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WORLD’S LUCKIEST MAN
NPDA DEALER CONNECT PREVIEW What Is Going Down In Columbus 06 10 16 12 08
Bob Althoff On The Eight Step Program
EDITOR’S NOTE
Robin Hartfiel On Don’t Look Back!
LETTERS+ The Industry On Dealernews
NEWS+ News & Notes
SHIFTING GEARS+ Personnel Postings, Courtesy MIJ
NVP IN MKE!
With NVP Behind Him, Paul Langley Looks Ahead To AIMExpo
NVP BREAKS RECORDS Move To Milwaukee Pans Out For Parts Unlimited!
INDUSTRY RESEARCH+ Don Musick On Six Wheels On A Tub!
INDUSTRY RESEARCH+ Lenny Sims On Q2 Adjacency
INDUSTRY RESEARCH+ Jim Woodruff On June NPA AWP Review
eDEALERNEWS EV Trials & Other Tribulations
CURRENTS+
Getting Agroid At NVP, HRC Goes E-Xploring, Haga Makes History…
NPDA DEALER NEWS Your Partner In Growth
16 42 14
PERSONNEL
ADVOCACY
CONFESSIONS
ADVOCACY
OUR TEAM
EDITORIAL
Robin Hartfiel Editor/Publisher
Bob Althoff World’s Luckiest Man
Gus Stewart Creative Director
Brenda Stiehl Production Manager
CONTRIBUTORS
Don Musick Genesys Technology Solutions
Dr. Paul Leinberger
Eric Anderson Vroom Network
Jim Woodruff National Powersport Auctions
Lenny Sims NADA Appraisal Guides
Scot Harden AMA Hall Of Fame/Harden Offroad
Alex Baylon Motorcycle Industry Jobs
Hector Cademartori Illustrations
William Douglas Little Unique Powersports
Charlie Williams Off Road Editor
Don Amador Quiet Warrior Racing
Joe Bonnello Joe B Photography
Uncle Paul Wunsch Love Cycles
The Anonymous Dealer
ADVERTISING
Robin Hartfiel Publisher (949) 489-4306 robinhartfiel@gmail.com
Brenda Stiehl Production Manager brendastiehl@dealernews.com
John
World’s Luckiest Man
By Bob Althoff
CONNECT
If Ever There Was A Time...
If ever there was a time to come together in support of our Community, our Sport and our Industry — now is that time to CONNECT.
What we can do TOGETHER will be written about. For what we have done, despite ourselves, has been nothing short of remarkable.
We have enjoyed our machines; built friendships and created a Community. We have built a $47 billion-dollar North American industry and more than $150 billion worldwide.
Not always have we been shoulder-to-shoulder, but competition has made us all better. However, ruinous pursuit of our selfish interests (or those imposed by Wall Street) can and have resulted in suspicion and decline.
We owe it to ourselves; all those who came before; and all who will come after — to get this moment right.
No path to success will be through a lawyer’s office, in a courtroom or an airing of our mistakes in the business press.
Rather, we can muster a common cause — to reinject constant and reliable growth. We should all be finding new customers, spreading the great news that all are welcome in our big inclusive Community.
Grow we must... And grow we can!
Since its founding, the National Powersports Dealer Association (NPDA) has been committed to find ways to tear down the silos that have kept us apart as the players have been unwilling or unable to come together around our common (and common sense) goals.
We as Dealers are best when we are selling; when we are serving; when we are growing our Community and when healthy bottom lines sustain us.
We recognize that in today’s world that mission can only be accomplished digitally via mass marketing.
Our stories, our people, our history are compelling. We live a life of fun, family and adventure. Sharing that is why we have been known as “Enthusiasts.”
Our National Powersports Dealers Association is proud to announce Dealer Connect our education and networking event in Columbus October 20-22. We have created a pathway forward POWERSPORTS WORLD TV that will premiere at Connect.
Our platform will take us online and stream us around the globe... providing an exclusive place to celebrate our industry in all its glory!
There are millions of our customers who are hungry to see themselves enjoy our products and passions — from live racing; to our gatherings; our collective good works in our communities; to our collections; to our personalities and on that road to a richer and fuller life.
If you are an Enthusiast, tune in.
If you are a Dealer, promote this cool new place to enjoy.
If you are an Advertiser, this unique new platform may be just what you have been looking for.
If you are a Content Creator, bring us your best. And we’ll find a way to share it with the world.
If ever there was a time to connect... that time is now!
Bob
Your Partner
In Growth
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Editor’s Note
By Robin Hartfiel
DON’T LOOK BACK…
Something May Be Gaining On You!
Legendary ball player and color barrier crossing pioneer Satchel Paige famously said, “Don’t look back… Something might be gaining on you!” Parts Unlimited CEO Paul Langley adds “keep looking forward!” Before NVP MKE was in the books, LeMans was already looking forward to 2025. Contrary to what the flood of AI-generated YouTube “experts” have been predicting, the powersports world is not exactly ending…
At least not for LeMans Corp, its legion of loyal dealers, preferred partners and cadre of market-leading house brands.
Walking into the Baird Center in Milwaukee was like deja vu all over again as I had a flashback to the first Dealer Expo in Cincinnati I covered for Dealernews simultaneous goose bumps and awe. Back in the 1980s and 1990s, Cincy had +/-300 exhibitors, with a waiting list and priority points. Even in the aftermath of the CPSC Consent Decree essentially banning the 3-wheel market out of existence, the industry continued to look forward
NVP had the same number of exhibitors in 2024 as Dealer Expo did back in the day — as much as I hate VC
jargon, the industry was “right-sized” by the gas crisis, three wheel ban, tariffs (then it was Japanese rather than the Chinese), inflation, recession… talk about deja vu all over again, again.
We have been here before. I will admit the sensory overload of the Internet amplifying everything, the divisiveness of click-bait sensationalists like Robby Starbuck and the very real financial difficulties of the OEMs and F&I entities created by the traditional tightening of the proverbial election year budget constraints are very real concerns. However, the aftermarket is alive and well... and Paul Langley has a plan to keep it that way.
“Its a winning formula for this company to have these types of shows, and it’s something we want to continue to invest in. This is the show coming up on the end of the season where we can give dealers a little rundown of what’s coming so they know where they want to invest their shelf space, resources, and so on,” explains Langley. “And then just before the start of the season, we give them another chance to look at what they need to do for the coming year at our Spring show.”
Make plans to attend NPDA’s Dealer Connect event, join a 20 Group, go to Parts Unlimited/Drag Specialties Spring Show and AIMExpo… do everything you can to give your business a fighting chance as we right-size our industry. And for God’s sake, stop believing the Internet “experts” who are saying it is all over!
Actually, the prescient Mr. Paige also had some advice when dealing with the Internet and clickbait posts from trolls:
“The social ramble ain’t restful… Never let your head hang down. Never give up and sit down and grieve. Find another way. And don’t pray when it rains if you don’t pray when the sun shines.”
Bottom line:
“Don’t look back. Something may be gaining on you.” ― Satchel Paige
Former Editor-in-Chief and publisher of Dealernews circa 1990-2003, Robin returns to the magazine. In addition to having been instrumental in creating the Dealernews Top 100 program (still the industry’s ultimate accolade for a motorcycle dealership), Hartfiel has worked for most of the B2B publications in the Powersports arena. Prior to the trade side, he worked as a beat reporter for a local newspaper and was an editor of publications ranging from All About Beer to VW Trends.
ELECTRIFYING
GREAT podcast. “Victims of our own success” pretty much nails it. Outside of North America, it’s a different story… but when a consumer can afford a car, they’ll choose that over a motorcycle as daily transportation.
David Morris, Principal Zhen8 International Ottawa, Canada
LIVE WIRE?
Watched the whole segment and it held my interest the entire time. Thanks, Robin - a job well done! It’s always good to tap into your thinking!
Loretta Gatto, Retired Gatto Cycle Tarentum, PA
CLOSE, BUT NO CIGAR
Robin, your description of how COVID benefited us was basically spot on, as was the discussion of frustrations with the following supply chain issues that created all sorts of issues.
When you mentioned ADV sales as being the one bright spot, you didn’t mention anything about the consumers who are purchasing them. It’s certainly not the under-30-year-old segment because any ADV requires some commitment financially and maintenance-wise, and they’re mostly outside of that. No, it’s the older generation who will be following the boomers out of the sport soon.
I know I sound like a doomsayer often regarding this subject, but the MC industry isn’t looking far enough ahead in my opinion. They need to be making a more serious effort at “getting butts in seats” at the beginner level and earlier (like the Strider, that level…).
I understand your wistful outlook on the “motorcycle of the future”, but unfortunately you can’t keep it that simple; not only has technology made many components obsolete, but government regulations also play an outsize role now in how motorcycles are designed and built. EFI and ABS are nearly ubiquitous now, and TC is following suit. Technology is pretty much a requirement for any appeal to younger riders.
Kent Kunisugu, Former GM Iconic Motorbikes
Pasadena, CA
FINGER ON THE
PULSE, BUT… Well done Robin! You have your finger on the pulse. Nice to see I still have more hair, at least on top. Look me up if you want a contrasting opinion on E mountain bikes. The gang I ride with was all analog (unplugged), but has become 90% E bikes now. Our local dealers in Ventura County are also wellversed in their sales, parts and service, and not nearly as snobby about them anymore. I ride a Giant Trance 29er and I love it… At 64 years of age with a short inseam and, ahem, a large upper torso, it suits my needs perfectly.
Anyway, keep on keeping on, your tireless contributions to the industry make an enormous difference.
Mark Tuttle, (Retired) Rider Magazine
Ventura, CA
BIG WIN FOR COMPETITION BIKES IN CALIFORNIA
Political pundits used to say “as goes California, so goes the nation…” In this case let’s hope it is true as competition-model off-highway motorcycles will have a new way to be legally operated on California public lands beginning in 2026. Senate Bill 708, introduced by State Senator Brian W. Jones, a longtime motorcycle advocate and rider himself, became a new law. It directs the State Department of Parks & Recreation to issue permits to California residents to operate off-road motorcycles at sanctioned events.
“We’ve worked hard to perfect this program over the past five years with OHV stakeholders and affected governmental agencies, including State Parks and the Air Resources Board,” Senator Jones said. “SB 708 is a true consensus measure that will allow OHV competition riders to continue their sport safely and responsibly while being a strong part of the recreational economies in rural and suburban California.”
Last year, the MIC called on all powersports companies to add their names, on their letterhead, to letters in support of legislation to allow continued use of competition-model motorcycles on public lands in California. Ten members of the MIC Board of Directors and new MIC President and CEO Christy LaCurelle signed a letter to Senator Jones that stated, in part:
“Despite the Governor’s prior veto, you worked with our industry to devise a new solution to the problem and shepherded SB 708 through the legislature while educating your state colleagues about the value of off-highway motorcycle competition. We greatly appreciate your willingness to not give up and to be a champion of the motorcycle industry.”
DEEP DIVE INTO SENATE BILL 708
The signing of Senate Bill 708 will have a ripple effect across the entire off-road community for years to come. As VP of Government Relations for the Motorcycle Industry Council Scott Schloegel notes, not only are desert racers impacted by this Bill being signed into law. “There are 13 other states, plus the District of Columbia, that are considered “CARB States” where they follow the CARB guidelines rather than EPA guidelines. For anything that is remotely emissions related, it’s really important for us to fight those fights here in California and make them as beneficial for motorcycles and powersports as we can, because there are copycat bills like it introduced around the country. Schloegel to take a deeper dive into the ramifications of the Red Sticker replacement program….”
See the full interview with Schloegel here: www.youtube.com/watch?v=4EnULY75UyA
DEALER NEWS: BAD NEWS IN THE BIG APPLE
Bad news as another Harley-Davidson dealership is closing. New York City Harley-Davidson will be closing its front doors on Saturday, September 28th. The service department will continue to operate working to complete all open service work orders through Saturday, October 5th.
“It is with a heavy heart that we must announce that New York City Harley-Davidson in Long Island City, NY will be closing its doors for good due to current economic conditions and limited real estate options to relocate to,” says owner Paul Veracka. “While it’s never easy to close the doors of a legacy dealership, we are confident that the established dealers in the New York area will continue to deliver a premium customer experience for our customers. In an effort to make this transition as smooth as possible, Empire Harley-Davidson and Nassau County Harley-Davidson have agreed to honor all New York City H-D gift cards and VIP services.”
He adds, “We understand consolidating New York City H-D comes as a surprise and disappointment to many of our loyal customers. As a family operated dealership, we recognize the time it takes to build strong relationships and foster community. While there will no longer be a Harley-Davidson store in Long Island the remaining local Harley-Davidson dealers in the area will be able to provide the highest quality service to all members of the Harley-Davidson community for many years to come...
“We want to thank all of our loyal customers, community members and our amazing team at New York City H-D for all the support throughout the years. Thank you for the loyalty to our team, dealership and the Harley-Davidson brand. We will always remember the amazing events, great rides and our extended Harley-Davidson family! More details to come shortly.”
HARLEY HIT WITH RECALL
It never rains… it pours! Just when Dealers thought it couldn’t get worse, Harley-Davidson is recalling more than 40,000 motorcycles due to a potential for short-circuiting and increased crash risk, according to the National Highway Traffic Safety Administration (NHTSA).
Harley-Davidson and NHTSA issued the recall for certain FLHX, FLHXSE, FLTRX, FLTRXSE, and FLTRXSTSE models, accounting for 41,637 motorcycles.
According to the notice, a voltage regulator wire may rub on other components near the motorcycles’ engine, wearing down the outer casing and exposing the wire. This can lead to short circuits and a loss of power with little to no warning, claims NHTSA.
DEALER NEWS: GOOD NEWS FOR CAPITAL POWERSPORTS
Capital Powersports, located in Wake Forest, NC, just 20 minutes north of the Capital Raleigh, is currently a top dealer in each franchised brand it represents, which include Honda, Yamaha, Kawasaki, Suzuki, CFMOTO, Polaris… and growing! To accommodate the current brands and consider adding more, General Manager/Operator of Capital Powersports Kevin Dunn says this is just the beginning.
“This expansion could not happen soon enough,” notes Dunn. “It is just that our growth has been so fast, we have rapidly outgrown our facility. Our service department, which was only just built 4 years ago, is now going to be converted into the new Polaris showroom. With the growth of UTVs happening, and our brand growth adding over 4 major brands in the last 4 years, and another one coming, space has become a major issue. We are currently pushing out over 100 vehicles daily just to open!”
Phase one includes the expansion of the north part of the existing showroom to create temporary interior and housing for Polaris products. A large outdoor landscaped area is going to be cleared to locate the larger Polaris products temporarily, as well. Dunn explains, “This will allow Polaris to come in earlier than originally planned, so we can hit the ground running for the 2024 off-road season, and help grow their market share here in the Raleigh/Durham area… fast!”
DEALER NEWS:
PBS TUNES IN TEDDY MORSE DEAL
This PBS is not the TV broadcast, but it was suited for an episode of Masterpiece Theater as Performance Brokerage Services facilitated the sale of Renegade Harley-Davidson from Jeff and Steve Hinchcliff of The H+H Group to Teddy Morse of Ed Morse
Automotive Group. “In our strategic decision-making process to consider exiting the Harley-Davidson business in Missouri, there was only one broker we would consider, that was Juan Pardo, George Chaconas and the Performance Brokerage Services team,” said Hinchliff after the sale.
“PBS brought us a very qualified buyer, Teddy Morse of the Ed Morse Auto Group,” adds Hinchcliff. “I would like to thank Juan Pardo for his professionalism and perseverance in helping us get the deal to the finish line, and I wish Teddy Morse and his team the best of luck and continued success as they grow their Harley-Davidson dealership portfolio.”
The deal brokered by PBS is one of several they have recently brought to the table for Teddy Morse of the Ed Morse Automotive Group. The group is ranked #53 on the 2024 Automotive News “Top 150 Dealership Groups” based on 2023 new vehicle retail sales and is now making similar headlines in the powersports world. Teddy Morse serves as Chairman and CEO, continuing the family legacy. Randy Hoffman serves as the Chief Operating Officer, managing the day-to-day operations. Together, Hoffman and Morse oversee the continued expansion of their dealership network.
“We have utilized the services of Performance Brokerage Services several times. When George Chaconas and Juan Pardo bring us an opportunity, we listen,” notes Hoffman. “Performance Brokerage Services knows what we are looking for. They bring value and offerings to our existing portfolio of dealerships that are always worthy of consideration. Performance Brokerage Services has been a vital part of our successful growth.”
Renegade Harley-Davidson will be renamed Teddy Morse’s Renegade Harley-Davidson and will remain at its current location at 3980 West Sunshine Street in Springfield, Missouri.
HEADS UP!
DIABLO DROPS IN OCTOBER
Just in time for Halloween and coinciding with the launch of Blizzard Entertainment’s highly anticipated Diablo IV expansion, Vessel of Hatred, HJC and Blizzard have come together to create a brand-new graphic for the RPHA 12 helmet. This cutting-edge design seamlessly integrates the dark and powerful aesthetic of the virtual world into reality, ensuring that this helmet will turn heads wherever it goes.
Beneath the striking graphic featuring the iconic Diablo character is no less striking. “The transition from the RPHA 11 to the RPHA 12 showcases HJC’s commitment to continuous improvement,” claims the world’s largest helmet company.
“The RPHA 12 is designed for both racetrack and street use, making it the choice for riders seeking exceptional performance in various riding conditions.”
The new RPHA 12 helmet is lightweight, and features an all-new aerodynamic shell to carve your way to the depths of Sanctuary or around the track. The new aerodynamics minimize drag, reduce wind resistance and cut down on head movement. Allnew vents keep the rider feeling cool and help prevent fogging no matter how hot the Diablo-inspired action gets! The Diablo Blizzard Helmet is scheduled for release this October.
MOTOSPORT SOLD?
Discount mail order giant MotoSport was bundled up in a deal that saw Backcountry.com family of brands including Competitive Cyclist and SteepandCheap change hands to CSC Generation Enterprise, which owns and operates e-commerce retail businesses including online furniture outlet One Kings Lane and Sur La Table cooking offerings. CSC bought the business from TSG Consumer Partners and terms are not being disclosed.
Originally MotoSport Outlet was the brick-and-mortar operation in 1999 after founder Bill Butcher tried getting motorcycle parts at a local dealer and had to wait three weeks. Soon after, Butcher moved MotoSport to Eugene, OR and quickly doubled his leased space from 12,000 square feet to 27,000 square feet in 2003. Early customers may remember the annual 100-page catalog as Butcher preferred the traditional route of sales over the internet, still in its infancy, despite online orders comprising 30 percent of the business at the time.
Today, MotoSport sells 100% online, but in recent years resurrected that catalog. The company ships parts and gear within days thanks to two strategically-placed warehouses, and operates an extensive OEM catalog. MotoSport also unveiled RDRCO last year, an exclusive line of employee designed and tested riding gear now set to expand in options for 2024. Indeed, after 25 years MotoSport has cemented itself as one of the nation’s leading online powersports parts, gear and supplies companies.
“Joining CSC is a significant milestone for us,” claims Backcountry CEO Melanie Cox. “Our team is enthusiastic about utilizing CSC’s expertise and resources to accelerate the Backcountry strategy. We are confident that this acquisition will enable us to expand our market presence and continue delivering outstanding outdoor experiences.” But it remains to be seen if Moto mixes with the other operations or if MotoSport.com is subsequently spun off by CSC.
“We were drawn to Backcountry for several compelling reasons: their extensive and varied product range, deep connections with the outdoor community, and the remarkable passion and loyalty of their customers,” adds Justin Yoshimura, founder and CEO of CSC. “By integrating their strengths with our commitment to digital innovation, we believe there is significant potential for continued growth.”
TRANSFORM MORE LEADS INTO SALES
Shuffling the deck in Austria?
Following revised guidance which indicated a decline in sales of 10%15% (www.dealernews.com/Home/ post/pierer-mobility-adjustsglobal-guidance/2024-06-1) word comes that the CFO is gone. “The board mandates of Viktor Sigl as Chief Financial Officer (CFO) of PIERER Mobility AG and KTM AG were terminated for both companies by mutual agreement with the Supervisory Board.” CEO Stefan Pierer will take over Sigl’s tasks on an interim basis. The Supervisory Board has also decided to appoint Gottfried Neumeister as an additional member of the Executive Board of PIERER Mobility AG and KTM AG, effective September 1, 2024. Neumeister held management positions, including the position as Co-CEO at DO & CO Aktiengesellschaft from March 2012 to June 2023. Prior to that, Neumeister founded flyniki together with Niki Lauda and served as Managing Director of the aviation business until the sale to Air Berlin.
But wait, there is more from GasGas/ Husqvarna/KTM/MV Agusta parent company PIERER Mobility. “I am happy to welcome Gottfried Neumeister, an experienced and highly successful top manager, as Co-CEO,” states Stefan Pierer, CEO… make that Co-CEO now.
“He will provide fresh impetus and increasingly take responsibility for tasks from my portfolio.” Neumeister adds, “I am delighted to be taking a piece of Austria out into the world with over 6,000 great people The team at PIERER Mobility AG has proven over the years that it is one of the best in the world through innovation and performance. When I think of PIERER Mobility/KTM , attributes such as emotion, passion and performance come to mind… coupled with the will not to stand still, but to constantly strive for improvement and perfection . This makes me all the more happy to be part of this community.”
EagleRider flying high with new CEO — “We’re revving up for an incredible new chapter at EagleRider,” exclaims founder Chris McIntyre . “Please meet our new CEO Sebastian Schoepe . As a passionate rider himself, he’s excited to lead our iconic brand into its next chapter.” With more than 200 locations worldwide , EagleRider is the premier powersports experience company. ”My journey with EagleRider began as a rental customer, and now I have the privilege and opportunity to be its leader,” Schoepe adds. “I’m truly humbled to be part of this iconic legacy brand.” With a background in hospitality, entertainment and fitness, Schoepe is set to drive EagleRider’s growth in global rentals, tours and motorsport experiences like the recently introduced UTV Experience . Originally from Germany , he launched his career
in hospitality and experiential travel with global attractions powerhouse Merlin Entertainments , renowned for its LEGOLAND , Madame Tussauds and SEA LIFE global brands. Following Merlin, Schoepe held executive roles at RSG Group , where in 2020, following RSG’s acquisition of Gold’s Gym , Schoepe was appointed Global CEO. His mission was to revitalize the brand across 75 US locations and 500 global franchise locations. “We could not be more excited to help Sebastian write the next chapter in the 32year success story of EagleRider,” concludes McIntyre. “EagleRider has evolved from a rental company to a motorcycle and powersports experience company with everything from high-end guided tours to monthly motorcycle subscriptions and membership.”
Segway shifts two key players just in time for the Sand Sports Super Show in September. Ton Truong has been promoted to the role of Service Manager for Segway Powersports. At the same time, Collin Mikottis joins the burgeoning powersports manufacturer as the company’s newest Field Marketing Manager. Truong will utilize his extensive service background to assist Segway Powersports dealer technicians , develop best-inclass service procedures and elevate customer relationships. Truong comes to Segway Powersports with 17 years at Honda Motors , first as a Honda Master Technician and shop foreman, before spending four years at American Honda Motor Company in the parts and service division. He brings a passion and enthusiasm for modified cars, sportbikes and offroad trucks to his new role with Segway Powersports.
Continued from page 16
Collin Mikottis rolls into his new role with Segway Powersports after serving the past six years with Atturo Tire Corp. , as a Brand Experience Specialist and Powersports Category Specialist . Mikottis will focus on strategic brand initiatives, driving engagement and consumer awareness, and supporting sales through unique activations across the United States . His goal is to help consumers experience Segway Powersports products hands-on. “We’re fortunate to continue adding experienced, knowledgeable and talented new hires like Ton Truong and Collin Mikottis to our already incredible team,” explains Jason Walling , VP of Sales & Marketing for Segway Powersports. “Their level of service experience and attention to detail will help elevate our dealer relations and event experiences to an even higher standard.” Gabriel Cruz, Marketing Director for Segway Powersports , echoes Walling’s sentiments: “As we continue to expand as a company here in the powersports market, we’re grateful to have such talented individuals continue to join our team. Alongside our growth in the U.S. market , we’ve been able to continually attract and retain key new hires , similar to how a snowball rolling downhill continues to expand and gain momentum with each rotation. It continues to be exciting times here at Segway Powersports ,” concludes Cruz.
Yamaha U.S. Marine Business Unit has appointed Bryan Seti as the new national sales & marketing manager for its G3 Boats line-up. Seti will continue as GM of Yamaha’s WaterCraft Division . Seti will leverage his 25 years of sales and marketing expertise to move the G3 and WaterCraft brands business.
“Bryan brings a unique perspective to this role that will support a more powerful brand position for G3,” said Ben Speciale , president of Yamaha U.S. Marine Business Unit.
“His experiences and a focus on strengthening dealer relationships will help lay a new foundation and position the organization for future success.” During his 25 years with Yamaha Motor Corporation, USA , Seti led the WaterCraft Group. He also served as the chairperson of the Board of Directors of Grow Boating , the marketing arm of the National Marine Manufacturers Association Before joining Yamaha, Seti served as director of Marketing at Diamondback Bicycles , leading the California-based brand to unprecedented success through his innovative sports and lifestyle marketing programs. Seti now reports to Ben Speciale, president of Yamaha U.S. Marine Business Unit for Yamaha’s WaterCraft division, and to Marc Castillo , GM of G3 Boats, for G3 initiatives. Yamaha’s U.S. Marine Business Unit, based in Kennesaw, GA , is responsible for the sales, marketing and distribution of
Yamaha Marine products in the U.S., including Yamaha Outboards, Yamaha WaveRunners , Yamaha Boats, G3 Boats and Skeeter Boats supporting 2,400 dealers and boat builders nationwide.
Tchernavia Rocker — formerly chief people & administrative officer of Under Armour, Inc. left the company in June, citing “personal reasons.” Prior to joining the athletic apparel company in February 2019 she was with HarleyDavidson, Inc. , where she worked for 18+ years in HR leadership roles. Rocker left The Motor Company as VP chief human resources officer. Before her time with Harley-Davidson, Rocker had worked in various HR and operations roles at Goodyear Dunlop North America Tire, Inc. “We thank Tchernavia for her many contributions to Under Armour throughout the past five years,” said Under Armour President and CEO Kevin Plank . “She has been an incredible leader for this brand and thought partner across our executive leadership. Always with a focus on the heart of our business, Tchernavia has played a pivotal role in building, while fostering a culture of inclusion, diversity and teammate development — efforts that contributed to Under Armour being recognized as one of the most trustworthy companies in America.” It was recently revealed she had left Under Armour for a gig with cosmetic giant Revlon .
DISTRIBUTOR DOINGS
A WINNING FORMULA
With NVP Behind Him, Paul Langley Looks Ahead To AIMExpo… And Beyond
By Robin Hartfiel
No question we are creatures of habit, particularly when it comes to our industry trade shows. The V-Twin Expo slotted into Dealer Expo’s show dates in Cincinnati and ran for the next 10 years after the “real” show had moved to Indianapolis. Moving NVP from Madison to Milwaukee and shifting the date slightly was a big gamble for LeMan’s CEO Paul Langley and his team… just as it had been back in the day when our industry had outgrown Cincy and moved to Indy.
The official statement after NVP was on point: “The 2024 North American NVP Product Expo at the newly expanded Baird Center on September 7-8 exceeded expectations and broke new ground with its most extensive floor plan. With an impressive turnout of vendors and attendees, the expo highlighted the latest powersports innovations, solidifying its place as a must-attend event for industry insiders and enthusiasts alike.”
However it was a bit brief, so we went straight to the top, literally. We met with Langley in the show office overlooking the 300+ exhibit spaces and took it all in:
So what’s the feedback from the vendors on the venue change?
I think it’s positive. I think initially it was like, “Madison’s such a great place. We know everything is. Some were apprehensive about Milwaukee. But we had done a dealer survey before we committed. Two shows ago we said, “listen, we’ve outgrown Madison, and we are considering these options.” We got a lot of feedback from both dealers and
from vendors, and particularly from the V-Twin vendors, they wanted a little more time between the Sturgis Rally — which is two weeks of a hard slog — and our show. So actually, a lot of vendors from the V-Twin side are happy because of that. However there are always conflicts, right? Hay Days is this weekend and so on. Secondly, the character of the landmark Hilton Hotel is popular. The new Convention Center addition with the walkways and the openness of the halls here was well received. Unlike Madison, the show is all on one floor, and it’s very easy to walk around… so much so that it seems like there’s not that many dealers. There are actually more dealers than before, but it’s just that it’s so much more spacious, and you’re never going to be in a situation where you can’t stop and see the boost you want to see. So I think that most people would say it is positive.
When I first walked in, I had flashbacks from the first time I walked into Cincinnati. That’s what our industry needs, is just that, that initial “wow” factor.
Just on that point, you may have noticed that AIMExpo has a booth here. Honestly, this is our show. We do it our way. We do it the way we want to — we invite the vendors we want to invite and we invite our dealers. But we are a member of the MIC, and we are in support of a potential national show that’s successful. And everyone can have an opinion, right? Mine is that it should be in the Midwest to be successful, but we are supporting AIMExpo and have done so the past two years. We have space with meeting rooms, but no products. I believe this next year at the upcoming 2025 show, we’re going to have our Drag Specialties truck with the FatBook bikes on the showfloor… It’s what, Vegas again and next year Anaheim so we will be there, even though I personally believe if you want to make it an EICMA event, it comes back to the Midwest somewhere.
Speaking of EICMA in Milan, some people thought the Columbus show was pretty decent, and it had a consumer component to it…
It just needed more time, right? There are a couple things about our show that stand out. We have a very small team of really dedicated people, Kathy and Amy particularly. This event is just one of the things they work on. They work on so many other events as well, but they do a fantastic job of organizing our event. It’s really something that we can have a show like this and have a good number of dealers that come in and get excited about talking to the vendors. I think for me, the most important takeaway is it’s not just that. It’s our sales reps — we have all of our U.S. sales reps and we have our Canadian sales reps. And there are people from Europe — we’re educating our reps to understand the products that we sell better… It just really works out.
Like EICMA, NVP delivers value to the attendees, vendors and the reps —in fact, the first week of the show is devoted exclusively to rep training, then the dealers come in on the weekend. Using this formula as a benchmark, is NVP a success?
I would consider this first inaugural show to be a success. When we send out a survey in a couple weeks, I think most people here are going to give it pretty heigh marks. We were also successful in being able to add exhibitors this year, as there are almost 350 booth spaces…
And that doesn’t include the elephant in the room — the Drag Specialties semi-truck. This is bigger than Madison?
Two things to consider here: there were vendors who couldn’t have as much space as they wanted. There are also more vendors that we can invite that we couldn’t do when we were in Madison, so that’s why we wanted to switch.
Are you getting a different dealer base in Milwaukee than in Madison? More Drag Specialties and less Parts Unlimited dealers because of the proximity to Harley?
No, I don’t think so. The thing about the Midwest is like, we got dealers from Joliet, Illinois, which is a 3 and a half hour drive and we’ve got dealers who drove 12… and many with 8 or 9 hour drives, right? They’ll come up, and if they can get it all done in one day, they’ll drive home. Some need both days, they’ll go home the following evening or stay till Monday morning… They have flexibility. So I think that it’s a segment catchment area. I think for people that do come by air, Milwaukee has more connectivity than Madison. Actually, my house is 45 minutes to Madison and an hour and five minutes to Milwaukee. Most of the time I have more competitive airfares out of Milwaukee.
There is also an incentive for the dealers to make the trip. NVP is still a traditional “buying “show. There are show specials from the vendors, higher levels of benefits from LeMan’s in short, there are reasons for a dealer to make that drive, stay that extra day for the closeout…
I think there’s good business going on. As a company, we’re trying to manage through all times — good and bad — and maintain who we are, right? So if we cut some sales reps, we could save a lot of money later, but that’s who we are. We are committed to a sales force who goes out and visits and takes care of the dealers. We don’t have to do these shows. Short term, if we really wanted to save some money, we would stop doing the show, right? But long term, it’s built in — NVP is who we are. We’re trying to continue on, as Fred would have liked us to, which is a long term view, invest in the future, right?
Well, Fred’s vision and your ability to continue on has really paid off in some absolutely crazy times in the “real world” beyond powersports!
There’s some crazy times for sure!
NVP has always featured a “state of the industry” presentation for all the vendors. Can you share some of the details?
I normally do give my opinion on the state of the market, but more importantly, what we do with the vendors is to tell them how we have performed in the last year over where we thought we will be… and what we’re focused on moving forward. We address what we need from them in order to work together to build better partnerships. As for the state of the industry, I do put quite a bit of data out there. By the way, it was a Fred rule that no media was allowed in the vendor session. I might have to change that. But anyway, here’s my take on the industry: OE sales — I’m going to be more specific to American manufacturers and European manufacturers — have too much supply, and the dealers can’t take anymore. They’re not selling them through. Even a brand located quite close to here — over on Juneau Avenue — is having to offer some pretty big rebates. Unfortunately, because of that, there’s a lot of pressure on the dealers, because they’re paying high floor plans, higher interest and so on. If they rebate, they’re given away margin with increasing costs; it makes their job pretty tough.
Continued on page 22
All that eventually trickles down to moving your aftermarket products through those kinds of dealer channels.
True. But one of Fred’s wishes — that was turned upside down during COVID — was reducing the inventory pressure on dealers. We built these warehouses so dealers don’t need to stock it. When you sell it, you just place the order and we will get it to you tomorrow. And then we can actually drop ship for dealers as well. That was our model, so as things normalize, we are getting back to that philosophy which can help dealers and have funds to invest in inventory. When I look at some data — that comes two months behind the actual date — it shows every registered sale in every state for on-highway vehicles, and every registered sale of offhighway vehicles for all but about six states. They are fairly comprehensive and you can look at the sales by region and by dealer even. And you can look at it by year/make/model. It will show you how many new late model units sold. It will also show you how many new transactions and how many used transactions. Through June, the industry, including on highway, off highway, ATV/UTV, is down about 6% and preowned is down about half a percent. The problem with used is that resale values that get published by J.D. Power. But then it’s interesting, because the MIC forecast just came out and the Q2 numbers are down as projected for this year, but the numbers are slightly up for next year. I tend to believe that forecast is going to prevail. But the interesting thing is the numbers are still quite a lot higher than 2018/2019. You can’t forget that. I tried to tell the vendors what our problem is. All of our customers have run out of money, or, more importantly, to a favorable credit.
Where do we go from here?
I think the interesting thing is that in my previous experiences, the powersports aftermarket has done quite well in these tough times where people are very conscious about where they spend their money, but it comes down to two things: It comes down to new product releases. And you have to be sensitive to the price. You can’t just keep putting the price up and up. There are a lot of products, particularly some of these UTVs, fully loaded are $30,000-$40,000 — where’s the ceiling on it? When the customer stops buying! That was my message to the vendors. I also said we did tell you in January, in our vendor briefing, that we didn’t feel that the interest
rates would go down before Q3. Unfortunately, that’s the case, and that means there’s a lot of professional jobs that have been lost in our industry, right?
Specifically, because we are in Milwaukee, what is the outlook for Drag Specialties’ market? Harley is a little bit different animal, and they’re getting a lot of flak for DEI. But the bigger issue is that their board has approved a billion dollar buyback of the stock on top of what they’ve already bought back in the last 10 years. What’s the forecast for drag specialties against that moving target?
The aftermarket should be very grateful to The Motor Company because they have made a lot of motorcycles. Let’s face it, you can’t make P&A sales on new vehicles because they are going to come straight from the OE with Screamin’ Eagle pipes that don’t void the warranty, right? But if you look at the size of the install base there are 8-10 million registered on-highway motorcycles in use, and a large percentage of them over 1000cc are Harleys. That’s our customer, and our dealer’s customer, right? We see the size of this install base where it is today as an opportunity to sell more, because maybe the OEs are not concerned or attempting to service the market.
What is the bottom line here?
It’s a winning formula for this company to have these type of shows, and it’s something we want to continue to invest in. This is the show coming up on the end of the season where we can give dealers a little rundown of what’s coming so they know where they want to invest their shelf space, resources, and so on,” explains Langley. “And then just before the start of the season, we give them another chance to look at what they need to do for the coming year at our Spring show.
Save the Date! The excitement continues in 2025, with the Louisville NVP Product Expo set to take place on January 25-26, 2025, in Louisville, KY. Do not miss your chance to experience the future of the industry.
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NVP BREAKS RECORDS AT BAIRD CENTER
Move To Milwaukee Pans Out For Parts
Nothing ventured, nothing gained as they say, but when the opportunity came to move LeMans’ North American NVP Product Expo from the crowded, but cool confines of the Frank Loyd Wright-designed Monona Terrace in Madison upstate to Milwaukee the distribution powerhouse hit the road! Good choice according to Vice President, Sales & Marketing, Paul Devine. “This year’s expo set a new standard. The energy was unmatched, and the turnout and the variety of new vendors were incredible.”
The 2024 North American NVP Product Expo at the recently expanded Baird Center on September 7-8 exceeded expectations and broke new ground with NVP’s most extensive floor plan ever. Not only was their room to accommodate 300+ exhibitors, but shades of the old Dealer Expo Days, the Drag Specialties semi truck and all the FatBook Bike builds fit on the floor plan with room to spare for the eBike demo area (and rep race course after show hours).
With an impressive turnout of vendors and dealer attendees, NVP highlighted the latest innovations in powersports — solidifying Parts Unlimited/Drag Specialties as a must-attend event for industry insiders and enthusiasts alike,” notes Devine.
A highlight of the weekend was the Saturday night Bike Show and Meet & Greet at The Mecca Sports Bar, located in Milwaukee’s vibrant Deer District. With enthusiasts gathering from across the region, the event featured a thrilling stunt show sponsored by ICON, which wowed the crowd with jaw-dropping performances. Perfect weather added to the festive atmosphere, making it a memorable evening for attendees.
The excitement continues in 2025, with the Louisville NVP Product Expo set to take place January 25-26, 2025, in Kentucky. Do not miss your chance to experience the future of the industry.
The excitement continues in 2025, with the Louisville NVP Product Expo set to take place on January 25-26, 2025, in Louisville, KY.
Cheers to Ken Boyko! Don Emde and his team at Parts Unlimited Magazine and Drag Specialties Magazine organized a get together for friends and family to toast the late Ken Boyko on the eve of NVP. More formal memorial services are this month, but it was a fitting tribute to have shared stories about DG and Cobra with the industry types in Milwaukee.
Now you “Can Do” diagnostics with confidence from CanDo International. If you could make it ot Milwaukee to see the latest updates, here is a little show and tell of the unboxing you can expect when CanDo diagnostic equipment arrives at your shop.
#GuessWhere @ODI was? Johnny Jump knows! He falls for our schtick every time... but so did 1.2 million folks in January (see #GuessWhere on page 70).
Shades of the old Dealernews Dealer Expo in Cincinnati when LeMan’s shook things up by parking its semi truck on the show floor.
Now that is the right size for a tradeshow: 300+ exhibitors, ebike demo track and even the Drag Specialties semi with all the Fatbook bikes fit on the showfloor at the recently revamped Baird Center in Milwaukee. See GEAR this issue for the scoop on Drag Specialties.
Today Canada, tomorrow the world! Bagger Racing League impresario Rocket Rob Buydos says we will be seeing more — a lot more — of BRL in 2025.
One of our favorites of the many custom builds at NVP. The is always something “Iconic” to see at NVP, including the latest innovations from @iconmotosports
Storm warning? Always good catching up with Patrick Storm from Warn to learn what his weather eye sees coming for our industry.
Sometimes you have to go slow to be faster? Larry Mills was stopping traffic in the aisles with the DP Brakes-sponsored Bagger Racing League bike fielded by Suburban Motors Harley-Davidson.
Hey, I know you! Wie geht’s from Holger Mohr from Kodlin USA. With some changes in the international market causing some high sides Mohr says he is now fully focused on cool stuff coming from Kodlin.
Michelin is on a roll! Tire wars continue at the distributor level... with the reps and the dealers being the real winners when show special programs are rolled out!
Ravek made its debut at NVP with a comprehensive range of lighting, storage and comfort accessories for the UTV market. Backed by the team from Big Bike Parts, the specialty brand launches with an unlimited lifetime warranty! www.ravek.com
Not his first rodeo... Tom Trobaugh celebrated his 20th anniversary with Vance & Hines during the NVP!
Hey, I know you! Wie geht’s from Holger Mohr from Kodlin USA. With some changes in the international market causing some high sides Mohr says he is now fully focused on cool stuff coming from Kodlin. It wasn’t all Baggers and UTVs, honest. Show Chrome event showed up with a trio of tricked out three wheelers.
MASTERPIECE ON DISPLAY
Agold medal winner in the prestigious 6-day ISDT, Motion Pro founder Chris Carter is an industry icon in his own right, but it was actually a book that was put on a pedestal in his booth at NVP. Not just any book, but THE definitive history of When Honda Went Dirt Track Racing. This massive undertaking — both literally
and figuratively — weighs in at 7.5 pounds, featuring 560 pages chronicles the history of the Honda’s dirt track program in the 1980s and early 1990s.
Some 60 interviews with riders, engineers and execs, more than 700 photographs (many never before published) and tons of technical drawings and race reports straight from the track for every lap the legendary RS750D ever raced. It also explores one of the most storied chapters in dirt track racing — the Honda vs. Harley rivalry — in great detail.
“Has there ever been a research project as voluminous as this, focused entirely on Dirt Track racing,” questions famed broadcaster Dave Despain in his foreword to the massive tome. “I can’t imagine.”
Carter quips, “I know what all my friends and family will be getting for birthdays and holidays from now on!” However with printing of the hardcover edition limited to 1,000 copies AFT aficionados might want to act quickly. If you didn’t want to pay the overweight fee from the airlines or couldn’t ride to NVP this year, you can get the book from Motion Pro: www.motionpro.com/c/when-honda-went-dirt-trackracing
German protection, luggage and ergonomic products specialists SW-MOTECH used NVP to announce more than 1,200 parts can be ordered
by Parts Unlimited reps — with much more of the portfolio to be added in the future!
“We started doing business with Parts Europe in 2020 to distribute our products in the European Union,” notes Thorsten Wagner, Head of Global Sales, SW-MOTECH. “It has represented a great addition to our dealer network there and we consider the partnership to be a model of success we can expect with this new cooperation in the United States with Parts Unlimited.”
Parts Unlimited and existing SW-MOTECH USA distribution, warehousing and dealer networks will work alongside each other to expand the U.S. dealership footprint. This will provide more seamless availability and convenience for dealers and consumers alike, according to Wagner.
“Demand for SW-MOTECH products in the U.S. has increased over the last four years as part of the continued growth in the adventure motorcycle segment and as the new SW-MOTECH USA division has established the brand in the market.” Wagner concludes, “this partnership represents a significant increase in the dealership reach in the United States and an opportunity to solidify the brand’s presence.”
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Dealernews Research
By Don Musick
SIX WHEELS ON A TUB!
PART III
Both Argo and Max ATV appeared on the public radar at about the same time. Ontario Drive & Gear, which initially manufactured transmissions for Amphicat, released their own Argo 6X6 in 1967. Recreatives Industries followed shortly afterwards in 1970 with the Max ATV. In the early 1970s, AATV’s came into public awareness with appearances on TV programs like “The Banana Splits” and “Space 1999”. Both programs featured modified Amphicat 6X6’s.
But TV appearances alone could not deter the looming tsunami of 3 (and later 4)-wheeled ATVs. First out of gate in 1970 was the US90. This vanguard product from Honda would lead them to industry dominance over the next decade. That is until 1980, when Yamaha threw its hat in the ring with its Tri-moto product line.
While retail statistics from that period are scarce, the impact of ATCs on the industry can be seen reflected in the number of models produced each year. The following graphic shows 3-wheel ATV model counts (∆) from industry launch (1970) to its Consumer Products Safety Commission (CPSC) mandated end (1988). For reference, the ascendance of 4-wheel ATVs or quads (☐) is also plotted on the graph (sources: Honda Motorcycle Identification Guide 1959-1998 and Intertec Motorcycle, Moped & All-Terrain Vehicle Trade-In Guide 1989).
During this period, Honda ATC sales peaked in 1984 at 370,00 units representing a market share of 69.0%. Extending the timeline out to 1999 and including 3 and 4-wheel ATVs, a Honda media release estimated total sales of ~ 6.5 million. That’s an average of over 215,000 per year…. quite the tsunami!
Circling back to Argo and Max ATV and comparing apples to apples we find that Argo produced ~2,200 units annually and Max ATV ~500. Compared to their
3 and 4-wheeled counterparts, you might think that AATVs are at best minor players in the overall industry. But it’s important to remember that both companies survived the storm that took out the majority of AATV manufacturers. Both remain active today, but each took a very different road to stay in the game.
IF IT AIN’T BROKE…
As one of the earliest manufacturers of AATVs (1969), Recreatives Industries’ (RI) product line has been consistently based on 3 configurations. These include the Max II (2-seat), Max IV (4-seat) and Buffalo Truck (2-seat + dump bed)… all of them 6X6’s. Coupled with the advantage that RI remained the sole licensee of the T-20 transmission (after Hustler folded), gave them a formula for continued success. These platforms would receive heart transplants over the years using 2S and 4S twin cylinder engines from Briggs & Stratton, Kohler and Kawasaki. Displacements ranged from 295-cc to 745-cc, some featured EFI and some liquid-cooling. An image of the 2009 Max ATV home page is shown below.
NEW KID ON THE BLOCK
While RI and Argo continued to carve out their place in a world of ATV’s, quads and SXS’s, a newcomer was quietly planning to make their mark in the industry. Based in Shipshewana Indiana, Mudd-Ox launched the first of their 8X8 AATVs in 2008. Argo had already blazed the 8X8 trail some 20 years earlier, but what made MuddOx unique was its hydrostatic transmission. Not relying on the RI T-20 transmission or the proprietary ODG transmission, Mudd-Ox based their drivetrain on a midengine configuration that powered a hydrostatic pump. The pump in turn controls the left and right-side drives independently in both speed and direction. Unlike skidsteer systems, the hydrostatic drive allows the vehicle to pivot on its axis in true ZTR fashion as illustrated in the figure below. The back story of the development of the Mudd-Ox line is an entertaining read of dedication and perseverance which you can find more about here.
BEHIND THE EIGHT BALL
Five short years after the Mudd-Ox launch, they acquired the Max ATV line of 6X6’s from RI (link). Max manufacturing, which had been in Buffalo NY, was
transferred to the Mudd-Ox Shipshewana IN facility. The acquisition clearly put them in more of a competitive position with Argo, but the marriage wouldn’t last long.
Mudd-Ox would steward the Max lineup from 2013 through 2016, a period that witnessed a reduction in Max dealer locations of over 50%. Adding insult to injury, Mudd-Ox offed the Max product line to the UK company Agile Vehicle Technologies Ltd. in 2017 where it would remain until 2021. This second acquisition would also lead to a reduction in dealer count.
But even this wouldn’t last!
HOMECOMING – THE ROAD SOUTH!
Would there be life after AVT? Turns out there would be. In 2021 Sarasota FL native Andrew Lapp, CEO of Planet Resource Recovery Inc. (PRR), would acquire the Max ATV brand, IP, tooling and assets from AVT. Then in September 2023, all Max tooling and assets that remained in the Buffalo NY facility were transported to their new home in Bradenton FL.
Finally, coming full-circle, PRR was renamed to Recreatives Industries Inc. as a tribute to its historical past. And as a final salute to its roots, Galen Reich the former Max GM and Marketing Mgr. (1993-2013), was hired as its new President.
The story behind the resurrection of the Max ATV 6X6 brand and a video of the final move to Florida can be found here
Continued on page 34
The graphic below chronicles the Max ATV journey across four owners as represented by US dealer counts for the period 2009-2024. For reference, Argo’s dealer network history is also plotted. For RI 2.0 (OTC symbol RECX), the time has come to roll up their sleeves and get this party started (again)! Their business plan includes resurrecting the Max II, Max IV and Buffalo Truck models as well as yet to be disclosed 8X8 models and EV drivetrains.
EIGHT IS ENOUGH
While Max ATV remained true to its 6X6 roots, Argo expanded their lineup to include 8X8 AATVs as early as 1971. Like Max, over the years Argo would undergo a series of heart transplants using 2S and 4S twin cylinder engines from Kohler, Briggs & Stratton and Kawasaki. EFI was featured on some and liquid cooling on others. Displacements have ranged from a 399cc air-cooled twin cylinder Kohler to a 993-cc liquid cooled v-twin Kawasaki.
The following graphic, similar to the ATV model history above, represents model counts for Max 6X6 (∆), Argo 6X6 (∆) and Argo 8X8 (☐) for the period 19892023 (source: J.D. Power). While data for Argo extends as far back as 1976, Max (RI) coverage doesn’t begin until1989 and ends with the Mudd-Ox acquisition in 2013.
The timeline for Argo has been extended through 2023 to illustrate the explosion of 8X8 models following the sale of Max. Note that 8X8 model counts includes recreational as well as commercial models which were launched in 1981.
From his first motorcycles (a Honda S65 and an S90) when he was 16 to 50 years later, Don Musick has never stopped twisting the throttle. Although his accomplishments in the research arena have surpassed his MX career Don has over 25 years experience with major manufacturers in the Powersports and Automotive industries specializing in e-business solutions for retail distribution networks. His solution portfolio includes the development and implementation of manufacturer/dealer extranets, consumer-direct commerce portals, manufacturer/ dealer e-channel integrations as well as development of web-based sales force automation tools. For most of his career, Don has been fascinated (his wife would say obsessed) with geographic market analytics, dealer location planning and sales territory optimization. He founded Genesys Technology Solutions (GenesysTech) www.genesystech.com to develop new tools and market intelligence products to help manufacturers understand the competitive landscape of their industries, recognize opportunities and grow their businesses. A Spartan to the core, Don earned a B.S. in Physiology and PhD in Biochemistry from Michigan State University. Contact: dmusick@genesystech.com
Dealernews Research
By Lenny Sims
POWERSPORTS MARKET INDUSTRY
OVERVIEW
Things are tough all over! Negative equity, supply swings and a difficult finance environment are placing downward pressure on market conditions, but pricing is currently holding up. Powersports Dealer sentiment is not overly positive, but selling prices for most segments were at least stable going into summer. Sportbikes had a particularly strong start to peak season. The adjacent markets… not so much.
Personal watercraft brought in 14.7% less than the first half of 2023. Traditional seasonality returned to the RV market as customers purchased units to prepare for peak travel season. Camping Trailer values were 18.6% lower year-over-year. Truck Campers averaged 10.8% lower year-over-year.
In the motorcycle segment, values for the most recent 10 model years of cruisers averaged 0.6% lower in the MayJune period compared to March-April, and 9.4% lower in the first half of 2024 compared to 2023. Sportbikes averaged 4.0% higher in May-June compared to MarchApril, and 3.2% lower year-over-year. In the side-by-side segment, the utility segment averaged 0.2% higher in May-June compared to March-April, and 9.5% lower year-over-year. The sport segment averaged 0.6% lower in May-June compared to March-April, and 8.8% lower year-over-year.
Inventory continues to build in all markets. Finance and equity remain headwinds as well. Outside of the sportbike segment, motorcycle and side-by-side selling prices continue to reflect more difficult finance, inventory, and equity conditions. We will continue to make value adjustments as needed in response to this downward pressure.
J.D. Power Specialty Valuation Services (formerly NADAguides) is a leading provider of specialty vehicle valuation products and services to businesses. The team collects and analyzes tens of thousands of wholesale and retail transactions per month, and delivers a range of guidebooks, web service data, analysis and digital data solutions. J.D. Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.
LEADING FOR SUCCESS AND SATISFACTION
Session 1 of 5 begins: Oct 24 Live-Online
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AUGUST AWP IN REVIEW
Seasonal Wind Down
August typically denotes the “end of Summer,” with kids heading back to school and the promise of cooler Fall temps around the corner. For powersports retail sales and wholesale values, August through October is typically the most difficult 90 days on the calendar. With the selling season in the rearview mirror, dealer priority moves from inventory acquisition to product liquidation and pushing existing inventory out the door as quickly as possible. With new product releases on the horizon, incentive activity also kicks into high gear, causing downward pressure on used values. Average Wholesale Prices (AWPs) usually find their annual “bottom” in these three months.
August Results
While AWPs in August followed typical seasonal behavior, additional softening existed in many categories above and beyond what we would consider normal. Domestic Cruisers saw the most significant drop, falling ~7% versus the prior 90 days and 13% versus 2023. Despite moving in opposite directions, Metric Cruiser and Metric Sport continued to produce elevated values versus 2019. While Metric Sport AWP fell versus shortand long-term comps, demand remains strong for onroad Metric products. Off-highway AWPs produced mixed results versus the last 3-months, with ATVs beating the short-term comparable. YoY comparisons on off-highway products produced similar results, but with SxS-UTV pricing outpacing last year by ~5%.
What to Expect
September is generally near the bottom of the pricing curve. Most categories find their “floor” in the last month of Q3. With continued challenges associated with interest rates, retail financing, and dealers’ ongoing challenges with stagnant inventory, don’t expect much to change this year. Additionally, with darker economic clouds looming and the uncertainty about the elections still playing out in prime time, consumer confidence feels weak. Our advice remains unchanged: focus on velocity and churn through inventory as quickly as possible. Despite the current New unit inventory bubble, pre-owned continues to drive margins, engage customers, and keep stores profitable. Use all the NPA tools and educational seminars to inform, prepare, and maintain your dealership through difficult stretches.
AUGUST ‘24 VS. AVG OF PRIOR 3 MONTHS AVERAGE WHOLESALE PRICE CHANGE
AUGUST ‘24 VS. AUGUST ‘23 AVERAGE WHOLESALE PRICE CHANGE
CURRENTS+
P1 FOR EM IN WTC
The French Factor-e Team cracked the code to winning the World Trials Championship in Spain. “What a great feeling… and what an accomplishment to finish the World Trial Championship on the top of the podium,” exclaimed EM rider Gaël Chatagno. “Very proud to compete with the best gas bikes and best trials riders with a magnificent 6th position on the final ranking, 1st electric bike!”
His teammate Margaux Pena also had a solid weekend, edging ever closer to the podium on her new Epure FACTOR-e. “Next season already sounds amazing,” she adds. “Thanks to all the sponsors and to the whole EM team.”
But before that, both Pena and Chataggno were selected to lead Team France in the FIM Trial des Nations in Spain. Can’t make it to Spain but want to know what all the buzz is about? Contact EM’s U.S. importer Central Powersports Distribution/ Electric Motion USA at: www.electricmotion-usa.com
HISTORIC TRIAL 2 WIN
While EM-mounted Gaël Chatagno closed the season strong it
was actually GASGAS rider Sondre Haga who rode his TXE GP to victory in the first competition of the 2024 season — the TrialGP of Japan. This marked the first time an electric bike had topped the class.
Sondre Haga topped Trial2 on opening day on electric TXE GP… ahead of Chatnago.
Trial2 was an incredibly competitive category at Motegi, with low scores across the board on both days. Haga remained unfazed, completing two near-faultless laps to take a convincing win on day one, writing his name in the history books as the first winner at this level to win on an electric motorcycle.
FUJI-GAS TO COMPETE ON ELECTRIC TRIALS BIKE
Former World Champion Takahisa Fujinami Doubles As eTrials Development Rider
In addition to his role as the HRC Team Manager, “Fuji-Gas” — Takahisa Fujinami — is doing double duty as a development rider and will compete with the RTL ELECTRIC trials bike. With the World Championship recently wrapping up, the 30-year ICE trials competitor is set to electrify the competition in the International A Super Class of the All Japan Trial Championship series. Although his team manager duties kept him out of the opening rounds, the 2004 FIM Trial World Championship winner will begin competing starting with Round 6, in Yuasa, Wakayama, on October 13.
“I am very happy to be involved in Honda’s efforts to achieve carbon neutrality through trials. Electric trial bikes have infinite possibilities, and I would like to use my experience as a rider to work with the development team to make the machine even better,” says the senior-most competitive trials rider in the world. “Since I am not yet returning to active duty as a rider, I am limited to being a development rider, but I am looking forward to riding in front of my Japanese fans for the first time in a long while!”
The RTL ELECTRIC is Honda’s first competition electric trial bike. It was developed based on the know-how gained from the Montesa COTA 4RT factory bike which is competing in the FIM Trial World Championship and has helped Toni Bou win 18 consecutive titles. Development of the RTL ELECTRIC also inherits electric (motor, battery) technology from the CR ELECTRIC PROTO, which began competing in this year’s FIM E-Xplorer World Cup.
Honda is committed to the electrification of motorcycles as the mainstay of its future environmental strategy, aiming to
achieve carbon neutrality in all of its products and corporate activities by 2050, and in all of its motorcycle products by the 2040s. In order to respond to diversifying customer needs, Honda will further advance its technology by taking on the challenge of electrification in trials as well as motocross.
“We have now decided to enter the All Japan Trial Championship as well with RTL ELECTRIC. By increasing the number of categories in which we race electric motorcycles, we will hone our competitive skills, accumulate know-how and knowledge, and further accelerate the development of our human resources. Last but not least, I would like to express my sincere gratitude to Takahisa Fujinami for his full support in this project!”
HRC WINS WORLD CUP
“This year, Honda began competing in the FIM E-Xplorer World Cup, a new category of electric off-road motorcycle racing,” states Koji Watanabe, President of Honda Racing Corporation. That decision to “E-Xplore” the competition EV sector paid off as Dakar Prologue winner Tosha Schareina was crowned the 2024 FIM E-Xplorer World Cup champion in the men’s category, while Francesca Nocera secured a commendable 2nd place in the women’s category, closing out an almost perfect season. Throughout the year, Team HRC consistently led the standings, showing remarkable performance and leaving a strong mark in this new category of motorcycling. This project with the CR Electric Proto is just the beginning of what promises to be a bright future for the team in the coming seasons.
“I’m absolutely thrilled to have secured the victory as the men’s World Champion in E-Xplorer,” says Schareina. “The team should be proud of all the hard work they’ve put in this season. The CR Electric Proto has performed incredibly throughout the
entire year, and the team has given their all—they should be proud. I want to extend my congratulations to Francesca for never giving up and finishing the race after her fall on Friday.”
In the final race, Tosha gave it his all, taking the victory and securing first place in the overall men’s standings of the World Cup. Team HRC finished the competition in 2nd place overall in the team category, a significant achievement in their debut year with the CR Electric Proto.
SHOCKER
eBike Demos At NVP
Taking a page from the AIMExpo playbook, Parts Unlimited’s North American NVP Product Expo in Milwaukee featured an indoor eBike demo area for dealers (instead of riding out the back door for a pedal around Lake Monona in the former Madison venue), with plenty of room to spare in the recently revamped Baird Center in Milwaukee September 7-8.
The expanded venue offered an updated, more spacious layout, accommodating a record number of new and returning vendors. Attendees were treated to an impressive array of products, innovative technology, and hands-on demos, including an exciting lineup of electric bike (e-bike) highlights.
One of the most popular attractions was the interactive e-bike demo area, where guests could experience the latest e-bike technology firsthand. Capping off the excitement was an e-bike credit giveaway, adding an incentive for dealers looking to invest in this growing segment.
However it was the Agroid rep races, fueled by free beer tickets, immediately following show hours that proved to be some of the most fun. See full coverage of NVP and a comprehensive interview with CEO Paul Langley elsewhere in this issue.
ACQUIRED BY Steven Towers from Steve & Jeff Hinchcliff
MEET OUR TEAM! Join us at NPDA Dealer Connect October 20-22 in Columbus, Ohio
ACQUISITION OPPORTUNITIES
We represent for sale numerous motorcycle and powersports dealerships across the United States. Please contact us to learn about opportunities that may be for sale in your area or to share with us your buying criteria for future opportunities.
For a confidential consultation and complimentary estimate of value on your business, please contact us:
Harley-Davidson & Powersports Division
George C. Chaconas, Senior Partner, CBI/M&AMI
Office: 813. 569. 6250 | Cell: 813. 245. 2535
Email: george@performancebrokerageservices.com
Address: 2102 West Cleveland Street, Tampa, Florida 33606
JUAN C. PARDO
COURTNEY A. BERNHARD
GEORGE C. CHACONAS
OCtober 2024 News from YOUR National Powersports Dealer Association
Welcome to the October 2024 newsletter from the NPDA! Our Dealers and Partners have joined us in our Mission: “To advance our industry by elevating Dealers to be well prepared, sustainably profitable and exceed the expectations of a growing Powersports customer base.” We welcome you to join us as a dues-paying member.
Your Partner In Growth
If you aim to make your dealership more profitable in 2025 than it has been in 2024, be sure to attend the NPDA’s Dealer Connect, being held Oct. 20-22, 2024, in Columbus, Ohio. There’s no better way to get connected with your Dealer peers from across the country, all with a goal of growth in 2025. NPDA non-members are welcome!
We are excited for you to enjoy the newly renovated Sonesta Downtown Hotel in Columbus, home of the inaugural NPDA Dealer Connect from Oct. 20-22, 2024. Our tour there earlier this year showcased all the upgrades and we walked away impressed — and full after some food sampling! We loved it and we think you will, too.
(It never hurts when the hotel meeting sales manager has a motorcycle dealer in the family, either!)
But, we need a favor. Please book your hotel today. Consider this one of your last reminders.
NPDA Board Members On Hand To Share Latest Insights From
Behind The Ropes
The Dealer Connect agenda includes all you could ask for in the association’s inaugural event, and much more. Nearly all of the NPDA Board of Directors will be on hand in Columbus, offering their insights from what they have experienced for the last year while serving on the Board.
Our Board members head up a variety of Councils and Committees, many of which include Dealer Members just like you. We’re looking forward to taking you behind the ropes of both the NPDA Harley-Davidson Council and the NPDA State Dealer Councils, learning about how they operate and how you can support them.
Dealers just like you pour hours of their time to push forward for the benefit of all Dealers, whether they are members or merely sitting on the sidelines. But there will be no sideline sitters in the home of the Ohio State Buckeyes — so join us as we continue to build on our goal of sustainable profitability at dealerships nationwide from some highly respected Dealers, presenters and industry members.
Exhibitors Filling Up Networking Room
Dealer Connect continues to be highly supported in Year 1 by our Partners and Sponsors. Rollick stepped in for the Lanyard Sponsorship, while Dealers can pick up their free drink coupon at the CBIZ thanks to their Cocktail sponsorship.
Dealer Connect Exhibitors Include:
Apiar Commercial Risk Management
BRIGHTLINE Dealer Advisors
CBIZ
DigniFI
Garage Composites
LeadHelm
National Powersport Auctions (NPA)
Octane Powersports Marketing
Performance Brokerage Services
Rider’s Advantage
Rollick, Inc.
Tom O’Connor Sales Academy
Spader Business Management/NCM Associates
ZiiDMS
700Credit
We would be unable to offer Dealer Connect without all of their support, so be sure to thank them at their table in the Networking Room.
“Dealer Connect provides a platform to connect with key stakeholders in the industry including dealers, partners, and all the NPDA Board Members. Building these key relationships early can lead to long-term partnerships and helping the industry grow for many years to come,” said Chris Yeloushan, VP of Dealer Development and Industry Relations for Rollick, Inc. “Participating at the conference event helps establish Rollick’s presence and credibility in the powersports market. It gives us the opportunity to showcase our products, services, and unique digital solutions to help the industry.”
For questions or more information, contact NPDA Executive Director Dave McMahon at dave@npda.org
7:00 AM to 8:30 AM Hosted Breakfast Buffet Power Cafe
7:30 AM to 3:30 AM
Exhibiting Partner Tables Network Room
8:30 AM to Noon Education Sessions Sessions Room
Noon to 1:30 PM Hosted Lunch Buffet Power Cafe
1:30 PM to 3:15 PM Education Sessions Sessions Room
3:15 PM to 3:30 PM Wrap-Up, Closing Announcements Sessions Room
Please see detailed schedule at Registration and on Daily Schedule posted in NPDA Lobby.
Directions to The Artisan: Leave from Hotel Lobby’s main doors and walk across driveway and enter double glass doors directly across from hotel.
The lobby is down one floor, and people would enter our space from here.
Sciota is the hotel name for the “Network” room. This is where the exhibitors and various breaks will be.
Muirfield is the hotel name for the “Sessions” room. This is where the main meeting will take place.
Pinnacle is the hotel name for the “Power Cafe” where we will be serving Breakfast and Lunch.
The Studio
Scioto Junior Ballroom
Personnel Files
By Alex Baylon
HOURLY VS. BASE+ COMMISSION Show Me The Money!
Ihave been traveling the country visiting motorcycle dealerships for the past 20 years. One of the things that has never added up was dealerships paying parts employees on a straight hourly rate. I have to be honest and say I’m not a fan of that pay plan. I’m going to cover the pros and cons (mainly pros) of going to a “Base Plus Commission” pay plan for parts department employees. I know that every department plays a vital role in contributing to the bottom line, yet parts remains the one area that often doesn’t receive enough focus is the parts department.
P,G&A brings plenty to the bottom line… but it could be doing better if the team was properly incentivized.
One of the biggest missed opportunities stems from the way employees in this department are compensated. While hourly wages provide consistency, they don’t necessarily motivate employees to maximize sales or increase customer satisfaction. A base plus commission pay plan offers a dynamic approach to employee compensation that can significantly boost sales and customer engagement.
The Problem With Hourly Pay
Hourly pay is straightforward. Employees come to work, complete their shifts and receive a fixed wage based on the number of hours they work. This model can lead to complacency because there is little incentive for employees to go the extra mile. In a parts department, this can mean missed opportunities to upsell or to engage with customers in ways that drive additional revenue.
Key points on hourly pay limitations:
° Lack of motivation to upsell products (e.g., boots, helmets, socks).
° Employees may focus more on clocking in and out rather than maximizing customer interaction.
° No additional reward for going beyond expectations or contributing to higher overall sales.
Stop leaving money on the table and reward the people working the parts counter? What a concept!
Why Base Plus Commission Works
A base plus commission pay plan, on the other hand, provides employees with a stable base salary but also rewards them for their performance. This type of compensation model encourages employees to think more like salespeople rather than just clerks. With a direct link between their sales efforts and their paycheck, employees are far more likely to proactively seek out opportunities to increase sales.
The Pros
Increased Motivation To Upsell: Employees who know they’ll earn more if they sell more will naturally take the extra step to suggest additional items to customers. For example, a customer purchasing a helmet might also be persuaded to bundle a communication system, smoked shield or other protective gear if the salesperson is motivated by the potential commission. The simple question, “Do you need socks with those boots?” “Do you need chain lube with that chain?” “Do you need tie-downs with that ramp?” I could go on an on, but you get the point. This is not normally being done in 80% of the dealerships I visit, and a simple change could easily turn into extra sales.
Improved Customer Engagement: A motivated parts department employee is more likely to engage with customers in a meaningful way. Rather than simply processing an order, they are more likely to build rapport and suggest products that genuinely fit the customer’s needs. Customers appreciate helpful and attentive service, which can result in repeat business and referrals.
Higher Average Transaction Value: When employees are motivated to upsell and cross-sell, the dealership benefits from increased revenue. Even small incremental sales add up over time. If every employee manages to increase their average sale by just 10%, that translates into a significant boost in overall dealership profitability.
Employee Retention And Satisfaction: A pay structure that rewards performance can lead to higher job satisfaction. Employees feel that they have more control over their earnings, which can reduce turnover and attract top talent. Those who are driven and skilled will naturally thrive in this environment, while the dealership benefits from retaining motivated staff.
Alignment With Dealership Goals: A base plus commission structure aligns the goals of the parts department with the goals of the dealership. Both the employee and the employer benefit when sales increase. By working together towards a common goal, the overall performance of the dealership improves.
Real-World Examples and Scenarios:
Dealerships that have adopted a base plus commission model in their parts departments have often reported marked improvements in sales and customer service. For example, a dealer who implemented this pay structure saw a noticeable increase in all accessory sales. Employees were more focused on ensuring the customer left with everything they needed for their new or used bike, leading to higher overall customer satisfaction and repeat business.
Other dealerships noticed that the parts department employees were more engaged with seasonal promotions and more eager to move inventory that had been sitting for months or had slow turns. With the potential for higher earnings, employees were more creative in finding ways to move products.
Potential Cons Of A Base Plus Commission Plan
Of course nothing is perfect. While the base plus commission model has many advantages, there are also some potential downsides to consider.
Pressure to Sell: Employees may feel pressured to upsell at every opportunity, which can sometimes lead to uncomfortable situations for customers. If the focus on selling becomes too aggressive, it can harm the customer experience. Care must be taken to balance the sales approach with genuine customer care.
Variable Income: Some employees may not perform well in a commission-based environment, especially if they are not natural salespeople. Their income could vary greatly from month to month, which can create financial stress, particularly for those who rely heavily on a steady paycheck.
Team Vs. Individual Sales: In some cases, a base plus commission model could encourage individual competition rather than teamwork. Employees might be more focused on securing their own sales rather than working collaboratively to ensure the overall success of the parts department.
Complexity In Management: Managing a base plus commission system can require more administrative oversight. Tracking sales, calculating commissions, and ensuring fair distribution of sales opportunities can become more complex, especially in larger dealerships.
MIJ Industry #PROfiles
Dealernews is honored to work with Motorcycle Industry Jobs to recognize the people who make up this great industry. “When you start reading the Industry #PROfles, you will notice that 80-90% of them get their start at a motorcycle dealership,” says MIJ founder Alex Baylon. “The dealers are on the front lines and have always been the heart and soul of the industry. Without motorcycle dealerships, most of us wouldn’t be where we are today, so part of our message is always going to be ‘support your local motorcycle shop.’”
In addition to recognizing industry pros, Dealernews is also working with MIJ to create a job ticker tape of the latest positions opening in the industry at the Dealernews.com site. Check it out at: www.dealernews.com/Industry-Jobs
“Tell us your story,” adds Baylon. “We would love to feature you! Click here to fill out the questionnaire: www.motorcycleindustryjobs.com/industry-profiles
Overcoming The Cons
The potential downsides of a base plus commission pay plan can be mitigated with careful planning and management. For example, dealerships can train employees on the importance of customer care to avoid overly aggressive sales tactics. Additionally, offering a reasonable base salary helps ensure that employees have a stable income, while commissions provide the added incentive to sell more.
To foster teamwork, a portion of the commission could be based on overall department performance, encouraging employees to work together rather than compete against one another.
The Bottom Line
In conclusion, a base plus commission pay plan for the parts department employees offers significant advantages for both employees and dealerships. It motivates employees to upsell and cross-sell, leading to higher average transaction values and improved customer satisfaction. While there are some potential drawbacks, these can be managed with proper oversight and training. Ultimately, this type of pay structure aligns the goals of employees with the goals of the dealership, creating a win-win scenario for all parties involved.
By embracing a base plus commission pay plan, motorcycle dealerships can tap into the full potential of their parts department, unlocking new revenue streams and improving overall profitability.
MotorcycleIndustryJobs.com founder Alex Baylon has been hiring and firing people in the powersports industry for 25 years.
Currently with a major distributor, he has also been with Dragon Alliance, Ceet Racing, MX GP Services in Europe, Acerbis USA, Motonation/Sidi Boots and Scott USA. He started MIJ as he saw a need in the industry for people who are passionate about the motorcycle industry to have an employment outlet. The motorcycle industry like many others has always recycled employees from one company to another and it has always been done by word of mouth. MIJ allows companies in the industry to post their openings and give others in and out of the industry a chance to apply and insert new blood and fresh ideas in the many opportunities in the motorcycle industry.
#SHEFFIELDSEZ
PAY PLAN POLL
The Dealers Have Spoken
By Mark Sheffield
The results of my pay-plan poll are in. Dealers have spoken!
In line with most current research, approximately half of dealers believe that simply adjusting a pay plan is not enough to significantly alter an employee’s behavior. While compensation is undeniably an important factor, many dealers recognize that employee performance and motivation are driven by a more complex set of factors, including company culture, career development opportunities, and job satisfaction. Dealers have observed that, without addressing these broader issues, changes in pay plans alone may have limited or even counterproductive effects on long-term employee engagement.
Moreover, it is increasingly evident that the modern workforce values more than just monetary rewards. Employees are seeking roles where they feel valued, have growth opportunities, and experience a sense of purpose. For dealers to truly influence behavior, they must create a holistic work environment that fosters personal development, open communication, and recognition. A strategic focus on these aspects, in addition to pay adjustments, can lead to more sustainable changes in employee performance and overall job satisfaction.
Compensation is just one aspect of employment, yet it remains a critical one. When working with underperforming dealers in my Spader Business Management/NCM Associates 20 Group meetings, I frequently pose a key question: “Are you offering your employees a job or a career?” This distinction highlights the importance of creating a work environment that fosters long-term growth and engagement, rather than merely providing a paycheck.
If you’d like to see the rest of the original post, click on through: lnkd.in/ge-8fJnb
Do Changes To Pay Plans Correct Poor Performance?
In many of our Spader Business Management and NCM Associates 20 Group meetings, we often identify areas of opportunity for improvement through dealership composite metrics. When these opportunities arise, the conversation frequently turns to what actions can be taken to enhance performance. A common response from dealers is to modify pay plans, under the assumption that this adjustment will directly influence employee behavior and improve results.
However, in my experience, simply changing the compensation structure rarely leads to the expected outcomes. While compensation is an important factor, it often addresses the symptoms rather than the root cause of performance or behavioral issues. Without a more holistic approach—focusing on training, accountability, and culture—dealerships typically don’t see the longterm, meaningful changes they anticipate.
What has been your experience? Do you find that adjusting compensation plans leads to significant improvements in performance or behavior within your dealership?
Mark J. Sheffield is a U.S. Army Veteran, strategic advisor for Woods Cycle Country, contributing writer for Outdoor Power Equipment magazine and Powersports Business magazine, and currently facilitates multiple 20 groups for Spader Business Management. When he’s not assisting with dealership performance, he can be found at the rifle range or digging holes with his backhoe.
Albert Einstein
RIDE WITH US
Market Expansion Team Creating Fresh Online Content to Attract New Riders
Work continues on fresh online content aimed at new and prospective riders, generated by the team at Ride With Us, the industry’s market expansion initiative led by the MIC. And to create upcoming videos, two small-displacement motorcycles have already been picked up from Eurocycle in Las Vegas and from Southern California Triumph in Brea.
“A big thank you to our MIC member manufacturers and these dealers for helping the Ride With Us team start our curated video series called ‘Make It Your Own,’ soon to be in production,” said Andre Albert, MIC Director, Marketing and Events. “Personalization and customization are part of motorcycling. Many people are drawn into the motorcycle world through the custom scene but do not know where to start or are intimidated by the idea that they need to be a master craftsman. Our ‘Make It Your Own’ series will feature everyday riders making basic, bolt-on upgrades to their bikes and show that customization is open to everyone and inspire people to do it for themselves. Additional OEMs, including Suzuki and Yamaha, are on deck to help us continue the series after the initial two segments are shot.”
Once completed, these stories will be widely shared across digital platforms including RideWithUs.com, the website designed to provide information and resources for new and returning riders. And more videos are coming, built around an enhanced strategy that will
positive, inclusive, and welcoming online content.
OCTOBER 15 AFTERMARKET MEMBER SUMMIT
MIC Aftermarket Members Invited to Special Meeting on Industry Challenges, Solutions
MIC aftermarket members are reminded that the deadline to register for the 2024
For attendees needing a hotel room, reservations at discounted rates must be made by September 30.
Now online is the complete list of presenters who will be there in Irvine, California, on Tuesday, October 15.
“Visit our event page to reserve your spot and be a part of the action,” said Ginger Calhoun, MIC Membership Manager. “This free, in-person event for our aftermarket members is a chance to connect with industry peers, learn from experts, and hear directly from Christy LaCurelle, our new President and CEO. This summit is an essential event for our MIC aftermarket members. Join us in shaping the future of the powersports industry together.”
Date and Time: Tuesday, October 15, 9 AM to 4:30 PM Reception to Follow
Location:
DoubleTree by Hilton Hotel Irvine - Spectrum in Irvine, California
If you have any questions about the Aftermarket Member Summit or about becoming an MIC aftermarket member, please contact MIC Membership Manager Ginger Calhoun at GCalhoun@MIC.org.
deliver
Aftermarket Member Summit is October 4.
LEAVE IT ON THE ROAD
2024 Nome Cult Walk
By Don Amador
As a powersports recreation representative and cofounder of FireScape Mendocino (FSM), I had the privilege to help support and participate in the 29th annual 100-mile Nome Cult Walk. This little known “Trail of Tears” was a forced march on roads and trails between Chico and the Round Valley Reservation in the Covelo area during the Fall of 1863.
Of the 461 Concow Maidu who started the march in 1863, 32 tribal members died, and 150 were too malnourished and sick to complete the arduous journey.
Over the past 11 years, FSM has worked to increase more tribal participation in the collaborative since tribal/local knowledge is vital to planning efforts that seek to restore/protect cultural resources, support forest health, address pre and post wildfire mitigation/recovery, and enhance outdoor recreation opportunities.
This year’s walk occurred during the 2nd week of September, 2024. Other FSM representatives and Forest Service staff also joined the Walk to support descendants from the Concow Maidu, the Round Valley Indian Tribes, Paskenta Band of Nomlaki Indians, Berry Creek Rancheria of Maidu Indians of California, Redding Rancheria, Grindstone Nomlaki, the Mechoopda Tribe, Pit River, Wintu, Nisenan and Greenville Maidu.
Don Amador, states, “It was an honor to work with the Resource Conservation District of Tehama County in serving lunch to the walkers on September 11 and also walking with them on a short segment of the trail.”
“The next time I ride my ADV bike in this part of the Mendocino National Forest, I will remember and reflect with a different perspective. I appreciated the tone of this walk was to ‘Leave it on the Road’ (watch for this theme in the video) by forgiving, welcoming everyone, and moving into the future with a positive spirit,” Amador concludes.
The Nome Cult Walk highlights that building and enhancing relationships with the Tribes — and other partners for that matter — is important and, in fact, can and does make a difference.
Don Amador has been in the trail advocacy and recreation management profession for over 33 years. Don is President of Quiet Warrior Racing LLC. Don serves as the Western States Representative for the Motorcycle Industry Council. Don is Past President/CEO and current board member of the Post Wildfire OHV Recovery Alliance. Don served as a contractor to the BlueRibbon Coalition from 1996 until June, 2018. Don served on the California Off-Highway Motor Vehicle Recreation Commission from 1994-2000. He has won numerous awards including being a 2016 Inductee into the Off-Road Motorsports Hall of Fame and the 2018 Friend of the AMA Award. Don served as the government affairs lead for AMA District 36 in Northern California from 2019 – 2023. Don is a Core-Team member on FireScape Mendocino. Don is a contributor to Dealernews Magazine. Don writes from his home in Cottonwood, CA.
Confessions Of A Customer®
By Eric Anderson
DON’T GO
BROKE!
Building A Company Culture Of Inclusion
The modern, evolved GM or CEO realizes their business is vulnerable to market shifts. A culture of Inclusion is necessary for survival of the fittest. I am not referring to a “woke” concept of racial, gender or sexual diversity, but inclusion of every role and responsibility inside your store no matter how high or low on the org chart. Everyone — including the “lot boy” — must be part of the ecosystem. Your dealership’s survival will depend upon the strength of the entire team of employees — not simply one leader or person.
Unlike the past, the marketplace is now more controlled by consumers rather than the manufacturers, so just about any dealership will need to more deftly adapt to new products and services while defending the retail-based organization. Think of your business as a living organism which needs all parts — organs, cells, nervous systems — functioning effectively and synchronously to stay alive in an increasingly competitive retail environment.
However the component organs in a dealership don’t always function cohesively. In fact, it’s very easy for well-trained employees to build a protective silo around themselves. They will want to defend what they have learned and earned, thus defensively shutting themselves off from other corporate ladder climbers looking to steal or threaten their job. This silo effect dissolves trust inside the organization and defeats teamwork. A quarterback cannot do his job unless all the players (and support staff) are “in sync” and focused on their individual jobs so everyone can win — yes, even the “water boy.”
Your employees have a tougher job in this modern era because things change more rapidly than ever…including their own sometimes flexible job descriptions. Remember the real definition of Darwinism is that “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change…” It’s interesting how new problems come up and how often new solutions must be developed.
Since “two heads are usually better than one,” problem-solving needs to become a team issue — not necessarily an individual issue for only department heads or GMs to solve. Gather other’s ideas and thoughts in a constructive way to end the finger pointing and blame game. Work to eradicate silos and build the culture of inclusion. Got a new idea? Bring it to the Monday morning meeting and test it with the group! It may lead to something bigger or better in an inclusive atmosphere.
Building such an inclusive culture tends to break down the silos which ineffectively enables a less inhibited, overly protected store environment. If
information is allowed to come from everywhere, it develops collaborative-embracing solutions coming from anywhere or anyone. Brainstorming sessions are one way to help build the team; just remember there are no “dumb questions.” Sometimes it is that simplest question or idea from the most inexperienced and amateurish employee who sees the “light” better than everyone else.
Even if it truly is a simple question, it often leads the overall discussion toward an alternative solution down the line. I remember an old TV program called Kids Say the Darnedest Things. Children really do say some brilliant things with incredible regularity, clarity and simplicity. Isn’t that one definition of a genius? The team will need to learn to “drop their guard” and think more openly about the overall success of the business — not just their role or department.
However, the process takes time to develop, since it should come organically and naturally — not forced down everyone’s throat. Building a culture is a longterm investment in the business, but technology can help speed communications along. Think of inspirational Ted Lasso-like messages to the team, idea sharing sessions, brainstorming, suggestion boxes, digital customer and employee surveys, etc. Encourage improved “listening skills” so everyone can use what they are hearing to evolve their idea when it is their turn to share.
Call it “stealing ideas” or “sharing ideas” even collaboratively “evolving ideas” are almost the same things—it’s only how your company culture wants to label them emphasizing team building over origins. Productivity and employee satisfaction will improve — guaranteed — because everyone has a stake in the team’s success. The main goal, a renewed collaborative workforce will ultimately be responsible for an effective and profitable organization.
Creativity also needs to come from somewhere, but sometimes large teams, committees and outside advisors can boat-anchor the fresh-thinking process from inside. If employees have built themselves into reinforced silos, there will be no creativity. They are thinking “defensively” instead of “offensively” while protecting their little world inside the parts department, the sales department, the service department, etc.
Remember these departments are “vital organs” of your organism and they all need to work together to keep the body and mind alive. Without having to sing Kumbaya to your staff, you can still be the “brain” which leads them to successful survival and career growth by example.
Bottom line: Instead of going broke, provide an environment of collaboration — a culture of inclusion, if you will. Include the entire team to move the entire business forward more sensitively and effectively… overcome, adapt and evolve!
Continued on page 62
HEART AND SOUL Collaboration In The Body & Business
Look at the human body as your business and each of the organs as departments inside your store. None of those organs can survive without the other organs all doing their jobs concurrently. They are interdependent and must work together. Same for your store, sales, service and parts all play a vital role in the overall health of your business.
The difference is organs do not have egos, so there isn’t much of problem managing them — the autonomic nervous system takes care of that for us. Your store, however, needs someone to foster and nurture collaboration. Someone has to set the tone and make it okay to share ideas, listen carefully to others and collectively solve problems permitting growth to occur.
Physicians and entrepreneurs are both trained to solve problems. If a component, such as the “Tissues (Teams)” or even the “Organ Systems (Executive Leadership),” is not functioning properly, it has the potential to cause a widespread issue within the entire body (organization) and impede its ability to self-regulate (survive and grow). Then, we must step in to diagnose and treat the issue.
Avoid sickness early by fostering synergy inside all the departments and between them, too. None of them can exist alone, so build a cohesive team — Doctor’s orders!
nlimited. The Fred Fox Story provides an indepth look at the life of Fred Fox, a leader of the modern era of powersports product distribution. The newly released book written and published by Don Emde is a full-color, 324-page publication, hardbound with an embossed dust jacket and 700+ photos. Price: $75.00 plus $10.00 shipping & handling – sales tax where applicable. Postage rates shown are for U.S. addresses only.
WHEN TRAILS CLOSE
Pierer Mobility Faces Its Toughest Race Yet
By Scot Harden
Editor’s Note: With all the controversy swirling around the OEMs, we decided to stop watching AI-generated social media clickbait and actually ask someone in a position to know the backstory to what is actually going on with the KTM/Husqvarna/GasGas and now MV Agusta situation. Fortunately our resident Euro brand expert and Hall of Famer Scot Harden had a front row seat when Stefan Pierer purchased KTM and made the bold proclamation he would become the largest motorcycle manufacturer in Europe. When BMW sold Husqvarna to Cross AG., Scot once again had the inside line. In the intervening decades, as former VP of Global Marketing of Zero Motorcycles, Scot has unique insights into Pierer Mobility’s challenges in the full size electric motorcycle space.
The recent news out of Mattighofen certainly could be better. Reports show Pierer Mobility AG, primarily known for its KTM, Husqvarna and GasGas brands, faces some big financial challenges. Declining global sales through the first half of 2024 for both its motorcycle and
bicycle divisions has resulted in a 27% decline in revenues and a corresponding $2.8 billion hit to the group’s market cap value, along with a related announcement of additional layoffs.
Bad news travels fast and is now occupying the front pages of the major news outlets, raising serious concerns amongst investors, dealers and affiliated partners about the company’s future. Moreover, thanks to social media pundits — especially the more pessimistic clickbait artists — you might think the company is headed for bankruptcy. To better understand the current situation, it’s helpful to look back at the history of Pierer Mobility’s acquisition of KTM and how it shaped its growth. Then, consider the potential changes due to the latest earnings report. Undoubtedly, it will have significant implications for its operations, workforce and ultimately, its global dealer network moving forward. But as far as bankruptcy goes… not so fast! Those prepared to write off what has arguably been one of the biggest success stories in modern powersports do so out of ignorance… and perhaps a touch of envy.
Pierer Mobility’s Acquisition Of KTM
Back in the early 1990s, KTM was struggling financially. Erich Trunkenpolz, son of founder Hans Trunkenploz (the “T” in KTM), had sold a controlling interest in KTM to Austrian investment company GIT Trust Holding, managed by Austrian politician Josef Taus. Initially known for producing motorcycles, bicycles and radiators, KTM entered a period of insolvency in late 1991 due to several factors, including overzealous growth forecasts primarily for its bicycle line and struggled to bring the recently launched radiator
division online. This led to the restructuring and splitting of KTM into multiple entities. I had a front seat to all this as the Western Sales Manager for KTM America and later as Vice President of Marketing under then-KTM America President Rod Bush.
In 1992, Stefan Pierer, CEO and founder of Cross Industries AG, along with a small group of former KTM distributors, took the bold step of acquiring KTM. Cross Industries AG specializes in acquiring companies experiencing cash flow issues but with an otherwise sound business foundation. Mr. Pierer and his group had a keen eye for identifying such opportunities. With a deep passion for motorsports and some very smart, motorcycle-savvy people around him, Mr. Pierer immediately focused on revitalizing the brand. Under his leadership, the new KTM Sportmotorcycle GMBH initially focused strictly on off-road motorcycles, a segment where it already had a strong reputation but needed a fresh start, especially regarding the technical development of its product line.
By the early 2000s, Pierer’s strategic vision began to bear fruit. KTM proliferated through a super aggressive product research and development program, embracing a sophisticated niche marketing strategy and expanding into new markets. Once KTM was on solid footing, they began acquiring other motorcycle brands. Notably, the acquisition of Husqvarna from BMW in 2013 and the Spanish brand GasGas in 2019 expanded Pierer Mobility’s portfolio, strengthening its foothold in the off-road motorcycle market. These moves allowed Pierer Mobility to become one of the largest motorcycle manufacturers in Europe and a serious contender globally.
Note: None of this would have happened without Mr. Pierer’s inspired leadership and the team he assembled around him. Personally, I’ve never met a more driven or demanding individual, nor one with more talent for evaluating people and opportunities. More recently, Pierer Mobility has expanded into other non-motorcycle industries, primarily bicycles, with much success, and these, too, have contributed to not only its growth but also the current financial situation.
I would be remiss if I didn’t point out that the company’s over-ambitious approach to the bicycle market has significantly impacted the group’s current bottom line. However, for the purposes of this audience, the focus will remain on motorcycles.
Current Challenges
Despite its past successes, Pierer Mobility is now facing a set of complex financial and market challenges. Outside market forces brought on some of these, and some were self-inflicted. Here are some of the factors that have contributed to the current situation:
1) Global Economic Slowdown: The economic turbulence resulting from the COVID-19 pandemic, inflation, and geopolitical uncertainties like the war in Ukraine have affected the purchasing power of consumers globally. As motorcycles are considered discretionary purchases, sales have slowed significantly, especially in key markets in Europe and North America. Following what an artificially charged market during COVID-19 was, it could be argued that the
group viewed the inflated sales numbers as a continuing trend, a belief that drove ever higher production volumes. This led to overproduction and a backlog of inventory that now requires substantial investments in flooring support, rebate incentives, and sales promotions to pull the backlog through the dealer channel.
2) Supply Chain Issues: Like many other industries, the motorcycle sector has been severely impacted by disruptions in the global supply chain. While much of this has been sorted out in recent years, shortages of critical components, including semiconductors, have led to production delays and increased manufacturing costs. Pierer Mobility’s brands, including KTM, Husqvarna and GasGas, have been affected by these issues, causing operational inefficiencies.
3) Increased Competition: Pierer Mobility’s growth did not go unnoticed. Other legacy manufacturers from Japan and Europe reacted by stepping up their off-road and adventure motorcycle product offerings to provide serious alternatives for the consumer. More recently, the market has seen the entry of new competitors, with both Ducati and Triumph poised to enter KTM, Husqvarna, and GasGas’s core off-road market. While Pierer Mobility remains the pre-eminent off-road manufacturer, it faces growing competition. This includes within its own ranks, as its three primary brands compete against each other for market share, cannibalizing sales and profit potential. This fact can’t be overlooked and must be considered as part of any plan moving forward.
4) R&D Costs/Transition to Global Manufacturing/ Quality Control Issues: With growing pressure to reduce manufacturing costs, Pierer Mobility has aggressively sought new partners in India and China, exporting manufacturing of key street and some off-road models. While the rapid transition to global manufacturing has lowered costs, it has also led to quality control issues and setbacks. Recent issues with their 790/890 engine platform and other models have occupied much space on social media. This has led to public perception that the company has cut corners and has strained the company’s once unparalleled reputation for quality and reliability.
5) Currency Fluctuations: As a European company that exports globally, Pierer Mobility is sensitive to currency fluctuations. The strength of the Euro against weaker currencies in key markets has negatively impacted revenues as bikes become increasingly expensive for international customers.
2025 and Beyond
For 2025, Pierer Mobility will face tough choices as it navigates its current financial challenges and the new market realities. Some possible changes include:
1) Additional Workforce Reductions: To streamline operations and reduce costs, Pierer Mobility will have to consider further downsizing its workforce, particularly in production facilities that are most affected by rising energy and labor costs or where demand has weakened. Layoffs, however, could also lead to a loss of expertise and morale,
impacting innovation and productivity. Few areas of the company won’t be impacted.
2) Restructuring and Brand Consolidation: Pierer Mobility might consider further consolidating its KTM, Husqvarna, and GasGas brands to improve efficiency. This could involve merging production lines, cutting redundant positions, and further increasing the integration of R&D resources across brands. The restructuring could also lead to a rebranding or repositioning of its primary brands, including dropping some lines/models altogether to minimize redundancy and focus more intensely on specific market segments.
3) Regulatory Challenges and Technological Shifts: In 2025, the company will focus on managing the everincreasing regulatory challenges surrounding safety, emissions, and access. The move to electrification has been a very slow process, with market adoption and consumer interest practically nonexistent. Meanwhile, looming government-mandated bans on internal combustion remain a real threat. Continued pressure on access to public lands and off-road riding areas will also remain a primary threat to growth.
4) Strategic Partnerships and Alliances: Pierer Mobility will no doubt continue exploring partnerships with other automotive or tech companies to mitigate high manufacturing costs. Collaborations could help share the financial burden of R&D and expedite the development of new models. The company has already shown interest in this approach by partnering with Indian manufacturer Bajaj Auto and CFMoto to develop smaller, more affordable street motorcycles. The full extent of these partnerships and their impact on internal operations, especially the workforce, remains to be seen.
5 Global Expansion and Diversification: While facing challenges in established markets, Pierer Mobility must reevaluate expansion into new regions such as Asia, Africa, and Latin America. Even though some of these markets are still growing, the company may be required to diversify its product range to include more entry-level motorcycles. Premium motorcycle sales, the market most associated with Pierer Mobility, will continue declining due to aging demographics in America and Europe, which, along with other pressures, will remain a huge threat to its future.
6) Price Adjustments and Margin Management: Pierer Mobility may be forced to increase prices to maintain profitability, especially if supply chain and manufacturing issues continue to drive up costs. However, this could alienate some consumers and lower demand. The company must carefully balance pricing strategies while maintaining its customer base.
6) Racing: Pierer Mobility’s investment in racing has long been the cornerstone of much of its rise in the market. The “Ready To Race” brand slogan for KTM bears this out. Recent outlays in MotoGP and its traditional racing efforts in Supercross, Motocross, Off-Road, and Dakar are costly. In the end something’s got to give. I would look for a major restructuring of their racing efforts in 2025, with some programs being shelved altogether. This will be a
particularly tough decision for Pierer Mobility as racing has held an almost sacred position inside the company. Racing and competition are what drive the culture inside the company and have a huge impact on the motivation to succeed.
Motorcycles s ales in H1 2024: 147,4 96 units
Motorcycles s ales in H1 2023: 187,158 units
Conclusion
Pierer Mobility’s acquisition of KTM in the 1990s set the stage for the company’s rise as a leader in the motorcycle industry. Like a phoenix rising from the ashes, the company rose from obscurity to become a dominant player on the world stage. None of this was by luck. It came from smart, dedicated, passionate people working very hard and an almost maniacal belief in the company’s mission — all extensions of Mr. Pierer’s personal ethos.
Despite past successes, today’s challenges are serious and require strategic foresight. As the company contends with a slowing global economy, increased operating costs, generational demographic shifts, and the potential transition to electric vehicles, the next few years will likely see significant organizational changes. Indeed, the role each of its three (now four, including MV Agusta) major motorcycle brands play in its portfolio of brands will most likely be reconsidered.
For 2025, Pierer Mobility will likely undergo personnel shifts, operational restructurings, and a renewed approach to global expansion. One clear example of this is hiring a new co-CEO, Gottfried Neumeister, who some surmise will be responsible for making some of the very tough decisions that need to be made. This will be an interesting development to watch.
For the thousands of employees at Pierer Mobility and its brands, the future holds both uncertainty and opportunity as the company adapts to a rapidly evolving industry. Based on this author’s personal experience with KTM and a 15-year relationship working under Mr. Pierer’s leadership, I would never bet against him or his Mattighofen-based leadership team. They will make the tough calls necessary. They will take quick, decisive, and bold action to ensure the company’s future. Failure is not an option in the world of Pierer Mobility…
As for the social media warriors, pundits, and naysayers, who are all too ready to write Pierer Mobility off, time will tell. I know who I’m betting on.
K TM Husq varna Motorcycles GASGAS CFMOTO MV Agusta
PIERER Mobility Makes Adjustments
Sales Fall Short Of Expectations
In the current financial year, momentum in PIERER Mobility’s core motorbike markets in the USA and Europe has slowed significantly. Due to the latest interest rate decisions in the USA, interest rates are expected to remain high, which will have a negative impact on sales expectations for the American market. Sales figures in Europe are also still volatile. Overall, PIERER Mobility’s sales figures will fall short of expectations this year after three years of above-average success.
This means that dealers will have to reduce their inventories and thus continue to tie up considerable capital. The PIERER Mobility Group is therefore continuing its efforts to strengthen its dealer structure through extended payment terms and higher discounts. These measures have already led to a sharp increase in working capital in the past financial year. Management expects working capital and the associated capital commitment to remain high in 2024. This is expected to have a significant negative impact on EBIT and the financial result in the current financial year.
Total Motorcycles Sales In 2023: 381,555 (+2%)
The 2023 financial year was very much defined by a major model rollout with a total of 72 new and revised models from the three core brands: With 280,206 KTM motorcycles sold, 67,462 Husqvarna motorcycles sold and 29,532 GASGAS motorcycles sold in the 2023 financial year, plus the motorcycles sold by MV Agusta (1,852) and CFMOTO (2,503), PIERER Mobility achieved sales of 381,555 units (2022: 375,492 units). The motorcycle division thus achieved a 1.6 % increase in unit sales. In the European sales regions, unit sales were 140,214 units (+15%). At 241,341 units, two thirds of the motorcycles were sold in markets outside Europe: In India, sales rose particularly sharply (+29 %) with 66,426 motorcycles sold. Despite a slight decline in North America (-7.7 %), the subsidiary there managed to sell 101,277 units. While sales fell in South America with 27,671 units sold (-26.4 %) and in Asia with 23,129 motorcycles sold (-27.3 %), sales of 19,648 units in Australia were slightly above the previous year’s level (previous year: 19,478 units) (+1 %).
Despite the difficult global economic conditions, motorcycle registrations in the core markets of Europe rose very strongly at a rate of +11 % and also displayed a significantly positive trend in North America (USA & Canada) at +4 %. In 2023, the market share of all three brands (KTM, Husqvarna, GASGAS) was therefore around 10.6 % in Europe and 12.6 % in North America. The Australian motorcycle market (including New
Zealand) stagnated slightly with a 3 % decline in newly registered motorcycles. Nevertheless, the total market share of the three brands increased to 21 % overall. By contrast, as in the previous year, the relevant Indian motorcycle market is seeing a noticeable upswing (+22 %). Bajaj sold around 66,000 KTM and Husqvarna motorcycles in India, resulting in a market share of 5.3 %.
2024 GasGas ES500 $8399
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Realignment Of The Bicycle Division
During the coronavirus pandemic, demand for bicycles rose rapidly, leading to overheating in the bicycle market and disruptions throughout the entire supply chain. As a result, our own stocks and those of suppliers and dealers reached record levels. The reduction of these inventories to a normal level is continuing, while at the same time massive pressure is being exerted on sales prices.
Due to the developments described above, the extraordinary impairment and restructuring requirements in 2024 will lead to a significantly negative result in the Bicycles segment. The realignment of the Bicycles segment initiated in the 2023 financial year with a focus on the premium segment will be systematically implemented and completed in 2024.
Bicycles Unit Sales: 157,358 (+33 %)
In the bicycle division, 157,358 bicycles were sold (previous year: 118,465), thereof 100,640 were e-bicycles (previous year: 74,479) in the 2023 financial year. Around 87 % of sales were in Europe and here in particular in the DACH region. A further 10 % were in the North American sales region and the remaining sales (around 3 %) were in Asia, South America and Australia.
Adjustment Of The Guidance For The 2024 Financial Year
For the 2024 financial year, the Executive Board expects a decline in sales of 10% to 15% for both the motorcycles and bicycle divisions due to the current market developments.
In the Motorcycles segment, the Executive Board assumes that the cost savings introduced in the current financial year will be able to compensate for the negative effects of declining sales to such an extent that a balanced to slightly positive EBIT can be generated. The development of existing dealers and the further expansion of the dealer network to support the brand strategy will be key issues in 2024.
In the Bicycle division, however, the Executive Board anticipates a significantly negative EBIT of €-110 to €-130 million for the 2024 financial year, which is essentially due to the above-mentioned extraordinary impairment and restructuring requirements. The restructuring of the Bicycle division is therefore complete.
MV AGUSTA
Takeover of majority stake in MV Agusta S.p.A.
An important milestone for the company was the acquisition of a majority stake in the Italian premium motorcycle manufacturer MV Agusta S.p.A., in which KTM AG acquired a 25.1 % stake back in November 2023. On March 15, 2024, the existing call option to acquire a majority stake in MV Agusta Motor S.p.A. was exercised early by KTM AG and the stake increased to 50.1 %.
In a curiously worded announcement earlier this year, Pierer Mobility exercised its option to acquire a majority stake in MV Agusta Motor S.p.A. “Increasing ownership to 50.1% has been exercised ‘prematurely’” — Premature or not, Pierer put in new leadership for the venerated brand from Varese
Dealer News: MV Agusta Flagship Store Opens
with the immediate benefits of site expansion and increased production capacity… and the launch of the first U.S. Flagship Dealer. The deal actually began back in 2022, but has been fast-tracked according to Europe’s leading manufacturer of powered two-wheelers.
“In November 2022, KTM AG, a subsidiary of PIERER Mobility AG, acquired 25.1% of MV Agusta Motor S.p.A., based in Varese (Italy), as part of a capital increase. As part of this cooperation, KTM AG took over the supply chain and purchasing of MV Agusta in October 2023. In addition, MV Agusta’s product range is also distributed in part via PIERER Mobility’s global sales network. The call option granted to KTM AG on the basis of the annual financial statements as of December 31, 2025 to acquire a majority stake in MV Agusta Motor S.p.A. will now be exercised prematurely.
“The purchase price for the remaining 25% of the shares was calculated in accordance with the previously agreed valuation method (EBITDA multiple). This means that KTM AG will take over the majority and also the industrial management of MV Agusta Motor S.p.A. In the medium term, an annual production volume of more than 10,000 MV Agusta premium motorcycles is planned at the site in Varese.”
In a related move, KTM scion Hubert Trunkenpolz has been appointed CEO of MV Agusta. “With the early takeover of the majority and as a commitment to the location and responsibility for the employees, Hubert Trunkenpolz, member of the executive board of PIERER Mobility AG, assumes the role of Chairman and Chief Executive Officer, alongside Timur Sardarov as Deputy Chairman and Luca Martin steps into the role of Deputy CEO and Managing Director. Filippo Bassoli joins the board as Chief Marketing Officer and Managing Director, while Barbara Kenedi is confirmed as Chief Alliance Officer.”
#GUESSWHERE @DEALERNEWS WAS?
We will be the first to admit that the #GuessWhere schtick can get old… and there are a bunch of people who agree. A whole lotta people! According to Facebook, Dealernews reached 1.2 million people from January 1 to February 29 — Guess having that extra day for leap year really paid off? There were 46,700 “content interactions” during that span, again a lot of thumbs up (or thumbs down, but at least we made you look).
And that is just on Facebook. We also post to Instagram, LinkedIn, X (Twitter) and YouTube… One caveat: We believe social media should be just that “social” — for the record, we do not pay for clicks, incentive or pay for any social media content nor do we boost posts. All of the social platforms are there to support Dealernews magazine, where we cover serious business and “dealer” news. It has been that way since 1965.
If you are not one of the 1.2 million playing our game, check it out on your preferred social media channel:
www.instagram.com/dealernews
www.linkedin.com/company/dealernews
x.com/Dealernews
www.youtube.com/@DealernewsMedia/featured
MULLET MARKETING PLOY
Kawasaki Dealers were treated to an advance screening of the Super Bowl commercial for the all-new Ridge. Stone Cold Steve Austin also crashed the party!
NPDA WEBINAR
February kicked off virtually with the National Powersports Dealer Association’s webinar. Thanks to Zach Materne for the insights and for NPDA Board members Mark J Sheffield from Woods Cycle Country and 2-time Dealernews cover dealer Kim Harrison from Coleman PowerSports for joining in.
BEST SEAT IN THE HOUSE
We had the best seats in the house for a press ride in the Ridge the day before the Dealer Meeting in Phoenix. The inline 4 sounds like a jet fighter plane on deceleration! Shade of Maverick in Top Gun. Listen here: www.youtube.com/watch?v=g0_Nr2zEdAE
STONE COLD STEVE
The man beneath the mullet! Brand Ambassador Stone Cold Steve Austin starred in Kawasaki’s Super Bowl commercial, disrupted the stage presentation to lead dealers onto the show floor, did several live streams and then signed autographs until the lights went on.
LET THE GOOD TIMES ROLL
Kawasaki Dealers came together for the first time in 4 years, today they are reveling in the Ridge UTV and a host of new models in Phoenix. This dealer meeting also marked the first time that the green team gathered U.S. and Canadian dealers for a “North American” Dealer Meeting.
THE FUTURE IS NOW!
Where is the UTV sector heading? Kawasaki has a concept that might fly...
Continued on page 72
NOT WHERE, #GUESSWHO?
Somebody made a surprise appearance at the A2 SX and bagged his second Dealernews cover! He also earned some hardware...
TIME TO LIGHT THIS CANDLE
Boom goes the dynamite as the gate dropped for A2 Supercross. Now we are watching the final SMX Playoff repeats and waiting for A1 in 2025. www.instagram.com/p/C2oEqVmtutg
SHOWTIME!
Once we returned from Kawasaki’s Dealer Meeting, it was time to pick-up the print edition of the magazine and the official show directories for AIMExpo! dealernews.com/Home/post/issue/aimexpo-2024-show-guide dealernews.com/Home/post/issue/december-2023
BRABEC DOUBLES UP
Ricky Brabec does the impossible! A second Dealernews cover... oh yeah, he also won Dakar, again. dealernews.com/Home/post/issue/february-2024
BIKES AND BOMBERS
By Gus Stewart
No need to Guess Where Dealernews was on this weekend in August… at least not for the Can-Am dealers who were in town for Club BRP. Can-Am Origin eMotos were presented at the Lyon Air Museum just off the flight line from John Wayne Airport. The week after the eBikes rolled off the tarmac, the Air Museum is further celebrating all things motorcycle. A special one-day-only parking lot gathering for Bikes And Bombers was opened to riders to showcase to the public their own motorcycles. A bonus for both BRP dealers and locals was access to the final days of THE MOTORCYCLES exhibit included with admission.
THE MOTORCYCLES collection was one of the very first Norton motorcycles ever built, a 1902 Energette. In addition, World War II-era motorbikes were displayed, all complimented by the rare, historic World War II and Korean War-era aircraft on display in the museum. The story is further told through authentic motorcycles previously owned and ridden by pop culture icons, including Steve McQueen, Dennis Hopper, John Wayne and Paul Newman. Even “Pete ‘Maverick’ Mitchell’s” Ninja recently featured in the blockbuster movie Top Gun: Maverick was showcased.
Speaking of Kawasaki, one of Ricky Carmichael’s Works KX was on display in the main hangar. Appropriately enough, David Dewhurst’s display and copies of his Golden Era of Motocross were adjacent to the GOAT’s former factory ride. And when we walked by, the legendary photojournalist was deep in conversation with Nick Domokos — the Wheelie King Doug Domokos’ son.
Across the way, our favorite motorcycle historian and former Dealernews publisher Don Emde was selling signed copies of some of his books… and donating $20 to the Museum for each copy sold. A period correct replica of his father’s old Big Base Indian Scout was also in the Hangar (and in addition to chronicling motorcycle history, Don and Floyd made history as the only father-son tandem to ever win the Daytona 200!
Not to be outdone, local dealers like Irv Seaver BMW and 2X dealer profile/Ducati Dealer of the year Mike Guerrin and the Ducati of Newport Beach team were on hand showing off some bikes of their own.
Lyon Air Museum represents the realization of General William Lyon’s dream. Founder of the museum, a former combat pilot, and ultimately serving as Chief of the U.S. Air Force Reserve from 1975 to 1979, General Lyon’s passion for aviation history and youth education was the driving force behind his dream and vision. In establishing the museum, General Lyon created a world-class destination, offering educational tours and displays inspiring youth while celebrating our veterans. Lyon Air Museum is home to some of the world’s most rare operational historic aircraft and vehicles.
And even though THE MOTORCYCLES collection has been replaced by another curated exhibition, there is always a good selection of motorcycles on display. General Lyon was a huge fan and bought many of Steve McQueen’s bikes after the actor’s passing. If you are ever winging your way into John Wayne for future dealer meetings, visits to the OEMs or a Motorcycle Industry Council Aftermarket Summit, be sure to make time to see the Lyon Air Museum for yourself!
Lyon Air Museum
19300 Ike Jones Road, Santa Ana, CA 92707
P: 714.210.4585
www.lyonairmuseum.org
DRAG SPECALTIES KEEPS ON TRUCKIN’
The LeMans Corporation, through its brands Parts Unlimited & Drag Specialties, is the world’s largest distributor of aftermarket accessories in the powersports industry. Parts Unlimited & Drag Specialties sell to more than 12,000 dealerships worldwide and continue to expand their market penetration with their sister companies, Parts Canada and Parts Europe. To make sure Drag got its due, NVP featured a throwback from the old Dealer Expo playbook when they made a massive statement to the industry by bringing a semi truck onto the show floor in Cincinnati.
“We were king of the castle at that time in the ’70s and early ’80s. We were on top of the world. When things started tumbling, CCI (Custom Chrome Inc.) became the top dog around the mid-’80s,” says Drag Specialties director of purchasing Tom Motzko, who started with the company in 1974 and is still there to this very day.
True to its name, Drag Specialties was founded by Tom Rudd, who competed in the A-Dragster class on a modified Sportster in the 1960s. Rudd opened up a small parts and accessories store in Minneapolis called “Drag Specialties” and before long, he expanded his product line and brought on board more businesses that were eager to sell their parts to a larger market as well, and in 1968, a brand was born. Drag Specialties endured the ebb and flow of the economic tides for 20 years before it was sold to LeMans Corp. founder Fred Fox in 1988.
“That provided six warehouse locations at the time, which we only had one previously. Plus, it gave us access to Canada because he had a warehouse in Canada.,” says Motzko. “We had a handful of people that they trusted, and gave the reins to us, if you will, and we began the rebuilding process with the funding, the warehouses, and the trust. That’s how we rebuilt the company.”
An instrumental part of rebuilding was revamping the Drag Specialties catalog. Fox assigned this task to his inhouse marketing team, Edge Advertising in Minneapolis. A primary goal was making the catalog more user-friendly so dealers and shop owners could track down part numbers and prices quicker and easier. Adding eye-catching pictures of products was prioritized as well. Story goes that Edge Advertising began referring to the massive undertaking as the “fat book,” and Drag Specialties’ catalog has gone by that name since. Check out the 2024 Fatbook here: asset.dragspecialties.com/static/sites/flippers/2024Drag-Specialties-FatBook
PREDATOR 2-UP SEATS
A brand within a brand? Drag Specialties Seats have craved out a very solid niche in the Fatbook and “hearts” of customers. When it comes to 2-up comfort, their Performance Predator 2-Up Seat with EZ Glide II backrest option checks all the boxes. The 3/16” thermoformed ABS seat base gives the perfect fit, while the carpeted bottom and rubber bumpers protects the paint. Available in automotive-grade vinyl or solar-reflective leather — a patented process to reduce the surface temperature by as much as 25° F,. Seats include mounting hardware to fit 08 - 23 FLHT, FLHTC, FLHTCU FLHR, FLHRC FLHX, FLTR, FLTRX. FLTRU, FLTRK and FLRT models (except for the 23 FLHXSE and FLTRXSE). Made in the USA with a suggested retail price range of $487.95 – $545.95. seats.dragspecialties.com/products/?productId=673499
BRILLIANT! LED FUEL GAUGES
From the “why didn’t we think of that” department comes these sleek LED fuel gauges from Drag Specialties. The LED fuel gauges are bright and easy to read at a glance and are a great upgrade from an older stock gauge or as a replacement for a defective gauge. The LED fuel gauges are sold individually and are available in a black or chrome finish to match your bike’s existing fuel cap. The gauges fit 08-23 FLHR, 15-23 FLRT, 08-17 Softails, 09-17 FXDB/FXDC/FXDL/FXDF and 10-17 FXDWG. The suggested retail price is $55.95. www.dragspecialties.com/search;q=2212-0884;r=eJyrVkrLzClJLS pWsoqOrQUAJusFKA%3D%3D
STAND UP!
The rule of Bobber/Chopper Club is to strip off everything stock and throw it away! Looks cool, but how about when it comes time to actually work on a bike? Drag Specialties Center Stand. This stand lifts the bike upright for easier cleaning and servicing, as well as taking up less space when parking. Adjustable feet allow the rear tire to be lifted off the ground and works with both OE and Profile rear suspensions. With a bolt on design, there is no loss of lean angle. Available in black (repl. OEM #92900066) for 21-23 RA1250/1250S models. Suggested retail price is $299.95. www.dragspecialties.com/search;q=0510-0654;r=eJyrVkrLzClJ LSpWsoqOrQUAJusFKA%3D%3D
LOCK DOWN
If your customers have a bike with detachable sideplates, they need the Drag Specialties Detachable Latch Kit. This kit includes two satin black finish latches and includes all the hardware you need for easy installation. This kit fits all models equipped with detachable sideplates, one-piece sissy bar, racks and Tour Pak® luggage mounting racks.
It is not very glamorous, but necessary when you need a replacement , pronto! Drag Specialties high-quality compensator spring pack meets or exceeds OEM quality and is a direct replacement for the OEM spring pack. Also works with the Drag Specialties High Performance Compensator Sprocket kit (Part #1120-0404, sold separately). Replaces OEM #83936-09A for 11-23 Touring models, 12-23 Softails, 09-23 H-D Trike models and 12-17 FXD/FXDWG/FLD models. The suggested retail price is $79.95.
Customers can give their bike a custom stance or get the proper lean angle with oversized front wheels with extended length kickstands from Drag Specialties. These kickstands are 1” longer than stock length as measured from the center portion between the foot and the centerline of the upper pivot. Manufactured from high-strength steel, and available in a brilliant chrome finish or gloss black powdercoat, these kickstands are built to last. The 1” extended kickstands fit 18-23 FXFB/FXFBS and 20-21 FXLRS. The suggested retail price is $75.95.
The powersports industry recently lost a legend: Ken Boyko, famed for co-founding Cobra Engineering and widely known throughout the motorcycling community, in Southern California, across the country, and beyond. He was a giant of the aftermarket, an innovator, and pioneer in creating a whole new category of “metric customs” based on Japanese cruiser models.
He was also a genuine enthusiast with his own wideranging collection of bikes, and he greatly cared about motorcycling, providing keen insights and wise counsel to help boost the industry and make it stronger.
“Ken invested his talents and time into the serious work of the MIC, and he did it in his own quiet style,” said Tim Buche, former MIC President and CEO. “He did not seek headlines or recognition, but Ken answered the MIC’s call when it launched the MIC Aftermarket Committee. He helped refine our approach and worked with his peers to increase participation. A phone call or lunch with Ken was a true master class in membership recruitment and satisfaction, with a focus on key and critical priorities. He always added a strong dose of encouragement, and a commitment to engage his many connections and channels in support of our efforts.”
“When the MIC launched the Rockefeller Motorcycle Show in New York City in 2002, Ken sent a handful of great examples from his personal collection for weeks of public display in the heart of Manhattan, which generated incredible mainstream media coverage,” Buche said. “Ken wanted to see future generations of riders enjoying the fulfillment and fun of motorcycling.”
“Ken was an industry icon, although he would deny such a statement,” said Larry Little, former MIC Chairman and Cycle World Publisher. “He was his best possible self, take
it or leave it – always looking to innovate and improve the status quo, whether it was a new product or a vision for growing the industry. If you knew Ken – and it seemed there weren’t many people he didn’t know – you were among the lucky and blessed.”
The Boyko family is planning to hold a service at Our Lady of Mount Carmel on October 19 at 11 am. A celebration of life will follow the service, at a location to be announced.
From Larry Little, Former MIC Chairman And
Cycle World Publisher
When I first met Ken in the late 1970s he was working at DG Performance Specialties, a leading aftermarket motocross performance company based in Anaheim, California. His marketing and product insights helped DG become one of the top moto companies of its era. He understood the value of racing and racers, and a long list of up-and-coming racers were sponsored by the company, many of whom became lifelong friends of his, most notably Bob Hannah.
Later, Ken would go on to co-found Cobra Engineering, and in a defining moment for the industry in the early 1990s, he identified and helped create the metric cruiser market, as it is known today. No one considered Japanese cruiser motorcycles a market for Harley-like custom accessories, but Ken believed there was potential. To spur it on, he commissioned one-off custom motorcycles based on metric cruisers to showcase the company’s line of exhausts and an eventual wide-ranging assortment of bolt-on accessories for metric cruisers.
I was the publisher of Cycle World magazine at the time and we ran a story on the first bike, Cobra’s Honda Magnafied, in the June 1994 issue, and it resonated with
readers. I was also serving on the MIC Board of Directors at the time, and it opened the greater industry’s eyes to the possibilities he was creating. It wasn’t long before every Japanese manufacturer was working with Ken to showcase one of their cruisers customized by Cobra, to be unveiled every year at the Dealernews trade show in February to great fanfare and media coverage.
For all of his accomplishments in the industry, those of us who knew him personally were inspired by his dedication to his family and their dedication to him. As a loving husband of nearly 40 years to Laurie, he was also a proud father to Dustin and Haley, and more recently grandfather to granddaughter Collins. Family, including extended family, was everything to Ken, and he remained close to his brothers and their families as well Laurie’s family.
As a friend of many years, I can assure you Ken would offer you the shirt off his back if you needed it, and often did. As a sounding board, his honesty – frequently brutally direct – and inspiration are traits I’ll remember vividly. He had his own personal share of challenges in life, and in spite of them, he left the world a vastly better place for which I’m grateful to have shared a small slice.
Godspeed, my friend.
From The Boyko Family
Kenneth Boyko of Newport Beach, California, passed away surrounded by the love of his family on July 23rd of 2024.
Born in Youngstown, Ohio, June 27, 1951, to Walter and Mary Jane Boyko, who in 1954 packed Ken, along with his two brothers, and moved to Fontana, California, where they would add one more son. Then in 1967, they moved once again to Anaheim, California, where Ken graduated from Valencia High School in 1969.
Ken was born with a heart murmur, which led to his first open heart surgery at City of Hope at 8 years old. Afterward the doctors said there was a good chance he would not make it past his teens, but they did not know Ken, or his will to live. Over the years he stymied many a doctor’s prediction by courageously battling to overcome multiple valve replacement surgeries and ultimately becoming a heart transplant recipient in
2014. Simply stated, Ken was a warrior, one who fought and battled his whole life. With his determination, will to live, and sheer force of living and loving life, Ken was an inspiration to all who knew him.
Speaking of determination, from their first meeting, Ken pursued Laurie Heisser for years before they were finally married on October 10, 1988. Their first child, Dustin, was born on June 21, 1989, and three years later on November 18, 1992, their daughter, Haley, entered their lives. Ken and Laurie had a beautiful life together, supporting each other throughout their long love and marriage.
He was a successful marketing and entrepreneurial businessman whose ideas for new products and ways to market them to consumers helped shape the powersports industry. In 1977, he co-founded Cobra Engineering and was responsible for creating an entire new segment in the aftermarket motorcycle industry. But to Ken, his biggest success was being a loving husband, father and grandfather. To Ken, family was everything. Ken is survived by his wife, Laurie Ann Boyko, his son, Dustin Wayne Boyko, his daughter, Haley Ann Boyko, and granddaughter, Collins Marie Boyko, as well as Dustin’s wife, Loren Boyko, and Haley’s husband, Nicholas Sylvester. Ken is survived by his brothers, Walter Boyko, Richard Boyko, and Teddy Boyko.
In lieu of flowers, the family asks that donations be made in Ken’s name to the Adult Ahmanson Congenital Heart Disease Center at UCLA. It was at UCLA where he received the gift of life from a donor and treated with love by the many talented doctors and nurses over decades.
Ken Boyko and Don Emde
ENCOURAGED TO JOIN ABOUT NPDA
The National Powersports Dealer Association (NPDA) was founded in 2021 and is an association dedicated to direct interaction with our members.
Our Mission Statement is for the NPDA to empower franchised and independent Powersports Dealers through special services, products, programs, education, and advocacy of Dealer views and concerns to create a professional, successful, and profitable industry.
Our Vision is for the NPDA to advance our industry by elevating Dealers to be well prepared, sustainably profitable, and exceed the expectations of a growing Powersports customer base.
RESPECT THE REPS…
Or Lose The Relationships!
Tim Calhoun
Ihave been quiet for a very long time, and now I am no longer going to sit here and watch the continued discrediting and, quite honestly, disrespectful treatment that companies in the powersports industry have been dishing out to the inside and outside sales teams. It’s time to recognize the value of these teams. For the most part, private equity has been good for the people who have sold their companies but only sometimes good for the powersports industry as a whole. It’s time to acknowledge the essential role of sales teams in our industry.
These reps are the critical revenue engine for most companies, and their sales commissions are not just a percentage of earned income but also a testament to their hard work and dedication. They are the ones who have driven those miles and started their voyage home 300 miles away at 6:00 PM on a Friday. Their commitment and sacrifice are beyond measure... until you have experienced what they have, do not dare to think you know what it takes to be an outside rep or the value they bring.
If they are a good rep, they are a trusted extension of the dealers they service. They are the person the dealer knows they can call after-hours for a needed part or accessory, and it will get ordered and be there when needed. They are the representatives who give up weekends to attend an open house or a race as a service to your company and their dealers. They are the trusted people a dealer will invest their dollars in not just because the products are good but because dealers know they will manage the product, face it, merchandise it, warranty it and rotate it if needed. They are the teachers of dealership staff, educating them on how to sell products and giving them the technical details and how to properly fit helmets, gear and more.
Is consolidating territories and reducing sales team members supposed to increase revenue? Managing your sales with an inside team and having a few regional advisors travel and visit dealers? All you have done to date is increase the bottom line of the largest distributor in powersports. They could not have planned a better strategy than what your business changes and planning gave them.
Our industry is driven by the relationships that are built. For the most part, we are a want, not a need, and good sales reps and brands create that want. We are not a big automotive or purely commodities-driven industry. We are not Costco or Walmart. We are sexy, fun and exciting; most sales are emotionally driven in this industry. Great reps help you capitalize on this and build your company’s bottom line.
Our industry is not necessarily “special” — we are just different, more human. There is a graveyard full of leaders and companies that have come into powersports planning to show this industry how businesses should be run. I will say this loud and clear so there is no misunderstanding: The competition is winning by just conducting business as usual.
Tim Calhoun President
Tim Calhoun Powersports Consulting Arroyo Grande, CA
Specializing in Adventure, Dual Sport, Off-Road and EV market segments. Delivering solutions in today’s rapidly evolving marketplace.
Over 35 years of senior level executive management experience.
• Brand Development
• Advisory Services
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• Motivational Speaking
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