Cycle News - Archive Issues - 2000's

•... . .... . . . . • _:.-1.1'1 ~ Happenings In Motorcycling .I~-'.~- Raising Money _ While recovering from their respective injuries, motocrossers Jeremy McGrath (left) and Travis Pastrana spent some time taking in the Red Bull Wave Bash, a personal watercraft freeride event that took place in Oceanside, Califomia. the day before the Glen Helen World Cup race. The event showcased top stand-up watercraft riders going head to head, catching huge air in the surf and puUing tricks like backflips and barrel rolls ("We can do barrel rolls on motorcycles - I know it," said an inspired Pastrana). Also on hand as spectators were Bud Ught KTM team manager Larry Brooks and pro surfer Sunny Garcia. For more information, log on to www.watercraft.com. Jim McCaslin, president and COO of Harley-Davidson Motor Company, presented checks totaling $3.5 million to Jerry Lewis during the Jerry Lewis MDA Labor Day Telethon, September 1-2, in Los Angeles, California. Through the hard work of Harley-D"vidson dealers, enthusiasts and employees, Harley-Davidson raised $3.5 million for the Muscular Dystrophy Association (MDA) this year, according to the Motor Company. This donation brings Harley-David. . son's 22-year MDA fundraising totals • 1I!JllIY'1IM1ImI to more than $42 million. Also attend, ... ing the telethon were representatives of Harley-Davidson's top fundraising dealerships, whose events raised more than $100,000 for MDA this year. Harley-Davidson expects to raise a minimum of $5 million for the Muscular Dystrophy Association during its 100th Anniversary celebration. Funds ' -- . ---=t"..• ---=:raised during the first leg of the 100th Anniversary celebration in 2002 will be counted toward the $5 million total. . ~ -.- ~.- ",. ~ .H!ID,~ 'Dlli ," ", ~...., " r::a... By .. .. ~. t, ALAN CATHCART • • Italian Woes Evident at Intermot In m"ny ways, Intermot 2002 Wl'S l'S rerTll:Irlulbie for whl't was not on display at Gennany's bienni,,1 blitz of new models, l'S much as for what was - and top of the DNS list were the expected new Oilera motorcycle products from the world's number-one scooter manufacturer. Piaggio. That rnelll1t no promised production version of the Gilera SS600 carrying a Suzuki GSX· R600 motor, a bike launched one year ago in MIlan and for which two places were being held on the World Supersport race grid for 2003 by series promotors Octagon - and no Gilera Raptor streetrod derived from the cwrent Suzuki-engined Cagiva model, but instead powered by the 90-degree V-twin sohc 850cc engine designed in-house at Piaggio, which also made Its debut back l't Milan 2001. Thl't's In spite of the prototype Naked roadster bearing the badge of Italy's oldest motorcycle marque having been displayed to the italian press earlier this year, at a stage when Piaggio was stiIJ locked in talks with MV Agusta boss Claudio CastigUoni concerning a takeover/merger* (*delete "s appropriate, depending on who's telling the storyl) between the two companies. This left Plaggio without the keys to MV's modern Cassinetta factory, whose four production lines (currently at a standstill) were planned to house the restart of Gilera motorcycle manufacture later this year - for the first time since 1992, when Piagglo's then-management made whl't in retrospect appears a hugely ill-timed decision to eliminate full-size motorcycles from the corporate catalog, in favor of badge-engi· neering Piaggio scooter products under the Gilera name. and sold the trophy marque's historic Arcore factory near Monza for redevelopment. The background to this scenario Is tortuous even by Latin standards, but the bottom line is unmistakably clear. With accumulated debts said to approach $700 million, and II substantilll stockpile of unsold products, neither Piaggio itself nor the investment house which owns it Morgen Grenfell Private Equity/MGPE's Italian fund, which acqutred 80 percent of the scooter giant back in 1999 - hl'S the cash to fmance a marriage with MV Agusta. nor to restart Gilerll motorcycle production from the ground up. What's more, 1800 out of the company's 3700 italian workforce were laid off in September under the Italian stl'te' s cassa int£grazlone job protection system. initially just for one week but with further layoffs likely unless the market recovers quickly. The italian bank with the largest exposure to Piaggio Is apparently the same one holding the bulk of the MV Agusta debt - hence its inlerest in uniting the two and in trying to make a success of a joint venture. But after negotations which had lasted more than 18 months finally broke down in late July - principally bee...- of MGPE's cash shortage (thanks to the failure d other non-rnoton:yding ventures In which it had Invested) which Its Deutsche Bank parent. itself under pressure In today'. deflationary I'inanclal market, refused to augment - there's increl'Sing concern in Italy that P1aggio may be hung out to dry by its bankers, in which case the future for the compeny which invented the Vespa and is Europe's largest manufacturer of powered two-wheelers In terms of both volume and turnover, looks distinctly bleak. Wiltl the steep 25 percent overall decI1ne in the worldwide scooter market over the past three years. to less than 1,250.000 units. a company like Piaggio so totaDy dependent on a single product may be hard put to trade Its way out of insolvency, especially with a parent company apparently reluctlll1t or unable to provide the financial muscle needed to underwrite this. The situation is worsened by a horne scooter market suffering from so many negative pressures, including the introduction of helmet laws, rising insurance costs, toughening emissions restrictions, and plain good old-fashioned market saturation - the latter not helped by the fact thl't increased quality of manufacture inevitably means scooters are lasting longer, so don't have to be replaced so often by the majority of customers for whom they represent a consumer utensil like a hair-dryer or a TV set, rather than II trophy acquisition driven by fashion and Innovation. Nevertheless, Plaggio stiIJ holds 25 percent of the albeit steeply reduced European scooter market, with claimed global sales in the 2002 model year of 403,000 units, including its newlyacqutred Derbi subsidiary in Spain, representing an annual turnover of more than $1.0 billion. So, in focusing on the resOient market for large-capacity scooters by introducing the finn's only new model launched at Intermot, the 500cc big-wheel Beverly scooterone, the finn's newlyappointed VP of Two-Wheeled Business charged with helping sort out this mess, Giancarlo Binetti, emphasised P1aggio's deterrninatIon to trade Its way out of the current difficulty. "The introduction of road pricing in London next year. while allowing small-capacity powered two-wheelers to operate free of charge, represents the start of a big opportunity to recover sales," he says. "1llis will be the case not only in Great Britain, but in other countries, too, where the London Idea will surely be followed.' Meanwhile, in preparation for the hoped-for unswing, Piaggio is set to launch five more new scooter models between now and Spring next year, says Binetti, sprelld between various P'TW sectors, and the finn's eventuIII intention to re-enter the motorcycle market was underlined by the appearance at Munich of II 1000cc dohc fuel-injected 'otto vllivole' 90-degree Vtwin engine, employing the same crankcases as the single-cam version first displayed a year ago, but evidently with a grel't deal more performance potential, including powering a Gilera Superbike. "We are determined to revive the Gllera marque in the motorcycle sector," says Binetti, "lind we will certainly do this on the back of road racing involvement, initially lit least In the Superbike and Supersport classes where there is II direct connection between the products we would race with, and those we sell to our customers. But until we find a WilY out of our present difficulties, the GiJera 60055 and V·twin MIlle projects remain in cold storage, though we wiD continue with development pending a resolution of the problems facing us.' Or, in other words. Piaggio Is banking heavily on the success of maverick London mayor Ken Uvingston's controversial 5 Euro-per-day inner-city road pricing policy and its subsequent widespread adoption by other European cities, in persuading enough car drivers to switch to two wheels and thua provide the upswing in scooter sales P1aggio Is betting so '-'r. Oy wI1I happen. It's II brave spnbIe - all $700 million of It...m To cast your vote. lag an to http://www.cyclenews.com. ThE lacal promoters (MalcDlm Metllssy & Jim Factiutal .I35.QO%1 The land administrator ISobDbe Blind of Luisl!na Indians) .•......• .Ii! 1.77%1 The internatianl' promote, 100RNAJ The international sandianing body IFIMJ Four men had incredible racing seasons in i!DDi!. which was mare impressive? 11 B.90%1 .II 0.Q7%1 The lInd owner IUnited StIles gavernmenll IB.BQ%1 The laeal ..ndlanlng body IAMAI 13.39%1 cycle n e VV S • OCTOBER 9,2002 7

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