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Tuesday, 19 November 2024

PIERER Mobility AG

PIERER Mobility AG: "Far-reaching restructuring and additional liquidity requirement at KTM AG"


In a November 11 'ad hoc' financial announcement, PIERER Mobility AG, the parent company for KTM, Husqvarna and GASGAS, has announced that it is engaged in liquidity planning for the 2025 financial year that will see it need to cover "additional liquidity requirements" for KTM AG. 

As of June 30, 2024, the KTM AG Group was responsible for more than 95% of PIERER Mobility AG's revenue, and ongoing financial restructuring discussions with core shareholder Pierer Bajaj AG and major financial creditors of KTM AG will see it needing to secure bridge financing of KTM AG "in the three-digit million range".  


The announcement stated that the Executive Board "is currently working to this end" and that "discussions are ongoing both with the core shareholder Pierer Bajaj AG and with existing financial creditors. The aim is to agree a standstill agreement with the financial creditors involved for the duration of these discussions as basis for the financial restructuring.

"The negotiations and discussions are currently at an early stage. It is therefore not yet possible to make any concrete statements about the outcome of the negotiations [or] the conditions and the size of the additional financing.


"In addition to securing liquidity, the Executive Board is endeavouring to put KTM AG back on a stable operational and financial basis. Against the backdrop of a challenging economic environment, an even more far-reaching operational restructuring is being driven forward with the aim of reducing inventories at both KTM AG and the dealer level to an economically sustainable level by significantly reducing production volumes. 

"Furthermore, overheads are also to be significantly reduced once again. The aim is to stabilize costs and sales at a re-dimensioned level from the 2025 financial year and thus create the basis for sustainable competitiveness and profitability". The company stated that "further information will be published in due course"


Polaris

Polaris Q3 Sales Down -23%, Indian Units Down Low-Double Digits in High Single Digit Percent Market Decline Landscape


Polaris' third quarter results show North America (NA) unit retail sales for Indian Motorcycle down by low-double digits percent, in a market that saw estimated unit retail sales for the comparable motorcycle industry sector down 'only' by high-single digits percent.

Their on-road segment results (which includes the Slingshot 'reverse trike' roadster) were primarily driven by unit lower volumes with PG&A sales -7% and reduced segment gross profit margin performance driven by a negative product mix that was only partially offset by operational improvements.


Polaris Off Road segment results were primarily driven by lower volume, mix, and net pricing that was driven up by higher promotional spend. Polaris NA ORV unit retail sales were down by -3% against estimated NA industry ORV unit retail sales also down low-single digits percent. ORV PG&A sales decreased by -18%.

Against the background that its primary rival in the Marine sector had announced its intention to sell its own Marine division, Polaris reported Marine segment results 'driven south' by lower volumes with segment gross profit margin performance impacted by the decrease in sales volumes and a negative mix.

Polaris CEO Mike Speetzen is quoted as saying that "as consumer confidence and retail demand remain challenging, we have maintained our focus on managing dealer inventory and delivering better operational efficiency. 

"A healthy dealer network is one of the critical components to our long-term success, which is why we have anchored our current production and shipment plans to our goal of lowering dealer inventory by 15 to 20 percent by the end of the year. I am encouraged by the progress being made. We expect a challenging retail environment throughout the rest of 2024 and into next year."


Third quarter worldwide sales were down by -23% against Q3 2023 at $1,722m. Within that NA sales of $1,473m represented 85% of the total and decreased by -26% from $1,986m in 2023. International sales of $250m represented 15 percent of the total and were down by -5%.

Q3 gross profit margin decreased 204 basis points to 20.6% with lower volumes and net price, negative mix, and unfavorable plant absorption partially offset by favorable operational efficiencies. Operational expenses were $313m (compared to $328m) and at 18.1% of sales were up by 355 over Q3 2923.

The Company updated its 2024 sales outlook to be down approximately 20% relative to 2023 versus its previous outlook of down 17 to 20". The Company now expects adjusted diluted EPS to be down approximately 65%, an improvement on the prior guidance of -56 to 62%.

The NYSE didn't react well to the Polaris results. Their share price dropped immediately by around 10% from $80.00 as trading opened down to around $72.20 by close. Set that against a 12-month high of $137 at the end of July last year and a post-pandemic high of $146 in April 2021.



In other news: the once all-conquering FTR 750 looks set to become a collector item, along with Harley's legendary XR750, with Indian Motorcycle effectively forced out of American Flat Track Racing by the decision to turn Supertwins into a production engine only premier class. Also, having only just started to get his feet under the table as the newly minted CEO at Malibou Boats, popular former Indian Motorcycle President and onetime Polaris dealer Steve Menneto finds himself eying the prospect of new ownership with BRP having announced that it is seeking a buyer for its Marine operations.



Energica

Bankrupt Italian electric motorcycle manufacturer Energica facing liquidation 


Italian electric sports motorcycle manufacturer Energica Motor Company SpA has announced that it has entered a bankruptcy judicial liquidation process.

The 'Bologna Motor Valley' based business was officially founded in 2014 by CRP Group, as Energica Motor Company Srl, based on a design phase that began in 2009. The company had established itself as one of the world's leading electric motorcycle pioneers, specialising in sport and performance bikes - very much a 'top-end' and highly innovative electric mobility manufacturer.

Its technical know-how has long been considered the company’s main asset, with Energica "introducing four technological platforms to the market and serving as the unique manufacturer of the fourth MotoGP electric category - the FIM Enel MotoE World Cup - for four consecutive years.




"Despite the challenges posed by the global pandemic, Energica achieved record sales volumes and revenues with the launch of the Experia model. Energica's entrepreneurial vision has been supported and financed from the outset by its founding partners, who in 2016 decided to list the company in the AIM Italia sector (now known as the Milan based Euronext Growth stock market)." 

Unable to sustain the capital demands alone, the listing in a market that is dedicated to "innovative Italian small and medium sized enterprises", the listing secured the necessary capital for growth that it needed at that stage.  The company was listed with a capitalisation of € 37.3m.

In 2021, with the investment from New York Stock Exchange listed Ideanomics Inc., Energica launched the Experia model, achieving record sales volumes and revenues of € 13m, a 200% increase compared to 2021.


"In March 2022, Ideanomics successfully completed a voluntary takeover bid, which allowed the shareholders to transform the company into a private entity, making it more free and flexible in managing financing and agile in its growth".

Ideanomics took a 75% controlling interest in Energica, with the balance of the shares retained by the existing investors and management.

"However, the subsequent crisis in the electric market and the decline in sector investments impacted Ideanomics, and, consequently, compromised Energica's investment capabilities. The company has also faced challenges from the downturn in the automotive market and supply chain, being particularly affected as a small and medium-sized enterprise". 

Having recently avoided eviction from its premises and with talk of strike action circulating, Energica states that its "commitment to its objectives and mission has remained steadfast, as demonstrated by initiatives like the recent solidarity contract [with the Italian Government's Social Security Institute] aimed at safeguarding workers jobs and salaries and overcoming the difficult period. 

Shane McMahon, Ideanomics' Executive Chairman, seen here with Energica CEO Livia Cevolini in 2021, when Ideanomics increased its minority ownership stake from 20% to a majority 70%, then eventually 75% position. Though still listed as Executive Chairman, McMahon was not among the existing and former senior Ideanomics executives censured and fined by the SEC in August this year.


"Despite the efforts of the management to actively and extensively pursue a search for new investors, it had become clear that alternative options were not viable, thus leaving the company with no other choice than to open a bankruptcy process - one that will allow repayment of creditors to the greatest extent possible from the proceeds of liquidation".

The October 14 press release announcing the start of the bankruptcy proceedings was drawn up and released by the management and minority shareholders in Italy. They concluded the news release by noting that "Ideanomics has chosen not to comment".

No surprise. The Ideanomics NYSE listing had already been suspended in August, with the value of its shares having been effectively devalued to 'junk' status. The SEC issued former and current company officers and senior executives with fines and penalties totalling several million Dollars, with rumours of possible potential criminal fraud proceedings swirling.

Itself founded in 1970, the highly respected CRP Group is an Italian industrial group specialising in additive manufacturing, Rapid Prototyping and high-precision machining services in the motorsport, automotive, aerospace, marine, design, medical and UAV sectors.

CRP launched the first Energica model, the Ego sportbike in 2013, followed by the Eva hypernaked the following year. That was followed by the retro naked EsseEsse9 in 2017. All three were based on the same powertrain with a 13.4 kWh battery and 150 km range. Battery sizes eventually included 21.5 kWh units. Production started in 2016 following the AIM Italia stock exchange listing. Energica partnered with Dorna Sports for the launch of the FIM Enel MotoE World Cup in 2017. 

After it had been announced that Ducati would replace Energica as manufacturer of the 'Spec' bike for the series, Energica launched Experia, its 21.5 kWh battery powered EMCE engine platform 'Green Tourer' ADV in 2022. That year also saw the company launch its 'Energica Inside' OE supplier business unit and achieve record sales volumes and revenues of € 13m.

www.energicamotor.com




Honda

Honda to supply Yamaha with complete electric bikes as an OEM By Ben Purvis


Yamaha and Honda might have been fierce rivals for nearly 70 years, but the two are increasingly coming together in the face of the challenge to meet future drivetrain demands - with the latest tie-in seeing Honda become an electric scooter OEM supplier to Yamaha.



Along with Kawasaki and Suzuki, they have worked together in recent years as part of the Swappable Batteries Consortium for Electric Motorcycles, hammering out a standardised removable battery pack for the Japanese market. They have also been cooperating in the HySE research group to develop small hydrogen-fuelled combustion engines and fuel systems for motorcycles.  

The new agreement will see Honda supplying Yamaha with complete electric motorcycles for the Japanese market in the wake of the decision to base the standardised swappable battery pack on the Honda Mobile Power Pack e:, as used in the Honda EM1 e: and Benly e: 1 scooters in Japan. Since those machines are already developed around the Mobile Power Pack e:, they will be the basis of the future Honda-made Yamaha models. 

"Honda Benly e: 1 and EM1 e:"

It's a move that replicates an increasingly common trend among car manufacturers to share components and technology, even building entire vehicles for each other, to cut down on R&D expense. With electric vehicles, it's becoming an even more tempting solution, because electric motors and batteries aren't key to a vehicle's character, unlike the combustion engines that went before them.

Although the agreement between Honda and Yamaha currently covers only vehicles for the Japanese market, only the Honda EM1 e: electric scooter is already sold in Europe and beyond, and the two companies, alongside a host of other brands, are core members of the European Swappable Batteries Motorcycle Consortium that's trying to bring the same idea of a standardised motorcycle battery pack to the European market. 

By joining forces on Honda-based bikes, they increase the chances that the Honda Mobile Power Pack e: will prevail as the basis of the European consortium's choice as well as the Japanese one.



INTERMOT

INTERMOT Reimagined


The first iteration of a fundamentally rebuilt INTERMOT formula will be staged at the Cologne Exhibition Centre in an all-new timing for the show - 5-8 December 2024. What's more, this will be the first of a new and, many would say, much delayed decision to take the show annual.

The show will see BMW Motorrad, Honda, Kawasaki, Royal Enfield, Suzuki, SYM, Triumph and Yamaha exhibit their new-for-2025 products in Germany for the first time. Ducati is even going one step further, having announced that it will unveil a world premiere. "With all these brands participating, the trade fair is sure to be a highlight for all motorbike fans.



"Renowned manufacturers such as Alpha Technik, Insta360, Öhlins, SW-MOTECH and Wunderlich will be on hand to present a wide range of accessories and showcase everything bikers need for the new season. Altogether, the exhibitors confirmed so far already cover almost 70% of the entire German motorbike market".

The new-look INTERMOT promises "a new motorcycling experience: innovation, community and lifestyle. We want our visitors to see motorbikes and INTERMOT, too, in a new light. To this end, we want to reimagine motorcycling with a focus on innovation, community and lifestyle as key themes," said Alexander Wolff, Director of INTERMOT. 


"What innovation means to us is, above all, the unique opportunity to start the new 2025 season with the latest models, but it also stands for topics such as urban mobility. By bringing together industry experts, fans and creators, the trade fair offers the community a dimension that is particularly important in the motorbike segment. 

"True to its motto 'Meet and greet the creators' - the Creators Lounge is just one of the new initiatives INTERMOT is offering and will undoubtedly offer the best opportunity to come face to face with well-known influencers and creators from the motorbiking scene".

www.intermot-cologne.com

HardDrive

HardDrive Service Covers 


HardDrive says that this new line of service covers is a "must-have for the professional high-volume shop, right through to the at home garage wrencher, or for over-wintering."

"Exclusive to HardDirive/WPS, we have taken a key industry shop item and kicked it up a notch to fit the newer style bikes and added functional features where your tools can easily move from job to job, bike to bike. 


"The tank service cover is designed to appropriately fit the newer model shaped gas tanks, up to six gallons, and with raised dash panels. The protective, black PVC leather is designed with a soft non-pilling lining that ultimately protects the painted finish underneath. A shallow textile pocket in the center can hold hardware or small components or tools, and there are dual-sided, double-stitched textile pockets with securing elastics to assure tools stay in place while working. The protected sewn-in earth magnets help stabilize the service cover to the tank." 


In the same durable material, the front fender service cover is designed for new models with a variety of narrow to wide fenders, with wheels up to 23" in diameter. Made with built-in elastic strap, the 4" dual-sided, pleated textile pockets are durable enough to hold tools and components. 


HARDDRIVE V-TWIN

www.hdtwin.com

Custom Dynamics

Product Additions for 2024 Models & 2023 CVO


ProBEAM Fillerz Run, Brake and Run Signal Lights 


When OEM rear taillight and turn signal assemblies are removed, the fender support rail is exposed for attaching ProBEAM Fillerz to fill the stock oval cutout. Each unit displays nine running light pipes and bright red brake and turn signal. They are offered in red or smoked lens with either gloss black or chrome housing. Included 'plug and play' adapters make for quick installation, utilizing OEM rear taillight wiring.


Fillerz Fender Support Bolt Covers

Extended metal design, installs with Custom Dynamics' LED Fillerz taillights to cover the exposed rear fender support bolts. It is available in chrome or gloss black finish; the units install between the saddlebag support and the Fillerz LED light with double-sided tape. 


Magic Strobes Brake Light Flasher


This brake light flasher applies selected brake flash/strobe pattern to rear LED brake lights. Easily select from ten flash/strobe patterns by simply spinning the dial on the module. The unit is equipped with mating connectors for simple 'plug and play' installation under the motorcycle seat.


Quick-Disconnect for Add-On Tour-Pak

'Plug and play' quick-disconnect harness plugs in-line with the main motorcycle wire harness under the seat to provide a 32” extended wire lead with open six-pin female molex connector. This extended lead will mate to the male OEM 2014-2023 style Harley-Davidson Tour-Pak wire harness (69200131) to provide power to the factory Tour-Pak lighting with accessible connector for easy removal of the Tour-Pak. 

It also mates to the company's Tour-Pak light harness (sold separately) for use with OEM Tour- Pak lights or ProBEAM LED King Tour-Pak light.


Replacement License Plate Assembly


Replace the factory license plate assembly with this mount. The durable die-cast, low profile radius design hugs the fender for a sleek, custom look. Unit is a direct bolt-on replacement for the OEM license plate mount, lamp and cover on 2024 Harley-Davidson models.


CUSTOM DYNAMICS LLC

www.customdynamics.com 

Drag Specialties

Drag Specialties Additions


Narrow Lever Sets


 DS narrow lever sets have a narrower profile than OEM levers, making them better for riders with smaller hands, or for just giving the bike a different look. They feature die-cast aluminum construction and are available in chrome or matte black - sold as a kit that includes both the brake and clutch lever and fit '24 FLHTK/FLTRK/FLHRXS, '21-'23 FLHT/FLHX/FLHR/FLTR (except '23 FLHXSE/FLTRXSE) and '21-'24 H-D FL Trikes. 


Performance Predator 2-Up Seat

Drag Specialties Seats' performance Predator 2-up seat has the EZ Glide II backrest mounting system for driver only and accepts backrest pads and assemblies (sold separately). Additional features include a 5 3/4" driver support with unique styling and narrower dimension up front for better leg clearance.  The seating area is contoured for maximum comfort, with the rear portion measuring 9" wide. The 3/16" thermoformed ABS seat base gives the perfect fit, while the carpeted bottom and rubber bumpers protect the paint. Available in high-quality automotive-grade vinyl with double diamond stitch. Includes mounting hardware and is designed to fit '24 FLHTK/FLTRK/FLHRXS, '08 - '23 FLHT, FLHX, FLHR and FLTR models. 


Sportster Primary Chain Auto Adjuster Kit



Used for updating an old adjuster system, or when building a new bike from the ground up, this kit includes an adjuster plate, bolts, shoe, brackets and hardware. Available for '91 - '03 XL models.


Transmission Shift Rod Levers


Constructed of durable drop-forged steel, these shift rod levers are available in either black or chrome finishes. They are a premium direct replacement for OEM #33600143.  Fit '18 - '24 FXBB/FXBBS/FXLR/ FXLRS/FXLRST/FXST models. 


LED Fuel Gauge

Give your bike an extra stylish touch with this sleek LED fuel gauge from Drag Specialties. The LED fuel gauge is bright and easy to read at a glance and is an ergonomic upgrade from an older stock gauge or as a replacement for a defective gauge (replaces OEM #75241-08). Sold individually and available in a chrome finish to match the existing fuel cap. The gauge fits '08 - '24 FLHR, '15 - '24 FLRT, '08 - '17 Softails, '09 - '17 FXDB/FXDC/FXDL/FXDF and '10 - '17 FXDWG. 


DRAG SPECIALTIES

www.dragspecialties.com