PowerSports Business

August 15, 2016

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PSB FOCUS 14 • August 15, 2016 • Powersports Business www.PowersportsBusiness.com The Honda CRF1000L Africa Twin has turned the adventure touring market on its ear based on enthusiast magazine reviews, providing a head-turning experience with the off-road ride that matches an equally impressive ride while on pavement. And while the shear number of adven- ture touring bike sales is still in growth mode, the seg- ment has been the golden child of the motorcycle industry in recent years due its increasing mar- ket share. Data f r o m P o w e r s - ports Business partner CDK Global Recreation shows that of dealers who both use the Light- speed DMS and sell ADV bikes, they have combined to see the segment grow to 10 percent of the motorcycle sales pie at their dealerships. We've all seen the crazy location shots of incredible scenery from far-flung outposts, knowing that a dealer somewhere sold the rider that unit. It might be a BMW R 1 2 0 0 G S , Ya m a h a S u p e r Ténéré, KTM 1190 Adven- ture, Ducati Multistrada 1200 Enduro, or one of many others. Now, Honda's launch of the Africa Twin has certainly created a buzz within the segment, and it's with that ensuing energy and passion to grow the ADV rider base that Powersports Business editor in chief Dave McMahon discussed all things Africa Twin in a phone conversation with Lee Edmunds, manager of Motorcycle Market- ing Communications at American Honda. Powersports Business: What made you decide you that this was a bike that needed to enter the worldwide market? LEE EDMUNDS: Just looking at the market, the market for big adventure bikes has been strong. You see a lot of people going to that product, migrating off of other products, from off-road bikes to older sport bike riders going there. You're seeing the demographic that's maybe not ready yet for luxury touring, but they want something that's more athletic and can go anywhere. What we saw in the market was a bit of a hole, in that most of the bikes out there are very good on-road bikes but lacked off-road prowess. So this bike was designed to have really good off-road capabilities. It's inter- esting when you ride it, because when you ride it on-road you really like it, but when you ride it off-road it's an epiphany — it's really good, well-planted, balanced. It's a really good motorcycle. Read more on Page 20. The Honda CRF1000L Africa Twin is the latest entry into a growing adventure touring segment 'GO ANYWHERE AND SEE THINGS THAT YOU COULDN'T SEE BEFORE.' This issue: Adventure Touring Next issue: Snow w w w . p o w e r s p o r t s b u s i n e s s . c o m NEWS: AMA warns riders about booby traps . . . . . PAGE 5 ATV/UTV: ITP expands tire and wheel offerings . . . . PAGE 28 PWC: HydroFlight launces first finals . . . . . . . . . PAGE 38 AFTERMARKET: Vee Rubber joins adventure market . . . . . PAGE 44 The Parts Unlimited and Drag Spe- cialties National Vendor Presenta- tion Product Expo is adding a second day for dealers this year. The show, set for Aug. 27-28 at the Monona Terrace in Madison, Wis., has reached its vendor capacity with two full days for dealers. On Saturday, Aug. 27, the event begins with the expo floor open from noon-5:30 p.m. for dealers and sales reps, with 200 vendors showcasing their latest products. Following a happy hour for the final hour of the show, the 2nd annual Meet & Greet/ Bike Show will be held on the Monona Terrace overlooking Lake Monona and downtown Madison from 6-8 p.m. Also new for 2016, product semi- nars will be held on Saturday from INSPIRING SUCCESS THROUGH MARKET INTELLIGENCE Ride together National Cycle offers 31 employees a unique opportunity with American Supercamp. SEE PAGE 32 HOTNEWS Adventure gear Moose Racing grows its adventure riding gear business. SEE PAGE 15 Get educated UTV University launches first-ever event at GIE+EXPO. SEE PAGE 22 4 in 10 dealers said their dealership's performance was below plan The second quarter of 2016 saw many dealers below plan, according to the recent Powersports Business/BMO Capital Markets Q2 dealer survey. Of the 127 dealers from 40 U.S. states and eight Canadian provinces who were surveyed, 41 per- cent noted business was below plan in Q2. While the majority of dealers reported they were below plan, 22 percent said they were above plan and 37 percent were on plan. Overall busi- ness conditions were positive, with 67 percent of dealers answering that they were average, some- what or very strong. Thirty-five percent of dealers saw somewhat or very strong new unit sales, and 52 percent experienced somewhat or very strong service department business in Q2. The majority of deal- ers said used unit sales, P&A sales and F&I busi- ness were average. Customer traffic was down in Q2, as 38 per- cent of dealers marked it was somewhat or signifi- cantly worse than in Q2 2015. "Many dealers commented that foot traffic and consumer buying interest were weaker in the quarter," said BMO Capital Markets analyst See Dealer Survey, Page 6 Riverside Harley-Davidson grows as volume sales leader BY LIZ KEENER MANAGING EDITOR James Forsberg was the star of the early June dealership-wide meeting at Riverside Harley- Davidson. After he received a football signed by the entire staff, Forsberg was carried outside into the warm California air by two of his co-workers and drenched in ice water, like football coaches are when they win a big game. Forsberg, Riverside H-D's customer experi- ence manager, had led the team to a perfect 10 Customer Experience Indicator (CXI) score in May, with nearly 70 surveys returned. That celebration is just one example of Riverside Harley-Davidson's dedica- tion to its employees and its customers — as well as its love for celebrations. R i v e r s i d e H a r l e y - Davidson, a 2015 Power- sports Business Power 50 dealership, is one of five dealerships owned by the Veracka family's business: The Motorcycle Company. Launched by Dave Veracka, the business is now run by Dave and his sons Michael and Paul. Other dealerships in the group include: Rawhide Harley-Davidson in Olathe, Kansas; High Octane Harley-Davidson PSB: FOCUS Adventure Bikes SEE PAGE 14 High customer service standards drive dealership See Power 50, Page 46 See Hot News, Page 3 August 15, 2016 • Volume 19, Number 11 • $3.99 HOTNEWS CHECK OUT THE SEMINAR SCHEDULE & DESCRIPTIONS ON PAGE 24. Dealer: Public 'snapped wallets shut' Significantly better 4% Somewhat better 21% About the same 37% Somewhat worse 29% Significantly worse 9% Q2 2016 POWERSPORTS BUSINESS/BMO CAPITAL MARKETS DEALER SURVEY Above plan 22% On plan 37% Below plan 41% HOW WOULD YOU CHARACTERIZE YOUR CALENDAR Q2 (APRIL-JUNE) BUSINESS PERFORMANCE RELATIVE TO PLAN? HOW WOULD YOU CHARACTERIZE CUSTOMER TRAFFIC IN THE LAST THREE MONTHS COMPARED TO THE SAME PERIOD LAST YEAR? Parts Unlimited NVP expands to two full days About 10,000-square-feet of showroom space will be added to Riverside Harley- Davidson by extending the dealership to the end of the outdoor overhang when it completes its upcoming expansion. Source: Powersports Business/BMO Capital Markets Q2 2016 dealer survey

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