BAD NEWS

[Philip]

Owners want a payday? What are you talking about?

Read again what he said. It's the opposite.

 

[Philip]

they lowered the msrp of bikes several K to reduce inventory as the writing was on the wall........ o2

The writing was NOT on the wall. Just a year ago they thought they were flush with cash and did not need any additional investments. I know because I asked.

This leads me to a conclusion that the earlier estimate of a ridiculous daily burn rate was a bogus.

How the hell can you burn $55K a day if your non-production expenses are mostly marketing, rent and payroll?

 

[TCMB371]

I was talking about the owners of the company. I'm disagreeing with the notion that the creators of Alta were only after a big payout.

derp. I had only taken a single sip of my coffee before reading your post.

 

[Oded]

A very interesting response to my post from Vitalmx

Highflier
View attachment 14706231 Highflier https://p.vitalmx.com/photos/users/6231/avatar/c50_image_1440373636.jpg?1440373256 https://www.vitalmx.com/community/Highflier,6231/all 04/01/08 2 42
Posts: 44
Joined: 4/1/2008
Location: TX, USA
1 day ago

It’s highly unlikely anyone will buy Alta, Harley left after they saw how the sausage was made.
Alta has already consumed over $43,000,000 and wasn’t profitable after 8 years.....
After 8 years and $43mil, investors weren’t buying the pitch anymore.
https://www.crunchbase.com/organization/brd-motorcycles

Another fun fact about the past, Alta had an average monthly burn rate of over $1,680,000....per public records.

They were losing over $55,000 per day

This is bad news. Now, that we all became financial analysts, the thought that Alta is gone is becoming more realistic.

As much as I love these bikes, I don't see any electrical breakthrough in their bikes. Just high end components mate to a very efficient electrical system.

Man, I hope I am wrong.

 

[Philip]

Man, I hope I am wrong

+1

 

[Redwolf]

+2

 

[BenEXR]

The only possible explanation, is simple.

Expected sales fell way below expectations. Projected sales are abysmal industry-wide. The motorcycle industry is sadly, dying.

Sales probably needed to be three-to four times what they were for the lights to have stayed on.

 

[Rix]

+2

+3

 

[Ireek]

Imo, the only way electric motorcycles will make it is to go after the commuter crowd, offer performance models also but rely on commuter bikes for the most revenue.

 

[revoltlution]

Imo, the only way electric motorcycles will make it is to go after the commuter crowd, offer performance models also but rely on commuter bikes for the most revenue.

Just like Zero? Inferior dirt bike

 

[Philip]

The motorcycle industry is sadly, dying.

No, it is not dying. Just those American baby boomers got too old and stopped buying bikes. There was a spike of bike sales in the 2000's, and now it is back to normal. The sales are actually "booming" in Europe and Asia.

While USA Motorcycle Sales Lag, Europe and Asia are Booming - And a New Category is Emerging

The new emerging category is electric commuter bikes and scooters.

 

[schwankl]

[probably not anyone in this forum] damn lazy tv-watching Americans - TV land ... go ride - to work at least - plug in at work for free, cleaner power. You will have fun riding and minimize gas/oil and wars around that.

 

[leeo45]

No, it is not dying. Just those American baby boomers got too old and stopped buying bikes. There was a spike of bike sales in the 2000's, and now it is back to normal. The sales are actually "booming" in Europe and Asia.

While USA Motorcycle Sales Lag, Europe and Asia are Booming - And a New Category is Emerging

The new emerging category is electric commuter bikes and scooters.

In case there is any interest, here is the historical USA data:

 

[Philip]

In case there is any interest, here is the historical USA data:
View attachment 1490

Thank you for finding this chart. MXA and others like to complain how it is not what it used to be, but the fact of the matter is that the motorcycle sales just had a blip a decade ago, not a breakout.

However, people are racing motocross less than in the 80's and 90's, I think this is true.

 

[BenEXR]

Of course, like with anything, there are almost always two, if not more, competing views on the same subject. There are many articles on the state of the industry out there, these were just a few of the first ones, most of the search started with Harley Davidson since it is the largest US manufacturer.

This article says motorcycle sales are " . . . in deep trouble and needs help . . . "


No easy ride: Motorcycle industry is in deep trouble and needs help fast, panel agrees - Los Angeles Times

An excerpt from the start of the article:


"Former Indian Motorcycle executive Robert Pandya formed the Give A Shift group this fall, hoping to find a consensus of opinion among his friends and colleagues.
He began with a written survey, which included 300 participants, and proceeded to a two-hour roundtable discussion in Long Beach, on Nov. 16, with 25 of the most ardent influencers.

Their comments, made anonymously for fear of offending employers and business associates, paint a dire picture.

• Sales are flat or falling in almost every area.
• Baby boomer buyers, the most consistent motorcycle consumers, are aging out of the industry fast.
• The industry has failed to increase sales by making new riders out of women, minorities and millennials.
• The old dealership model is broken and needs a makeover.
• The arrival of autonomous vehicles may push motorcycles off the road entirely.

“The message is, ‘We are in trouble, and there is no silver bullet,’ ” Pandya said."






Then there is this article that says that all is not(yet) lost:

https://ultimatemotorcycling.com/2018/02/12/motorcycle-sales-patterns-explained-sky-not-falling/

 

[privateer703]

I read that even though sales are down, there are more registered motorcycles on the road. After the 2008 recession, less people bought new bikes, but MORE people bought used bikes. So while sales of new bikes slumped, there were more people becoming motorcycle owners, just in the used market. Motorcycles are not going anywhere. More women are getting into motorcycles as well. There are probably less dirt riders out there these days, but I feel that is one of those activities like hunting, that will continue to lose ground as places to ride/hunt get swallowed by development and kids are less interested in outdoor activities. Just my opinion.

 

[BenEXR]

It will be interesting to see how it all goes going forward.

Just like passenger cars/automobiles/sedans. Who knew that the SUV/crossover would take over and would spell the downhill slide for that type of transportation?

No one saw Alta's demise coming either. The "for a limited time only" sale on spare parts was/is foreboding. Why do that if there was hope?

 

[bluefxstc]

It will be interesting to see how it all goes going forward.

No one saw Alta's demise coming either. The "for a limited time only" sale on spare parts was/is foreboding. Why do that if there was hope?

I think the current "for a limited time only" sale is to support existing owners and sell existing inventory at the best price to help settle debt.

The hope is that someone else will see value in Alta's IP, buy them, and keep the dream alive.

 

[Philip]

I read that even though sales are down, there are more registered motorcycles on the road. After the 2008 recession, less people bought new bikes, but MORE people bought used bikes. So while sales of new bikes slumped, there were more people becoming motorcycle owners, just in the used market. Motorcycles are not going anywhere. More women are getting into motorcycles as well. There are probably less dirt riders out there these days, but I feel that is one of those activities like hunting, that will continue to lose ground as places to ride/hunt get swallowed by development and kids are less interested in outdoor activities. Just my opinion.

I am forecasting that motorcycle sales will pick up again after 2023 when Pluto moves from Capricorn into Aquarius.

 

[Scooter584]

I'm about done patience wearing thin...thinking of selling my 2018 MXR. 8 hrs on it. I just don't know, this sucks, I was hoping to hear news "any day now" but nothing and it's looking grim. Parts will be hard to come by and any type of dealer help is now out the window! Great bike fun to ride but I have two "dinosaurs" that I can still get parts for and I can actually work on them....uhg decisions decisions! Maybe I'm just in a bad mood. Wish it to be nice enough here (Iowa) to ride tomorrow....maybe I'll change my mind