News and stories from the world of the Powersports business.
Honda Statement on Agreement Between United States and Japan to Strengthen EV Battery Critical Minerals Supply Chains
We welcome the agreement between the United States and Japan to strengthen mineral supply chains that are critical to electric vehicles. Honda continues to localize and bolster our EV battery supply chain as we work to fulfill our vision of 100% electric vehicle sales by 2040. To reach this goal, it is essential to have a robust and resilient EV supply chain that includes access to critical minerals for EV battery components and materials.
We look forward to reviewing the agreement in detail, and we support the Administration’s efforts to partner with strong allies as we work collectively to accelerate EV adoption.
About Honda Manufacturing in America
Honda has been producing automobiles in America for over 40 years, beginning in November 1982 with the start of automobile production at the Marysville Auto Plant.
In 2022, more than two-thirds of all Honda and Acura automobiles sold in the U.S. were made in America, using domestic and globally sourced parts. Honda’s cumulative auto production in America now exceeds 30 million vehicles. Honda established manufacturing operations in America in 1979 with the start of motorcycle production in Marysville, Ohio, and today has one of the largest and most diverse U.S. manufacturing footprints of any international company. The company’s 12 plants employ more than 22,000 associates in America, supporting operations that have an annual capacity of more than 1.27 million automobiles, 1.52 million engines, 500,000 power equipment products and 300,000 powersports products, as well as the HondaJet advanced light jet and GE Honda HF120 turbofan engines.
Cumulatively, Honda has invested $19 billion in its U.S. manufacturing operations, including more than $3.2 billion over the past five years alone. The company also works with over 600 U.S. original equipment suppliers, with U.S.-sourced parts purchases of approximately $470 billion since 1979.
Learn more at https://hondainamerica.com/.
KV Capital Launches Private Equity Fund II and Announces First Portfolio Company, Mountain Sports Distribution
KV Capital is pleased to announce the formation of KV Private Equity Fund II Limited Partnership (“Fund II”) and our first acquisition in Fund II, Mountain Sports Distribution Inc. (“MSD”)—a leading full-service distributor in the powersports industry.
Building off the momentum from KV Private Equity Fund I LP, Fund II has been established to deploy capital to lower-mid market players in diverse industries with strong growth prospects. Fund II leverages KV Capital’s hands-on approach in creating success for portfolio companies through new investment of human and monetary capital, process improvements, and initiatives which unlock step changes in scale.
Headquartered in the heart of one of Canada’s primary powersports playgrounds—Golden, BC—MSD exclusively distributes for several globally-recognized brands in the powersports, and avalanche safety industries, such as 509, TOBE Outerwear, FLY Racing, Sidi, and Mammut, covering a four-season spectrum from snowmobiling to summer moto sports. With over 560 dealers in Canada and the United States, MSD has been recognized three times by The Globe and Mail as one of Canada’s Top Growing Companies. Together with KV Capital as a strategic operational partner, MSD looks to continue to drive accelerated growth by expanding their roster of exciting brands and dealer partners across Canada and beyond.
“We applaud MSD’s authenticity and are proud to partner with their team in continuing to build their market presence,” says KV Capital’s President, Private Equity, Jonathan Herman. “We see significant opportunity to work together in supporting the continued development of their best-in-class enterprise.”
MSD Founder and CEO, Chuck Gorton, similarly looks forward to the partnership. “Collaborating with KV Capital creates additional momentum for our business and is removing the barriers to our expansion,” notes Gorton. “Building from a foundation of aligned values, the financial resources and intellectual capital from this partnership will contribute to elevating MSD’s profile and market position.”
Financial terms of the transaction were not disclosed. For KV Capital, Ernst & Young LLP served as the financial and tax advisor while Bryan & Company LLP provided legal counsel for the acquisition. Bennett Jones LLP and Deloitte Corporate Finance Inc. provided Fund II formation legal and tax advice, respectively. For MSD, Grant Thornton LLP acted as the financial advisor and Michael, Evrensel & Pawar LLP delivered legal services.
KV Capital continues to actively seek new investment opportunities for KV Private Equity Fund II.
Zero Motorcycles and Integrated Micro-Electronics Inc. Announce Strategic Manufacturing Collaboration
Zero Motorcycles, the worldwide leader in electric motorcycles and powertrains, based in Santa Cruz, California, and Integrated Micro-Electronics Inc. (IMI), a top Electronics Manufacturing Services company with headquarters in the Philippines, are proud to announce a strategic manufacturing collaboration. As part of this new collaboration, IMI will begin to assemble Zero Motorcycles’ electric motorcycle models and other motorcycle sub-assemblies in their facility located in Laguna, Philippines. This work will be done in conjunction with the manufacturing facilities for Zero located in Scotts Valley, California. The modular assemblies and complete motorcycles supplied by IMI will be delivered to Zero’s customers and dealers globally with a primary focus on the European and Asian markets.
The manufacturing involves both the full assembly of motorcycles as well as partial, modular assemblies to be finally completed by Zero manufacturing teams, together with the battery module and electronics of the vehicle. Of all the potential partners considered, only IMI possessed the expertise in both electronics manufacturing and motorcycle assembly all located under one roof. Furthermore, IMI’s parent company, Ayala Corporation (AC Industrials), has made great strides toward sustainability, and the collaboration with Zero is expected to open more possible synergies with AC Industrials in the future.
“We are thrilled to partner with IMI and bring their expertise in electronics manufacturing and motorcycle assembly to the Zero Motorcycles lineup of products,” said Zero Motorcycles CEO, Sam Paschel. “This collaboration will be transformational for Zero Motorcycles’ operations. Expanding our manufacturing footprint into a new region allows Zero Motorcycles to efficiently scale up to meet the rapidly growing demand for our products and improve customer delivery and satisfaction in the fast-growing EV market.”
Mass production is projected to start as early as the second quarter of 2023 as a turnkey program utilizing IMI’s current capability for assembling motorcycles coupled with efforts to develop localization of certain components and parts.
IMI CEO, Arthur R. Tan, stated, “IMI is excited to partner with Zero Motorcycles and help bring their innovative electric motorcycles to the world. This collaboration aligns with our commitment to supporting companies in their growth and sustainability efforts while providing high-quality manufacturing services.”
The facility in Laguna, Philippines will play a crucial role in Zero Motorcycles’ expansion into the global market and will support the company’s goal of reducing its carbon footprint and promoting sustainable transportation while increasing its market share.
Kawasaki Celebrates 50 Years of Jet Ski® Watercraft Exhilaration
Kawasaki Motors Corp., U.S.A. is honoring the golden anniversary of its iconic Jet Ski® personal watercraft (PWC) products with the 50 years of exhilaration celebration.
When the original Jet Ski watercraft debuted in 1973, it created a whole new lifestyle of having fun on the water. What began with a liquid-cooled 400cc two-stroke twin engine, pivoting handlepole system and ability to slice turns and skim over waves has evolved to a supercharged 1,498cc inline four-stroke marine engine. Despite the technological evolutions, the soul of a Jet Ski remains recreating the feeling of riding a motorcycle on the water.
“For 50 years, Kawasaki Jet Ski has been synonomous with Good Times on the water,” said Bob O’Brien, Director of Marketing. “As an early leader in the PWC category, Kawasaki and Jet Ski developed a fun-loving lifestyle centered around the exhilaration of combining speed with control.”
Bringing the stand-up Jet Ski watercraft to market in the early 1970s was among the first projects of the new Kawasaki R&D department in Southern California. After creating several prototypes, both flat-hull and V-hull stand-up models were launched on a trial basis. Kawasaki Motors Manufacturing Corp., U.S.A. in Lincoln, Nebraska later started full production of the Jet Ski watercraft in 1975.
Kawasaki continued to innovate in 1986 and introduced the first mass-produced “sit-down”: the Kawasaki X2. This two-passenger watercraft led the way for the Kawasaki Jet Ski® Ultra® and Jet Ski® STX® lineups of three-passenger runabouts. Development continued as Kawasaki engineers tweaked hull design and engine displacement to produce the greatest amount of smiles per gallon.
For the 2007 model year, Kawasaki introduced its first supercharged personal watercraft, the Jet Ski® Ultra® 250X. This Jet Ski was built with Kawasaki Ninja® heritage as the engine was derived from the 1498cc powerplant of the Ninja® ZX™-14.
In 2017, Kawasaki went back to its stand-up roots, introducing the Jet Ski® SX-R™, its first four-stroke stand-up Jet Ski, powered by the same naturally aspirated 1498cc engine used in its runabout models. The introduction of the Jet Ski SX-R continued to show Kawasaki’s dedication to the PWC category as they are continuously updating and innovating their full lineup of Jet Ski products, including class-leading Jet Ski® Ultra® 160 and Ultra® 310 models.
Polaris Launches Polaris Xchange Powersports Marketplace Giving Consumers an Easy and Convenient Way to Shop Online for New and Used Vehicles
Polaris Inc. (NYSE: PII), the global leader in powersports, is putting customers in the driver’s seat as they shop for their first or next powersports vehicle with the introduction of Polaris Xchange. Built from the ground up with the needs of the powersports customer in-mind, this one-stop online marketplace provides customers the ability to shop, research and start the buying process on thousands of off-road vehicles, snowmobiles, motorcycles, side-by-sides, auto-cycles, and ATVs from participating Polaris dealers nationwide.
“We are constantly infusing new ways of thinking and using our knowledge of the powersports customer to help advance our industry, introduce new people to powersports and enhance the experience for our owners and riders, and Polaris Xchange is another example of that industry leadership,” said Vic Koelsch, senior vice president, chief digital and information officer at Polaris. “Polaris Xchange simplifies the shopping process for customers, allowing them do most of the process online before visiting their local dealership to sign the paperwork.”
Consumer shopping habits have evolved in recent years with more consumers leveraging online resources for discovery, research and learning as they start the buying process prior to visiting a physical retail location, and powersports consumers are no different.
Polaris Xchange offers consumers the tools they need to feel confident as well as conveniently start the buying process from the comfort of their homes including: finding the vehicle, viewing used vehicle history and condition reports, shopping for accessories, indicating interest in protection products, determining trade-in value and prequalifying for a loan. From there, the customer simply needs to complete the purchase and pick up the vehicle from a dealer or have it delivered.
Polaris Xchange also provides value to Polaris dealers who can publish their new and used inventory online increasing visibility, reach, and awareness to shoppers.
“We set out to streamline the shopping process and provide consumers with even more confidence as they look to purchase,” said Koelsch. “Through Polaris Xchange, we are offering a one-stop, credible resource that makes it easier to not only find new Polaris vehicles but search through available used powersports inventory at our trusted network of dealers.”
With JoyDrive as a technology partner, Polaris Xchange will showcase used powersports inventory from all powersports manufacturers as well as available inventory of new Polaris vehicles at participating dealers.
Shop for your next ride and learn more about Polaris Xchange at www.polarisxchange.com.
KTM NORTH AMERICA AND PIERER NEW MOBILITY NORTH AMERICA CELEBRATE BRAND NEW CORPORATE HEADQUARTERS WITH GRAND OPENING EVENT IN MURRIETA
- Parent company, PIERER Mobility AG, showcases eight world-class brands under one roof
- With $53 million dollars – biggest single investment in history of PIERER Mobility AG
- Statement in direction of market and customers – North America is one of the most important sales markets
MURRIETA, Calif. – Tuesday afternoon marked a significant milestone for the KTM North America, Inc. and PIERER New Mobility North America organization as it celebrated the official grand opening of PIERER Mobility AG’s brand-new North American Headquarters in Murrieta, California.
Special guests from all over the world were in attendance for Tuesday’s festivities, which included a ribbon cutting ceremony to officially unveil the world-class facilities dedicated to the company’s premium motorcycle brands KTM, Husqvarna Motorcycles, GASGAS and MV Agusta; in addition to bicycle brands Husqvarna E-Bicycles, GASGAS Bicycles and FELT Bicycles and high-end components under the WP brand.
With global headquarters based in Austria, PIERER Mobility AG – parent company of the highly prominent two-wheeled brands – is Europe’s leading manufacturer of powered two-wheelers that has been an active player in the North American market since 1967. PIERER Mobility AG CEO, Stefan Pierer, and select members of the global Board of Directors were in attendance on Tuesday to celebrate the momentous occasion.
“This is an emotional day for me,” said Stefan Pierer, CEO of PIERER Mobility AG. “Exactly 30 years ago I started in the USA with only a dozen of employees. Today we are Europe’s leading Powered Two-Wheeler group, we’re selling approx. 100,000 units annually in the US market, so more than one billion dollars in sales. The most important success factor for us is racing, that is the driving force that pushed us over the years, even in the US market. Building our new North American headquarters in Murrieta was the biggest single investment we’ve ever made yet. We set a new standard for the whole US market.”
The new headquarters is part of KTM North America’s commitment to growing the sport of motorcycling through continuous investment in infrastructure, research and development, technical training, and continuing education for the company’s class-leading products and technology. Specifically, in North America, the organization has grown from 30 employees in 2009 to almost 360 employees in 2023 and this new building allows for further room to expand and grow to support its network of more than 1,000 independently owned small businesses across North America.
CEO of KTM North America, Inc. and PIERER New Mobility North America, Inc., John Hinz, addressed the group on Tuesday afternoon, “Today marks a massive milestone in our company’s history. The campus and our facilities, this represents the single biggest investment by our company, so thank you to Mr. Pierer. We designed these buildings for our employees, race teams, athletes and truly for our dealers across North America to help support our brands and help support sales. This new campus showcases not only the facilities as a tool for our employees and dealers, but it’s our commitment, our dedication and our investment into the motorcycle and bicycle industry here in North America.”
The development, which is situated on 20 acres of land adjacent to the French Valley Airport just off Winchester Road, was initially announced in August 2021 and the project officially broke ground in November of the same year. Following an extraordinary development phase over the past 15 months, the $53 million corporate campus is now operational with three state-of-the-art buildings that include over 130,000 square feet of space dedicated to the company’s technical development, administrative offices, media relations, dealer training, warehouse and world championship racing departments, with 12 additional acres set aside for future development.
The group’s purpose-built private motorsports facility – RD Field – sits one block south of the corporate campus, equipped with two supercross test tracks, hard enduro test track and a trials competition section for product testing and athlete training.
Volcon ePowersports Launches New Grunt EVO and Runt LT Off-Road Motorcycles
Volcon Inc. (NASDAQ: VLCN) (“Volcon” or the “Company”), the first all-electric, off-road powersports company, announced today it has launched the new Grunt EVO and the Runt LT. The EVO is the latest edition of the Company’s original all electric off-road motorcycle using Volcon’s Exo-Arch frame and fat-tired design, now affectionately called the Grunt Founders Edition (FE) internally. The EVO streamlines design, comfort, and style while offering improvements based on Grunt consumer feedback.
Like its predecessor, the EVO will utilize the Company’s proprietary Exo-Arch frame design and offer a wide range of off-road capabilities across several landscapes and uses. The EVO is a leaner, lighter and quieter evolution of the Company’s original off-road moto, with updates to the overall riding experience. Contributing to EVO’s stealth is the use of the Gates Carbon Belt Drive system, making it ideal for hunters or tending land with livestock. The Gates Carbon Drive (Moto X9) requires less maintenance and is more energy efficient than traditional chains leading to improved range. Another key update is a newly designed progressive rear suspension with a premium, custom tuned, coilover shock from Walker Evans Racing.
Comfort is another key theme in the EVO design. A more ergonomic, scalloped seat profile and material changes increase comfort and impact absorption. Upgrades in footpeg position and mounting create a better rider angle, improving ergonomics and providing a more plush feel during off-road adventures. This latest edition will have the same torqued, 60V power system and the undeniably valuable IP67 rating, making it water, sand, and snow proof. Another key EVO development is the overall weight reduction of nearly 20 percent.
Aesthetically speaking, the EVO is slimmer and incorporates a cosmetic upgrade with new stylized fairings added to the bike. These fairings not only add an aggressive design element, but also protect the battery and enhance aerodynamics. Further refinements including placing all electrical components under the seat, giving the EVO a clean and minimal finishing touch. The EVO will come in three colorways: Bandit Black, Del Rio Red, and Desert Dune – each an ode to the company’s Texas roots. Accessories will include a trailer hitch attachment, which can tow 750 lbs, rear rack and other storage options.
The long anticipated Runt LT, the downsized, abridged version of the Grunt will be making its debut to powersports dealerships near you this spring. The Volcon Runt LT boasts many of the same benefits of the EVO, while also having some unique callouts of its own. The Runt’s low 27 inch seat height makes it a great option for the smaller stature or as fantastic pit bikes. Unlike its predecessor the Grunt, the Runt LT features an in-wheel hub motor, giving riders higher torque and increased control of vehicle dynamics. The Runt LT reaches speeds of up to 35 mph and 25 miles of range on a single battery charge. Inverted forks, pivotless adjustable rear shock, and hydraulic disc brakes give it one of the smoothest rides of any off-road motorcycle in its class. Luminous LED headlights keep the rider’s path brightly and safely lit while cruising off-road terrain.
Akin to the EVO, the Runt LT has three ride modes displayed on its large LCD display screen. While not named like the modes in the Grunt, they’re similar in speed capacity with mode one through three, hitting speeds of 15 mph, 25 mph, and 35 mph respectively. The Runt will come in Del Rio Red and Desert Dune colorways and only weighs 147 lbs. The Runt LT completes a two-wheel, family-focused product suite, aligning with the Company’s core values of promoting time spent outdoors for everyone.
“Nothing compares to the fun of bonding with your family in the great outdoors, so to offer a line of products that make that achievable for all kinds of families, regardless of their level of motorcycle experience, is fulfilling, personally and professionally,” said Melissa Coffey, Volcon Vice President of Global Revenue and Business Development. “Giving everyone in the family an option for low maintenance, easy-to-ride, fun is the catalyst for empowering adventure, especially with financing options through our incredible dealership network,” Coffey continued.
The Company aims to widen their customer base with these new editions, targeting outdoor enthusiasts, traditional powersports families, wildlife conservation groups, and other audiences needing silent, rugged vehicles with exceptional all-terrain capabilities. Volcon is scheduled to ship the EVO and Runt LT to dealers in Q2 of this year. Customers can start creating builds of both motorcycles on Volcon.com starting March 30, 2023. Once ready, customers can pick up their motorcycle from their local powersports dealer.
BRP Teams Up with Tread Lightly! and RideSafe to Promote Responsible Riding
BRP Inc. (TSX: DOO, NASDAQ: DOOO) is proud to lead the powersports and marine communities with initiatives promoting safety, the environment and riding etiquette with its Responsible Rider program. Today, BRP is broadening its impact by announcing three-year partnerships with two organizations equally committed to empowering all those who ride to do so responsibly: Tread Lightly! and RideSafe.
“The Responsible Rider program was born out of our deeply held belief that when all riders look out for each other, engage in safe experiences and are mindful of the environment, they help build a more caring community and preserve our playgrounds for future generations,” says Anne-Marie LaBerge, Chief Marketing Officer at BRP. “We are taking bold steps to encourage all riders to ride responsibly and are thrilled to welcome new partners to further our impact. By teaming up with Tread Lightly! and RideSafe, we will drive positive change and ensure our next ride is as good as the last.”
Tread Lightly!
Tread Lightly! is a nonprofit organization with a mission to protect and enhance recreation access and opportunities by promoting outdoor ethics to heighten individuals’ sense of good stewardship.
Over this three-year partnership, Tread Lightly! and BRP have committed to developing trainings and other tools dedicated to driving positive change through BRP’s worldwide dealer network and all powersports riders. Training will be delivered online and cover subjects based on the Responsible Rider program’s three pillars: Safety, Environnement and Riding Etiquette, and will be available in French, English and Spanish.
“In the past few years, we have seen rapid growth in motorized recreation all over the US. Tread Lightly! has heard regularly about the need to better educate these enthusiasts on how to be respectful and responsible,” says Matt Caldwell, Executive Director, Tread Lightly!. “This partnership with BRP provides every enthusiast with the tools to ‘do your part’ to ‘protect the fun’.”
RideSafe
The mission of RideSafe is to significantly reduce the number of powersport injuries and fatalities by inspiring children and adults to wear helmets and proper safety gear and obtain safety certification before operating powersports equipment.
During this three-year partnership, RideSafe and BRP have committed to educating young riders and their families on how to be responsible riders. To accomplish this mission, Hubert Rowland and his team will visit schools in Wisconsin, Minnesota, Tennessee, Arizona, Utah, Florida, Texas, and West Virginia.
“BRP is more than just a company, they are a team of people dedicated to creating a positive impact. Their entire team embodies the qualities of leadership, humility, and compassion – making them a true leader in the powersport industry,” says Hubert Rowland, racer and Co-Founder of RideSafe.
“Our partnership with BRP is critical to educating consumers on safe practices and promoting responsible riding. By combining our mutual resources and utilizing the voice and talent in our industry, we aim to get the attention of a broad audience, empowering them to make informed decisions about safe riding practices and shifting the culture where everyone makes safety their first priority,” says Kristen Almer, Co-Founder of Ride Safe. “As I often say, our powersport athletes and influencers are great because they are masters of safety first, and our partnership with BRP is a crucial step towards making this a universal mindset.”
BRP is committed to playing an even greater role in the lives of its employees, dealers, and consumers with the goal of truly moving the needle on social issues that touch people in their everyday lives. Including the Tread Lightly! and RideSafe contributions, BRP has invested nearly CAD $1.5 million towards initiatives in line with its Responsible Rider program in the last year alone. These partnerships align with BRP’s Corporate Social Responsibility (CSR25) commitment to foster positive change worldwide and invest 1% of annual pre-tax profits in local and global causes by 2025.
Tucker Powersports Named Exclusive US Distributor for Kellermann Lighting Products
Tucker Powersports today announced its exclusive distribution agreement with Kellermann GmbH, the German manufacturer of high-technology premium lighting products for motorcycles. Kellermann, known for its award-winning style and tremendous popularity in the custom bike community, now has access to the thousands of dealers in Tucker’s dealer network, while Tucker secures another exclusive partnership with a leading technology company in powersports.
Kellermann, based in Aachen, Germany, has been manufacturing motorcycle accessories for over 30 years. The company’s turn indicators and other lighting products have set industry standards for brightness and style and have earned a cult-like following among motorcycle customizers and designers. With design awards from Red Dot and the Chicago Athenaeum, the broad product line can deliver classic style or dramatic custom looks. Kellermann has worked previously with Tucker’s Kuryakyn brand to develop the tremendously successful Tracer lighting systems launched in 2021 and 2022. The company’s current product line includes lighting products, mounts, and related electronics.
“Together with Tucker and their extensive dealer network, we want to take our brand to the next level in the US market “, said Dr. Stefan Wöste, CEO of Kellermann. “This partnership will make the upcoming introduction of our newest lighting products even more impactful.”
“Kellermann and Tucker share a passion for technology and product innovation,” said Marc McAlister, CEO of Tucker. “This partnership is an opportunity for two tremendous brands to have a significant impact in the motorsports industry.”
Tucker is preparing for the launch of Kellermann’s newest products in the next few weeks, which will reinforce the technology and quality leadership of the Kellermann line of products.
2023 HardDrive Catalog Spotlights New Brands and Products
HardDrive, a Boise, Idaho-based V-Twin distributor, is celebrating its 10thanniversary this year.
“A lot of wonderful things have happened over the last 10 years for HardDrive, and we wouldn’t be where we are without the passion and efforts of our team, partner vendors and most of all, our dealers,” said Krys Brown, V-Twin product director at HardDrive.
The growth of products this year is spotlighted in the over 1,300-page 2023 HardDrive catalog, showcasing more than 1,000 new part numbers. The strength and drive of our industry and the direction HardDrive is headed in are clear.
New to the family this year are two exclusive brands with deep roots in the industry that are entering distribution for the first time. They are Hofmann Designs with their famous carbon fiber body pieces and new Signature Series Billet Accessory line, and JRI Suspension with their race-proven high-performance Front Fork Cartridge Kits and Rear Touring/M8 Softail Shocks.
“We are extremely grateful for our exclusive partners and the innovation they contribute to our industry, allowing us to exclusively offer their products to our HardDrive dealers worldwide. These relationships provide a strong foundation for the success of both parties. We are excited for what the future brings,” said Brown.
Also added to the 2023 vendor lineup are three industry-leading manufacturers that will bring strong brand awareness to the catalog and round off the ever-growing product portfolios: Burly Brand, Hawg Halters INC (HHI) and Custom Engraving LTD.
Visit www.hdtwin.com to view the new online catalog or fill out an application to become an elite HardDrive V-Twin Dealer.
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