June 5, 2006 – Cycle Update

KenFreundJune 5, 2006

Confederate resumes production
The first 2006 F131 Hellcat to be produced by Confederate Motor Company in the company’s new Birmingham plant recently rolled off the line.
Hurricane Katrina destroyed Confederate’s New Orleans headquarters last August. The company moved to Alabama in January.
Confederate’s founder and managing director, H. Matthew Chambers, said a nationwide search for a new headquarters location included Atlanta, Austin, Boulder, Chicago, Dallas, Jackson, Pittsburgh, Shreveport and Santa Fe.
“The major catalyst for our decision to move Confederate Motor Company to Birmingham was George Barber and the remarkable museum he created,” Chambers said. “Mr. Barber is a design genius and his commitment to motorcycles is second to none. The special team that he presented to us was by far the most professional group that we met anywhere across America, and it can only be described as a brain trust for automotive excellence.
“Since moving to Birmingham, we have found many more reasons that have reinforced our decision as a wise one,” Chambers added. “Not only is there a tremendous tooling and manufacturing capability — where we can get new parts produced almost as quickly as we can design them — but we have also discovered tremendous business development and marketing support services in Birmingham.”
Chambers founded Confederate in 1991. Working as a Baton Rouge attorney at the time, he left his successful law practice to concentrate on making the motorcycles he wanted to ride.
He said production of the company’s new B120 Wraith model also is commencing.
Harley-Davidson Events raise more than $1.6 million for MDA
Harley-Davidson’s 2006 fundraising for the Muscular Dystrophy Association (MDA) received a huge boost recently with the contribution of more than $1.6 million through four major events. The events were organized through Harley-Davidson Motor Company, Harley-Davidson dealers, HOG chapters and MDA staff and their volunteers.
Harley-Davidson and MDA’s top national fundraising event, the 19th annual Eastern Harley-Davidson Dealers Association Ride for Life in eastern Pennsylvania, was held May 6-7. It raised $843,000.
Also that weekend, the 13th annual Milwaukee Black-n-Blue Ball raised more than $500,000 for MDA. Additional top fundraising Black-n-Blue Ball events were held in Grand Rapids (more than $200,000) and Detroit, Michigan ($100,000).
Harley-Davidson has been a national sponsor of the MDA and has raised more than $55 million since 1980. The funds raised support research, comprehensive medical care for children and adults with neuromuscular disease, and MDA summer camps.
LifeStyle Cycles Certified by S&S
On May 5, LifeStyle Cycles became the first certified S&S Cycles Pro Tuning Center in Southern California.
“Becoming a Pro Tuning Center is a major step for us,” said LifeStyle Cycles’ owner Mark “Junior” Skolnick. “Knowledge is power, and this certification and strategic alliance between S&S and LifeStyle Cycles will help insure we stay ahead of the curve to provide even better customer service and confidence in the products we sell and maintain.”
The S&S Cycles Pro Tuning Certification requires a week of intensive, hands-on training, as well as a comprehensive final exam at S&S’ facility in La Crosse, Wis.
LifeStyle Cycles’ 21,000 square-foot facility is located in Anaheim, Calif.
Buell, Sentry Work to Reduce Insurance Costs
Buell Motorcycle Company has selected Sentry Insurance as the preferred insurance provider for Buell owners in the United States.
Buell worked closely with Sentry over the past two years to find the best way to lower insurance rates on Buell motorcycles. Sentry developed a special process for calculating insurance quotes for Buell motorcycles, which does not use other sportbike insurance losses as part of the formula.
Sentry Insurance will provide quotes on older Buell models as well as new models. Additional coverage can be purchased for Buell optional equipment.
“This is the most comprehensive alliance we are aware of between a manufacturer and an insurance company with the common objective of reducing the costs of ownership and insurance,” said Jon Flickinger, president and COO of Buell Motorcycle Co.
Sentry motorcycle insurance is available through Harley-Davidson Insurance and is offered in 43 states, except Oklahoma, Louisiana, New Jersey, New Hampshire, Massachusetts, Alaska and Hawaii.
AMA Team USA to run Motocross of Nations
The American Motorcyclist Association (AMA) has announced that “AMA Team USA” will compete at the 2006 Motocross of Nations, scheduled for Sept. 23-24 at Matterley Basin/Winchester, Great Britain.
The presenting sponsor of AMA Team USA will be Loretta Lynn’s, which is marking its 25th year of hosting the AMA Air Nautiques Amateur Motocross National Championships at Loretta Lynn Ranch in Hurricane Mills, Tenn.
Motocross fans will be involved in choosing the members of AMA Team USA by casting their votes at AMADirectlink.com. When the list of top vote-getters is posted in mid-June, fans will be able to vote on these final nominees, in return for a $5-per-vote contribution to the team. The members of AMA Team USA, presented by Loretta Lynn’s, will be announced in August during the 2006 AMA Air Nautiques Amateur Motocross National Championships.
Survey Reveals Cycle Trends in Japan
Motorcycle ownership in Japan among young men and women in their teens and 20s fell in 2005, whereas ownership among men and women in their 50s or older rose, said the Japan Automobile Manufacturers Association (JAMA), which published the results of a motorcycle market trend survey it carried out in fiscal 2005.
JAMA conducts motorcycle surveys during odd-numbered years, targeting owners of newly purchased motorcycles to track changes in the market and the impact of motorcycle use-related developments. The recent survey results were based on 5,628 responses.
The survey also found:

Replacement demand accounted for 55 percent of the total number of purchases, with first-time purchases marking a decline since the 2003 survey.

Attitudes toward motorcycle features and use differed between owners born prior to 1970 and those born in or after 1970. Specifically, users born between 1965-70 enjoyed motorcycle touring and emphasized “good pickup, acceleration and top speed,” while users born between 1975-80 were drawn primarily by “style and design.”

In terms of purchasing criteria, the leading criteria were “style and design” and “lower price.” “Easy handling” was the top criterion for 35 percent of the respondents, up from 32 percent in 2003.

Average monthly mileage was 270 km, up from 250 km in 2003.

Intended motorcycle uses were primarily “commuting to work or school” (51 percent) and “shopping” (29 percent), indicating that most motorcycles are used for daily transportation purposes.

Cyclists born between 1965-70 particularly enjoyed motorcycle touring and emphasized the criteria of “good pickup, acceleration and top speed,” while users born a decade later, between 1975-80, leaned mostly toward visual criteria-namely, “style and design.”

87 percent of respondents said they wanted to continue riding motorcycles in future, indicating an overwhelming desire to maintain use. Nevertheless, this was a drop from 92 percent in 2003.

Among owners who wanted to continue riding motorcycles, 40 percent said they would stop doing so if parking space were no longer available, or if their financial situation were to become difficult.
Chiaro Leaves Ducati N.A.
Vince Chiaro, press relations coordinator for Ducati North America, Cupertino, Calif., left the company May 19 to pursue a position outside of the industry.
“It is with regret that I tell you that I am leaving Ducati North America,” Chiaro said. “I’ve accepted a position with Google and look forward to some exciting new challenges and opportunities.” psb

KenFreundJune 5, 2006