Sputtering Into 2009

May you live in interesting times.

As we greet the new year we can expect to continue to feel the effects of the recently-officially-designated economic recession and credit crisis. Motorcycling, largely driven by discretionary spending, is being hit hard. Major manufacturers are looking to cut costs and/or boost sales to keep the cash flowing in 2009.

A number of companies are already scaling back and offering incentives to buyers. A few examples:

• Kawasaki has withdrawn from MotoGP competition.
  

  John Hopkins and teammate Marco Melandri are looking for rides in 2009.

• Honda announced their withdrawal from Formula 1 racing. However, Honda Europe spokesman Paul Ormond recently told autosport.com that the Honda MotoGP team is not under threat. “The decision to pull out of F1 does not affect the other forms of motorsport Honda are involved in,” Ormond said. “We will be looking at reducing our costs, as we’re sure other teams will be doing too, in MotoGP and other motorcycle activities.”
• Harley-Davidson, in an effort to spur sales in the first quarter, has created the “Ride Free” program. Under the program purchasers of 2008 or 2009 Sportster models before March 31 can ride their bike for up to one full year and still get full MSRP trade-in toward a new Dyna, Softail, VRSC or Touring model. The Motor Company’s stock is down over 60% over the last 12 months.
  

  Buy one of these before March 31, ride it for a year, and get full MSRP at trade-in.

Major motorcycle events are not immune from cost-cutting:

• Held annually for the last 15 years, the love-fest known as the Honda Hoot has drawn the Honda faithful from all parts of North America. The event may have been the largest single-brand vehicle owners gathering. Honda has cancelled the 2009 event. According to American Honda, “Based on the current economic crunch which may have significant impact on our customers during 2009, American Honda will take this time to seek out new and innovative ways to engage with customers.”
  

  Honda Hoots for the last time in 2008.

• Also canceled for 2009 is the Legend of the Motorcycle Concours d’Elegance at Half Moon Bay, CA. In announcing the cancellation, co-founder Jared Zaugg said, “The decision is due to the effect the world economy has had on many sponsors, and while deciding not to produce the show next year was very difficult, it was the most prudent. We’d never do anything to compromise the quality of the Concours. We’d rather suspend the event than see it done halfway and I’m sure those that have participated would agree. This has been a true labor of love and something we strongly believe in, so we look forward to reinstating it after this hiatus.”

Given this climate one wonders what will become of other major events in 2009 like Daytona and Sturgis. And what of smaller companies and custom builders? Surely they will feel the pinch as credit remains tight. Perhaps some will be unable to continue operations.
Interesting times indeed.