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Morning Reads: 21 July 2007

mika

Still Wondering
TodayÔÇÖs Birthdays / Calendar

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BMW in the News

motociclismo.es
BMW Parks its Sport Enduro 450
???!!!???

money.cnn.com
German regulator approves BMWÔÇÖs engine JV stake sale to Daimler Chrysler


News:

visordown.com
Erik Estrada passes bike test ÔÇô twenty years too late!

Bikes in the Fast Lane
Netherlands wants to outlaw integral helmets. HUH? I got to take it off when I get off the bike?

womenridersnow.com
Suzuki unveils new motorcycles ÔÇô Three different models for three different tastes
Photo Gallery of the 2008 lineup from [http://motorcycles.about.com/od/manufacturerlineups/ig/2008-Suzuki-Model-Lineup/index.htm[/url

A Harley Motorcycle.com
Enjoy pocket bikes but also embrace the responsibility

]Topix.net / AP
Harley-Davidson 2Q profit up on sales

thebeachcruiser.com
Sturgis, a truly one-of-a-kind experience

Dark Roasted Blend
Best Graffiti Showcase

spiegel.de
Size IsnÔÇÖt Everything: Tiny brain no problem for French tax official


Bike Review:

motorcycledaily.com
2008 Kawasaki Concours 14: MD First Ride (Part2)

citybiker.wordpress.com
The Amazing (Super-Fantabulous) Ninja 250


Over Heard in New York | Voice of the City


Photography / Video:

dPS.com
7 Strategies for avoiding flash blow out

Episode 4
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M.R. Traveler

spiegel.de
US Visitors Feeling the Pinch: As dollar crumples, tourists overseas reel

bravenewtraveler.com
Travel the World in 10 Minutes


TodayÔÇÖs RoadFood.com

twincities.com
Mexico tries to set the record straight


Woot

Todays Woot

The Blog

xkcd A webcomic of Romance, Sarcasm, Math and Language


BMW Group Press Club:

PressClub Canada

BMW Motorrad acquires Husqvarna Motorcycles

Munich. BMW will acquire the renowned motorcycle company Husqvarna Motorcycles. Dr. Herbert Diess, General Director of BMW Motorrad, and the Italian industrialist Claudio Castiglioni signed a contract on 19.07.2007 in Italy. The contractual agreement will come into full effect upon final approval of the EU cartel authorities. Both parties agreed that the purchase price was to remain confidential.
For BMW Motorrad the acquisition of Husqvarna Motorcycles is a logical step in enhancing the company's activities in the field of light, sporty motorcycles, which has recently been reinforced with the new models of the BMW G 650 X series. Commenting on BMW's decision to acquire Husqvarna Motorcycles, Diess, General Director of BMW Motorrad, stated: "With the Husqvana models targeted at the sporty competition, we will be able to extend the BMW Motorrad range to include younger groups of customers as well as the entire off-road and supermoto sector much more quickly and effectively than with our core brand alone. This transaction also provides us with direct access to a worldwide sales network in the off-road segment."

BMW Motorrad plans to continue operating Husqvarna Motorcycles as a separate enterprise. All development, sales and production activities, as well as the current workforce, will remain in place at its present location in the region of Varese in northern Italy.

Just as BMW Motorrad, Husqvarna Motorcycles is steeped in tradition and one of the most renowned motorcycle companies in the world. Motorcycles were initially produced in Sweden from 1903 and in Italy from 1986. Today the company is one of the leading suppliers of sporty off-road motorcycles. In the course of its history, Husqvarna Motorcycles has achieved numerous international racing victories including European and World Championship titles.

BMW Motorrad produced and sold over 100,000 motorcycles for the first time (production: 103,759 units, delivery 100,064 units) in 2006. The production program includes only large-volume motorcycles over 500 cc. BMW Motorrad is the largest European manufacturer in this segment. In 2006, BMW Motorrad achieved sales of 1,265 million euros, with pre-tax profits of 66 million euros. BMW Motorrad employed an average of 2,816 staff worldwide in 2006.

Husqvarna Motorcycles is part of the Italian company MV Agusta S.p.A. and produced some 12,000 motorcycles in the capacity range of 125 to 610 cc in 2006. The focus of the company's model program is on sporty off-road motorcycles which are equipped solely with single cylinder engines. Husqvarna Motorcycles employed a workforce of approximately 240 in Italy in 2006.


BMW Sauber F1: Website

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BMWOracleRacing.com the AmericaÔÇÖs Cup website.

Wonderings

uly21st 2007 BMW celebrates its ninetieth birthday.

This may seem a little strange since the fiscal year began on January 1. DonÔÇÖt be concerned both dates are artificial legal constructs. Fiscal years can be changed for various reasons. Most people know their birthdays. BMWÔÇÖs was derived.

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In 1922 the date of origin or birth date of the company was needed as part of a complex business transaction. The oldest document identifying the companyÔÇÖs origin was dated July 21, 1917. Five years after that date BMW settled on its birthday.

If we were throwing a birthday dinner we might want a master of ceremonies to tell a few jokes and a few tales about BMW. Around Minnesota people might suggest the humorist / writer Garrison Kiellor.

Kiellor is famous for monologues about his fictitious home town of Lake Woebegone, Minnesota. Every monologue begins with the starting phrase ÔÇ£Its been a quiet week in Lake Woebegone.ÔÇØ Then Kiellor crafts a story that leaps from this starting point and fancifully moves until it arrives at the end of that weekÔÇÖs news. The arrival is marked every time by the same ending phrase ÔÇ£Well thatÔÇÖs the news from Lake Woebegone, were all the women are strong, the men are good looking and the children are all above average. Lake Woebegone, my home town.ÔÇØ

There could be problems with having Kiellor as the master of ceremonies for a BMW birthday party. He may have trouble with developing a storyline. You see it has been anything but a quiet 90th year for BMW.

The fiscal year 2006 ended with a bang. It had been a year of record sales, revenues and earnings. During the year multiple new models were introduced. December 15 a R1200R rolled off the production line of the Berlin plant and became the 100,000th BMW motorcycle made that year. The final figure of 100,064 motorcycles marked the highest output since BMW began producing motorcycles under its own name in 1923. Yet for all the exuberance associated with 2006 the 90th year of 2007 began with many challenges.

Revenues started under great pressure. Model prices of BMWÔÇÖs various world markets had been set more than a year prior. Changes in the value relationship between the Euro and the Dollar turned things up on their helmet. Revenue from the US marketÔÇÖs strong sales was now devalued by the declining dollarÔÇÖs buying power. At the same time the costs for materials and parts was increasing for a variety of reasons.

Sales figures for 2007 tell a confusing story. For example JuneÔÇÖs unit sales came in at 11,591 motorcycles but that was down 7% from June 2006ÔÇÖs 12,466 motorcycles. At the same time BMW reported year to date motorcycle sales of 59,230 up 5.6% from last years 56,103. Are sales going down or just taking a breather on the road to another record year?

In an extensive set of remarks made when Chairman of the Board of Directors, Dr. Reithofer identified some simple challenges and issues to be dealt with in 2007 and the future. The challenges are competition, change in global growth regions and demographic development. The core response to these challenges centers on long term thinking and long term actions that will yield long term growth. This means seeking new markets and new alliances for parts and materials. The automotive group has opened a new plant in India to achieve these goals, for example. The motorrad division in the meantime has taken on the Dragon by developing collaboration with Loncin in China.

BMW Motorrad had opened a sales center in Beijing in its initial entrance to China. May 11th BMW opened its second sales center at Chongqing China. The ÔÇ£Boxer Caf?®ÔÇØ was announced as part of what is described as an effort to develop sustainable market and trade relations. This also marked the announcement of BMW securing a collaborative relation with Loncin.

In 2006 Loncin was ChinaÔÇÖs second largest motorcycle manufacturer with a reported 1.4 million units world wide for that year. Their product range runs from 50cc up to cruiser and sport models in the 250cc displacement range.

The collaboration with Loncin goes beyond securing a host company for a Boxer Caf?®. Loncin is also described in the press release as an importer of BMWÔÇÖs for the Chinese market and brings several key things to reach Dr. ReithoferÔÇÖs goals. Locin is a collaborator that has extensive knowledge of the Asian market and China in particular, has an extensive sales network and for the long run help BMW access the supplier network. This may be seen as a key issue but a long term one at the same time. The concern is developing capacity and quality at the same time.

Just a few short months after opening the Boxer Caf?® with Locin BMW announced the inking of a deal for the purchase of Husqvarna Motorcycles.

With sales in the range of 12,000 bikes for 2006, Husqvarna will only add about one monthÔÇÖs unit sales to BMWÔÇÖs motorcycle volume. More importantly Husqvarna compliments BMWÔÇÖs model range in size and price. The current Husky line up ranges from 125 to 610ccs putting it below the F650 GS and X bikes of BMW. At the same time with the exception of one Husqvarna model and the current F650GS the Husky line up is priced below BMW. The two lines are clearly complimentary.

BMW seems to see more important things in Husqvarna than a complimentary product line. With a cult cache and multiple off road championships to its name it is seen as a quick way for BMW to expand its off road presence and appeal to a younger market demographic.

This is about the time Kiellor would find his way to his closing line leaving us to finish our meal of rubber chicken, mashed potatoes, green beans and a desert of German chocolate cake after we laugh and offer up our applause. Kiellor may be confident that in Lake Woebegone all the women are strong, the men are good looking and the children are all above average. I am not as confident that BMWÔÇÖs plans are strong, its decisions are good and the new suppliers will be above average. They may well be all those things but I have a few questions in the interim.

In the strange communist capitalist world that is todayÔÇÖs China what does it mean to be a collaborator? Is this a euphemism for some sort of buyout or joint venture? Loncin lists the 2006 value of its assets at about $850 million. It did not list its revenue on the 1.4 million in sales. BMWÔÇÖs asset value can be long debated but it listed its 2006 revenue for just the motorrad division as approximately $1,750 million. Is there an under the table buy out going on.

Husqvarna and BMW look like a good match on paper. I have been through more than one buy out / merger over the years. The question is can a Swedish named Italian company be merged with a German multinational and deliver on the promise of increased market share and demographic appeal?

If I were a millionaire and wanted to be a BMW dealer in the future all of this presents and interesting prospect. Yes, yes I know the joke about multi-millionaires becoming millionaires by opening a BMW dealership. I can imagine being a BMW product only dealer and being able to offer multiple models in sizes from 50cc scooters to XXXX cc BMW LTs. Interesting to say the least.

So Dr. Reithofer if you find yourself in Lilydale between board meetings after the 90th birthday celebration stop by and we can go down to the gas station and talk about all that is going on with BMW. You see all this speculation and two bucks will get us each a small coffee and change at the Lilydale gas station.


Bike Candy:

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THE END
 
Say Again ?????

M1KA is right!
Countries and people are becoming more and more intolerant towards motorcycles. The Netherlands, a country that is know for its tolerant attitude towards anything under the sun, is showing signs of discrimination towards motorcycle riders. Their conservative political party, the VVD Open link in a new window, is trying to impose a law that forbids people from wearing integral helmets when not on a motorcycle.

This from a political party whose acronym stands for People's Party for Freedom and Democracy. They should have a look at their own initials!

So you're allowed to wear one when riding, but you have to take it off before you dismount! So far, there's no law accepted (yet), but who knows...

I thought loud pipes were the major irritant to society. Something else must be at work.

The Link <- Check it out
 
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