PowerSports Business

December 30, 2013

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4 • December 30, 2013 • Powersports Business NEWS ICON FROM COVER CONTINUED www.powersportsbusiness.com Editorial and Sales: 800.848.6247 Subscriber Service: 866.238.3237 EDITOR IN CHIEF: Dave McMahon 763/383-4411 (dmcmahon@powersportsbusiness.com) MANAGING EDITOR: Liz Keener 763/383-4413 (lkeener@powersportsbusiness.com) SENIOR EDITOR: Tom Kaiser 763/383-4424 (tkaiser@powersportsbusiness.com) ASSOCIATE DIGITAL EDITOR: Christopher Gerber SENIOR ART DIRECTOR: Dodi Vessels PRODUCTION ARTIST: Kelsey Houle (khoule@epgmediallc.com) PRODUCTION MANAGER: Angela Schmieg VICE PRESIDENT/TRADE GROUP: Amy Collins NATIONAL SALES DIRECTOR Allison Gruhn 763/383-4467 (agruhn@powersportsbusiness.com) NATIONAL ACCOUNT MANAGER Mark Rosacker 763/383-4433 (mrosacker@snowgoer.com) NATIONAL ACCOUNT MANAGER David J. Voll 763/383-4421 (dvoll@ridermagazine.com) PRODUCTION SPECIALIST: Cherri Perschmann GROUP SENIOR MARKETING MANAGER: Kathryn Knudson GROUP SENIOR SALES SPECIALIST: Bernadette Wohlman CEO: Mark Adams SR. VICE PRESIDENT/FINANCE AND OPERATIONS: Gerald Winkel SR. VICE PRESIDENT/MARKET DEVELOPMENT: Joanne Juda-Prainito VICE PRESIDENT/OPERATIONS AND HUMAN RESOURCES: Mary Jo Tomei CONTRIBUTORS: COLUMNISTS: Hal Ethington, Steve Jones CONTRIBUTING WRITERS: Heather Reinhart DEALER ADVISORY BOARD: Hooksett Kawasaki-Polaris, Jim Whalley; Hacker's Yamaha & Honda, Rick Hacker; Honda/Polaris of Lubbock, Morris Baker; All Action Water Sports, Ray Leps POWERSPORTS BUSINESS (ISSN #1522-7944) is published 15 times per year – monthly except twice in May and December, the Market Data Book in September – by EPG Media, LLC, 3300 Fernbrook Lane N #200, Plymouth, MN 55447. Periodicals postage paid at St. Paul, MN and additional mailing offices. SUBSCRIPTION INFORMATION: Free to qualified members of the motorcycle, all-terrain vehicle, snowmobile and personal watercraft industries. Annual subscription rate is $56 per year for U.S residents, $76 for Canadian residents and $96 for residents in other countries. All paid subscriptions must be paid in advance and in U.S. funds only. POSTMASTER: Send address changes to Powersports Business, P.O. Box 5858, Harlan, IA 51593-1358. CUSTOMER SERVICE: Visit www.powersportsbusiness.com, email powersportsbusiness@cdsfulfillment.com, call 866-238-3237 or write to Powersports Business, PO Box 5858, Harlan, IA 51593-1358. CANADIAN RETURN ADDRESS: EPG Media, LLC, 4960-2 Walker Road, Windsor, Ontario N9A 6J3. Publication Sales Agreement #40012332. EDITORIAL: All manuscripts, materials, photographs and artwork submitted are at mailer's risk and must include self-addressed envelope with sufficient postage for return. Send editorial materials to EPG Media, LLC, 3300 Fernbrook Lane N, Suite 200, Minneapolis, MN 55447, 763/383-4400. No responsibility will be assumed for unsolicited materials. Powersports Business is a registered trademark of EPG Media, LLC. Copyright 2013 by EPG Media, LLC. All rights reserved. Reproduction in whole or part is prohibited unless expressly authorized by publisher. REPRINTS: For more information on e-prints or reprints from Powersports Business, contact Bernadette Wohlman, 800/848-6247 x2464. Printed in U.S.A. P01x05-PSB1-News.indd 4 cheetah pattern. Both concepts came from Icon. "Graphically I had two helmets that I had done that were cheetah- and zebra-themed graphics that are in the Icon 1000 line. They look dramatically different than these versions, so I took the same idea and converted them over to a more race look. The idea is that we'd have basically a cheetah and a zebra out on the track at the same time. I find a great deal of humor in that," Walter said. Icon was somewhat nervous about presenting the zebra and cheetah concepts to the Brammo race team, but eventually the group warmed up to the designs. "They were a little bit concerned, but when they saw the actual execution, what I was really thinking of for the graphics, it all kind of came together," Walter recalled. Because Icon is the major sponsor of both bikes, the company is given more creative freedom than if it were only one of several major sponsors. That appealed to Icon's design background, giving the company even more of a reason to partner with Brammo. "When the opportunity came up to get involved with Brammo and specifically their race team, I wanted to make sure that we did it from top to bottom, so it's not just the helmet or the suit or the gloves, it's full livery, every piece of marketing material that goes along with it, the full complete package," Walter said. Because of the strong partnership between the two companies, Icon and Brammo recently joined forces on a limited edition motorcycle. The Brammo/Icon Spec 32 — Eboz Edition was unveiled at the Parts Unlimited/Drag Specialties National Vendor Presentation this year. Inspired by Bostrom, the Empulse R-based bike features a blue and orange wrap and comes with a matching helmet. Only 32 of the models will be made — to coincide with Bostrom's racing number. Each will include orange battery brackets, springs and wheels, and have special decals and a small plaque with Bostrom's signature and the bike number on it. The new model was completely born from the Brammo/Icon relationship. "We've come out with two types of the Air Armada helmets for Eric, the blue, and the white, and, like Eric said, this blue and orange design, people really liked it, and so Kurt said, 'Well, let's do a bike.' I said, 'OK, let's make it a limited edition model,'" recalled Adrian Stewart, Brammo's director of sales and marketing. www.PowersportsBusiness.com BRAMMO INVESTS IN ELECTRIC'S FUTURE Dealers and others in attendance, including stunt rider Jason Britton in the black T-shirt, snap photos after the Brammo/Icon Spec 32 — Eboz Edition bike is shown at the Parts Unlimited/Drag Specialties NVP show. Working together has helped both companies bloom in new ways. Though Icon's market has centered around gas-powered street bikes, Icon saw an opportunity with Brammo to jump into something different and emerging. Walter has even gotten his hands on an electric bike himself and says it's a fun addition to any rider's stable. "The electric bike thing, it can be a bit polarizing — pun not intended — with people because there's this thing that electric bikes are here to take away your gas bikes from you, or electric cars are here to take away your gas cars from you, which is definitely not the case. For me there's a spot in everyone's garage for these kinds of bikes. There's a spot for an electric bike, and there's a spot for a gas bike," he said. On top of being neighbors and seeing Brammo as an innovative company, Icon also chose to work with Brammo because the OEM is a solid contender in the electric motorcycle market. "For me, to be teamed up at the end of the day we need to sell gear, and I need to hook up with companies that are also looking to sell product and actually getting product into people's hands — real product — so that's the great deal with Brammo," Walter said. Brammo has earned face time for both its brand and Icon's with AFM and FIM races at Indianapolis Motor Speedway, Laguna Seca Raceway, Thunderhill Raceway and Infineon Sonoma Raceway. The OEM has also participated in the Isle of Man TT, with the first electric motorcycle to take on that course in 2009. With an Icon representative attending each race to help support Team Icon Brammo, Icon has seen the fruit of its efforts first hand, and the company has been happy with its involvement. "It's a great way for Icon to enter the racing venue," Walter said. "Icon doesn't do anything in the typical fashion, and so to come in with this whole new segment of racing has been great attention and publicity for us." PSB Sure, electric motorcycles are still a niche part of the industry, but that doesn't mean Brammo isn't growing. In fact, the Oregon-based electric motorcycle OEM is on an impressive trajectory. Brammo recently moved into an old Wal-Mart building that the company purchased and renovated, increasing its headquarters from 25,000 square feet to 100,000 square feet. The move allows for the company to crank out more motorcycles, as in the past it has been production constrained at the smaller facility. With the expanded production, Brammo also plans to expand sales into Canada and Europe. On the home front, Brammo is looking to increase its dealer count, to cover more U.S. markets. "I think we're going to try and hit 50 dealers by the end of this year if we can, and that's very ambitious, so that's the goal for this year," Adrian Stewart, director of sales and marketing, told Powersports Business. Getting bikes into dealerships has not only been difficult because the bikes weren't being produced fast enough to satisfy demand, but also because Brammo is pushing boundaries in motorcycle engine technology. However, the dealers who have taken on the brand have enjoyed its addition, Stewart said. "The dealers are really pleased. It takes a lot of effort to convince them to start with. It's a big commitment. There's training for salespeople, there's parts, there's tools, showroom space. And some of the other OEMs are not too enthusiastic about another OEM arriving in the showroom. But the dealers we've got are all very happy; they've all had great sales, so I think they're looking forward to next year now," he added. Those who have purchased the bikes to date come from a varied demographic, from technology fiends to experienced riders looking to add to their collection to those looking to reenter the sport. Though, the company has learned it also still has to make efforts to simply educate riders and potential riders about electric bikes. "It's still surprising how many people don't even know there are electric motorcycles, so it's a lot of work for everybody to do that," Stewart said. However, Brammo is confident that with increased awareness, additional marketing efforts — such as its racing team and advancing technology — the market will begin warming up to electric bikes. — Liz Keener Little named AMA Motorcyclist of the Year AIMExpo launch brings award to show VP The American Motorcyclist Association earlier this month announced that the AMA Motorcyclist of the Year is AMA Life Member Larry Little. Little, vice president and general manager of Marketplace Events, created a U.S. motorcycle show that debuted in 2013 and brought buyers and sellers together in a bold new way. "While most in motorcycling viewed the cataclysmic changes brought about by the economic crisis as disastrous, Larry Little saw an opportunity to improve the situation while fulfilling a long-held passion to launch a motorcycle show for manufacturers, distributors, dealers, consumers and media in America," said AMA president and CEO Rob Dingman. "When we step back and look at the excitement, exposure and interest that the American International Motorcycle Expo brought to the motorcycling industry in the past 12 months, it is fitting that we recognize Larry for his innovation and drive." Little, the former publisher of Cycle World magazine, sought to bring the European motorcycle show format to America starting in the early 1990s. However, that format, which combines new motorcycle model year introductions with aftermarket product reveals, media involvement and consumer access, wasn't acceptable at that time to Larry Little was named AMA's Motorcyclist of the Year for 2013 due to the successful launch of AIMExpo. major U.S. motorcycle distributors, which preferred to introduce new bikes at exclusive dealer meetings. In the wake of the recent economic slowdown that tightened manufacturers' marketing and business development budgets, Little revitalized his plan as a cost-effective solution. Companies agreed, and the inaugural AIMExpo was held Oct. 16-20, 2013, at the Orange County Convention Center in Orlando, Fla. PSB 12/18/13 11:27 AM ww D c BY Ha ap lat in the Go de pre nig me con con the at the for Fa bee up an an do ere pu A H fo AD vic Am Th of the ity sev rie AD by sys SST op ou Da Co tra ma vid the on als shi Am Fie par ted dea

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