mika
Still Wondering
Happy Birthday
BREAKING NEWS
AMERICA WINS BACK WOLD AIR GUITAR CHAMPIONSIP
Cmgonline.com suggests good news for Canadians may be a reason for Americans to travel north. Prices not expected to jump.
webbikeworld.com: 2010 Triumph Thunderbird [and more on the 2009 line]
cyrillhuzeblog.com: New Paughco Springer front fork for Victory Motorcycles
thekneeslider.com: No rules Buell 1125CR
From the current Cycle World news letter ÔÇôMasterBike 2008
Some strong language and loud engine noises:
Topspeed.com: Norton caf?® racer catches fire
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Just watched this on Top Gear and I am in love.
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With the van and Sabine.
autoweek.com: Getting a boost ÔÇô IndyCar wants turbocharged engines in 2011
topspeed.com: No Audi R8 competitor from BMW
I am not the only one who wonders about hair splitting definitions. netautos.com asks its readers their question of the day. What is the minimum speed for a supercar?
ft.com: Toyota raises domestic prices to fight costs
BMW ANNOUNCES 2009 MODEL YEAR PRICING
08/25/2008
Woodcliff Lake, NJ - August 25, 2008... BMW of North America, LLC today announced a price increase of 2.1 percent on average across its model range of 2009 BMW brand vehicles.
The modest price adjustment is driven mainly by continually rising raw materials costs and ongoing exchange rate pressure.
"The significant structural and economic changes in the marketplace are prompting all automakers to further refine actions to respond to these pressures," said Jim OÔÇÖDonnell, President of BMW of North America, LLC. "At BMW, we're responding with a number of internal efficiency improvements to offset our increased costs so that we can keep this price increase modest."
Model year 2009 vehicles are due to arrive at dealerships in October. Minor price adjustments will also be made to selected options/packages. There is no 2009 pricing on Z4 Roadsters and Coupes as production concludes at the end of the 2008 model year.
bmwmotorrad.co.za: BMW at the Olympics
worldofbmw.com : Keep on ridingfrom dawn to dusk
I have the feeling she isnÔÇÖt talking about Guinness.
Patricia Burchat: The search for dark energy and dark matter
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Stuff
autobloggreen.com: 84 million ZAP! Plant for Kentucky
nytimes.com: Drilling boom revives hopes for natural gas
I always thought it was people who read the Morning Reads but according to Spiegel.de Danes are the worldÔÇÖs happiest people
autospies.com: Audi overtakes BMW as top place to work for graduate students in Germany
nytimes.com: War veteransÔÇÖ concussions are often overlooked.
thefutureofthings.com: Strongest carbon nanotube ever
Packers Blog ÔÇô jsonline.com
Packers.com ÔÇô News from the football shrine
Green Bay Post Gazette: Packer News, Commentary
Channel 3 News: The Ian Schmeisser Phenomenon
Swift Boating a Swift Biker
How many motorcycles do you have and are some of them orange?
The ISP Campaign is facing its first case of swift biking as opponent PACs question the candidateÔÇÖs rides. This negative attack may be the real measure of how seriously the supposed major parties are taking the ISP.
Until this piece went to press the ISP has only made a two sentence response.
Look it up; itÔÇÖs a matter of public record.
The orange ones are my sonsÔÇÖ.
Strategists in both camps latched on to the second sentence as a possible place to place a wedge between the ISP candidate and his base. The plan seems to fall along the lines of; he may be clean on the ownership issue but if he canÔÇÖt lead children to the Promised Land can he lead the country? Leaders in both camps are fearful of campaigns on this tact.
Does it give the ISP candidate more credibility as a serious candidate if they go after him on this issue? The polls would indicate the bike has already left the garage on that point.
The second concern is does this drag the election campaign into a debate on free speech as related to motorcycles. Before that question could be resolved the leaders in both cases were forced to take up the ongoing issue of fund raising; thus proving again little speech is free in any presidential campaign.
Wonderings
Autonews.com had a piece [sorry I can not link you to it] which states ÔÇÿBMW is worse shape than the company is acknowledging publicly, according to the head of the automakerÔÇÖs works council.ÔÇÖ The article sites sluggish sales, increased inventories and the continued need to cut expenses.
According to the works councilÔÇÖs own data, BMWÔÇÖs y-t-d sales are off 8% in the US, 13% in South America and 14% in Japan.
Increased inventories have resulted and speculation is that 10% of the dealers would head into insolvency. It is not clear if this is a world wide estimate, European or only in Germany. Keep in mind, Morning Readers, the article is talking about automotive dealers here.
The decrease in demands for supply is resulting in targeted production cutbacks. The description in the article seems to put the company on the horns of a dilemma.
Each plant will be given targeted cutbacks in production. These cutbacks will be spread over the balance of the fiscal year. The Munich 3 series plant is targeted with a decrease of 3,000 units, for example.
An extension of the summer shutdown was rejected in Munich because an extension could delay the face-lifted model in reaching market. This was deemed potentially more damaging to sales than was acceptable.
Contractual and legal concerns took a reduction in work hours out of the mix. With a new contract having to be negotiated this fall and the workers having given negotiating goals of a 7.9% increase in wages, the horns of the dilemma are sharp indeed.
If all of this is correct BMWÔÇÖs reserves will be under even stronger pressure than the first six month report, released the beginning of August, would indicate. The impact of slow sales, increased holding costs related to increased inventory would be heightened by a 10% decrease in car dealerships. Productivity as an offset to these forces is weakened by the decreased production goals while maintaining working hours cuts into profitability.
What does this have to do with motorcycles? It is an article focusing in on the automobile section after all. In addition the decreased residual value of leased cars was one of the key concerns in the early August information. The motorcycle segment of BMW is not confronted with that issue.
The honest answer is I donÔÇÖt know. All of this is based on a single article from a single website. Of course that does not keep me from wondering.
The entire yearly world wide output of the motorcycle segment is less than or equal to the production of a single auto plant, or just over 100,000 bikes. Even at current prices the unit margin on a motorcycle is less than on a car. Now combine decreases in sales roughly equal to what is being discussed in the auto article with the same restrictions on decline in production with respect to closing down and employees. This puts big pressure on non-existent margin to cover the same productivity, production and employee issues the automotive segments face.
Dealer survival is a paramount concern for a variety of reasons to MOA members. With the huge down turns in the U.S. market the financial pressure on them has to be huge. We may find ourselves changing the old saw; What is the quickest way to become a millionaire? Be a multi-millionaire and open a BWM dealership, to What is the quickest way to sign up for welfare?
Before we go all doom and gloom for the motorcycle segment there are some potential bright spots. There is pent up demand for the new F ÔÇô GS models. The G models seem to be selling well as a result of its reputations as a gas miser. The new G 450 has generated a good deal of interest in the non US markets and its release in September could bode well. Finally the buzz continues around the Husqvarna continues to grow.
In the end the old curse ÔÇÿmay you live in interesting timesÔÇÖ comes to mind.
Bike Candy
THE END
BREAKING NEWS
AMERICA WINS BACK WOLD AIR GUITAR CHAMPIONSIP
Cmgonline.com suggests good news for Canadians may be a reason for Americans to travel north. Prices not expected to jump.
webbikeworld.com: 2010 Triumph Thunderbird [and more on the 2009 line]
cyrillhuzeblog.com: New Paughco Springer front fork for Victory Motorcycles
thekneeslider.com: No rules Buell 1125CR
From the current Cycle World news letter ÔÇôMasterBike 2008
Some strong language and loud engine noises:
Topspeed.com: Norton caf?® racer catches fire
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Just watched this on Top Gear and I am in love.
<object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/m1pklvKKnd0&hl=en&fs=1"></param><param name="allowFullScreen" value="true"></param><embed src="http://www.youtube.com/v/m1pklvKKnd0&hl=en&fs=1" type="application/x-shockwave-flash" allowfullscreen="true" width="425" height="344"></embed></object>
With the van and Sabine.
autoweek.com: Getting a boost ÔÇô IndyCar wants turbocharged engines in 2011
topspeed.com: No Audi R8 competitor from BMW
I am not the only one who wonders about hair splitting definitions. netautos.com asks its readers their question of the day. What is the minimum speed for a supercar?
ft.com: Toyota raises domestic prices to fight costs
BMW ANNOUNCES 2009 MODEL YEAR PRICING
08/25/2008
Woodcliff Lake, NJ - August 25, 2008... BMW of North America, LLC today announced a price increase of 2.1 percent on average across its model range of 2009 BMW brand vehicles.
The modest price adjustment is driven mainly by continually rising raw materials costs and ongoing exchange rate pressure.
"The significant structural and economic changes in the marketplace are prompting all automakers to further refine actions to respond to these pressures," said Jim OÔÇÖDonnell, President of BMW of North America, LLC. "At BMW, we're responding with a number of internal efficiency improvements to offset our increased costs so that we can keep this price increase modest."
Model year 2009 vehicles are due to arrive at dealerships in October. Minor price adjustments will also be made to selected options/packages. There is no 2009 pricing on Z4 Roadsters and Coupes as production concludes at the end of the 2008 model year.
bmwmotorrad.co.za: BMW at the Olympics
worldofbmw.com : Keep on ridingfrom dawn to dusk
I have the feeling she isnÔÇÖt talking about Guinness.
Patricia Burchat: The search for dark energy and dark matter
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Stuff
autobloggreen.com: 84 million ZAP! Plant for Kentucky
nytimes.com: Drilling boom revives hopes for natural gas
I always thought it was people who read the Morning Reads but according to Spiegel.de Danes are the worldÔÇÖs happiest people
autospies.com: Audi overtakes BMW as top place to work for graduate students in Germany
nytimes.com: War veteransÔÇÖ concussions are often overlooked.
thefutureofthings.com: Strongest carbon nanotube ever
Packers Blog ÔÇô jsonline.com
Packers.com ÔÇô News from the football shrine
Green Bay Post Gazette: Packer News, Commentary
Channel 3 News: The Ian Schmeisser Phenomenon
Swift Boating a Swift Biker
How many motorcycles do you have and are some of them orange?
The ISP Campaign is facing its first case of swift biking as opponent PACs question the candidateÔÇÖs rides. This negative attack may be the real measure of how seriously the supposed major parties are taking the ISP.
Until this piece went to press the ISP has only made a two sentence response.
Look it up; itÔÇÖs a matter of public record.
The orange ones are my sonsÔÇÖ.
Strategists in both camps latched on to the second sentence as a possible place to place a wedge between the ISP candidate and his base. The plan seems to fall along the lines of; he may be clean on the ownership issue but if he canÔÇÖt lead children to the Promised Land can he lead the country? Leaders in both camps are fearful of campaigns on this tact.
Does it give the ISP candidate more credibility as a serious candidate if they go after him on this issue? The polls would indicate the bike has already left the garage on that point.
The second concern is does this drag the election campaign into a debate on free speech as related to motorcycles. Before that question could be resolved the leaders in both cases were forced to take up the ongoing issue of fund raising; thus proving again little speech is free in any presidential campaign.
Wonderings
Autonews.com had a piece [sorry I can not link you to it] which states ÔÇÿBMW is worse shape than the company is acknowledging publicly, according to the head of the automakerÔÇÖs works council.ÔÇÖ The article sites sluggish sales, increased inventories and the continued need to cut expenses.
According to the works councilÔÇÖs own data, BMWÔÇÖs y-t-d sales are off 8% in the US, 13% in South America and 14% in Japan.
Increased inventories have resulted and speculation is that 10% of the dealers would head into insolvency. It is not clear if this is a world wide estimate, European or only in Germany. Keep in mind, Morning Readers, the article is talking about automotive dealers here.
The decrease in demands for supply is resulting in targeted production cutbacks. The description in the article seems to put the company on the horns of a dilemma.
Each plant will be given targeted cutbacks in production. These cutbacks will be spread over the balance of the fiscal year. The Munich 3 series plant is targeted with a decrease of 3,000 units, for example.
An extension of the summer shutdown was rejected in Munich because an extension could delay the face-lifted model in reaching market. This was deemed potentially more damaging to sales than was acceptable.
Contractual and legal concerns took a reduction in work hours out of the mix. With a new contract having to be negotiated this fall and the workers having given negotiating goals of a 7.9% increase in wages, the horns of the dilemma are sharp indeed.
If all of this is correct BMWÔÇÖs reserves will be under even stronger pressure than the first six month report, released the beginning of August, would indicate. The impact of slow sales, increased holding costs related to increased inventory would be heightened by a 10% decrease in car dealerships. Productivity as an offset to these forces is weakened by the decreased production goals while maintaining working hours cuts into profitability.
What does this have to do with motorcycles? It is an article focusing in on the automobile section after all. In addition the decreased residual value of leased cars was one of the key concerns in the early August information. The motorcycle segment of BMW is not confronted with that issue.
The honest answer is I donÔÇÖt know. All of this is based on a single article from a single website. Of course that does not keep me from wondering.
The entire yearly world wide output of the motorcycle segment is less than or equal to the production of a single auto plant, or just over 100,000 bikes. Even at current prices the unit margin on a motorcycle is less than on a car. Now combine decreases in sales roughly equal to what is being discussed in the auto article with the same restrictions on decline in production with respect to closing down and employees. This puts big pressure on non-existent margin to cover the same productivity, production and employee issues the automotive segments face.
Dealer survival is a paramount concern for a variety of reasons to MOA members. With the huge down turns in the U.S. market the financial pressure on them has to be huge. We may find ourselves changing the old saw; What is the quickest way to become a millionaire? Be a multi-millionaire and open a BWM dealership, to What is the quickest way to sign up for welfare?
Before we go all doom and gloom for the motorcycle segment there are some potential bright spots. There is pent up demand for the new F ÔÇô GS models. The G models seem to be selling well as a result of its reputations as a gas miser. The new G 450 has generated a good deal of interest in the non US markets and its release in September could bode well. Finally the buzz continues around the Husqvarna continues to grow.
In the end the old curse ÔÇÿmay you live in interesting timesÔÇÖ comes to mind.
Bike Candy
THE END
