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Nov. 13, 2006 – Cycle Report

November 13, 2006
Filed under Features

‘Justice for All’ rolls into California
California has enacted a law supporting the goals of the American Motorcyclist Association’s “Justice for All” campaign.
California SB-1021, which was signed into law by Gov. Arnold Schwarzenegger, imposes additional fines when a motorist is convicted of a traffic offense that causes bodily injury to another person. The new law also mandates that the California Driver’s Handbook and the curriculum of traffic-violator schools include information about “respecting the right-of-way of others, particularly pedestrians, bicycle riders and motorcycle riders.”
California joins 15 other states in passing legislation that supports the goals of Justice for All: Arkansas, Georgia, Iowa, Louisiana, Maine, Missouri, New Hampshire, New York, North Carolina, Oklahoma, Pennsylvania, Virginia, Washington, West Virginia and Wisconsin.
CHP Still Seeking New Units
The state of California canceled a bid to buy Harley-Davidson police motorcycles in October after California Highway Patrol testers reportedly found that the modified Electra Glide being tested had wobbled at high speeds.
The cancellation of the bid Oct. 6 was an abrupt end to a process that started a year earlier, when the state invited bids for a two-year contract to supply 400 motorcycles to the CHP and local law enforcement agencies.
An earlier deal to buy BMWs fell apart in July 2005 after the Department of General Services discovered that one of its employees involved in writing bid specifications had a conflict of interest.
The purchasing process has left the California Highway Patrol unable to buy new bikes for more than a year. The department says it has increased the mileage limit for the motorcycles in service from 60,000 miles to 100,000 miles.
The CHP bought BMW bikes through Roseville BMW for more than six years, eventually replacing its entire fleet with the German brand. Santa Cruz Harley-Davidson prepared the recently tested Harley-Davidson unit.
Seminar Held in Taiwan
Members of Taiwan’s motorcycle industry met in mid-October to share their opinions and suggestions on multiple topics affecting their business. The roundtable discussion was organized by the Taiwan External Trade Development Council (TAITRA).
Participants in the seminar reached several consensuses, including further strengthening the island’s central-satellite supply system, asking the government to invest more resources in the industry, and more aggressively developing large-displacement motorcycles to differentiate their product from competitors in developing markets.
“We have been witnessing the continually strengthening global competitiveness of Taiwan’s motorcycle industry, which has established many internationally reputable brands, such as KYMCO, SYM and Maxxis,” said Walter Yeh, TAITRA’s executive vice-president. “We are also seeing the fruition of the global-deployment plans adopted by the Taiwan makers of assembled-motorcycles and parts who have set up operations in China, Vietnam, Indonesia, the U.S. and Europe, showing not only dedication but also the effectiveness of vertical and horizontal integrations.”
Chiang Shih-Hwang, director of the Trade Development Division, Bureau of Foreign Trade, said the export value of Taiwan-made motorcycles, scooters and ATVs has eclipsed $500 million.
Indo Cycle Industry Keeps Growing
Already the third largest motorcycle market in the world, Indonesia continues to mark rapid industry growth.
The Indonesian Motorcycle Industry Association (AISI) said 494,115 two-wheelers were sold there in September. The AISI said that was the best monthly sales result since September 2005, when 452,876 units were sold.
Three of the four major powersports companies from Japan account for the lion’s share of Indonesia’s motorcycle industry.
PT Astra International, which only sells the Honda brand, enjoyed a 56 percent market share in September. According to AISI, Astra sold 276,384 motorcycles in September, up from 237,039 units sold in September 2005.
Indonesia’s second-most prolific motorcycle supplier, PT Yamaha Indonesia Motor Manufacturing, sold 143,566 units in September, up from 101,159 units in September 2005.
Finally, PT Indomobil Suzuki International had sales of 67,556 units in September, down from 102,252 units in September 2005.
As previously reported, Japan’s motorcycle manufacturers plan to invest nearly $450 million in Indonesia during the next two years.
Motorcycle production in Indonesia is expected to reach 5.8 million units this year, up 16 percent compared to the 5 million units produced in 2005.
Read more about recent production and sales figures from foreign markets on page 32.
Triumph Joins Destination Daytona
Triumph Motorcycles is the latest motorcycle brand to join Destination Daytona — Bruce Rossmeyer’s 150-acre motorcycle complex near Daytona Beach, Fla.
Triumph’s line will be displayed in a branded showroom in a separate building adjacent to Daytona Harley-Davidson, the world’s largest H-D dealer. Rossmeyer said expanding the range of motorcycles being displayed at Destination Daytona may broaden the appeal of the site to customers interested in something besides a traditional V-twin.
“We are pleased that Mr. Rossmeyer has chosen to add Triumph Motorcycles to his range at Destination Daytona,” said Todd Andersen, vice president of marketing for Triumph USA. “We expect that this will quickly grow into one of our largest dealers and play an important role in our continued growth.” psb

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