http://www.newschannel5.com/story/14544904/gas-prices-could-be-behind-rise-in-motorcycle-scooter-thefts
Higher gas prices appear to be to blame for a sudden surge in the theft of motorcycles and scooters. - This is an article that just came up online. Funny, seems like around this time with every gas price increase we see this. Below you see me show a real life scooter theft on Miami Beach where someone didn't bother putting a lock on their bike. If you've ever walked the streets of Milan you know that you need more than one lock on your bike if its a new looking model.
http://www.youtube.com/watch?v=4WXauog-81c
NEWS REPORT
http://www.newschannel5.com/category/125220/video-landing-page?autoStart=true&topVideoCatNo=default&clipId=5803819
Saturday, April 30, 2011
Motorcycle USA picks up the Malaguti article
Friday, April 29, 2011
New Items at MRP for 2011 ZUMA 125, BW100, Gianelli, Doppler, Race Exhausts, Vespa and more!
So we keep finding new items to add to the MRP parts department. Over 300 boxes got counted this week, a new record. Truthfully I realized that to an outsider this sounds like an easy job, but most times we invest more time into the parts not knowing if they will sell or who needs what. We are still counting parts from Diamo from 2009 that are sitting in pallets everywhere. So no its not an easy job, but someone has to do it. Too many motorcycle dealers and distributors have closed so while others have been offering less we've been adding more SKUs.
Vespa Exhausts have been added. MRP has added Mufflers for ET2, ET4, GT200, GTS250, BV 500, MP3 250 and 500cc this week.
http://www.martinracingdealer.com/SPD/ss-swpe20--80004194-1303424357.jsp
Racing Sit Exhaust for Et4 Vespa. Exhaust, Sito Plus - Vespa ET4 LX150 Parts for Vespa Scooters. The Sito Plus is hands down the most popular upgrade exhaust for the Vespa ET4. Similar in looks to a stock pipe, and just a tad louder, it gives a boost in performance by allowing air to flow through more freely. Applies to the following models: Vespa - Modern ET4 150 LX150/LXV
http://youtu.be/CovQVHBV_YQ
New KYMCO AND MINARELLI RACING PARTS FOR 2011!
http://www.martinracingdealer.com/SPD/am31602t--8000427C-1304115198.jsp
Giannelli exhaust AM31602T Shot Minarelli vertical The Giannelli Shot is a copy of the Top performances Nardo. The suspension is a bit simpler fixed, but for the rest its the same, so very good! Good performances for 50cc and 70cc cast iron and aluminium cylinders from the level standard to Corsa, Manston Replica and MHR Replica. Warning: This exhaust is low RPMed on Piaggio. In 2005 changed to a bit tame EEC aprovaled version of the old powerfull Nardo. Still a topper on 70cc with limitation, so youll have to take that out first. Fits on: Aprilia: Amico, SR Viper Yamaha: BWS, BWS < 1996, BWS > 2004, BWS 2004, BWS Bump, BWS NG 1995 - 1998, BWS Spy, BWS Spy 1999 - 2002, Slider MBK: Booster , Booster < 1996, Booster > 2004, Booster 1995 - 1998, Booster 1999 - 2002, Booster 2004, Stunt Italjet: Pista
Vendor: GIANNELLI
New Doppler Rollers have been added as well!
http://www.martinracingdealer.com/SPD/kmx-148579--80004016-1302314539.jsp
16 X 12 in 2.1 GRAMS 16 x 13 mm (6 per set) KMX-148579 DOPLLER SCOOTER RACING WEIGHTS. 148579 326290# CLUTCH ROLLERS16X13 2,1 G. (X6) QMB139 RACING WEIGHTS Roller Weights for 50cc 4-stroke QMB139 engine. PARTS FOR QMB ENGINE. PARTS FOR SCOOTERS, RACING WEIGHTS FOR DIO ENGINES, PARTS FOR SCOOTERS. The QMB139 is the most popular 50cc 4-stroke engine found on Chinese scooters. Panterra Retro 50cc, Tank Classic 50QT-6, Kymco Filly 50, SUNL SL50QT-16, QMB139 50cc/49cc , Qingqi QM50QT-6V, Various unlisted makes/models, Baja SC50, Panterra Fusion 50cc Rattler 50 GENUINE RATTLER 50cc PGO We recommend starting performance upgrades by changing the variator roller weights first. Applies to the following models: Baccio Runner 50 Speedy 50 Fly Scooters Il Bello 50 Genuine Buddy 50 R50 Roughhouse Rattler Buck Ten 110 Honda Metropolitan 50 Ruckus 50 Jonway YY50QT-21A 50 YY50QT-6A 50 Kymco Agility 50 4T Like 50 People 50 2T Sento 50 Sting 50 Peace TPGS-804 50 TPGS-805 50 TPGS-808 50 Roketa Bahama 50 Schwinn Sport 50 Valo 50 SunL SL50QT-7 50 SYM Fiddle II 50 Mio 50 Tank Classic 50 Urban 50 Tao Tao CY50-A 50 CY50-D 50 TN'G Milano 50 Verucci Avispa 50 Vespa - Modern GT200 Yamaha C3 50 Vino 50 4T
This week more NG DISK BRAKES FROM SPAIN! FOR BW100, ZUMA 125cc, BW125 by Yamaha Scooters and more stay tuned!
Vespa Exhausts have been added. MRP has added Mufflers for ET2, ET4, GT200, GTS250, BV 500, MP3 250 and 500cc this week.
http://www.martinracingdealer.com/SPD/ss-swpe20--80004194-1303424357.jsp
Racing Sit Exhaust for Et4 Vespa. Exhaust, Sito Plus - Vespa ET4 LX150 Parts for Vespa Scooters. The Sito Plus is hands down the most popular upgrade exhaust for the Vespa ET4. Similar in looks to a stock pipe, and just a tad louder, it gives a boost in performance by allowing air to flow through more freely. Applies to the following models: Vespa - Modern ET4 150 LX150/LXV
http://youtu.be/CovQVHBV_YQ
New KYMCO AND MINARELLI RACING PARTS FOR 2011!
http://www.martinracingdealer.com/SPD/am31602t--8000427C-1304115198.jsp
Giannelli exhaust AM31602T Shot Minarelli vertical The Giannelli Shot is a copy of the Top performances Nardo. The suspension is a bit simpler fixed, but for the rest its the same, so very good! Good performances for 50cc and 70cc cast iron and aluminium cylinders from the level standard to Corsa, Manston Replica and MHR Replica. Warning: This exhaust is low RPMed on Piaggio. In 2005 changed to a bit tame EEC aprovaled version of the old powerfull Nardo. Still a topper on 70cc with limitation, so youll have to take that out first. Fits on: Aprilia: Amico, SR Viper Yamaha: BWS, BWS < 1996, BWS > 2004, BWS 2004, BWS Bump, BWS NG 1995 - 1998, BWS Spy, BWS Spy 1999 - 2002, Slider MBK: Booster , Booster < 1996, Booster > 2004, Booster 1995 - 1998, Booster 1999 - 2002, Booster 2004, Stunt Italjet: Pista
Vendor: GIANNELLI
New Doppler Rollers have been added as well!
http://www.martinracingdealer.com/SPD/kmx-148579--80004016-1302314539.jsp
16 X 12 in 2.1 GRAMS 16 x 13 mm (6 per set) KMX-148579 DOPLLER SCOOTER RACING WEIGHTS. 148579 326290# CLUTCH ROLLERS16X13 2,1 G. (X6) QMB139 RACING WEIGHTS Roller Weights for 50cc 4-stroke QMB139 engine. PARTS FOR QMB ENGINE. PARTS FOR SCOOTERS, RACING WEIGHTS FOR DIO ENGINES, PARTS FOR SCOOTERS. The QMB139 is the most popular 50cc 4-stroke engine found on Chinese scooters. Panterra Retro 50cc, Tank Classic 50QT-6, Kymco Filly 50, SUNL SL50QT-16, QMB139 50cc/49cc , Qingqi QM50QT-6V, Various unlisted makes/models, Baja SC50, Panterra Fusion 50cc Rattler 50 GENUINE RATTLER 50cc PGO We recommend starting performance upgrades by changing the variator roller weights first. Applies to the following models: Baccio Runner 50 Speedy 50 Fly Scooters Il Bello 50 Genuine Buddy 50 R50 Roughhouse Rattler Buck Ten 110 Honda Metropolitan 50 Ruckus 50 Jonway YY50QT-21A 50 YY50QT-6A 50 Kymco Agility 50 4T Like 50 People 50 2T Sento 50 Sting 50 Peace TPGS-804 50 TPGS-805 50 TPGS-808 50 Roketa Bahama 50 Schwinn Sport 50 Valo 50 SunL SL50QT-7 50 SYM Fiddle II 50 Mio 50 Tank Classic 50 Urban 50 Tao Tao CY50-A 50 CY50-D 50 TN'G Milano 50 Verucci Avispa 50 Vespa - Modern GT200 Yamaha C3 50 Vino 50 4T
This week more NG DISK BRAKES FROM SPAIN! FOR BW100, ZUMA 125cc, BW125 by Yamaha Scooters and more stay tuned!
Made in America is what we need - Gerbing's Heated Clothing to move 150 jobs from China to N.C.
I really liked this article on Dealer News today. I hope we start focusing on this again.
Local cities need to put the incentives in place, the banks, lenders, and industry needs to work together to bring jobs back to America.
On Dealer News Gerbing's Heated Clothing to move 150 jobs from China to N.C.
http://www.dealernews.com/dealernews/LATEST+NEWS/Gerbings-Heated-Clothing-to-move-150-jobs-from-Chi/ArticleStandard/Article/detail/718562?contextCategoryId=48447
Local cities need to put the incentives in place, the banks, lenders, and industry needs to work together to bring jobs back to America.
On Dealer News Gerbing's Heated Clothing to move 150 jobs from China to N.C.
http://www.dealernews.com/dealernews/LATEST+NEWS/Gerbings-Heated-Clothing-to-move-150-jobs-from-Chi/ArticleStandard/Article/detail/718562?contextCategoryId=48447
How a $100 million dollar company ends up broke
Dow Jones is finally reporting on the situation at Malaguti this morning.
http://www.borsaitaliana.it/borsa/notizie/mf-dow-jones/italia-dettaglio.html?newsId=853079&lang=it
So more drama in the quest for Malaguti ( www.Malaguti.com) as Chase pulled out or more like they lost interest because nobody picked up the phone. None of the US distributors have the cash to help re-start the brand. I gave the ex-employees at Malaguti and the Regione Emilia Romagna the contact info for the one company that might buy the 6,000 scooters they have sitting in a warehouse and nobody has done anything. The venture capital people looking at this couldn't get a phone call back so I've pretty much just decided to step away and let the Italian government handle it.
http://www.youtube.com/watch?v=HU2Cwrel-Hs
It's funny I try to get a small investor or loan in the USA and nobody calls me. I say I have a great opportunity here to buy a multi million dollar company that needs a turnaround plan and my phone starts ringing. I get consultants from Europe, lawyers from California who speak Italian, everyone calling. I ask for a small loan for MRP nobody calls. I ask for $30 million to help restructure a firm and the phone starts ringing. I'm starting to think I'm in the wrong business. So how do I feel about all this? I don't know honestly. It's easier to raise $30 million for a bankrupt company in Italy than it is to raise $500,000 for a small business in America its what I'm starting to realize, but it does you no good if the people in Italy don't answer the phone and the workers are out protesting in downtown Bologna.
Back when I was in my early twenties I met a great scooter guy named Learco Malaguti. He took his fathers bicycle company and made it into the third largest powerhouse in the historic world of mopeds and scooters in Italy. At one point in the early 80s he had over 90 companies competing with him to some degree. All of them making mopeds, bicycles, and motor-scooters using components from such famous brands as Minarelli and Moto-Morini.
In the late 1990s at their height Malaguti was on the verge of reaching the number two spot in Italian production. It's closest competitor Aprilia expanded into Motorcycles and later took out massive loans even buying Moto Guzzi in a quest for market-share. The market fell as quickly as it had risen and by 2003 famous Italian staples such as Italjet were closing, companies like Benelli were sustained by family fortunes, and even famous makers such as Beta faded from the scooter scene. Some bikes were merely produced as showpieces like the last line of Cagiva scooters in 2002-2003. Only Piaggio Group seemed to be doing well quickly buying the Spanish market Derbi and later on Aprilia as they went bankrupt ( with massive assistance from the state and lenders. )
http://www.youtube.com/watch?v=doToyGMEFjs
All this happened just as Learco was retiring and passing the business to his sons Antonino and Marco Malaguti. I got involved in this murky world at the very end of the height of the Italian scooter boom ( much like someone buying a house in the USA at the height of the housing market ) the nature and the speed at which this business has changed in Italy can be overwhelming. Things changed there twice as fast as they did in America. The boom and bust of 2008 for the American scooter dealers with over 350 shops closing is nothing compared to what has happened in Europe. In Europe many scooter shops had been around for over twenty years and many of them extremely profitable not relying on the boom and bust of US gas prices.
To see those stores fold, to see all production in Italy and Spain close has been quite sad.
Malaguti has been unable to find a European partner as of right now parts are still being distributed. Dow Jones today reported that the company finally laid off the remaining employees and the rest will leave on October 31.
When I met the company sales were 100,000 units or more. Production last year was less than 20,000 pieces with a third sitting in a warehouse. Over 200 part time employees would work there in the summer bringing the total employees well into the 400 plus range. As the years went by in they sold 60.9 million Euros in 2008, which fell to 47 million in 2009, and only 24.2 million Euros, this fell to 13.7 million in 2010.
Now the thing about Italy is that all the companies seem to under-report gains and over-report losses. Just ask the Prime Minister how nobody in Italy pays taxes, but what happens when you have a true economic crisis so the companies that claimed they barely make a profit finally really stop making a profit. So the shaddy accounting in Italy finally caught with the country.
You have a situation now where you have the last manufacturer of Scooters in Bologna. Once these jobs are gone - they will never come back. The local government needs to put the incentives to bring back production especially the EV side of the business. If not I hope the people of Bologna like driving Asian products, because eventually even Ducati will move production to Thailand.
It ends with a whimper because there is no decisive action in Bologna only some mild letters that don't lead to any action.
"The Province of Bologna is interested in finding a solution for the Malaguti Spa which will enable to keep the manufacturing hub in our territory and provide employment opportunities to highly skilled workers from the manufacturing point of view;
We are immediately willing and available to arrange a meeting with Malaguti Spa and with any interested investors."
Ok, show you are ready to deal. Match the US investors dollar for dollar like the Chinese will, take out a full page ad today in the Wall Street Journal, save the company. Put the same enthusiasm you put in into financing Aprilia to Piaggio because you didn't want a Taiwanese firm to buy them. Show some courage here the EV project at Malaguti had a lot of potential and you killed it before the gas prices came back. Had those hybrids gone into production last year this would be a different story.
I've learned something today.
If you keep your eye solely on soccer you might not realize your scooter industry just fell apart in less than ten years.
Also, when a bank calls you with investment money. Make sure someone in Italy is there to answer the phone.
http://www.borsaitaliana.it/borsa/notizie/mf-dow-jones/italia-dettaglio.html?newsId=853079&lang=it
So more drama in the quest for Malaguti ( www.Malaguti.com) as Chase pulled out or more like they lost interest because nobody picked up the phone. None of the US distributors have the cash to help re-start the brand. I gave the ex-employees at Malaguti and the Regione Emilia Romagna the contact info for the one company that might buy the 6,000 scooters they have sitting in a warehouse and nobody has done anything. The venture capital people looking at this couldn't get a phone call back so I've pretty much just decided to step away and let the Italian government handle it.
http://www.youtube.com/watch?v=HU2Cwrel-Hs
It's funny I try to get a small investor or loan in the USA and nobody calls me. I say I have a great opportunity here to buy a multi million dollar company that needs a turnaround plan and my phone starts ringing. I get consultants from Europe, lawyers from California who speak Italian, everyone calling. I ask for a small loan for MRP nobody calls. I ask for $30 million to help restructure a firm and the phone starts ringing. I'm starting to think I'm in the wrong business. So how do I feel about all this? I don't know honestly. It's easier to raise $30 million for a bankrupt company in Italy than it is to raise $500,000 for a small business in America its what I'm starting to realize, but it does you no good if the people in Italy don't answer the phone and the workers are out protesting in downtown Bologna.
Back when I was in my early twenties I met a great scooter guy named Learco Malaguti. He took his fathers bicycle company and made it into the third largest powerhouse in the historic world of mopeds and scooters in Italy. At one point in the early 80s he had over 90 companies competing with him to some degree. All of them making mopeds, bicycles, and motor-scooters using components from such famous brands as Minarelli and Moto-Morini.
In the late 1990s at their height Malaguti was on the verge of reaching the number two spot in Italian production. It's closest competitor Aprilia expanded into Motorcycles and later took out massive loans even buying Moto Guzzi in a quest for market-share. The market fell as quickly as it had risen and by 2003 famous Italian staples such as Italjet were closing, companies like Benelli were sustained by family fortunes, and even famous makers such as Beta faded from the scooter scene. Some bikes were merely produced as showpieces like the last line of Cagiva scooters in 2002-2003. Only Piaggio Group seemed to be doing well quickly buying the Spanish market Derbi and later on Aprilia as they went bankrupt ( with massive assistance from the state and lenders. )
http://www.youtube.com/watch?v=doToyGMEFjs
All this happened just as Learco was retiring and passing the business to his sons Antonino and Marco Malaguti. I got involved in this murky world at the very end of the height of the Italian scooter boom ( much like someone buying a house in the USA at the height of the housing market ) the nature and the speed at which this business has changed in Italy can be overwhelming. Things changed there twice as fast as they did in America. The boom and bust of 2008 for the American scooter dealers with over 350 shops closing is nothing compared to what has happened in Europe. In Europe many scooter shops had been around for over twenty years and many of them extremely profitable not relying on the boom and bust of US gas prices.
To see those stores fold, to see all production in Italy and Spain close has been quite sad.
Malaguti has been unable to find a European partner as of right now parts are still being distributed. Dow Jones today reported that the company finally laid off the remaining employees and the rest will leave on October 31.
When I met the company sales were 100,000 units or more. Production last year was less than 20,000 pieces with a third sitting in a warehouse. Over 200 part time employees would work there in the summer bringing the total employees well into the 400 plus range. As the years went by in they sold 60.9 million Euros in 2008, which fell to 47 million in 2009, and only 24.2 million Euros, this fell to 13.7 million in 2010.
Now the thing about Italy is that all the companies seem to under-report gains and over-report losses. Just ask the Prime Minister how nobody in Italy pays taxes, but what happens when you have a true economic crisis so the companies that claimed they barely make a profit finally really stop making a profit. So the shaddy accounting in Italy finally caught with the country.
You have a situation now where you have the last manufacturer of Scooters in Bologna. Once these jobs are gone - they will never come back. The local government needs to put the incentives to bring back production especially the EV side of the business. If not I hope the people of Bologna like driving Asian products, because eventually even Ducati will move production to Thailand.
It ends with a whimper because there is no decisive action in Bologna only some mild letters that don't lead to any action.
"The Province of Bologna is interested in finding a solution for the Malaguti Spa which will enable to keep the manufacturing hub in our territory and provide employment opportunities to highly skilled workers from the manufacturing point of view;
We are immediately willing and available to arrange a meeting with Malaguti Spa and with any interested investors."
Ok, show you are ready to deal. Match the US investors dollar for dollar like the Chinese will, take out a full page ad today in the Wall Street Journal, save the company. Put the same enthusiasm you put in into financing Aprilia to Piaggio because you didn't want a Taiwanese firm to buy them. Show some courage here the EV project at Malaguti had a lot of potential and you killed it before the gas prices came back. Had those hybrids gone into production last year this would be a different story.
I've learned something today.
If you keep your eye solely on soccer you might not realize your scooter industry just fell apart in less than ten years.
Also, when a bank calls you with investment money. Make sure someone in Italy is there to answer the phone.
Wednesday, April 27, 2011
The Hype brings more hype MIC reports 50% increase in scooter sales
I'm the first to love any marketing that brings more money and attention to scooters, but playing with numbers isn't one of them.
That's like saying Dealer Expo attendance was up this year or the year before. Better yet it's like saying scooter sales are up 50%. Wait the MIC just made a press release saying that. Yes, they are up I give them that much, but by how much?
The Motorcycle Industry Council has reported a 7.2 percent gain in first quarter motorcycle sales across 18 leading brands, and a staggering 50 percent increase in scooter sales. This is year on year! I mean 2009 and 2010 were terrible years, plus half these registrations are probably from buybacks and 2008 floor models that are finally selling.
I'm happy to see these articles getting posted and re-posted on message boards, but I think the MIC would do a better job at educating stores, how to sell, ride, and passing laws for EV and gas scooters than just spitting out numbers.
Bankers look at these numbers and start thinking the scooter stores that are behind on their loans are making all sorts of money. Investors look at these numbers and go off and buy 10 containers of Chinese scooters and flood the Denver market. The numbers need to be explained.
That's like saying Dealer Expo attendance was up this year or the year before. Better yet it's like saying scooter sales are up 50%. Wait the MIC just made a press release saying that. Yes, they are up I give them that much, but by how much?
The Motorcycle Industry Council has reported a 7.2 percent gain in first quarter motorcycle sales across 18 leading brands, and a staggering 50 percent increase in scooter sales. This is year on year! I mean 2009 and 2010 were terrible years, plus half these registrations are probably from buybacks and 2008 floor models that are finally selling.
I'm happy to see these articles getting posted and re-posted on message boards, but I think the MIC would do a better job at educating stores, how to sell, ride, and passing laws for EV and gas scooters than just spitting out numbers.
Bankers look at these numbers and start thinking the scooter stores that are behind on their loans are making all sorts of money. Investors look at these numbers and go off and buy 10 containers of Chinese scooters and flood the Denver market. The numbers need to be explained.
Tuesday, April 26, 2011
2011 Message from the Scooter Maven
This summer the industry is set to explode with sales. After two terrible years, the stores are coming back.
Two trends we see.
1. A repeat of the Chinese buying frenzy of 2008 with stores stocking more low end bikes instead of building the store destination.
2. Stores that were Chinese only that don't have any experience picking up Vespa, Genuine, and other brands that have had to buy back many of their GE units. These stores unless properly educated are doomed to failure, just like the car dealers, Arctic Cat shops, and investors who pushed Vespa sales in 2007-2009.
Education is the key.
http://www.youtube.com/watch?v=r9BzPR_QqTM
Building up a destination is not pre-selling or selling from a catalog. We can help you make your store a profit center year round. More than just scooters, America needs to build destination points.
Two trends we see.
1. A repeat of the Chinese buying frenzy of 2008 with stores stocking more low end bikes instead of building the store destination.
2. Stores that were Chinese only that don't have any experience picking up Vespa, Genuine, and other brands that have had to buy back many of their GE units. These stores unless properly educated are doomed to failure, just like the car dealers, Arctic Cat shops, and investors who pushed Vespa sales in 2007-2009.
Education is the key.
http://www.youtube.com/watch?v=r9BzPR_QqTM
Building up a destination is not pre-selling or selling from a catalog. We can help you make your store a profit center year round. More than just scooters, America needs to build destination points.
Monday, April 25, 2011
Honda dealers are out of scooters for 2011
Great story on a Honda dealer that sold out of all his Honda scooters. I just mentioned this in my blog this morning, so who will the Honda/Yamaha dealers turn to?
CF MOTO? Kymco? The door is open now. Let's see who takes advantage of the boom of 2011.
http://clipsyndicate.com/video/playlist/20694/2394631?wpid=9613
CF MOTO? Kymco? The door is open now. Let's see who takes advantage of the boom of 2011.
http://clipsyndicate.com/video/playlist/20694/2394631?wpid=9613
Moto Morini and Malaguti headed to the museums....
There is no news this Monday morning since everyone is still basically on vacation in Italy from the holidays.
http://www.youtube.com/watch?v=UdC6kcq2ovg
Over in Italy you can read at Affair Italia (
http://affaritaliani.libero.it/economia/bologna_crisi_industria_moto.html )
that there is no political willpower to do anything, it's not even an election concern.
http://www.youtube.com/watch?v=dglveFWHAnk&feature=player_embedded
La Republica ( http://bologna.repubblica.it/cronaca/2011/04/23/news/pasqua_nelle_fabbriche_tra_crisi_e_speranze-15288341/ ) is reporting that there is interest from the immediate region to save the companies, but nothing has been done so far. In the meantime I've gotten some great responses from industry insiders. Even a former Taiwanese importer who is big in the US wrote me to ask how much he had to invest.
So there are plenty of interested parties in the USA, but the information from Italy is slow to arrive to potential US investors. Unless this changes nothing will change in Italy. I even had one person tell us that their group was interested in Moto Morini, but they couldn't agree to the auction terms now to the investment terms. http://bologna.repubblica.it/cronaca/2011/04/23/news/pasqua_nelle_fabbriche_tra_crisi_e_speranze-15288341/
So if US dealers with resources and investors can't get the information in a timely manner, European bankers aren't interested in helping, and the Chinese firms are just waiting for absolute liquidation we are at standstill with all parties involved. The only hope is that someone can push forward some type of government backed proposal in Italy so that these firms don't end up disappearing altogether.
A message to Bologna. Once these jobs are gone to Asia, they are never coming back. It would do well to your leaders to understand this.
http://www.youtube.com/watch?v=UdC6kcq2ovg
Over in Italy you can read at Affair Italia (
http://affaritaliani.libero.it/economia/bologna_crisi_industria_moto.html )
that there is no political willpower to do anything, it's not even an election concern.
http://www.youtube.com/watch?v=dglveFWHAnk&feature=player_embedded
La Republica ( http://bologna.repubblica.it/cronaca/2011/04/23/news/pasqua_nelle_fabbriche_tra_crisi_e_speranze-15288341/ ) is reporting that there is interest from the immediate region to save the companies, but nothing has been done so far. In the meantime I've gotten some great responses from industry insiders. Even a former Taiwanese importer who is big in the US wrote me to ask how much he had to invest.
So there are plenty of interested parties in the USA, but the information from Italy is slow to arrive to potential US investors. Unless this changes nothing will change in Italy. I even had one person tell us that their group was interested in Moto Morini, but they couldn't agree to the auction terms now to the investment terms. http://bologna.repubblica.it/cronaca/2011/04/23/news/pasqua_nelle_fabbriche_tra_crisi_e_speranze-15288341/
So if US dealers with resources and investors can't get the information in a timely manner, European bankers aren't interested in helping, and the Chinese firms are just waiting for absolute liquidation we are at standstill with all parties involved. The only hope is that someone can push forward some type of government backed proposal in Italy so that these firms don't end up disappearing altogether.
A message to Bologna. Once these jobs are gone to Asia, they are never coming back. It would do well to your leaders to understand this.
Free Gasoline and other promotion ideas for summer 2011
The season is upon us and the stories are starting to appear in the press.
Just taking a look at what's going on in the industry Kymco USA has shot the first salvo with free gas and no downpayment on a new scooter.
Read more at KYMCOUSA.com
KYMCO $100 Gift Card will buy you about 25 gallons of gas.
At an estimated 85 MPG, that's practically a year's free gas!
http://www.youtube.com/watch?v=1rKb0eqzmOc
Honda and Yamaha are both pushing low interest on scooter purchases, but no promos there. Seems they won't have sufficient supply for 2011 from what my dealers are telling me. This has nothing to do with the earthquake its just the fear of another 2009 that is keeping the home-base from oversupplying the US market.
As prices go up its up to the dealers to get the signs, banners, and free gas ideas out.
If I had a dealership I would match the Kymco offer, buy a scooter get a second gas card with your purchase. Make it something too good to pass up, $200 in free gas something like 15,000 miles in free gas!
Make a sign that says that and you'll see people stopping by the store.
Just taking a look at what's going on in the industry Kymco USA has shot the first salvo with free gas and no downpayment on a new scooter.
Read more at KYMCOUSA.com
KYMCO $100 Gift Card will buy you about 25 gallons of gas.
At an estimated 85 MPG, that's practically a year's free gas!
http://www.youtube.com/watch?v=1rKb0eqzmOc
Honda and Yamaha are both pushing low interest on scooter purchases, but no promos there. Seems they won't have sufficient supply for 2011 from what my dealers are telling me. This has nothing to do with the earthquake its just the fear of another 2009 that is keeping the home-base from oversupplying the US market.
As prices go up its up to the dealers to get the signs, banners, and free gas ideas out.
If I had a dealership I would match the Kymco offer, buy a scooter get a second gas card with your purchase. Make it something too good to pass up, $200 in free gas something like 15,000 miles in free gas!
Make a sign that says that and you'll see people stopping by the store.
Saturday, April 23, 2011
Protests in Italy to keep production open at Malaguti
This whole thing makes me extremely sad. I wish everyone the best out there and that they can convince the powers that be to give the investors the incentives to keep the factory open and for Malaguti Moto to come under new management. Some of these workers have put 30 years into the factory. I would go as far to say they love the scooters, some of them ride the scooters, and they love the brand more than even some of the family members. It's a sad situation for Bologna.
http://www.youtube.com/watch?v=pszS-DHbai0&feature=related
80 years of history will be going down the drain if a partner isn't found for Malaguti Moto. I'm also affected by all this since I have about $3,000 in backorders for parts and I get calls from the dealers. Multiply that by 100 and you know what is happening to the dealers across Europe and in Italy. I haven't sold a new Malaguti in the USA since 2005 and despite that fact every single day we sell a Malaguti part. That's because in America it's an Italian made scooter. Not some Chinese made Italjet or Benelli, not a Piaggio or Aprilia made in China. It wasn't about the brand, the scooter read MADE IN ITALY. To many Italian Americans, to many Americans that was a sense of pride. You will always have someone that wants to ride a bike no matter where its made, but when you ride a Vespa part of you takes pride its an Italian made vehicle. Maybe not in Italy, but abroad this is the case. A Ferrari or Ducati made in China would never sell. The fact that it's made in Italy is the selling point. If you don't get that then you probably don't own one.
Ask anyone who owns a vintage Lambretta. Why do they love a 50 year old bike that keeps falling apart and needs constant love? It's because its Italian, its Vintage, and it brings you back to an era where the design and quality was unlike anything else. They don't care if the parts are 300% more than a new twist n go scooter. If you can't afford to fix a Lambretta then you shouldn't drive one, you can go buy 10 Chinese brand new scooters for the cost of a Vintage Lambretta. Why do Americans pay $3,000 for a 50cc Vespa that still reads "MADE IN ITALY"? It's because it's the brand and the brand says ITALY all over it. Put a made in Vietnam sticker for an American on a Vespa and they might as well buy the Chinese scooter. This is why those "MADE IN ITALY" scooters are the ones Vespa brings to the US. Italian luxury brands are not GM or Ford. People care about where they are made. Yes, maybe to cope with the economic crisis you have to outsource some production to Asia, but the brand, the factory, and all of Malaguti needs to be kept in Bologna.
When I think of the town I think of scooters. I'm still waiting for more US investor groups or fund managers to contact us. I have put the word out that there are incentives, that Emilia-Romagna is open to many proposals, that they will help any American investors with the funding, helping negotiate the contracts, and the Union is up for foreign help. So all the pieces to the puzzle are in place except for the fact the owners are purposely not talking to foreign investors.
The truth is nobody is going to just show up with money and hand it to them. They will have to give up control and turnaround the company. Sometimes you have to burn something to the ground to rebuild it and this might be the case for Malaguti. It will just be sad if its like Benelli where you burn it to the ground and you end up making it in China instead of Italy.
What the Malaguti dealers looked like in Europe:
http://www.youtube.com/watch?v=xv78JCwzNGU
www.Malaguti.com
La storica azienda Malaguti ha deciso che da metà aprile cesserà la produzione di motorini nello stabilimento di Castel San Pietro Terme che impiega circa 170 lavoratori. Se al termine della cassa d'integrazione straordinaria previsto per il 31 di ottobre nessun acquirente avrà fatto un'offerta concreta l'azienda chiuderà i battenti mandando a casa tutti i dipendenti. La Fiom è scesa in piazza 20 Settembre per manifestare contro la chiusura della fabbrica. Presenti Sabrina Franchini, delegata rsu (rappresentanza Sindacale unitaria) della Malaguti, e Sara Brunori, sindaco di Castel San Pietro Terme.
Happy Easter plus more protests in Italy
I finally heard back from the secretary General office in Emilia Romagna. No news for the US investors because they have to be contacted by the new firm Malaguti hired after firing the last firm they had hired to find a buyer. So we still have two groups interested in Malaguti, but without the cooperation or an understanding of who exactly is in charge in Italy nothing can be done.
Anarchy is pretty funny when your watching protests on youtube, but the truth is its a serious matter for the people of Bologna. I find it disheartening to know that having people willing to invest millions into a factory and buyout the owners they refuse to call them back because its better to bankrupt the business.
I can't name the firm, but the hedge fund was pretty upset they invested all that time. I have a feeling they will be getting a call from Bologna shortly begging them to come back to the table when nobody else shows up with money.
http://martinracingperformance.blogspot.com/2011/04/bolgona-still-in-crisis-30-million.html
Just seems like everyone in Italy does everything they can to not sell the business. It's like the government can't force a company to work, the company doesn't want to work, and the poor workers get caught in the middle with the Unions. The Unions make the business unattractive to foreigners and the local business people just want to steal money from the government. No wonder Italy is a mess.
If you want to get updated on this story read this:
http://motorsportsnewswire.wordpress.com/2011/04/04/will-malaguti-make-a-comeback-0404113/
An update of the Easter protests in Italy on the whole situation.
http://bologna.repubblica.it/cronaca/2011/04/23/news/pasqua_nelle_fabbriche_tra_crisi_e_speranze-15288341/
A real solid group from the US has made an offer. They are already importing scooters from several companies, have a multi million dollar motorcycle lineup, and yet nobody in Italy has contacted them. Unbelievable. Malaguti Moto deserves a chance to continue, but if the owners feel its better to close there's nothing any investors can do especially when nobody picks up the phone in Italy and the workers can't force the owners to sell. It's their right to ask ridiculous amounts of money for the company regardless of what anyone in the outside world thinks.
Anarchy is pretty funny when your watching protests on youtube, but the truth is its a serious matter for the people of Bologna. I find it disheartening to know that having people willing to invest millions into a factory and buyout the owners they refuse to call them back because its better to bankrupt the business.
I can't name the firm, but the hedge fund was pretty upset they invested all that time. I have a feeling they will be getting a call from Bologna shortly begging them to come back to the table when nobody else shows up with money.
http://martinracingperformance.blogspot.com/2011/04/bolgona-still-in-crisis-30-million.html
Just seems like everyone in Italy does everything they can to not sell the business. It's like the government can't force a company to work, the company doesn't want to work, and the poor workers get caught in the middle with the Unions. The Unions make the business unattractive to foreigners and the local business people just want to steal money from the government. No wonder Italy is a mess.
If you want to get updated on this story read this:
http://motorsportsnewswire.wordpress.com/2011/04/04/will-malaguti-make-a-comeback-0404113/
An update of the Easter protests in Italy on the whole situation.
http://bologna.repubblica.it/cronaca/2011/04/23/news/pasqua_nelle_fabbriche_tra_crisi_e_speranze-15288341/
A real solid group from the US has made an offer. They are already importing scooters from several companies, have a multi million dollar motorcycle lineup, and yet nobody in Italy has contacted them. Unbelievable. Malaguti Moto deserves a chance to continue, but if the owners feel its better to close there's nothing any investors can do especially when nobody picks up the phone in Italy and the workers can't force the owners to sell. It's their right to ask ridiculous amounts of money for the company regardless of what anyone in the outside world thinks.
Friday, April 22, 2011
Chinese ATV parts support - Question
Question on Linhai ATVs and Support
--------------------------------------------------------------------------------
From: ashley hefner
Below is the result of your feedback form. It was submitted by:
Friday, Apr 22, 2011 at 16:25:19 -0500
-----------------------------------------------------------------------------------
comments: i was justing wanting to know why only dealers can get parts? I myself own a Linhai fourwheeler and cannot find any parts. I can also not get a manual for my four wheeler either. why is this?
SUBMIT: Submit
phone: **********
-----------------------------------------------------------------------------------
Dear Ashley,
Sounds like you have a Chinese brand support issue. In America as the brands expand we all expect Honda level support when we buy a Chinese unit. The only way to get that level of support is to buy a good brand like Honda or Kymco or have a REALLY good local dealer who will go the extra mile for you. If you buy a Baja or a unknown ATV brand this can happen. Because of this lack of support MRP does carry over 500 different SKUs for Linhai units.
Support is something lacking when it comes to Asian mainland branded ATVs so you have to pay for better support and usually that means the dealer. It doesn't sound like the distributor or factory will give you the support your looking for so again it all goes back to the local dealer.
I don't see a Linhai ATV users manual listed, but maybe Sunright or another importer have it. In many cases Chinese companies only have a basic ENGRISH manual that isn't very good anyways, you are better off buying a Generic HAYNES ATV manual that is written in standard English.
Also, I feel a local dealer who you should develop a relationship will be better for you than any manual. That's why MRP supports the dealers and we send all business back to the dealer base.
First question is who sold it to you?
Who is your dealer?
Do you have a local Linhai dealer? You should contact linhai in the US.
MRP is a third party parts supplier. Meaning we are not Linhai nor the Linhai importer, but we wholesale parts to stores. We don't sell direct for many reasons one being that we feel you get better service if you go to the store that can see the ATV and sold it to you. If you can visit a local shop they can assist you.
We put all the manuals we have under repair manuals. Try Scootertronics.com, MoxieScooters.com or a dealer listed under our dealers list that can support you. they buy a lot from Linhai.
--------------------------------------------------------------------------------
From: ashley hefner
Below is the result of your feedback form. It was submitted by:
Friday, Apr 22, 2011 at 16:25:19 -0500
-----------------------------------------------------------------------------------
comments: i was justing wanting to know why only dealers can get parts? I myself own a Linhai fourwheeler and cannot find any parts. I can also not get a manual for my four wheeler either. why is this?
SUBMIT: Submit
phone: **********
-----------------------------------------------------------------------------------
Dear Ashley,
Sounds like you have a Chinese brand support issue. In America as the brands expand we all expect Honda level support when we buy a Chinese unit. The only way to get that level of support is to buy a good brand like Honda or Kymco or have a REALLY good local dealer who will go the extra mile for you. If you buy a Baja or a unknown ATV brand this can happen. Because of this lack of support MRP does carry over 500 different SKUs for Linhai units.
Support is something lacking when it comes to Asian mainland branded ATVs so you have to pay for better support and usually that means the dealer. It doesn't sound like the distributor or factory will give you the support your looking for so again it all goes back to the local dealer.
I don't see a Linhai ATV users manual listed, but maybe Sunright or another importer have it. In many cases Chinese companies only have a basic ENGRISH manual that isn't very good anyways, you are better off buying a Generic HAYNES ATV manual that is written in standard English.
Also, I feel a local dealer who you should develop a relationship will be better for you than any manual. That's why MRP supports the dealers and we send all business back to the dealer base.
First question is who sold it to you?
Who is your dealer?
Do you have a local Linhai dealer? You should contact linhai in the US.
MRP is a third party parts supplier. Meaning we are not Linhai nor the Linhai importer, but we wholesale parts to stores. We don't sell direct for many reasons one being that we feel you get better service if you go to the store that can see the ATV and sold it to you. If you can visit a local shop they can assist you.
We put all the manuals we have under repair manuals. Try Scootertronics.com, MoxieScooters.com or a dealer listed under our dealers list that can support you. they buy a lot from Linhai.
Ten Evil or Good Signs we are in Scooter Season!
I know there's a flood of people interested in scooters when the following starts happening. Scooter Season is finally here, I'm in a great mood because dealers are buying again. That's good.
Take advantage, stock, promote, get the hype out!
Gas is the driving factor. Gas goes up almost $5 = Phone calls like crazy. So I won't be sad about sales, but I will be going crazy over the crazy calls we start to get. High gasoline prices makes people insane seriously, fortunately for us we benefit.
http://www.youtube.com/watch?v=1rKb0eqzmOc
So I know it's scooter season. All the local press starts running stories about horrible gas prices, how scooter dealers will get rich, waiting lists, how OPEC is destroying America yada yada yada heard it all before.
In the last 48 hours this signs have appeared to me and I know the season is here because:
1. I just got my Subway Sub, as I'm about to bite into it a reporter from Alabama calls MRP and wants to talk on the phone for an hour about the rise of sales and how it affects gas prices. ( see MotorcycleUSA article since I know I brought this upon myself ) http://www.motorcycle-usa.com/7/9538/Motorcycle-Article/Why-Scooter-Sales-Rise-with-Gas-Prices.aspx
2. Phone keeps ringing from consumers who can't find a shop selling scooters or fix the one they purchased online. - Local Vespa shops refuses to fix Chinese, Local Honda shop won't fix my CF Moto ( we get this call 5 times a day ) why can't stores fix everything?
3. Phone keeps ringing from shops who just found out their distributor went out of business two years ago ( Diamo dealers, Tank, etc...)
4. A Local Credit Union wants to ask us if a local application for loan for a scooter store is a solid business plan or New investor wants to buy several scooter stores that are broke before the next oil boom happens and wants me to consult for them and usually don't want to pay for the time it takes to do the consulting. No worries we'll give you lots of business. = Sure.
5. Honda dealer that has never fixed a Taiwanese or Chinese scooter calls, not to buy, but to ask what I think about Kymco or CF MOTO because they are sold out of Honda units for the season go back to the article: http://www.motorcycle-usa.com/7/9538/Motorcycle-Article/Why-Scooter-Sales-Rise-with-Gas-Prices.aspx
6. The repair shop that last purchased from us in 2006 calls and wants to buy a $3 part. - I stopped selling scooters in 2008 BUT NOW I AM BACK!!! = Great stock up bro.
7. People keep calling because they read something or saw something I did like ride the new CCW Heist and they can't find a local shop. Call them directly I am sure they will find someone to sell you the bike. They go to the local shop and there are no units there. http://www.pitmotorsltd.com It's a new brand no way will they have dealers up overnight. Same goes for Cultura Scooter calls, anyone looking for a Diamo or an old Malaguti, we will refer you to someone since we don't sell units.
8. Guy with a cell phone store at the local Simons Mall calls and wants to open an account and buy $20 in parts because the local shop wants to charge him $30 for the MRP part( Has happened to me 100 times last ten years ) = SUPPORT THE LOCAL SHOP, STOP TRYING TO GO AROUND THEM! Guy working from home wants to help his wife sell scooter parts over the internet without actually opening a store, stocking, repairing bikes and will drop ship from ten different brands. Usually conversation goes like this: Your competitors will sell to me, I buy parts in China, I know everything there is to know about your parts and the Ultimate Answer to the Ultimate Question of Life, The Universe, and Everything including the answer is "42" - I don't need to stock, I can repair all the bikes in my house. -
I've heard it all before. I will only buy based on price, I don't buy from anyone unless I have to, I fly to China every week and I know everyone there, I have $200,000 in parts in my closets, I buy from everyone! I have a Chinese girlfriend, no wife, no cousin, who owns a factory or has a cousin of a cousin who owns a factory. I pay only factory China cost = and why won't you sell to me?
9. Someone who just purchased a scooter on Ebay calls us and says the guy who sold them the scooter said to call MRP for parts because the distributor is out of business ( fill in the name here TANK, Cubik, United Motors, etc...)
10. My favorite is. I just purchased __________ scooter online I need help fixing it, I've been on hold for twenty minutes, I've called all your dealers and every shop in the city why can't anyone there explain to me how to fix the carb? Sir- You have to pay a local mechanic or buy something they can't stay in business and fix your bike over the phone across state lines for free. Most shops require you to go to the store for support.
I kid you not everything above has happened the last 48 hours. It will only get worse as gasoline is going to be $5 a gallon soon. Worse or better I can't decide.
Scooter Season is here! I am happy.
Take advantage, stock, promote, get the hype out!
Gas is the driving factor. Gas goes up almost $5 = Phone calls like crazy. So I won't be sad about sales, but I will be going crazy over the crazy calls we start to get. High gasoline prices makes people insane seriously, fortunately for us we benefit.
http://www.youtube.com/watch?v=1rKb0eqzmOc
So I know it's scooter season. All the local press starts running stories about horrible gas prices, how scooter dealers will get rich, waiting lists, how OPEC is destroying America yada yada yada heard it all before.
In the last 48 hours this signs have appeared to me and I know the season is here because:
1. I just got my Subway Sub, as I'm about to bite into it a reporter from Alabama calls MRP and wants to talk on the phone for an hour about the rise of sales and how it affects gas prices. ( see MotorcycleUSA article since I know I brought this upon myself ) http://www.motorcycle-usa.com/7/9538/Motorcycle-Article/Why-Scooter-Sales-Rise-with-Gas-Prices.aspx
2. Phone keeps ringing from consumers who can't find a shop selling scooters or fix the one they purchased online. - Local Vespa shops refuses to fix Chinese, Local Honda shop won't fix my CF Moto ( we get this call 5 times a day ) why can't stores fix everything?
3. Phone keeps ringing from shops who just found out their distributor went out of business two years ago ( Diamo dealers, Tank, etc...)
4. A Local Credit Union wants to ask us if a local application for loan for a scooter store is a solid business plan or New investor wants to buy several scooter stores that are broke before the next oil boom happens and wants me to consult for them and usually don't want to pay for the time it takes to do the consulting. No worries we'll give you lots of business. = Sure.
5. Honda dealer that has never fixed a Taiwanese or Chinese scooter calls, not to buy, but to ask what I think about Kymco or CF MOTO because they are sold out of Honda units for the season go back to the article: http://www.motorcycle-usa.com/7/9538/Motorcycle-Article/Why-Scooter-Sales-Rise-with-Gas-Prices.aspx
6. The repair shop that last purchased from us in 2006 calls and wants to buy a $3 part. - I stopped selling scooters in 2008 BUT NOW I AM BACK!!! = Great stock up bro.
7. People keep calling because they read something or saw something I did like ride the new CCW Heist and they can't find a local shop. Call them directly I am sure they will find someone to sell you the bike. They go to the local shop and there are no units there. http://www.pitmotorsltd.com It's a new brand no way will they have dealers up overnight. Same goes for Cultura Scooter calls, anyone looking for a Diamo or an old Malaguti, we will refer you to someone since we don't sell units.
8. Guy with a cell phone store at the local Simons Mall calls and wants to open an account and buy $20 in parts because the local shop wants to charge him $30 for the MRP part( Has happened to me 100 times last ten years ) = SUPPORT THE LOCAL SHOP, STOP TRYING TO GO AROUND THEM! Guy working from home wants to help his wife sell scooter parts over the internet without actually opening a store, stocking, repairing bikes and will drop ship from ten different brands. Usually conversation goes like this: Your competitors will sell to me, I buy parts in China, I know everything there is to know about your parts and the Ultimate Answer to the Ultimate Question of Life, The Universe, and Everything including the answer is "42" - I don't need to stock, I can repair all the bikes in my house. -
I've heard it all before. I will only buy based on price, I don't buy from anyone unless I have to, I fly to China every week and I know everyone there, I have $200,000 in parts in my closets, I buy from everyone! I have a Chinese girlfriend, no wife, no cousin, who owns a factory or has a cousin of a cousin who owns a factory. I pay only factory China cost = and why won't you sell to me?
9. Someone who just purchased a scooter on Ebay calls us and says the guy who sold them the scooter said to call MRP for parts because the distributor is out of business ( fill in the name here TANK, Cubik, United Motors, etc...)
10. My favorite is. I just purchased __________ scooter online I need help fixing it, I've been on hold for twenty minutes, I've called all your dealers and every shop in the city why can't anyone there explain to me how to fix the carb? Sir- You have to pay a local mechanic or buy something they can't stay in business and fix your bike over the phone across state lines for free. Most shops require you to go to the store for support.
I kid you not everything above has happened the last 48 hours. It will only get worse as gasoline is going to be $5 a gallon soon. Worse or better I can't decide.
Scooter Season is here! I am happy.
Bolgona still in Crisis, $30 million dollar deal falls short
The Malaguti Moto Crisis Saga continues....
I've personally written and made an appeal to the powers that be in Italy. So far I've gotten some responses, but in typical bureaucratic messes the hedge fund we were talking to in New York has lost interest in Malaguti Moto. We have some offers to help rescue the firm, how long those offers will be on the table is anyone's guess since nobody knows what to do about making the offer in the first place.
I think I finally found the right person to speak to, but he just told me it's out of his hands only the owners can decide what to do.
See in America when someone has $30 million to invest and offers to fly you to Italy to help buy a failing Italian manufacturer you expect someone to answer the phone.
The script reads like this:
(phone rings)
Voice of Hedge Fund Manager: Is this the Scooter Maven?
Maven: Yes, this is he.
Voice: We represent a large New York firm interested in turning around European luxury brands and we have billions of dollars to invest, we understand you are the number one expert in modern Italian scooters. You seemed to have a track record of knowing what is happening in the Motorized Driven Cycle world of super sexy Italian names so we want to hire you. Do you have time for drinks? Can we buy you dinner? We'll be on South Beach this weekend for another meeting, let's meet.
After some partying, nice dinners, one lobster that fell on the floor by accident, a canceled trip to Italy.
A month goes by.
Voice of Hedge Fund Manager: We have tried everything. We sent a fax, we call, and nobody answers the phone.
Maven: That's because they are on strike. All the employees that answer the phone in Bologna are out protesting.
Voice of Hedge Fund Manager: Why doesn't the owner call us back?
Maven: Because they want to tell the Italian people nobody is interested.
Voice of Hedge Fund Manager: Also, these terms are ridiculous I thought the Italians needed an investor why can't someone serious reply to us?
Maven: Because its Italy, the adviser they hired got fired, the experts the advisers hired got fired, and then they told me they didn't need me so now the process starts again. Malaguti has hired new experts to help find a partner. See it works this way in Italy you have to bankrupt the company first before the government steps in and gives money to everyone including the people who made it go broke in the first place.
Voice of Hedge Fund Manager: That makes no sense the skilled workers who make the scooters will be lost. The brand equity! We requested financial info, the liabilities, nothing has been replied to! Do they want investors or not?
Maven: This is all part of the Malaguti plan no worries. See you have to wait they believe the value of the company goes up the longer they take to make a decision. They think the Chinese are stupid and that they will pay more if there are no workers. In the meantime are you interested in Moto Morini? I also have a good suspension company looking for funding.
Voice of Hedge Fund Manager: Call us when you have something in writing, it was great hanging with you. We will come down for the next Ultra Music Festival so let's stay in touch.
Maven: Wait what about the loan to expand my business MRP here in Miami?
Voice of Hedge Fund Manager: We will shoot our friend an email on it.
Click.
Maven: what? No more lobster dinner on Chase Banks account? Thanks guys.
The end of part 1
That's this scene in the movie so far.
In the meantime now the process in Italy is getting started with the Minister of Economic Development, the secretary general of something. The Unions, the ex-workers, etc....
Look they all need to come together, because sadly its an incredible waste of everyone's time if nobody is serious about saving the brand.
Members citizens ask the Minister of Economic Development Romans "an appropriate industrial policy to avoid risks of outsourcing."
http://corrieredibologna.corriere.it/bologna/notizie/economia/2011/22-aprile-2011/pd-il-governo-sostenga-motociclo-bolognese-190490382463.shtml
Il governo sostenga il distretto bolognese del motociclo con «una adeguata politica industriale evitando così anche concreti rischi di delocalizzazione della produzione». The government supports the district of Bologna motorcycle with "an appropriate industrial policy and also avoid specific risks of relocation of production."
The parliamentarians of the Democratic Party also points to the current difficulties of the Minister for the heavy industry companies in Bologna: "This grave situation has recently led to the failure historical brands such as Moto Morini, and given widespread corporate crises such as Masiero (already closed ), the Verlicchi Spa, Cauldrons, electroplating (in liquidation) and also the Malaguti Moto http://www.malaguti.com, with its 180 workers looks set to close later this year if it fails to be found on the market by the availability of a buyer.
Only in the Bologna district, according to union estimates, are several thousand jobs at risk for the decrease in this area. "
Stay Tuned the story of Malaguti is far from over..... We will likely get an email or phone call from another hedge fund shortly just in case 305-599-8993 ext 207.
I've personally written and made an appeal to the powers that be in Italy. So far I've gotten some responses, but in typical bureaucratic messes the hedge fund we were talking to in New York has lost interest in Malaguti Moto. We have some offers to help rescue the firm, how long those offers will be on the table is anyone's guess since nobody knows what to do about making the offer in the first place.
I think I finally found the right person to speak to, but he just told me it's out of his hands only the owners can decide what to do.
See in America when someone has $30 million to invest and offers to fly you to Italy to help buy a failing Italian manufacturer you expect someone to answer the phone.
The script reads like this:
(phone rings)
Voice of Hedge Fund Manager: Is this the Scooter Maven?
Maven: Yes, this is he.
Voice: We represent a large New York firm interested in turning around European luxury brands and we have billions of dollars to invest, we understand you are the number one expert in modern Italian scooters. You seemed to have a track record of knowing what is happening in the Motorized Driven Cycle world of super sexy Italian names so we want to hire you. Do you have time for drinks? Can we buy you dinner? We'll be on South Beach this weekend for another meeting, let's meet.
After some partying, nice dinners, one lobster that fell on the floor by accident, a canceled trip to Italy.
A month goes by.
Voice of Hedge Fund Manager: We have tried everything. We sent a fax, we call, and nobody answers the phone.
Maven: That's because they are on strike. All the employees that answer the phone in Bologna are out protesting.
Voice of Hedge Fund Manager: Why doesn't the owner call us back?
Maven: Because they want to tell the Italian people nobody is interested.
Voice of Hedge Fund Manager: Also, these terms are ridiculous I thought the Italians needed an investor why can't someone serious reply to us?
Maven: Because its Italy, the adviser they hired got fired, the experts the advisers hired got fired, and then they told me they didn't need me so now the process starts again. Malaguti has hired new experts to help find a partner. See it works this way in Italy you have to bankrupt the company first before the government steps in and gives money to everyone including the people who made it go broke in the first place.
Voice of Hedge Fund Manager: That makes no sense the skilled workers who make the scooters will be lost. The brand equity! We requested financial info, the liabilities, nothing has been replied to! Do they want investors or not?
Maven: This is all part of the Malaguti plan no worries. See you have to wait they believe the value of the company goes up the longer they take to make a decision. They think the Chinese are stupid and that they will pay more if there are no workers. In the meantime are you interested in Moto Morini? I also have a good suspension company looking for funding.
Voice of Hedge Fund Manager: Call us when you have something in writing, it was great hanging with you. We will come down for the next Ultra Music Festival so let's stay in touch.
Maven: Wait what about the loan to expand my business MRP here in Miami?
Voice of Hedge Fund Manager: We will shoot our friend an email on it.
Click.
Maven: what? No more lobster dinner on Chase Banks account? Thanks guys.
The end of part 1
That's this scene in the movie so far.
In the meantime now the process in Italy is getting started with the Minister of Economic Development, the secretary general of something. The Unions, the ex-workers, etc....
Look they all need to come together, because sadly its an incredible waste of everyone's time if nobody is serious about saving the brand.
Members citizens ask the Minister of Economic Development Romans "an appropriate industrial policy to avoid risks of outsourcing."
http://corrieredibologna.corriere.it/bologna/notizie/economia/2011/22-aprile-2011/pd-il-governo-sostenga-motociclo-bolognese-190490382463.shtml
Il governo sostenga il distretto bolognese del motociclo con «una adeguata politica industriale evitando così anche concreti rischi di delocalizzazione della produzione». The government supports the district of Bologna motorcycle with "an appropriate industrial policy and also avoid specific risks of relocation of production."
The parliamentarians of the Democratic Party also points to the current difficulties of the Minister for the heavy industry companies in Bologna: "This grave situation has recently led to the failure historical brands such as Moto Morini, and given widespread corporate crises such as Masiero (already closed ), the Verlicchi Spa, Cauldrons, electroplating (in liquidation) and also the Malaguti Moto http://www.malaguti.com, with its 180 workers looks set to close later this year if it fails to be found on the market by the availability of a buyer.
Only in the Bologna district, according to union estimates, are several thousand jobs at risk for the decrease in this area. "
Stay Tuned the story of Malaguti is far from over..... We will likely get an email or phone call from another hedge fund shortly just in case 305-599-8993 ext 207.
Thursday, April 21, 2011
I'm happy gas is at $5 a gallon
Maybe I'm one of the few people out there that get's happy when gas prices go up. When I see pictures like this one I just can't contain the happiness. After two horrible years of terrible sales in America, its amazing to hear the phone ringing off the hook.
http://www.youtube.com/watch?v=1rKb0eqzmOc
http://www.youtube.com/watch?v=1rKb0eqzmOc
Kymco Number One Scooter Brand in Australia with 20% share and 5% of ATV market
Ok, this just came out and it only reinforces what I just said about Kymco USA.
So Kymco has 20% of the down under market, why doesn't that surprise me?
A follow up to this blog report http://martinracingperformance.blogspot.com/2011/04/kymco-usa-is-now-100-factory-owned.html
With its rapidly growing range of motorcycles, scooters and ATVs, KYMCO Australia and New Zealand celebrated its most successful retail month ever in March 2011. During Q1, Kymco increased total sales volume by 57.6 percent over the same period in 2010, according to information released by the Federal Chamber of Automotive Industries (FCAI). Making this growth more of a success is the fact that 2010 itself was a record-breaking year for the Taiwanese brand, with the company annexing 4.0% of the total motorcycle market during Q1. This Q1 result saw Kymco rise to become the seventh largest motorcycle brand in Australia, only five units short of the number six position.
After the Q1 2011 March result, Kymco’s scooter range is now the number one scooter brand in Australia with a market share just short of 20%. This result reflects growth of 77% over Q1 2010 in a market that is only up 6.4 percent.
“We kicked off this year aiming to become the number one scooter brand in Australia and we are ecstatic at our results so far,” said Stuart McLean, Kymco Australia & New Zealand Chief Executive Officer.
“You only need to take one look at our range, and one look at the pedigree of the Kymco brand, to understand how we’ve achieved this growth and why there is plenty more growing to come. We provide a scooter range that is stylish, reliable, offers value for money and is backed up by an outstanding dealer network – these factors will continue to underpin our success.”
Kymco ATVs also secured 5.1% of the national ATV market for Q1 and 118% growth over the same period in 2010 after its most successful month in March 2011. After just one-and-a-half years in the Australia ATV market, Kymco ATVs are renowned for their reliability, toughness and after sales support.
Mr McLean stated in response to the ATV success; “Kymco apply a philosophy of ‘simplicity of design- with the correct features’ with their ATV range and this is why many Australian farmers are turning to Kymco to get the job done. Not to mention that Kymco’s Research & Development team have spent an abundance of time in Australia to ensure they are manufacturing ATVs that are tailored to suit our very unique conditions Down Under.”
Capping off these Q1 2011 results, Kymco’s range of 250cc motorcycles also demonstrated solid growth over the early stages of 2011, making Kymco the national leader of the learner and lower capacity motorcycle market.
“These results are a reflection of the quality of this brand, the quality of the products and the quality of our people. Watch this space for more growth from Kymco over coming months,” said Mr McLean.
So Kymco has 20% of the down under market, why doesn't that surprise me?
A follow up to this blog report http://martinracingperformance.blogspot.com/2011/04/kymco-usa-is-now-100-factory-owned.html
With its rapidly growing range of motorcycles, scooters and ATVs, KYMCO Australia and New Zealand celebrated its most successful retail month ever in March 2011. During Q1, Kymco increased total sales volume by 57.6 percent over the same period in 2010, according to information released by the Federal Chamber of Automotive Industries (FCAI). Making this growth more of a success is the fact that 2010 itself was a record-breaking year for the Taiwanese brand, with the company annexing 4.0% of the total motorcycle market during Q1. This Q1 result saw Kymco rise to become the seventh largest motorcycle brand in Australia, only five units short of the number six position.
After the Q1 2011 March result, Kymco’s scooter range is now the number one scooter brand in Australia with a market share just short of 20%. This result reflects growth of 77% over Q1 2010 in a market that is only up 6.4 percent.
“We kicked off this year aiming to become the number one scooter brand in Australia and we are ecstatic at our results so far,” said Stuart McLean, Kymco Australia & New Zealand Chief Executive Officer.
“You only need to take one look at our range, and one look at the pedigree of the Kymco brand, to understand how we’ve achieved this growth and why there is plenty more growing to come. We provide a scooter range that is stylish, reliable, offers value for money and is backed up by an outstanding dealer network – these factors will continue to underpin our success.”
Kymco ATVs also secured 5.1% of the national ATV market for Q1 and 118% growth over the same period in 2010 after its most successful month in March 2011. After just one-and-a-half years in the Australia ATV market, Kymco ATVs are renowned for their reliability, toughness and after sales support.
Mr McLean stated in response to the ATV success; “Kymco apply a philosophy of ‘simplicity of design- with the correct features’ with their ATV range and this is why many Australian farmers are turning to Kymco to get the job done. Not to mention that Kymco’s Research & Development team have spent an abundance of time in Australia to ensure they are manufacturing ATVs that are tailored to suit our very unique conditions Down Under.”
Capping off these Q1 2011 results, Kymco’s range of 250cc motorcycles also demonstrated solid growth over the early stages of 2011, making Kymco the national leader of the learner and lower capacity motorcycle market.
“These results are a reflection of the quality of this brand, the quality of the products and the quality of our people. Watch this space for more growth from Kymco over coming months,” said Mr McLean.
Kymco USA is now 100% Factory Owned
Most Kymco dealers already know this, but I figured I would break the news since no other press outlet has reported on it. Kymco will have an official press release sometime this week, but I figure let me give it a shot and explain why this is such an awesome thing.
Back when I first got into the business we had STR. From the original bunch that started at STR several companies emerged ( some former employees went on to start Eton America ) one of them is now the national sales manager for Genuine Scooters. Some of the best and brightest came out of what STR started, fierce market competitors, guys who had all the right skills and forged our little scooter industry. I hope they take pride in what they accomplished because I believe its legendary.
I'm just going to give you the short version, but STR was an investment for a company that had a lot of investments. Over the years they started with Tomos which then opened up its own distribution point for Tomos USA, they also distributed Hyosung scooters "Sense" at one point, to make a long story short STR had been doing this for years and years. When I was still worshiping my 8-bit Nintendo and I was looking forward to the 9th grade. So this company cut its teeth in the industry. I have the highest respect and admiration for the guys that have been there over fifteen years building Kymco from back in 2001 to what it is today.
They did the unthinkable. Gave credit to small mom and pop shops, went out and promoted an unknown Taiwanese brand as the next Honda. They watched other companies with bigger budgets come and go. Some of those original guys are still there and they should take great pride in what they have done because now Kymco is known all over the USA. People like the Scooter Maven brag about having real OEM "Kymco" parts, and you see copycats out on Ebay selling JYMCO, SYMCO, and LYMCO parts in green packaging that looks close, but is not the right thing. It's always easy to imitate isn't it?
Dealers get upset when they can't get the franchise and it's still more profitable than the Italian or Japanese brands ( I will probably get an email or two for saying that, but its true it was even true when I imported Malaguti and SYM )
Kymco being aggressive is one of the reasons they are number one in Taiwan. STR like many distributors found a solution to that and a few years back let them come in as a joint venture and became Kymco USA. Recently the factory purchased from what I understand the full stock in the company and now is a wholly owned subsidiary. It's still the same management, still the same staff, nothing has really changed. If anything they will only get bigger so - Prepare.
Now I have always pushed for this as an example of why other Taiwanese companies have failed in the USA. It's nice to have an importer take all the risk, take all the flack, pay all the warranties and then fight with the factory. In the case of Dinli if your ATV should cause the unnecessary death of a young American boy due to a factory known faulty component the only one screwed would be the importer, because lets face it who can collect in Taiwan or China when you have a fight with the factory? Nobody. They let the importer fold or take the flack, pull out of the market. Better yet should your importer go up in flames, not have the money to continue to buy more units, or have a bunch of legal issues because of something you did just appoint another importer. That's one of the hallmarks of the American Powersports Scooter Industry. The mainland Chinese brands don't have these problems, they just close, change names, or fail to pay their liability insurance so if they have no assets and its some dude working from a basement who are you going to sue? Nobody. My favorite is when they come right back with a new name and start over the following week.
So the only reliable brands tend to be the ones where the factory have assets in this country and are here for the long haul. They commit, they hire the right people, bring a good product, and commit for the long run. That's why Kymco stands out. They committed to the American Powersports Industry in ways others failed to.
You don't cut and run, you build up a surge and kick the crap out of the marketplace. That's what Kymco did and that's why it worked. That's why now after two horrible years in the market it's my prediction that they will come out on top.
Kymco has proven time and time again that not only would they feel comfortable having American management, but they have followed Honda, Yamaha, Suzuki, and Kawasaki in taking all the right steps. From focusing on Direct consumer marketing to creating a relationship with the American consumer ( NASCAR, Racing, etc...) things unknown in the Asian dominated sell sell sell advertise to dealers only mentality that dominates the US Powersports Industry.
I called this two years ago in Motorcycle Product News. This is an $800 million dollar company. They have a vision. I've sat here and watched TGB fold up and not come back, SYM you know that story, and everyone else in Taiwan has had its share of issues. The economy got bad, many folded, others pulled out of the market. Let an importer risk it all and loose money. Not these guys.
Kymco took the right steps not just in the USA, but all over the world. I have the sales charts for Germany, Italy, Spain, and France on my desk. Guess who rose to the top during the worldwide financial crisis?
Guess who I predict will rise as gas prices rise?
No other Taiwanese firm comes even close to what they have accomplished.
Not PGO, not even on the list in Italy
Not SYM, not even in top 10
Not Eton, not even in some markets
It's Kymco. They continue to rise and grow to the point where they have surpassed even Yamaha in Scooter sales in Italy. What does that mean? They will likely repeat that success in America and pass Yamaha in registrations in the years to come.
The most difficult market in the world is Italy and Kymco is outselling Yamaha there. They have done well in Germany, UK, Spain, and the most difficult market in the world.
They hired the right people in the USA. Stood by them as they made difficult decisions and it will pay off. It's good to see their commitment to the market is for the long run and I would trust if I was a consumer a Kymco product over any other from Taiwan or China because of that commitment to be a US wholly owned subsidiary.
Good for them, we can only wish more companies would follow their example.
To see my past report on Kymco for Motorcycle Product News Magazine in Taiwan click here http://www.martinracingdealer.com/REPAIR%20MANUALS/PRESS/scooter.pdf
Tour of the Kymco Factory in Taiwan
http://www.youtube.com/watch?v=1J6vRfWaYIY
Kymco Promotional Company Video
http://www.youtube.com/watch?v=DLLyvIr9a-g
Back when I first got into the business we had STR. From the original bunch that started at STR several companies emerged ( some former employees went on to start Eton America ) one of them is now the national sales manager for Genuine Scooters. Some of the best and brightest came out of what STR started, fierce market competitors, guys who had all the right skills and forged our little scooter industry. I hope they take pride in what they accomplished because I believe its legendary.
I'm just going to give you the short version, but STR was an investment for a company that had a lot of investments. Over the years they started with Tomos which then opened up its own distribution point for Tomos USA, they also distributed Hyosung scooters "Sense" at one point, to make a long story short STR had been doing this for years and years. When I was still worshiping my 8-bit Nintendo and I was looking forward to the 9th grade. So this company cut its teeth in the industry. I have the highest respect and admiration for the guys that have been there over fifteen years building Kymco from back in 2001 to what it is today.
They did the unthinkable. Gave credit to small mom and pop shops, went out and promoted an unknown Taiwanese brand as the next Honda. They watched other companies with bigger budgets come and go. Some of those original guys are still there and they should take great pride in what they have done because now Kymco is known all over the USA. People like the Scooter Maven brag about having real OEM "Kymco" parts, and you see copycats out on Ebay selling JYMCO, SYMCO, and LYMCO parts in green packaging that looks close, but is not the right thing. It's always easy to imitate isn't it?
Dealers get upset when they can't get the franchise and it's still more profitable than the Italian or Japanese brands ( I will probably get an email or two for saying that, but its true it was even true when I imported Malaguti and SYM )
Kymco being aggressive is one of the reasons they are number one in Taiwan. STR like many distributors found a solution to that and a few years back let them come in as a joint venture and became Kymco USA. Recently the factory purchased from what I understand the full stock in the company and now is a wholly owned subsidiary. It's still the same management, still the same staff, nothing has really changed. If anything they will only get bigger so - Prepare.
Now I have always pushed for this as an example of why other Taiwanese companies have failed in the USA. It's nice to have an importer take all the risk, take all the flack, pay all the warranties and then fight with the factory. In the case of Dinli if your ATV should cause the unnecessary death of a young American boy due to a factory known faulty component the only one screwed would be the importer, because lets face it who can collect in Taiwan or China when you have a fight with the factory? Nobody. They let the importer fold or take the flack, pull out of the market. Better yet should your importer go up in flames, not have the money to continue to buy more units, or have a bunch of legal issues because of something you did just appoint another importer. That's one of the hallmarks of the American Powersports Scooter Industry. The mainland Chinese brands don't have these problems, they just close, change names, or fail to pay their liability insurance so if they have no assets and its some dude working from a basement who are you going to sue? Nobody. My favorite is when they come right back with a new name and start over the following week.
So the only reliable brands tend to be the ones where the factory have assets in this country and are here for the long haul. They commit, they hire the right people, bring a good product, and commit for the long run. That's why Kymco stands out. They committed to the American Powersports Industry in ways others failed to.
You don't cut and run, you build up a surge and kick the crap out of the marketplace. That's what Kymco did and that's why it worked. That's why now after two horrible years in the market it's my prediction that they will come out on top.
Kymco has proven time and time again that not only would they feel comfortable having American management, but they have followed Honda, Yamaha, Suzuki, and Kawasaki in taking all the right steps. From focusing on Direct consumer marketing to creating a relationship with the American consumer ( NASCAR, Racing, etc...) things unknown in the Asian dominated sell sell sell advertise to dealers only mentality that dominates the US Powersports Industry.
I called this two years ago in Motorcycle Product News. This is an $800 million dollar company. They have a vision. I've sat here and watched TGB fold up and not come back, SYM you know that story, and everyone else in Taiwan has had its share of issues. The economy got bad, many folded, others pulled out of the market. Let an importer risk it all and loose money. Not these guys.
Kymco took the right steps not just in the USA, but all over the world. I have the sales charts for Germany, Italy, Spain, and France on my desk. Guess who rose to the top during the worldwide financial crisis?
Guess who I predict will rise as gas prices rise?
No other Taiwanese firm comes even close to what they have accomplished.
Not PGO, not even on the list in Italy
Not SYM, not even in top 10
Not Eton, not even in some markets
It's Kymco. They continue to rise and grow to the point where they have surpassed even Yamaha in Scooter sales in Italy. What does that mean? They will likely repeat that success in America and pass Yamaha in registrations in the years to come.
The most difficult market in the world is Italy and Kymco is outselling Yamaha there. They have done well in Germany, UK, Spain, and the most difficult market in the world.
They hired the right people in the USA. Stood by them as they made difficult decisions and it will pay off. It's good to see their commitment to the market is for the long run and I would trust if I was a consumer a Kymco product over any other from Taiwan or China because of that commitment to be a US wholly owned subsidiary.
Good for them, we can only wish more companies would follow their example.
To see my past report on Kymco for Motorcycle Product News Magazine in Taiwan click here http://www.martinracingdealer.com/REPAIR%20MANUALS/PRESS/scooter.pdf
Tour of the Kymco Factory in Taiwan
http://www.youtube.com/watch?v=1J6vRfWaYIY
Kymco Promotional Company Video
http://www.youtube.com/watch?v=DLLyvIr9a-g
Scooter Sales up in MIC numbers for 2011, but still down compared to past
Scooter sales were up a whopping 81 percent in March 2011 compared to March of 2010.
Dealer News just posted some interesting info
However, most of this is old inventory in my opinion. Probably 2008-2010 inventory sitting on floors. I've always said a 10% increase in the Japanese brands translates into a 25% increase for the Chinese / Taiwanese. So it means a lot of dealers are starting to move 2008-2009 models still on the floor.
Only a handful of companies report to the MIC, but they happen to be the bigger brands with the bigger dealers like Honda, Yamaha, and Piaggio Group.
Dealer News just posted some interesting info
However, most of this is old inventory in my opinion. Probably 2008-2010 inventory sitting on floors. I've always said a 10% increase in the Japanese brands translates into a 25% increase for the Chinese / Taiwanese. So it means a lot of dealers are starting to move 2008-2009 models still on the floor.
Only a handful of companies report to the MIC, but they happen to be the bigger brands with the bigger dealers like Honda, Yamaha, and Piaggio Group.
Wednesday, April 20, 2011
Volkswagen follows MINI into the EScooter market
The new trend in the auto industry seems to be entering the EV motorized industry. Pretty cool for anyone like MRP that is pushing accessories for these bikes.
Volkswagen is only the latest of the car makers to jump in and they look pretty cool.
About the VW EScooter.
Weighing around 44 pounds excluding the nickel-metal hydride battery, it features a top speed of 30 miles per hour. Regenerative braking will be introduced shortly in order to boost the range further. E-Scooter features a 350-watt electric motor and has a range of 25 miles.
The E-scooter also features provisions for enhancing the performance and range. The bike’s performance can be upgraded by the use of a 700-Watt electric motor while a lithium ion battery will do the same with the range.
However, the market conditions prevailing in China is not at all favorable for Volkswagen to sell their E-scooters. Approximately 20 million electric scooters hit the roads in China every year which are of reasonable costs, say about $500. Despite these factors, VW plans to incorporate premium features like LED lights, glossy plastics, a leather seat and a sophisticated trip computer to the variant and charge less than $1000.
In case you forgot what the MINI COOPER - BMW MADE ESCOOTER looks like.
more
Volkswagen is only the latest of the car makers to jump in and they look pretty cool.
About the VW EScooter.
Weighing around 44 pounds excluding the nickel-metal hydride battery, it features a top speed of 30 miles per hour. Regenerative braking will be introduced shortly in order to boost the range further. E-Scooter features a 350-watt electric motor and has a range of 25 miles.
The E-scooter also features provisions for enhancing the performance and range. The bike’s performance can be upgraded by the use of a 700-Watt electric motor while a lithium ion battery will do the same with the range.
However, the market conditions prevailing in China is not at all favorable for Volkswagen to sell their E-scooters. Approximately 20 million electric scooters hit the roads in China every year which are of reasonable costs, say about $500. Despite these factors, VW plans to incorporate premium features like LED lights, glossy plastics, a leather seat and a sophisticated trip computer to the variant and charge less than $1000.
In case you forgot what the MINI COOPER - BMW MADE ESCOOTER looks like.
more
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