mika
Still Wondering
Wednesday, 19 January
Members with Birthdays Today
On the Street
jsonline.com: Packers, Bears keep the enemy close
jasonline.com: In Chicago, thereÔÇÖs respect ÔÇô but little love ÔÇô for Green and Gold
jsonline.com: No plans to replace Soldier Field sod
February 3 is Chinese New Years. I plan on that day to make the first of a series of post looking at BMW in the first decade of the 21st century. Many of us celebrated the turn of the millennium and the start of the 21st century in 2000 but calendar geeks will tell you both took place with the start of 2001. I took both opportunities to celebrate, but that is another story for another campfire. I have been doing some research and reading in preparation for these posts and in anticipation of the release of the BMW 2010 annual report. I wonÔÇÖt say more about them.
Two BMW press releases kept me in the paddock instead of out and about putting my normal post together. There are a few things that I have been mulling over as I have done my digging that came to mind as I read the press releases and thought about various threads discussing the business of BMW over the years.
FWIW
The press releases do simple comparisons between 2010 and 2009. I donÔÇÖt think we can be that simplistic. Mind you, I am not all doom and gloom but I am not as convinced that all is sweetness and light as sales increase numbers might suggest. A larger context (even more than what follows) is needed to understand what is going on in the motorcycle world and where BMW fits in it.
In my normal rambling order -
Sales:
September 27, 2007 Dr. Norbert Reithofer, BMW Board Chairman, laid out a reorganization of BMW AG. In that speech he set a 5 year annual production goal for the Motorrad segment at 150,000 motorcycles per year. Goals are intended to make you stretch and it will be a stretch for BMW to even come close.
BMW Sales for the first decade of the 21st century
2001: 84,713
2002: 92,599
2003: 92,962
2004: 92,266
2005: 97,474
2006: 100,064
2007: 102,467
2008: 101,685
2009: 87,306
2010: 98,047
Total: 949,586 motorcycles for the first decade of the 21st century.
1923 ÔÇô 2010: 2,451,852 motorcycles for the life of the company to the end of 2010.
These figures include numbers reported in 2004 annual report that adjusted reported sales figures to exclude C1 scooter sales. In that report BMW placed the total C1 sales through 2002 at 33,489 units. The numbers do not include any Husqvarna sales.
The lifetime motorcycle production number is based on information in a 16 March, 2007 BMW press release that placed the total 1923 ÔÇô 2006 motorcycle production at 2,061,977 then adds the remaining four years of this decade to arrive at the final figure.
India:
I have been looking at India more and more even before Harley-DavidsonÔÇÖs announcement that they are building an assembly plant there. The Society of Indian Automobile Manufactures is one source of motorcycle production figures that I have found for the sub-continent. They place the 2009-10 two wheeled production at:
10,512,889 motorcycles.
Yes this includes everything from 1- XXXX cc bikes produced within the country but their one year production number dwarfs the BMW above and H-D figures will follow.
China:
Everyone talks about China and the size of the market. If you have a fraction of an ounce of entrepreneurial blood in you a bit of drool begins to form at the corner of your mouth as you think about the potentials. I have not found a reliable source for motorcycle statistics so pick a number, any number, and you are probably right.
Market Share
Whenever sales figures come into doubt the fall back position every manager talks about is market share. But what are they talking about? In very simplistic terms I keep the following in mind.
Four ways to increase market share.
1. In a static market increase your sales while your competitionÔÇÖs sales decrease in proportion to your increase.
2. In an expanding market increase your sales at a greater rate than the competition.
3. In a contacting market
a. decrease your sales at a slower rate than the competition or
b. increase your sales while the competition remains sales remain constant or decrease.
4. A combination of the above scenarios.
No doubt you can come up with other and better ways to think about market share. For me BMWÔÇÖs increase in market share falls in the last category when you look at it either world wide or in the US.
Harley-Davidson
We are always looking sideways at Harley ÔÇôDavidson; so here goes.
I follow Harley-Davidson and have read their annual reports for many years. A few years ago I wondered how their sales for the first decade of the 21st century would compare to BMWÔÇÖs for a) the same period, b) since the resumption of motorcycle production after WWII, c) the 1923 through 2010 production number.
2001 -2009: 2,641,884
Harley-Davidson will report 2010 sales when it releases its 2010 Q4 earnings estimates on January 25th. The gap between their decade sales and BMWÔÇÖs lifetime sales will only increase. This has no real meaning beyond context and conversation value.
Keep in mind the above along with a dollar and tax will get you a large cup of Reindeer Antler coffee at the Official Fly-Over-Land coffee shop. I posted it here because it provides some of the context I use when I read press releases like these.
Finally
You canÔÇÖt pay bills with percentages of increases or unit sales. You pay bills and investors with revenue and bottom line. For that we will have to wait until the annual report.
The Mothership
BMW Motorrad raises sales by 12.3% and boosts global market position. Encouraging sales trends on all relevant motorcycle markets. Market leader in eleven countries. Strong sales figures from Husqvarna Motorcycles.
18.01.2011
Press Release
Munich. BMW Motorrad can look back on an extraordinarily successful motorcycle season in 2010. By December 2010, 98,047 motorcycles worldwide were delivered to customers (previous year: 87,306 units), a growth of 12.3%. In a highly challenging market environment, BMW Motorrad has recorded the strongest growth by far in the competition.
BMW Motorrad has recorded considerable growth in virtually every country. Supported by its continued product offensive, the blue and white brand could raise its market share to a historical high.
Hendrik von Kuenheim, Head of BMW Motorrad: ÔÇ£The 2010 motorcycle season was a delightful year for us. Our range of innovative models met with great customer interest all over the world. Not only could we sell 10,741 more motorcycles than in the previous year, but at the same time we were able to considerably strengthen our market position in a highly discouraging market environment. Our market share rose to an all time high, and by December BMW Motorrad was the volume leader on eleven markets.ÔÇØ
In Germany, again the largest single market in 2011 for BMW Motorrad, 17,816 BMW motorcycles were registered (previous year: 15,833), a growth of 12.5%. BMW Motorrad could therefore maintain its leadership on both the total market and the 500 cc plus segment.
The share of the total market was 21.5% by December (previous year: 17.7%), and 23.2% (previous year: 19.0%) on the 500 cc plus segment. In other words, almost every fourth new motorcycle over 500 cc registered in Germany originated from the BMW Motorrad plant in Berlin.
Italy continues as the second strongest single market for BMW Motorrad. Here 14,386 BMW motorcycles (previous year: 13,089) were registered, a growth of about 10%. The BMW Motorrad share on the 500 cc plus segment rose to 18.4% (previous year: 14.3%). On the highly traditional motorcycle market in Italy, BMW Motorrad could considerably expand its market position and take over as volume leader.
The next most important sales markets are the USA, France, Spain, and the UK, followed by Brazil. The latter emerging market is gradually becoming one of BMW Motorrad's strongest sales markets. To do just to the importance of this market, BMW Motorrad will continue to expand its local motorcycle production facility in Manaus/Brazil, which was first established at the end of 2009.
R 1200 GS once again the most successful BMW Motorcycle.
And once again the most successful model overall was the large touring enduro BMW R 1200 GS, selling 18,768 units (previous year: 15,864 units), followed by its sister model, the R 1200 GS Adventure, selling 11,648 units (previous year: 8,803 units). Third place went to the classical tourer BMW R 1200 RT, with 11,132 vehicles sold.
BMW Motorrad also experienced extraordinary success with the S 1000 RR. In the first full year of marketing, 10,209 units were delivered to customers, and the first supersports motorcycle from BMW is heading the sales statistics in Europe. Considerably more than 90% of the orders for these vehicles opted for the innovative ÔÇ£Race ABSÔÇØ and the dynamic traction control DTC.
At the same time, excellent sales figures were also achieved with the F 800 GS (9,669 units), the F 800 R (7,805 units), and the F 650 GS (6,951 units).
BMW Motorrad outlook for 2011
There are excellent opportunities for a successful 2011: in 2010 BMW Motorrad could increase its market shares over a wide front, take over leading positions on other markets, and so create the optimal platform for future growth.
At the start of the 2011 season, BMW customers will benefit from the revised flat-twin engine roadster BMW R 1200 R that for the first time will also be available as a classical variant. Moreover, BMW Motorrad will be presenting the new G 650 GS, yet another particularly appealing GS model with a single cylinder engine.
The first half of the year will see the launch of the K 1600 GT and the K 1600 GTL, innovative, de luxe touring motorcycles with six cylinder inline engines, the first of their kind in the history of BMW Motorrad. Featuring the most compact six cylinder inline engines in series motorcycle production, these two top models in the BMW Motorrad range will be unlocking new dimensions for riding, long distance, and comfort characteristics.
Above and beyond these, the model range from BMW Motorrad will be presented at its best in 2011. The adventure worlds Enduro, Tour, Urban, Sport, and HP will be presenting fascinating motorcycles for virtually every taste. The range will be supplemented with an extensive line of options and innovative BMW Motorrad rider equipment.
Husqvarna Motorcycles with strong sales figures
Against the backdrop of a heavily declining international market in the field of off-road sports motorcycles, Husqvarna Motorcycles was able to sell 12,066 units in 2010 (previous year: 13,052 / -7.6%). As compared to the relevant competition, Husqvarna Motorcycles asserted itself well, not least as a result of the model offensive started last year.
As of model year 2011, Husqvarna Motorcycles now has the new 450 cc generation in the enduro, motocross and supermoto version available for a full sales year.
These new core models with their innovative single-cylinder engine will generate powerful growth stimuli for 2011. In view of the ongoing model offensive and further expansion of the sales network, the Italian manufacturer is looking forward to significant growth during this year's motorcycle season.
BMW Motorrad USA Posts Growth for 2010
18.01.2011
Press Release
BMW S 1000 RR Superbike is Bestseller in Debut Year
Woodcliff Lake, NJ  January 18, 2011BMW Motorrad USA posted a nearly four percent growth in sales in 2010, despite a continued double digit downturn in the U.S. motorcycle market. BMW sales were bolstered by the February launch of the BMW S 1000 RR superbike, which has redefined the limits of sportbike performance.
The most powerful production 1000cc sport bike in the world, the S 1000 RR quickly surpassed the BMW R 1200 GS to be the best selling bike in BMWÔÇÖs model lineup for 2010. In its debut year, the BMW S 1000 RR earned numerous awards from the U.S. media, including Robb ReportÔÇÖs ÔÇ£Best Sportbike,ÔÇØ Cycle WorldÔÇÖs ÔÇ£Best Superbike for 2010,ÔÇØ and MotorcyclistÔÇÖs coveted ÔÇ£Motorcycle of the YearÔÇØ Award. Other popular core models in BMWÔÇÖs lineup ÔÇô the R 1200 GS, R 1200 GS Adventure, and R 1200 RT ÔÇô benefitted from the introduction of a new engine and posted strong sales, as well.
BMW executives credited the companyÔÇÖs sales performance to a stable of leading-edge products as well as to a strong dealer network.
ÔÇ£BMW dealers did a tremendous job in 2010, despite the headwinds they faced with a tough economy,ÔÇØ commented Mac McMath, National Sales Manager, BMW Motorrad USA. ÔÇ£While many dealers in the country struggled last year, BMW dealers remained committed to the job at hand and worked tirelessly to capture every sale they could.ÔÇØ
According to McMath, BMW is anticipating another strong year in 2011 as supply improves to meet continued demand for the S 1000 RR and as the new six-cylinder touring bikes make their debut.
ÔÇ£The new K 1600 GT and K 1600 GTL should give motorcyclists a compelling reason to head down to their local BMW dealer this spring,ÔÇØ McMath added. ÔÇ£We expect strong sales from these bikes as nearly 400 customers have placed deposits for them since we kicked off our pre-sale program in late December.ÔÇØ
McMath also predicts continued growth in 2011 from strong consumer interest in new and re-launched models, such as the F 800 R naked bike, G 650 GS dual-sport and R 1200 R.
Bike Candy
The first model in the line of BMW Motorrads...
Lord Sebastian Coe, two-time Olympic champion and Chairman of the London Organisation Committee for the 2012 Olympic Games and Paralympics (LOCOG), with the BMW R32 at the BMW Museum (01/2010)
 and the latest BMW Motorrads.
BMW K 1600 GT, BMW K 1600 GTL
On the Street
jsonline.com: Packers, Bears keep the enemy close
jasonline.com: In Chicago, thereÔÇÖs respect ÔÇô but little love ÔÇô for Green and Gold
jsonline.com: No plans to replace Soldier Field sod
February 3 is Chinese New Years. I plan on that day to make the first of a series of post looking at BMW in the first decade of the 21st century. Many of us celebrated the turn of the millennium and the start of the 21st century in 2000 but calendar geeks will tell you both took place with the start of 2001. I took both opportunities to celebrate, but that is another story for another campfire. I have been doing some research and reading in preparation for these posts and in anticipation of the release of the BMW 2010 annual report. I wonÔÇÖt say more about them.
Two BMW press releases kept me in the paddock instead of out and about putting my normal post together. There are a few things that I have been mulling over as I have done my digging that came to mind as I read the press releases and thought about various threads discussing the business of BMW over the years.
FWIW
The press releases do simple comparisons between 2010 and 2009. I donÔÇÖt think we can be that simplistic. Mind you, I am not all doom and gloom but I am not as convinced that all is sweetness and light as sales increase numbers might suggest. A larger context (even more than what follows) is needed to understand what is going on in the motorcycle world and where BMW fits in it.
In my normal rambling order -
Sales:
September 27, 2007 Dr. Norbert Reithofer, BMW Board Chairman, laid out a reorganization of BMW AG. In that speech he set a 5 year annual production goal for the Motorrad segment at 150,000 motorcycles per year. Goals are intended to make you stretch and it will be a stretch for BMW to even come close.
BMW Sales for the first decade of the 21st century
2001: 84,713
2002: 92,599
2003: 92,962
2004: 92,266
2005: 97,474
2006: 100,064
2007: 102,467
2008: 101,685
2009: 87,306
2010: 98,047
Total: 949,586 motorcycles for the first decade of the 21st century.
1923 ÔÇô 2010: 2,451,852 motorcycles for the life of the company to the end of 2010.
These figures include numbers reported in 2004 annual report that adjusted reported sales figures to exclude C1 scooter sales. In that report BMW placed the total C1 sales through 2002 at 33,489 units. The numbers do not include any Husqvarna sales.
The lifetime motorcycle production number is based on information in a 16 March, 2007 BMW press release that placed the total 1923 ÔÇô 2006 motorcycle production at 2,061,977 then adds the remaining four years of this decade to arrive at the final figure.
India:
I have been looking at India more and more even before Harley-DavidsonÔÇÖs announcement that they are building an assembly plant there. The Society of Indian Automobile Manufactures is one source of motorcycle production figures that I have found for the sub-continent. They place the 2009-10 two wheeled production at:
10,512,889 motorcycles.
Yes this includes everything from 1- XXXX cc bikes produced within the country but their one year production number dwarfs the BMW above and H-D figures will follow.
China:
Everyone talks about China and the size of the market. If you have a fraction of an ounce of entrepreneurial blood in you a bit of drool begins to form at the corner of your mouth as you think about the potentials. I have not found a reliable source for motorcycle statistics so pick a number, any number, and you are probably right.
Market Share
Whenever sales figures come into doubt the fall back position every manager talks about is market share. But what are they talking about? In very simplistic terms I keep the following in mind.
Four ways to increase market share.
1. In a static market increase your sales while your competitionÔÇÖs sales decrease in proportion to your increase.
2. In an expanding market increase your sales at a greater rate than the competition.
3. In a contacting market
a. decrease your sales at a slower rate than the competition or
b. increase your sales while the competition remains sales remain constant or decrease.
4. A combination of the above scenarios.
No doubt you can come up with other and better ways to think about market share. For me BMWÔÇÖs increase in market share falls in the last category when you look at it either world wide or in the US.
Harley-Davidson
We are always looking sideways at Harley ÔÇôDavidson; so here goes.
I follow Harley-Davidson and have read their annual reports for many years. A few years ago I wondered how their sales for the first decade of the 21st century would compare to BMWÔÇÖs for a) the same period, b) since the resumption of motorcycle production after WWII, c) the 1923 through 2010 production number.
2001 -2009: 2,641,884
Harley-Davidson will report 2010 sales when it releases its 2010 Q4 earnings estimates on January 25th. The gap between their decade sales and BMWÔÇÖs lifetime sales will only increase. This has no real meaning beyond context and conversation value.
Keep in mind the above along with a dollar and tax will get you a large cup of Reindeer Antler coffee at the Official Fly-Over-Land coffee shop. I posted it here because it provides some of the context I use when I read press releases like these.
Finally
You canÔÇÖt pay bills with percentages of increases or unit sales. You pay bills and investors with revenue and bottom line. For that we will have to wait until the annual report.
The Mothership
BMW Motorrad raises sales by 12.3% and boosts global market position. Encouraging sales trends on all relevant motorcycle markets. Market leader in eleven countries. Strong sales figures from Husqvarna Motorcycles.
18.01.2011
Press Release
Munich. BMW Motorrad can look back on an extraordinarily successful motorcycle season in 2010. By December 2010, 98,047 motorcycles worldwide were delivered to customers (previous year: 87,306 units), a growth of 12.3%. In a highly challenging market environment, BMW Motorrad has recorded the strongest growth by far in the competition.
BMW Motorrad has recorded considerable growth in virtually every country. Supported by its continued product offensive, the blue and white brand could raise its market share to a historical high.
Hendrik von Kuenheim, Head of BMW Motorrad: ÔÇ£The 2010 motorcycle season was a delightful year for us. Our range of innovative models met with great customer interest all over the world. Not only could we sell 10,741 more motorcycles than in the previous year, but at the same time we were able to considerably strengthen our market position in a highly discouraging market environment. Our market share rose to an all time high, and by December BMW Motorrad was the volume leader on eleven markets.ÔÇØ
In Germany, again the largest single market in 2011 for BMW Motorrad, 17,816 BMW motorcycles were registered (previous year: 15,833), a growth of 12.5%. BMW Motorrad could therefore maintain its leadership on both the total market and the 500 cc plus segment.
The share of the total market was 21.5% by December (previous year: 17.7%), and 23.2% (previous year: 19.0%) on the 500 cc plus segment. In other words, almost every fourth new motorcycle over 500 cc registered in Germany originated from the BMW Motorrad plant in Berlin.
Italy continues as the second strongest single market for BMW Motorrad. Here 14,386 BMW motorcycles (previous year: 13,089) were registered, a growth of about 10%. The BMW Motorrad share on the 500 cc plus segment rose to 18.4% (previous year: 14.3%). On the highly traditional motorcycle market in Italy, BMW Motorrad could considerably expand its market position and take over as volume leader.
The next most important sales markets are the USA, France, Spain, and the UK, followed by Brazil. The latter emerging market is gradually becoming one of BMW Motorrad's strongest sales markets. To do just to the importance of this market, BMW Motorrad will continue to expand its local motorcycle production facility in Manaus/Brazil, which was first established at the end of 2009.
R 1200 GS once again the most successful BMW Motorcycle.
And once again the most successful model overall was the large touring enduro BMW R 1200 GS, selling 18,768 units (previous year: 15,864 units), followed by its sister model, the R 1200 GS Adventure, selling 11,648 units (previous year: 8,803 units). Third place went to the classical tourer BMW R 1200 RT, with 11,132 vehicles sold.
BMW Motorrad also experienced extraordinary success with the S 1000 RR. In the first full year of marketing, 10,209 units were delivered to customers, and the first supersports motorcycle from BMW is heading the sales statistics in Europe. Considerably more than 90% of the orders for these vehicles opted for the innovative ÔÇ£Race ABSÔÇØ and the dynamic traction control DTC.
At the same time, excellent sales figures were also achieved with the F 800 GS (9,669 units), the F 800 R (7,805 units), and the F 650 GS (6,951 units).
BMW Motorrad outlook for 2011
There are excellent opportunities for a successful 2011: in 2010 BMW Motorrad could increase its market shares over a wide front, take over leading positions on other markets, and so create the optimal platform for future growth.
At the start of the 2011 season, BMW customers will benefit from the revised flat-twin engine roadster BMW R 1200 R that for the first time will also be available as a classical variant. Moreover, BMW Motorrad will be presenting the new G 650 GS, yet another particularly appealing GS model with a single cylinder engine.
The first half of the year will see the launch of the K 1600 GT and the K 1600 GTL, innovative, de luxe touring motorcycles with six cylinder inline engines, the first of their kind in the history of BMW Motorrad. Featuring the most compact six cylinder inline engines in series motorcycle production, these two top models in the BMW Motorrad range will be unlocking new dimensions for riding, long distance, and comfort characteristics.
Above and beyond these, the model range from BMW Motorrad will be presented at its best in 2011. The adventure worlds Enduro, Tour, Urban, Sport, and HP will be presenting fascinating motorcycles for virtually every taste. The range will be supplemented with an extensive line of options and innovative BMW Motorrad rider equipment.
Husqvarna Motorcycles with strong sales figures
Against the backdrop of a heavily declining international market in the field of off-road sports motorcycles, Husqvarna Motorcycles was able to sell 12,066 units in 2010 (previous year: 13,052 / -7.6%). As compared to the relevant competition, Husqvarna Motorcycles asserted itself well, not least as a result of the model offensive started last year.
As of model year 2011, Husqvarna Motorcycles now has the new 450 cc generation in the enduro, motocross and supermoto version available for a full sales year.
These new core models with their innovative single-cylinder engine will generate powerful growth stimuli for 2011. In view of the ongoing model offensive and further expansion of the sales network, the Italian manufacturer is looking forward to significant growth during this year's motorcycle season.
BMW Motorrad USA Posts Growth for 2010
18.01.2011
Press Release
BMW S 1000 RR Superbike is Bestseller in Debut Year
Woodcliff Lake, NJ  January 18, 2011BMW Motorrad USA posted a nearly four percent growth in sales in 2010, despite a continued double digit downturn in the U.S. motorcycle market. BMW sales were bolstered by the February launch of the BMW S 1000 RR superbike, which has redefined the limits of sportbike performance.
The most powerful production 1000cc sport bike in the world, the S 1000 RR quickly surpassed the BMW R 1200 GS to be the best selling bike in BMWÔÇÖs model lineup for 2010. In its debut year, the BMW S 1000 RR earned numerous awards from the U.S. media, including Robb ReportÔÇÖs ÔÇ£Best Sportbike,ÔÇØ Cycle WorldÔÇÖs ÔÇ£Best Superbike for 2010,ÔÇØ and MotorcyclistÔÇÖs coveted ÔÇ£Motorcycle of the YearÔÇØ Award. Other popular core models in BMWÔÇÖs lineup ÔÇô the R 1200 GS, R 1200 GS Adventure, and R 1200 RT ÔÇô benefitted from the introduction of a new engine and posted strong sales, as well.
BMW executives credited the companyÔÇÖs sales performance to a stable of leading-edge products as well as to a strong dealer network.
ÔÇ£BMW dealers did a tremendous job in 2010, despite the headwinds they faced with a tough economy,ÔÇØ commented Mac McMath, National Sales Manager, BMW Motorrad USA. ÔÇ£While many dealers in the country struggled last year, BMW dealers remained committed to the job at hand and worked tirelessly to capture every sale they could.ÔÇØ
According to McMath, BMW is anticipating another strong year in 2011 as supply improves to meet continued demand for the S 1000 RR and as the new six-cylinder touring bikes make their debut.
ÔÇ£The new K 1600 GT and K 1600 GTL should give motorcyclists a compelling reason to head down to their local BMW dealer this spring,ÔÇØ McMath added. ÔÇ£We expect strong sales from these bikes as nearly 400 customers have placed deposits for them since we kicked off our pre-sale program in late December.ÔÇØ
McMath also predicts continued growth in 2011 from strong consumer interest in new and re-launched models, such as the F 800 R naked bike, G 650 GS dual-sport and R 1200 R.
Bike Candy
The first model in the line of BMW Motorrads...
Lord Sebastian Coe, two-time Olympic champion and Chairman of the London Organisation Committee for the 2012 Olympic Games and Paralympics (LOCOG), with the BMW R32 at the BMW Museum (01/2010)
 and the latest BMW Motorrads.
BMW K 1600 GT, BMW K 1600 GTL