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Motorcycles, Scooters Cruise For Sales Edge

Gas Prices, Economy Helped Scooters Soar Last Year

Updated: 10:30 am PST February 16, 2009

The economy may be in the tank, but you wouldn't know it walking around the Cycle World International Motorcycle Show in Minneapolis last weekend.

"We know that times are tough for people at the moment," said Steve Martindale of Honda Motorcycles. "But, we also know that motorcyclists are still keen to look at potential new bikes now, in preparation for the warmer months."

Despite the downturn in the economy and a drop from the high gas prices that had scooters and motorcycles rolling off showroom floors this summer, the market for most everything on two wheels has stayed relatively strong.

"Motorcycling is also an extremely viable, practical and economical means of transport, as well as a great way of having fun, which are both important, especially in these harder times," Martindale said.

Motorcycle and scooter manufacturers are using the traveling motorcycle show, which moves on to its last stop in Greenville, S.C., Feb. 20-22, to show off their latest models and attract even more customers.

Those attending the show could get a look at such eye-catching bikes at the 2010 Honda Fury, the company's attempt to bring custom-bike looks to a factory product, the all-black Iron 883 from Harley-Davidson, the Vectrix electric scooter and the futuristic Victory Core concept bike, complete with a mahogany seat.

Scooters, Dual-Purpose Bikes Big

While scooter sales stayed steady through the end of 2008, ending up nearly 40 percent over 2007, overall motorcycle sales fell 7.2 percent in 2008, said Tim Buche, president of the Motorcycle Industry Council.

That decrease paled in comparison to the sales numbers seen by automakers. And while motorcycle sales were down, sales of dual-purpose bikes, those that can be used on and off roads, jumped 22.8 percent.

"If it was smart-sized, offered great value and high fuel mileage, then chances are it was a sales success," Buche said. "Availability mattered, too. Many dealers could have sold more of these kinds of motorcycles if they only had them. Demand was so much higher than anyone could have expected."

Bob Hedstrom, owner of Scooterville, a Minneapolis store that saw record business last year thanks to rising gas prices, was at the show with the Vectrix electric scooter as well as the newest models of the seemingly always hot Vespa scooter.

"Especially last summer, it was busy beyond anything that we had ever seen," said Hedstrom, who opened his shop in May 2002. "I think it's pretty clear that a lot of that was attributable to gas prices."

Even as gas prices fell, the scooters have remained popular. Hedstrom said he thinks the Vectrix scooter will prove popular as people continue to seek fuel-efficient alternatives.

Vectrix Electrics has been selling its VX-1 electric scooter for a while, but is unveiling two new models at the show: the VX-1E, a cheaper, trimmed-down version of the VX-1, and the VX-2, a cheaper and less powerful model with a lower top speed.

The scooters, which recharge with a standard household outlet, have a range of between 40 and 50 miles, depending on conditions and riding style. The VX-1E will cost $8,495 when it arrives in April and the VX-2 will cost $5,195 when it becomes available in June.

Tax Credit Raises Hope

Harley-Davidson is hoping a tax credit for motorcycle purchases in the newly passed stimulus bill will get more people shopping for a chopper.

The Milwaukee-based company, which announced it would cut 1,100 jobs last month amid slumping sales, has huge hopes for the Iron 883, a $7,899 bike decked in back from fender to fender that practically screams "rebel."

"The Iron 883 defies the plastic conventions of other motorcycles at this price," said Mark-Hans Richer of Harley-Davidson. "It's got old-school style in a new school ride."

While the crowds of people checking out the Vectrix and the Iron 883 would seem to be good signs for the industry, the questions remains whether that will translate into stronger sales in 2009.

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