Hoping to kick-start sales
After several bumpy years, the motorcycle industry is hoping for smoother roads ahead as the International Motorcycle Shows tour rolls into Long Beach this weekend.
Since the economy began significantly losing ground in 2008, annual new-motorcycle sales in the United States have plunged by about half to some 300,000 units, as money-conscious consumers chose not to make the often-discretionary purchases.
After falling 41% in 2009 and 14% last year, sales of new motorcycles are mostly flat this year, according to the Motorcycle Industry Council in Irvine, and are likely to remain there as long as the economy remains stagnant. Still, there are glimmers of hope.
Despite sluggish sales, motorcycling in general has been increasing. The number of vehicle miles traveled on motorcycles has been rising since 2003, according to the Motorcycle Industry Council.
Tire sales have also been increasing. Sales are up 10% through the third quarter of 2011 from the same period last year, signaling that more people are keeping their motorcycles longer and will eventually need to look at replacing them with new vehicles. And attendance at California’s Motorcyclist Safety Program classes in 2011 increased more than 15% through October, according to Motorcycle Safety Foundation Vice President Rob Gladden.
The signs bode well for the industry and the 31st annual International Motorcycle Shows, whose stop at the Long Beach Convention Center starts Friday.
“Everybody’s cautiously optimistic.... We expect an increase in show attendance in Long Beach and across the tour, and that’s good,” said Mike Caudill, spokesman for the International Motorcycle Shows.
Caudill points to strong advance ticket sales for the Long Beach show and the kickoff of this year’s 12-city tour in San Mateo last month, which, according to an exit survey, saw an increase in attendance over last year, and more time and money spent on the floor by attendees.
The Long Beach stop is particularly important for the industry because Southern California is the nation’s largest market for motorcycles.
This year’s Long Beach show will mark the North American debuts of several groundbreaking products, including two new scooters from BMW, a trio of electric motorcycles from Brammo, Ducati’s most powerful Panigale superbike, Triumph’s newest Tiger and a not-yet-revealed cruiser from Victory Motorcycles.
The show, which will run through the weekend, will also include a new Dream Pavilion packed with boutique products including a Norton Commando 961, MV Agusta F3, KTM RC8 R and Erik Buell Racing 1190RS. A Century of Motorcycling, a retrospective presented by Motorcyclist magazine, will be on display as well.
“We know from research that there’s still interest in motorcycles. The trick is to give people a reason to buy,” said Pieter de Waal, vice president of BMW Motorrad USA.
BMW’s 180-horsepower S 1000 RR superbike, introduced in 2009, has become the company’s bestseller. This year BMW followed up that success with its K 1600 LT six-cylinder sport-touring bike. Late next year, it will introduce its first scooters. All four vehicles will be on display this weekend along with the rest of BMW’s 2012 lineup.
“If there’s a ‘wow’ effect, then we see success,” De Waal said. “More than anything else, you have to believe in the future. And you have to be brave when you design a motorcycle. You cannot go for middle of the road anymore. People who buy motorcycles don’t need to. It’s an emotional, irrational purchase.”
Harley-Davidson, which accounts for 55% of U.S. motorcycle sales of bikes larger than 650 cc, will display its entire 2012 lineup. It will also have a new addition to the show called the JumpStart.
Located in the Harley booth, the JumpStart lets new riders stay inside and throw a leg over a Fat Boy Lo that’s propped on a stand. Harley staff members then teach them on the spot how to turn on the ignition and shift through the gears.
Experienced riders with a motorcycle license will be allowed to test ride any 2012 Harley in the Convention Center parking lot. BRP Can-Am, Kawasaki, Victory, Star and Yamaha are also offering demo rides to licensed bikers who bring their own riding gear, including a helmet.
Parking is free for anyone who rides to the event on two wheels, as is the gear check that lets attendees walk the show floor without having to carry bulky helmets and jackets.
Showgoers who want to witness, rather than personally experience, bikes in action can take a break from the carpet and watch the Smage Bros. stunt show. Brothers Pat and Phil Smage were among the finalists on the NBC hit “America’s Got Talent” last summer and will be showcasing an all-new program that has them catching air over trailers, wheeling up ladders and jumping over live volunteers.
“Motorcycle sales are not going to grow much faster than GDP, but when you bring the right product to market, there will always be plenty of people to buy motorcycles,” said Scott Wine, chief executive of Minnesota-based Polaris, which owns Victory Motorcycles and has been on a minor spending spree on other brands.
This year, it bought Indian Motorcycles and invested in Oregon-based electric motorcycle maker Brammo. Models from all three brands will be on display this weekend, including a world-debut Victory cruiser, the 2012 Indian lineup and the soon-to-be-released Empulse, Encite and Engage bikes from Brammo. Victory is the only manufacturer to unveil an entirely new model at the Long Beach show.
Despite industry woes, Wine said, “California is still a great motorcycle market.”
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