The Motorcycle segment lost sales volume but increased market share.

The US is third in markets behind Germany and Italy but lump Europe together and we are a distant second.

LT lovers take heart. The report comes out and says there will be a new LT six cylinder in the near future. Not dates but it is the first time BMW has mentioned it in one of its reports.

Six cylinders may not be limited only to the LT appears to be the hint in the announcement.

The Motorcycle segment made money. Not much on a percentage basis but it was profitable in a horrid market.

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International motorcycle markets contracted on average by roughly on third in 2009. Despite this difficult environment, we were still able to sell 87,30 BMW motorcycles worldwide (-14.1%) convincingly outperforming the market as a whole.

The Motorcycles segment generated revenues totaling euro 1,069 million in 2009, 13.1% down on the previous year. The difficult market environment in 2009 pushed down EBIT by 68.3% to euro 19 million, with profit before tax falling to euro 11 million (-78.4%)

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Motorcycle markets in 2009
Developments on international motorcycle markets in 2009 were largely shaped by the knock-on effects of the international economic and financial crisis. Worldwide motorcycle sales in the 500cc plus segment were down by almost one third (-30.3%) against the previous year. The number sold in Europe fell by 21.9% with all countries registering negative rates. While the decrease in France (-9.1%) and the United Kingdon (-10.3) were relatively moderate volumes in Spain (-55.2%), Italy (-21.7) and Germany (-16.7) were well down on those of the previous year.

The decline in sales in the USA the largest market for motorcycles in the 500cc plus segment was particularly steep at -40.9%. The Japanese market also failed to reach previous figures (-17.1%)

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Motorcycle sales down on previous year

The number of BMW motorcycles sold in 2009 fell to 87,306 units worldwide (-14.1%) in a difficult market environment. Despite the adverse conditions, the Motorcycles segment was nevertheless able to improve its position and gain market share on all fronts, reflecting the fact that the drop in sales volume of BMW motorcycles was much less pronounced than the overall contraction of the markets in which we operate. A major contribution to this performance came from the K1300 R, K1300S and the K1300GT models which have been available to customers since February, and from the F800R, on sale since May 2009.

Lower sales volumes registered on most markets

In total 61,178 BMW motorcycles were handed over to customers in Europe in 2009, a decrease of 16.3%. In Germany, currently the largest single market for BMW motorcycles, we were able to maintain market leadership with 15,375 units sold (-17.2%). Sales in France (7,014 units/-14.6%), Italy (13,162/-12.5%) and Spain (6,457 units/-36.4%) were all down on the previous year. In the United Kingdom, however, sales increased by 4.3% to 5,859 units despite a generally contracting market.

The number of motorcycles sold in 2009 fell by 20.9% to 9.191 units in the USA and 6.3% to 2,825 in Japan.

Model range expanded
The expansion of the model range in 2009 helped to cushion the impact of adverse business conditions for the Motorcycles segment. The K1300R, K1300S and K1300GT models were shipped to dealers for the first time in February 2009. The F800R and the special R1200GS, R1200R and R1200Rt models (launched to coincide with the 15th anniversary of four-valve boxer engines) followed in the period from May onwards. The S1000RR (based on the racing version) was launched in December. A technical update of the R1200GS and a model revision of the R1200RT were presented at the International Motorcycle Exhibition (EICMA) in Milan. A BMW motorcycle with a six-cylinder engine Concept 6 was also unveiled for the first time. This concept study shows that a straight six-cylinder engine can be highly dynamic thanks to state-of-the-art design and engineering methods. The K model range will be expanded in the foreseeable future by the addition of the new BMW six-cylinder version. The first series production model will also be an innovative and luxurious BMW touring bike.

BMW motorcycles in 2009 analysis by series
R Series 45.9
F Series 38.4
K Series 15.7

Motorcycle production selectively reduced in response to drop in demand
We also selectively adapted motorcycle production volumes in 2009 to match the sharp decline in demand. In total, 82,631 motorcycles (-20.7%) were manufactured over the course of the year. During the year under report, our Berlin plant celebrated its 40th year as a production site for BMW motorcycles. During this period almost 1.9 million BMW motorcycles came off the production lines. The one millionth BMW motorcycle equipped with ABS left the Spandau plant in summer 2009. Twenty-one years agao we were the first motorcycle manufacturer worldwide to equip motorcycles with ABS anti-locking technology, thus setting an important milestone for active motorcycle safety at the time.

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Motorcycle markets in 2010
Despite the first signs of an economic recovery, we do not expect the international motorcycle markets in the 500cc plus class relevant for the BMW Group to make more than a modest recovery in 2010. The world market should settle down at a level slightly higher than that of 2009.

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Motorcycle segment
We entered the supersport bikes segment for the first time in December 2009 with the market launch of the S1000RR. We expect this move to create additional impetus for business, helping us to achieve our aim of beating past years sales volume figures in 2010. Revenues and earnings will also improve accordingly.

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From the Income Statements for Group and Segments
In euro million

Motorcycle segment

Revenues 1,069
Cost of Sales 925
Gross profit 144

Sales and administrative costs -126
Other operating income 2
Other operating expenses -1
Profit/loss before financial result 19

Interest and similar income 3
Interest and similar expense -11
Financial result -8

Profit/loss before tax 11
Income taxes -3
Net profit/loss 8