A few weeks ago, our editor threw his hat into the ring and offered his thoughts regarding how the current state of the economy was affecting motorcycle sales. He then asked our readers to chime in with their own opinions, and offer advice to the industry as to what they felt could be done to turn around sales in this trying economy.
MD will be taking our yearly holiday break -- we will be back January 2, 2009. In the meantime, I am leaving you with the pearls of wisdom offered by our readers (unedited, with one exception) to keep you occupied while we are gone. Have a safe and happy holiday season!
A possibility would be something that the recently unveiled TU 250 from Suzuki is perfect for. Smaller displacement club type events similar to the Vespa scooter groups. Easier to get into and started financially but just as competitive.
While it's easy to pinpoint obvious failings by individual manufactures ( Honda's lack of scooters / dual sport / entry level machines ) a solution for the coming collapse of the entire motorcycle sales business is harder to quantify, much less pinpoint. A toilet-bound economy, tanking gasoline prices and the deathly prospect of deflation mean customers are going to stay on the sidelines awaiting lowered new bike prices OR steal good used machines from owners desperate to raise cash to save their homes or pay the monthlies. In the green/safety oriented world on the other side of this world economic meltdown will be a different selection of cars and motorcycles. History will record that all the greatest cars and motorcycles are in production today. The EU and America's environmental bedwetters are going to kill the BMW M3's and Yamaha R1's that define this late/last performance era. "Buy and Hold" applies to quality stocks AND these last, great machines. It's all downhill from here.
The answer is pretty basic for motorcycle manufacturers trying to survive in the US. Aggressively market motorcycles to be far more than just toys. Time to revisit the UJM and the useful sub-500 motorcycle...how many CB350s and Hawks did Honda sell in the age of 750 and 1000 superbikes? How many DT, KE and XL dual-purpose bikes were sold in the 70's? As much as people
fawn over the superbikes of the era, these previously listed bikes were the cash machine for the industry.
This will require serious effort on the part of the builders to recreate a lost market and generate demand, but it may be their only shot at North American survival. Time to bring back, "you meet the nicest people on a Honda." No urban hype...no Hip Hop...no outlaw attitude...all generic, middle-America mass-market usefulness, convenience and economy with just enough clean fun. Unfortunately, this is probably not an option for Harley Davidson...they are all about Niche and Style. I can't see the "Harley
Loyal" supporting the new model move, and I can't see the members of this newly-required "utility market" wanting anything to do with the Sturgis crowd. It may also be a problem for Ducat and the like, unless they can provide more city accessories and longer maintenance intervals for the Monster line.
Here in Brazil, the motorcycles are mostly used as means of transport. But the manufacturers are suffering with the crisis and the lack of financing anyway. I think that the reason of the purchase doesn’t change the situation. The manufacturers must prepare themselves to offer good deals when the economy is healed again as they cannot change the situation now.
Motorcycle manufacturers need to bring more practical motorcycles into the American market. The economy, fear of high fuel prices, and environmental awareness are all opening up the American mind to strange new ideas. Like the idea that motorcycles can be valid means of transportation and not just expensive toys or fashion accessories.
Using advertising to make consumers aware of the potential fuel mileage of motorcycles is a good first step. Kawasaki has been
particularly aggressive about that. But we also need motorcycles that get great fuel mileage as well as provide comfortable ergonomics, adequate storage space for a commuter, and and carry enough fuel to make through several days of commuting duty before requiring a stop at the gas station.
Scooters and maxi-scooters are often all we are being offered in terms of really practical two-wheeled transportation. I'm glad such vehicles are out there, but there needs to be more motorcycles that have transportation in mind. Fortunately no one needs to reinvent the wheel. There are many practical motorcycles being built and sold right now, for the European market. The time has come to bring more of those bikes here.
I’d like to see manufactures offer more simple less expensive motorcycles. More of the lines of naked bikes of yesteryear and that would fall in the price range of $4,000 to $6,000 yet that still can satisfy some performance junkies like me.
Motorcycle Manufacturers need to quit advertising bikes as toys. Advertise them as an form of transportation that is efficient and easy to park. The fun is just a bi-product.
"... where motorcycles are more often toys than essential transportation ..."
Interesting point. Maybe Yamaha is thinking that way too. Their website is running a survey on supersport bikes, and the title says it all: "The dream continues?". There are questions about pricing and so, which shows that there are some people there worried about it.
Do the manufacturers have any 'official' figures on the sales drop? Just curious, because the car manufacturers are reporting something around 30% drop, muh more in some cases, but I didn't find anything about motorcycles numbers.
A big part of the presidential campaign in the US was alternative energy. The federal government should be offering tax incentives to those of us who ride motorcycles. Motorcycles get anywhere from 30-100 mpg, far higher than the average for passenger vehicles.
It would help if companies like Honda would actually make something exciting to ride! Their bikes are now just like their cars; reliable, dependable, quality build, but one big yawn.
I think you nailed it on the head. I totally agree that motorcycles are more toys than essential transportation, especially in this country. Introducing practical fuel sipping commuter bikes will only have limited appeal. I don't know the answer but to me motorcycling was more colorful in the past when many more models of various displacement were offered. A time when small bikes started at 50cc before you got to 500cc there were half a dozen steps along the way. Today one is almost hard pressed to find anything below 500cc and certainly 250cc. But times change. Personally I like the direction the naked bikes are taking. I don't fancy myself as a weekend "bad-boy" type on his Harley or metric cruiser and as I age the sportbikes are just too knife edge keen. So what's in between? Rather few options and few that stand out from the others.
Until the whole credit issue heals the sad fact is many will have no other option for payment.
Here’s the scene: low camera angle, a BMW R1200S sweeps past and carves up a series of bends. The same bike pulls into a parking lot full of boring SUV’s and sedans, the rider sheds his helmet, and pulls his laptop bag from one of the panniers, he nods to some fellow workers, “good morning guys”, and walks toward the office. The half awake group of nerds surveying him, sip their coffee, and one of them asks, “He rides to work?”. One the other guys responds, “Everyday”. The screen fades to black and shows the slogan, ‘Why drive when you can ride? Motorcycles aren’t just for the weekends’.
Motorcycles should be marketed as efficient commuter vehicles rather than as adult toys as they are so often depicted now. Sales actually took a slight upswing when gas spiked a $4/gallon last year. The rational (or rationalization) of this needs to be emphasized.
Even in the boom times there were too many manufacturers with too many marginal products. As consumers continue to focus on essentials, some manufacturers and many models will be eliminated. Do we really need Benelli? Or the unthinkable, would you really miss Honda? My advice to a manufacturer is to focus on your core business. Then make the best product you can at the best price possible.
The motorcycle industry should stop trying to sell Americans nothing but overblown, humongous, bigass cruisers, and sportbikes that are too powerful for most of the people that buy them, and start building the kind of bikes that were available in the 60's and 70's, i.e, smaller displacement bikes of 250, 400-450 and 500 cc singles and twins (read "standards") albeit with current technology (F.I. and no drum brakes) and decent fuel economy. Not everyone wants a scooter, but I'll bet that there are plenty of potential beginning and older riders who would love to have a smaller motorcycle that has enough power that they won't
outgrow in six months, but if they do they can gradually move up the displacement ladder without having jump to a 1000cc motorcycle all at once if they don't want to. Japan, Inc. is already producing scads of bikes just like these, but ONLY FOR THE EUROPEAN MARKET. If they were smart they could start offering some of these bikes to American riders, not in a deluge like they normally do, but just a few models to test the waters.
Manufacturers could do a lot of good if they managed to cut the price of cruisers to reflect reality. Lets face it the sport bikes of the world are much more sophisticated and complex and much better performing than the average cruiser yet the cruiser costs considerably more. Of course maybe they are jacking up the cruiser since they can sell them or it supports the price leader sport bikes. I have no idea I just know I have owned both and I know which one should cost more. So in these difficult times why not bring some reality to the marketplace. It sure has been brought to my wallet. While we are at it, what's with the price of accessories, they are absurd! I'd by more if they cost a bit less.
Get the AMA to promote motorcycle safety in high school. It could see an increase in safer riders and a lower percentage in accident statistics, which hurt potential sales. For those who will not ride after the class will at least benefit from the curriculum and be more aware of riders on the road.
Offer test rides for potential buyers. Why do the more expensive Marques (Triumph, Ducati, Harley, etc.) offer test rides, but the Honda, Kawasaki, and Suzuki dealers typically do not? If I can’t ride it, I am less likely to buy it!
Financing is also hard. Unless things have changed, typical factory financing starts off low, but then jumps to astronomical after the first year. If you do not want the motorcycle to be perceived as a toy, don’t treat the financing as a glorified credit card!
Dealerships need to get more involved in the community. Public awareness is a great tool. Harley dealerships at least have group rides and gatherings to promote themselves, the marquee, and the riders. Imports (Japanese) usually do not. Maybe dealerships can sponsor MSF basic riders’ safety class for potential buyers. Give the buyer a reason to come back.
This is not an attack on Japanese motorcycles, I ride a Honda 919. But let’s face it, for too many years these manufacturers even avoided the International Motorcycle show’s demo rides. Honda still avoids it in Long Beach and their Headquarters are 14.1 miles away in Torrance! (yes, I Googled it) Get out of touch with your customers and someone else will take them.
With the economy the way it is, It may bump start the manufacturers to bring us those one-off bikes they like to tease us with. Motorcycles allow us to forget about low points in life for a while.
If the motorcycle manufacturers want to take advantage of the opportunity created by the general economic downturn and the prospect of a return to high gasoline prices, they should step back from their two-pronged marketing towards the cruiser and sportbike crowds, and offer - and advertise - affordable motorcycles that are already configured as urban-ready. Most of the manufacturers already have bikes in their lines that could fit the bill with a little help. Lightweight dual-sport bikes could come factory-equipped with lockable hard bags (like you see fitted on KLR650s) and friendlier seat heights, for example. They should start capitalizing on the desirability of bikes with bona fide urban sensibilities, which neither sportbikes nor cruisers can claim.
Motorcycle sales are down. But I just bought a new 2008 ZX-10R last Friday. Why would I do such a thing? Manufacturer to dealer rebates passed along to the consumer, my friend. Kawasaki had $1050 in rebates on unsold ZX-10Rs. Subtract that from the dealer’s cost – he just wanted the thing off his floor plan – and you get $8,950 for a new Ninja. Offer the rebates and they will come.
