Industry News

Thursday, 2 July 2009

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Euro aid for motorcycle industry

Following lobbying efforts by the European bike manufacturing association (Association des Constructeurs Européens de Motocycles), the European Commission has now agreed to support the bike industry in a similar way to help already offered to the recession-hit automotive industry.

ACEM president and KTM supremo Stefan Pierer – representing 12 manufacturers and 15 national industry associations including the British MCIA – recently met with European Commission vice president Günter Verheugen to plead for urgent help, given that Europe-wide new motorcycle registrations fell by 39 per cent in the first three months of this year.

He told Verheugen that the severity of the economic downturn is putting consumer purchasing power under immense pressure with negative consequences not only for the manufacturers but also for their parts suppliers and dealer networks.

Verheugen responded by agreeing in principle that the industry should receive similar treatment to the car sector. Presumably this will mean taxpayer-subsidised eco-incentive scrappage schemes like the one already in operation for scooters and smaller motorcycles in Italy, supporting demand through fleet renewal and easier access to finance.

Japanese bike production savaged

As an indicator of the accelerating effect of the global economic downturn on motorcycle sales, the latest production and export figures issued by the Japan Automobile Manufacturers Association (JAMA) paint a sobering picture.

Between them, the four big Japanese motorcycle manufacturers reduced production in Japan by 40.9 per cent to 41,181 units in May 2009, their 21st consecutive monthly cut. Production of over-250cc machines destined mainly for export to the US and Europe fell by 44.8 per cent. Actual export shipments for the month averaged across the four brands were down by 45.5 per cent.