution, and increasing investments by government authorities in the development of EV charging infrastructure are all expected to keep the market growing. Another factor boosting electric bike prospects is the continued improvement in batteries.

E-bikes, scooters and motorcycles

Electric motorcycles and scooters are still relatively pricey, and none yet matches the range of the best gas bikes, but that’s slowly changing. Lithium ion battery costs are down 85% in the last decade, said Garrett Nelson, senior equity analyst at CFRA Research. Within another 10 years, electric motorcycles can achieve price parity with gas bikes, he predicts.

“The playing field is wide open,” says Nelson. He noted that Honda, Yamaha and Harley-Davidson together control about two-thirds of the global motorcycle market, and are each developing electric motorbikes. So too are other big established players, such as the Indian-multinationals Hero Motors and Bajaj Auto, and some smaller electric-only startups, including Zero Motorcycles and Energetica.

Electric mobility is leading to a manufacturing boom for vehicles sized between small foldable scooters and full-on motorcycles, said Sam Korus, an analyst at ARK Invest, which is known for its big bet on Tesla. Uber led a round of investment in Lime earlier this year, while Bird is reportedly considering a public offering through a special purpose acquisition company (SPAC).

Troy Siahaan, a road test editor at Motorcycle.com, races a lightweight custom-built electric bike, giving him insight into the similarities and differences between gas and electric two-wheelers.

“The riding experience of an electric bike is similar to gas-powered motorcycles in that you twist the throttle and go,” he said, “but you don’t get sound, vibration or engine heat with electric bikes. By and large, they also don’t require shifting, so they’re easier for new riders than most gas bikes.”

Siahaan also likes the torque output — a measure of the acceleration — of electric bikes, since it is all available at the outset.

Nelson noted that most growth right now is in the small- to mid-sized section of the electric motorcycle and scooter market. These are popular in China and Southeast Asia, where two-wheelers are more common as a mode of transportation, and pollution and noise reduction are socially and environmentally appealing.

Post-Covid-19 demand in urban mobility

Korus said Chinese scooter manufacturer NIU is among the promising players operating in the space between small folding scooters and large motorcycles. The company, which went public in 2018, sells its app-supported smart scooters in 38 countries across Asia, Europe and North and South America. Its stock has risen sharply. The stylish sit-on scooters offer up to 87 miles of range (140 km), multi-color dynamic gauge displays and GPS-based anti-theft systems.

NIU’s primary competition are low-cost manufacturers in China, which make scooters that are less “smart” than its offerings, as well as the higher-end players out of Asia and Europe, which tend to be priced higher. A NIU model may sell for roughly $3,100, while a comparable Honda is over $5,000, a Vespa over $7,000, and a BMW anywhere from $10,000 to $15,000, according to Vincent Yu, a Needham & Co. analyst.

Korus noted that NIU’s software actively collects data that can be used to support autonomous driving and allows the company to add value on top of just selling products. This is also a key feature of Tesla’s business model, which ARK Invest CEO Cathie Wood has pointed to in her bullish thesis on Musk’s company. But for NIU, monetization of autonomous driving may be fairly far off into the future. Yu said today there is high value in the smart features focused on theft prevention and vehicle maintenance, for example, knowing when parts need replacement. Its lightweight lithium-ion batteries are also an advantage over heavier, older electric scooters as consumers look for more portable batteries that are easier to swap in and out.

A big question for NIU is just how big the market can get and whether it can grow both manufacturing capacity and a retail store network along with it, Yu said. Asia is still heavily reliant on petroleum-based scooters, especially Southeast Asia, but that is changing. And, as the world emerges from the Covid pandemic, Yu is betting more travelers will shy away from mass transit and opt for scooters. In countries like China, they are much easier to obtain than cars thanks to lower costs and less regulation and permitting requirements, especially in larger cities.

NIU commands over 26% of the Chinese e-scooter sales market, and has risen in Europe to No. 3 over the past two years. Yu added that NIU is building a new factory, targeting major Southeast Asian markets like Indonesia, and adding more stores around the world to capitalize on the demand. In Q3, the company opened 182 stores and now has another 100 under construction.

Harley-Davidson and the electric future

In the U.S., smaller motorcycles suitable for urban transportation and only occasional highway use are not as popular as in Asia and Europe. Nelson said U.S. buyers tend to be older and favor larger bikes with traditional looks and the signature sounds of a combustion engine.

Harley-Davidson, the largest and oldest U.S. motorcycle manufacturer, has addressed these buyers with its LiveWire, an electric motorcycle with traditional cruiser styling and an impressive 105 horsepower that lets it accelerate to 60 miles per hour in a quick 3.1 seconds. The LiveWire is 7-feet long and nearly 550 pounds, giving it the size and weight to fit in with the company’s mainstream gas-powered offerings, but, at $30,000, it’s just too expensive for many potential customers.

With the traditional American motorcycle buyer aging, Harley sales are down almost 40% since their peak in 2006. “Demographics will be a problem for them,” Nelson said.

Harley is committed to electric under a relatively new management team, led by CEO Jochen Zeitz, who earned high marks for his focus on sustainability as CEO of Puma. “We believe electric needs to play an important role in the future of Harley-Davidson,” he recently told Wall Street analysts. He said sales volumes are low relative to traditional bikes, but added, “It must be an important segment in the long term future of the company and it’s also attracting new riders, new customers to the brand that might not have considered Harley-Davidson before.”

Craig Kennison, who covers Harley for RW Baird, said the priority for Zeitz and his team is to shore up Harley’s finances and focus its business on the key markets where it can generate the most profits from core consumers today, and it will continue to generate the vast majority of its business from its V-twin internal combustion engine cycles (sales for LiveWire are not disclosed but the assumption is they remain very minor). “It’s not a big number,” Kennison said.

Similar to the path chosen by Tesla to first focus on the luxury consumer, Harley needs to perfect the electric motorcycle technology and given the price points today — it cannot alone control the cost curve in key areas like battery technology — only over time will it become more affordable to a larger consumer market. But if Harley makes the right decisions on current profitability centers, it will support the investment in electric vehicles over the decades to come, he said. “Right now Harley has a huge market and needs to make as much money as they can, and servicing the core customer, which is still highly profitable, is the focus.”

Harley is headed into the pedal bicycle market as well. It recently announced that it will spin off its electric bicycle effort, which has been in research and development for a few years, retaining a minority stake in the new firm, Serial 1 Company, a reference to its first-ever machine.

Targeting the e-bicycle market, with pricing below $5,000, is a smart move by Harley’s new management, as it makes the brand affordable for the masses in a growing segment, said Brandon Rolle, Northcoast Research analyst. And similar to NIU’s target scooter market, riders may not need a driver’s license to operate these vehicles, which will help in Harley-Davidson’s appeal to urban commuters and casual recreational cyclists.

High-end bicycle makers like Specialized have an early lead in this market — e-bikes which generate power that is multiplied by the human pedaling activity — and it does have the potential for widespread appeal in the future, according to Kennison. “It lets ‘the everyman’ get on the road … especially during the pandemic people want to get outside and bicycling is a great way to do it, but depending on your fitness level, having the added electrical power creates a totally different experience. You can go 20 to 50 miles and it changes the appeal” he said.

Harley’s motorcycle competitors

In the near future, pent up demand for outdoor products caused by Covid-19 could benefit motorcycle makers, including Harley, which has had a “rough last five years” according to Wedbush Securities analyst James Hardiman. “A lot of investors have looked at Harley-Davidson and the broader motorcycle one as not benefitting,” from the new outdoors boom, the analyst said. But industry sales and used sales are both up, and those are precursors for a broader-based recovery in bike sales, Hardiman recently told CNBC. While the bear case about the aging demographics isn’t going away, it has been that way for a decade already, he said.

Among Harley’s competitors for the future full-size motorcycle buyer are not just traditional players like Honda and Yamaha, but Zero and Energetica, which have some of the most advanced electric bike technology currently available, Siahaan said.

Zero, founded in Santa Cruz, California, in 2006, isn’t a household name, but it’s one of the most established players in the field. It began selling electric motorcycles in 2009, making it one of the very first production two-wheelers (the earliest production electric motorcycles and scooters appeared in the 1970s and 1990s, respectively, but enjoyed limited success).

Zero’s current all-electric line-up includes everything from the FX, a small on- and off-road capable “dual-sport” motorcycle starting at $9,300, all the way up to the SR/S sportbike which starts at $20,000. The 110-horsepower SR/S can reach 124 miles per hour and is capable of more than 200 miles of range when equipped with an enhanced battery. The FR/S is so advanced Road and Track alluded to Zero getting close to the being the Tesla of two wheels in its review. Zero offers it with an app that lets users modify the bikes maximum speed, power, torque and regenerative braking parameters.

Zero reached a 10-year deal with Polaris, a recreational vehicle powerhouse, that should give it the resources to further expand manufacturing and distribution. It will bring Zero’s powertrain technology and software to Polaris’ lineup of snowmobiles and off-road vehicles.

The high-end brand Energetica was formed in 2010 as a subsidiary of CRP Group, a motorsport and aviation manufacturer based in Modena, Italy. It offers a small lineup of attractively styled bikes starting at $17,600 for the general-purpose Eva EsseEsse9, and ending with the top-of-the-line Ego+. The latter is a 145-horsepower sportbike with an eye-watering starting price of nearly $24,000, but a 150 mph top speed and up to 250 miles of range.

Saha of the Global Marketing Institute told CNBC that the company is investing highly in R&D and owns several patents related to electric vehicle manufacturing in Europe, Asia, and North America.

Of course, as the largest motorcycle manufacturer in the world, Honda Motorcycles of Japan, is not standing still. It recently filed patents for electric-powered versions of its CB125R and CB300R, these are small, easy to manage general purpose bikes with “café racer” styling.

Saha notes that Honda is also making large investments in the development of swappable battery technology for electric motorcycles to allow riders to quickly replace the batteries after use. These moves, and factors like its global dealer and distribution network will aid Honda, Saha said.

Tesla moving beyond cars

And then there is Tesla. Though Musk has said the company will not produce a road bike, he has announced plans to release an electric all-terrain vehicle, the Cyberquad, late in 2021, and has at least teased the possibility of one day making a two-wheeled electric bike. In the least, Tesla could easily pivot a portion of its battery business to supplying other manufacturers, says Nelson.

Generating revenue is a big concern for any start-up, but especially in the electric motorcycle space, where federal and state-level regulation abound and consumer expectations are high. Many of the companies that first entered the electric two-wheeler market place have failed or been absorbed by larger players. This includes Brammo, which launched in 2002 and sold bikes with six-speed transmissions like those in traditional gas bikes rather than the single-speed automatics most electric manufacturers use. It was first purchased by the recreational vehicle maker Polaris in 2015, then engine maker Cummins in 2017. Brammo-branded bikes are no longer sold, but its technology lives on with its purchasers.

A similar fate befell Alta Motors, a maker of technologically advanced off-road electric bikes. The company shuttered operations in 2018 and its assets were taken over by Bombardier’s Recreational Products business in 2019 for use across its product lineup, which includes Ski Doo snowmobiles and the Can-Am line of three-wheel motorcycles.

“It’s always difficult to predict the future,” Siahaan said. “A lot of companies come out with big, bold announcements, but never even come to market.”

“It’s very early, so it is difficult to see how it all plays out, but that’s typical of a true growth market,” added Kennison.

Why Harley-Davidson Is The Tesla Of Motor Bikes

By | General Posts

by Jim Osman from https://www.forbes.com

Visionary CEO Keith E. Wandell should go down in history as the man who introduced the electric motorcycle to the US market and possibly the first CEO to bring it to the world.

It was in 2011 that Mr. Wandell first showcased his unbranded team-made creation to a keen San Francisco motor bike enthusiast crowd. He might be the most notorious CEO that the iconic US bike manufacturer Harley-Davidson HOG +4.1% has had (founded 117 years ago in Milwaukee, Wisconsin).

However, The Edge (the global leader for activist ideas, special situations and Spinoffs) believes new CEO Jochen Zeitz is the best thing to happen to the company since Mr. Wandell left and successor Matthew S. Levatich was fired suddenly thanks to Impala Asset Management, the $2.4 billion activist hedge fund led by Bob Bishop.

The US military purchased over 20,000 motorcycles from Harley-Davidson in World War I and the company also lent itself to supporting US and Allied troops in World War II, with 90,000 military motorcycles handed over.

Harley-Davidson’s global fan club run in the millions of members, called Harley Owners Group (HOG), and their constant support of US military and Allied troops gives to many charities around the world.

Under Mr. Wandell’s stewardship, the electric motorbike became a reality for Harley-Davidson when the LiveWire was first displayed to the media in June 2014 and released to customers by September 2019.

It even became the star of 2019 documentary “The Long Way Up” featuring Unicef Ambassadors and Hollywood actor Ewan McGregor and his longtime riding buddy Charley Boorman when they traveled from Argentina to LA on the electric LiveWire bikes.

In the 1950s Harley-Davidson dealt with reputation damage as well as economic downturns, and was on its knees by the 1960s. In 1969, American Machine and Foundry (AMF) rescued the nearly bankrupt Harley-Davidson.

AMF sold the company to a group of 13 investors led by Vaughn Beals and Willie G. Davidson for $80 million in 1981. To this day, it’s one of only two major American motorcycle manufacturers to survive beyond the Great Depression.

On July 1, 1987, executives from Harley-Davidson and the New York Stock Exchange rode from the Harley dealership in Queens to the New York Stock Exchange on Wall Street to celebrate the first day Harley-Davidson began trading under the ticker symbol HDI, according to the Harley-Davidson museum.

Mr. Wandell joined Harley-Davidson in May 2009, becoming the first external CEO since 1981. On February 7, 2012, under Wandell’s reign Harley-Davidson changed its New York Stock ticker symbol from HDI to HOG.

Mr. Wandell joined Harley-Davidson as CEO in 2009 and by 2012 he had assumed complete control as Chairman of the company’s board of directors while paying investors an increased dividend. It was Mr. Wandell who showed off his unbranded electric motorcycle to enthusiasts in downtown San Francisco in Autumn 2011.

But Mr. Wandell had an eye for talent and promoted Matthew S. Levatich, who joined Harley-Davidson in 1994, as Chief Operating Officer to President, and then CEO of the company in 2015 when Mr. Wandell retired.

Current President, CEO and Executive Chairman Jochen Zeitz (took office February 2020) made two purchases in May 2020, once on May 8 (97,850 shares at $21.26, totaling just over $2m) and again on May 13 (51,020 shares at $19.52, totaling just shy of $1m and representing a 51% increase to his holdings).

These were his first purchases of HOG stock and he has recently made another purchase on August 12 – this time buying 71,450 shares at $27.86 (again spending about $2m, representing a further 47% increase to his holdings) at a significantly higher level than his previous buys. From the May 8 purchase to date, Zeitz’s insider buying made an adjusted +23% return.

Another executive also bought on May 13, then-CFO John Olin, who bought 13,500 shares at $19.02 (spending $260k and representing a 19% increase to his holdings at the time. Since that purchase, Mr. Olin has left the company as part of the larger cost-cutting restructuring called “The Rewire,” though his purchase has yielded a significant return of +45% in just over three months.

Vice President & Treasurer Darrell Thomas has taken over interim CFO duties as of July 9 until a formal successor has been named.

In April 2020, in response to the ongoing COVID-19 pandemic, HOG announced a strategic turnaround plan called “The Rewire,” intended to overhaul the company’s global operating model and save costs.

As a result of the ongoing implementation of the Rewire, several optimization changes have been made to the global workforce and reduction of redundancies, there is an increased focus on offering customizable parts and accessories to help consumers make their motorcycles more personal.

The creation of Chief Digital Officer with Jagdish Krishnan in the role is designed create broader and more engaging digital marketing experience for consumers.

This initiative intends to bring Harley-Davidson into the modern era and appeal to generation Z consumers and beyond (as much of the counter-culture base has grown older and motorcycles have struggled to catch on with a wider young audience), and may provide another example of Mr. Zeitz’s turnaround magic.

NCOM Biker Newsbytes for November 2020

By | General Posts

Chinese Harley-Davidson, Status of old motorcycles in Europe, Trade War and Tariffs on motorcycles and its parts, Off-Road Bikes on the Street and more.

Compiled & Edited by Bill Bish

National Coalition of Motorcyclists (NCOM)

The National Coalition of Motorcyclists (NCOM) is a nationwide motorcyclists rights organization serving over 2,000 NCOM Member Groups throughout the United States, with all services fully-funded through Aid to Injured Motorcyclist (AIM) Attorneys available in each state who donate a portion of their legal fees from motorcycle accidents back into the NCOM Network of Biker Services (www.ON-A-BIKE.com / 800-ON-A-BIKE).

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The Educational Bikernet Weekly News for November 19, 2020

By | General Posts

HANG ON!—The Holidays are fast approaching. Hell, Thanksgiving is next Thursday. And a new Panhead project just landed in the shop.

We are ready for a speed run with the Salt Torpedo, but Micah is or was trying to escape Los Angeles and California. He looked in Prescott, Arizona, but didn’t find what he needed. He’s a member of the Uglies and has Carlos and Emma in Auburn, so he went to check it out. He’s currently in escrow. That may delay our trip to El Mirage.

Tomorrow, we will cover another Cruz Tool kit and how we used it with a Bandit’s Dayroll.

We have more road tests of CVO models and I’m working on another Sam’s Picks of the Week. Hang On!

In the meantime, Ride Free, while you can!

–Bandit

The Bikernet Weekly News is sponsored in part by companies who also dig Freedom including: Cycle Source Magazine, the MRF, Las Vegas Bikefest, Iron Trader News, ChopperTown, BorntoRide.com and the Sturgis Motorcycle Museum. Most recently Quick Throttle Magazine came on board.

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Harley’s ride with Hero may leave its dealers in the lurch

By | General Posts

by Lijee Philip from https://auto.economictimes.indiatimes.com

Dealers point to the mid-sized bike Street, which accounted for 70-90% of sales in upcountry and metro markets and has been out of production for more than a month.

Harley-Davidson, which exited India in September, may have firmed up a manufacturing and distribution agreement with Hero MotoCorp, but the fate of its 33 dealerships spread across metros and smaller towns remains unclear.

Dealers point to the mid-sized bike Street, which accounted for 70-90% of sales in upcountry and metro markets and has been out of production for more than a month.

A section of Harley-Davidson dealers said continuing with many recently opened showrooms may not be viable, especially in smaller towns and in metros including the National Capital Region and Bengaluru, which have several such outlets.

“We would sell at least 20-25 motorcycles a month. Now, it is down to single digits. With no sight of Street coming back and the launch of a mid-size motorcycle from the Hero-Harley combine at least a couple of years away, dealerships feel they need to be compensated for the investments made or margins increased to sustain operations,” one of the oldest Harley-Davidson dealers said on condition of anonymity.

“As stated in our earlier announcement, Hero MotoCorp will sell and service Harley-Davidson motorcycles, and sell parts and accessories and general merchandise riding gear and apparel through a network of brand-exclusive Harley-Davidson dealers network in India,” a Hero MotoCorp spokesperson said in an email. “We don’t want to comment on anything further at this stage, as all specific details with regard to the transition process will be worked out in due course of time.”

“We will get back as soon as we hear from the global team,” Harley-Davidson said.

Dealers, still awaiting clarity from Harley-Davidson or Hero MotoCorp on the next steps, estimate the network will be scaled down by more than half to 13-15 dealerships from the current 33.

“We have no idea who ceases to be a dealer or who continues,” said Rishi Aggarwal, a Harley-Davidson dealer for New Delhi, Ludhiana and Chandigarh. “In 2013, when the company was more dependent on CBUs, there were 9-10 dealerships and now we seem to be getting back to those levels.”

“With sales reduced to single digits, the viability of upcountry showrooms is an issue,” said Adarsh Tulshan, a Harley-Davidson dealer for Kolkata and Ranchi, adding a call needed to be taken for smaller markets like Ranchi.

Many dealers had expanded and refurbished their showrooms as Harley-Davidson had firmed up plans to increase volumes for the Street and newer mid-sized motorcycles.

“When we signed the letter of intent, we were given no clarity on the expiry date. We invested for the long term and many of us refurbished our dealerships earlier this year,” said another metro dealer on condition of anonymity.

An official communication from Harley-Davidson is expected this week and it will give a clearer picture on the compensation or increased margins for dealers.

Harley-Davidson announced its tie-up with Hero MotoCorp last month. Other similar partnerships include BMW-TVS and Bajaj-KTM.

Why Harley-Davidson Closed Shop in India

By | General Posts

From Ground-Zero of a Marketing Failure

Is there a market for big bikes in India? All the big names have dealerships here in India – Triumph, Indian, BMW, Yamaha, Kawasaki, Honda and now some Italian brands too. India is the world’s largest market for two-wheelers overtaking China. Motorcycles and scooters can be seen everywhere in every city, suburbs and villages. It is the most popular choice of transport for the common man. Why would one of the world’s most popular brands decide to shut shop in India after spending a decade building dealerships and relationships?

Harley-Davidson came to India before Indian and Triumph set foot here. In a way their sales figures induced other motorcycle brands to sell their larger models in India. Before Harley-Davidson the Japanese giants Honda, Yamaha, Kawasaki and Suzuki did not consider bringing their superbikes to Indian dealerships. They were content with their small commuter bikes and scooters selling in large numbers. So how does the trailblazer brand decide they don’t like what they have accomplished?

The answers are complex and the answers may be closer to home in US of A than in India.

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The Salt Torpedo Bikernet Weekly News for October 29th, 2020

By | General Posts

It Couldn’t Be Better with News every Spectrum

Hey,

The weather is rapidly changing. The election is almost over and I hope everyone voted. Next week will be damn exciting. I have confidence in America and as you know, in freedom.

The Bikernet Weekly News is sponsored in part by companies who also dig Freedom including: Cycle Source Magazine, the MRF, Las Vegas Bikefest, Iron Trader News, ChopperTown, BorntoRide.com and the Sturgis Motorcycle Museum. Most recently Quick Throttle Magazine came on board.

Ride fast and free forever!

–Bandit

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Hero MotoCorp to develop, sell Harley-Davidson bikes for India market

By | General Posts

from https://www.rushlane.com

from https://motorcycles.einnews.com

from https://www.business-standard.com

from https://www.thehindu.com

DELHI, India, Oct. 27, 2020 (GLOBE NEWSWIRE) — Embarking on a new journey together, Harley-Davidson, Inc. (“Harley-Davidson”), the legendary motorcycle manufacturer and Hero MotoCorp, the world’s largest maker of motorcycles and scooters in terms of unit volumes, today announced that the two will ride together in India.

Per a distribution agreement, Hero MotoCorp will sell and service Harley-Davidson motorcycles and sell Parts & Accessories and General Merchandise riding gear and apparel through a network of brand-exclusive Harley-Davidson dealers and Hero MotorCorp’s existing dealership network in India.

As part of a Licensing agreement, Hero MotoCorp will develop and sell a range of premium motorcycles under the Harley-Davidson brand name.

These actions are aligned with Harley-Davidson’s business overhaul, The Rewire, and the company’s announcement in September to change its business model in India.

This arrangement is mutually beneficial for both companies and riders in India, as it brings together the iconic Harley-Davidson brand with the strong distribution network and customer service of Hero MotoCorp.

About Hero MotoCorp Ltd.
The New Delhi (India) headquartered Hero MotoCorp Ltd. is the world’s largest manufacturer of motorcycles and scooters, in terms of unit volumes sold by a single company in a year — the coveted position it has held for the past 19 consecutive years. The Company has sold over 95 million motorcycles and scooters in cumulative sales since inception. Hero MotoCorp currently sells its products in more than 40 countries across Asia, Africa, Middle East, and South and Central America. Hero MotoCorp has eight state-of-the-art manufacturing facilities, including six in India, and one each in Colombia and Bangladesh. Hero MotoCorp has two world-class, state-of-the-art R&D facilities — the Centre of Innovation and Technology (CIT) in the northern Indian state of Rajasthan, and Hero Tech Centre Germany GmBH. Hero MotoCorp is one of the largest corporate promoters of multiple disciplines of sports, including, Golf, Football, Field Hockey, Cricket and Motorsports. Fifteen-time major winner Tiger Woods is Hero’s Global Corporate Partner.

For more information, please visit:
www.heromotocorp.com | FB: /HeroMotoCorpIndia | Twitter: @HeroMotoCorp

Harley Davidson withdrew its official presence in India last month only to kickstart an all-new innings, this time in partnership with Hero Motocorp. News about the American cruiser specialist scouting for a suitable partner in India has been circulating for a while now with Hero Motocorp and Classic Legends (Jawa’s parent company) touted as front runners. Now, it is official.
Harley Davidson partners with Hero MotoCorp
Harley Davidson has announced that it has entered into distribution and licensing agreement with Hero MotoCorp as a part of its Rewire strategy. As a part of the distribution agreement, Hero MotoCorp will be responsible for selling and service Harley Davidson motorcycles through the American marque’s existing network of outlets.
Hero’s well established dealership network would also be used to expand Harley’s market coverage. In addition to motorcycles, the Indian partner will also take care of retailing HD parts, accessories, general merchandise, riding gears and apparels.
Hero to develop Harley motorcycles

The most interesting aspect of the partnership is the licensing agreement according to which Hero MotoCorp will develop and sell a range of premium motorcycles under the Harley Davidson brand name. No further details about this arrangement have been revealed as of now.

The Harley Davidson – Hero MotoCorp partnership is a great news for the Indian motorcycle enthusiasts. Owners of existing Harley Davidson motorcycles will be able to get service as well as spares at Harley Davidson dealerships as well as at Hero dealerships.

Hero MotoCorp to develop, sell Harley-Davidson bikes for India market

The country’s largest two wheeler maker Hero MotoCorp and Harley-Davidson on Tuesday announced a wide ranging partnership for the Indian market.

The country’s largest two wheeler maker Hero MotoCorp and Harley-Davidson on Tuesday announced a wide ranging partnership for the Indian market, days after the US cult bike manufacturer announced its exit from the country.

As part of the deal, Hero MotoCorp will develop and sell a range of premium motorcycles under the Harley-Davidson brand name in the country. Besides, it will take care of service and parts requirements for the Harley bikes. Further, Hero MotoCorp would sell Harley accessories and general merchandise, riding gear and apparel through a network of brand-exclusive Harley-Davidson dealers and its existing sales network in the country, the companies said in a joint statement.

“These actions are aligned with Harley-Davidson’s business overhaul, The Rewire, and the company’s announcement in September to change its business model in India,” it added.

This arrangement is mutually beneficial for both companies and riders in India, as it brings together the iconic Harley-Davidson brand with the strong distribution network and customer service of Hero MotoCorp, it added.

In September, Harley-Davidson had announced discontinuation of sales and manufacturing operations in India, a decade after it started selling its premium bikes in the country.

As part of the development, the company had announced plans to close its manufacturing facility in Bawal (Haryana) and significantly reduce the size of its sales office in Gurugram.

The exit from India is part of the company’s global restructuring activities.

In the second quarter of 2020, Harley-Davidson had initiated restructuring activities like workforce reduction and the termination of certain contracts that would result in the elimination of approximately 700 positions globally, including the termination of approximately 500 employees.

The Milwaukee-based company refers to restructuring actions related to employees and other services as ‘The Rewire’.

From its entry to exit, Harley-Davidson’s journey in the country witnessed governments of India and the US using it as a bargaining chip.

In April 2007, the then Indian government had relaxed emission and testing norms, paving the way for import of Harley Davidson bikes to India, in return for allowing mango exports from the country to the US. The import relaxation was restricted to the shipments of motorcycles up to 800 cc engine capacity or above subject to compliance to Euro III emission norms.

Later in 2009, the company announced the establishment of its operations in India, followed by starting of sales of its bikes a year later. Then the company set up its completely knocked down assembly plant in Haryana and started rolling out assembled bikes from the unit in the early part of 2011.

The company’s assembly plant at Bawal in Haryana was its second facility outside of the US after Brazil, and it had planned to use the unit to export to Europe and South-East Asian markets.

In the recent past, US President Donald Trump criticised India’s high import tariff on the iconic Harley Davidson motorcycles as “unacceptable” as the two countries negotiated for an elusive trade deal.

Hero MotoCorp and Harley Davidson to partner for Indian market

Hero MotoCorp on Tuesday said that it has entered into a distribution and licensing agreement with American motorcycle maker Harley Davidson to develop and sell a range of premium motorcycles under the Harley Davidson brand name.

The announcement comes almost a month after Harley-Davidson Inc. announced that it will discontinue sales and manufacturing operations in India as part of a global strategic restructuring plan ‘The Rewire’.

“As per a distribution agreement, Hero MotoCorp will sell and service Harley-Davidson motorcycles, and sell parts & accessories and general merchandise riding gear and apparel through a network of brand-exclusive Harley-Davidson dealers and Hero’s existing dealership network in India,” Hero MotoCorp said in a statement.

It added that as part of a licensing agreement, Hero MotoCorp will develop and sell a range of premium motorcycles under the Harley-Davidson brand name.

“This arrangement is mutually beneficial for both companies and riders in India, as it brings together the iconic Harley-Davidson brand with the strong distribution network and customer service of Hero MotoCorp,” it added.