Industry Updates
- Jeff.Saunders
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MC Stuff shut down. While that may not be a name most of you are familiar with, it was the Japanese motorcycle parts leg of Global Motorsport / Custom Chrome group. 3 warehouses closed... This reduces the number of industry suppliers (and the availability of some parts).
Nichols merged with Hap Jones. Two fairly small industry distributors joined forces to try and survive.
Kerker discontinued a number of pipes for our older bikes. While I doubt they will kill them all, I do expect more cuts.
When the fuel prices sky-rocketed earlier in the year, people dusted off large numbers of older bikes. So there are many more older bikes in circulation.
OEM dealerships are feeling the pinch. A local Yamaha dealer just closed permanently.
Sales of cruisers and sportbikes have plummeted causing all the Japanese OEM's to cut back production for the 2009 model year. For street bikes over 250cc, sales of new units are down around 20% (and probably much worse in the latter part of this year). H-D sales are off 37%.
One thing that will take a while to sort out - several of the smaller parts manufacturers are going to go out of business. These are 'no name' companies who produce private label parts for different distributors. I know of one sprocket manufacturer in the far east who is struggling.
Part prices going into 2009 will likely rise - and possibly a fair amount. The Yen to US DOllar exchange rate is horrendous at the moment. The rates have shifted nearly 20% to the bad over the past 2-3 months.
More to follow...
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- wiredgeorge
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wiredgeorge Motorcycle Carburetors
Mico TX
www.wgcarbs.com
Too many bikes to list!
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- PLUMMEN
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Still recovering,some days are better than others.
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- Mcdroid
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- Gone Kwackers
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Michael
Victoria, Texas
1982 GPz750
1977 KZ1000A
1978 KZ1000A
1982 GPz1100
1975 Z2A
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- HerrDeacon
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Also, you can see the worldwide impact of the economy in motorsports. Not sure if anyone follows it but some major teams have called it quits lately due to the financial crisis. Honda has left F1 and Subaru and Suzuki just quit WRC. Lets just hope it turns around quickly.
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- timebomb33
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1973 z1 2-1974z1-a,2-1975z1-b dragbikes1015cc+1393cc, 1977kz1000,1978kz1000,1981kz1000j, 1997 zx-11, 2000 z12r,1428turbo nitrous pro-mod and a shit load of parts thats all for now leader sask.,CANADA
I THINK MY POWERBAND BROKE
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- Jeff.Saunders
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Exchange rates will probably continue to bounce around. I suspect the Yen will come back against the US Dollar, but that may be difficult given the unpalatable nature of investments in the USA stock markets and Treasuries... The Yen to Dollar has swung from around 100 Yen to the dollar, to a high over 120 to the dollar, and now down well under 90 to the dollar - all in about a year.
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- arai59
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Ahhhh! But the good news!!! Gasoline still evaporates in carburetor bowls over the winter and gums up pilot jets, choke circuits and causes a tremendous hassle in the spring when the owner tries to start his bike! Thank goodness for evaporation. hehe
Hey George....I use a product that actually eliminates petrol evaporation. Bought it from a well known forum KZR parts distributor. Stuff works like a champ ! No more clogged pilots or chalky residue. Lasts for months too. You should offer this product to your customers. Would make for some satisfied folk.
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- The Gringo
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- ¡Usted no necesita otra motocicleta!
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Ahhhh! But the good news!!! Gasoline still evaporates in carburetor bowls over the winter and gums up pilot jets, choke circuits and causes a tremendous hassle in the spring when the owner tries to start his bike! Thank goodness for evaporation. hehe
Now that was funny!!!:laugh:
Andy
Akron, Ohio
80 Z-1 Classic-Sold
84 GPZ1100
79 KZ 1000 LTD
78 KZ 1000 A2
77 KZ 1000 LTD-Sold
76 KZ 900 The definition of a barn find
76 KZ 900-Sold gone to Denmark
KZ 750 times 3, KZ 650 times 8 Sold 1 down to 7
KZ 550 times 2 80 440LTD-Sold
81 CSR 305-Sold 81 Yamaha XS650 Special
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- BSKZ650
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Also with the tighting of belts across the country, do you see many more companies that produce the parts leaving the industry and thus leaving a void in the market for the products they produce, or will someone else pick them up and market them at a higher price.
77 kz650, owned for over 25 years
77 ltd1000, current rider
76 kz900, just waiting
73 z1,, gonna restore this one
piglet, leggero harley davidson
SR, Ride captian, S.E.Texas Patriot Guard Riders.. AKA KawaBob
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- Jeff.Saunders
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Some manufacturers are holding prices, but most are passing increases along. With a few parts, the prices are dropping.
Motion Pro, K&S (turn signals, wire, seals and more), Kawasaki, Emgo and more are already making changes - 5%-10% seems to be the average raise. Dynatek is holding prices at 2008 rates. We are waiting on the rest as some don't shift their prices until March or April. By April 1st, the majority of price changes will be completed for 2009. In past years it was unusual to see mid-year changes, but in this crazy ecomony, I fully expect to see some companies changing prices on the fly. The key to all of this is the US Dollar against the different currencies.
For OEM parts the Yen to US Dollar is key - and that's pointing to a 15%-20% increase if exchange rates hold steady.
The Taiwanese dollar to US Dollar has not been bad - almost a wash for the last 12 months.
When you look at where parts are made, the motorcycle parts come from all around the globe - Italy, England, Australia, Taiwan, Singapore, Malaysia, Argentina, China, USA, S. Korea and more.
We've already seen some distributors / importers switching manufacturers behind the scenes. Anyone buying things like oil filters may notice the country of manufacture changing on the parts boxes...
There are so many changing factors influencing the prices today - many raw material cost have dropped, shipping costs have dropped, so on the one hand you'd expect some prices to come down. But manufacturing orders have dropped as well, so the manufacturers are wrestling with increasing prices to stay in business, to bidding low on contracts to have enough work to survive... it's crazy...
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- Kawickrice
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- After Monday & Tuesday, even the calendar says WTF
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Thanks for the in heads up on the possible availability issues for some vintage parts. Some of us probably would have never thought about the the currency rates, global economy, manufactures closing down and so forth. I am one for sure that did not really think about it, when I should have. I remember the days when not much was available on the aftermarket end, other than exaust pipes, case guards, and backrests for street use. I know the drag racing parts are a little different and sometimes to radical. I praise you for your knowledge and dedication to the bikes of yesteryear. Shame on me for wearing blinders. Once again Thanks
73 Kawasaki Z1
07 HD CVO Ultra Classic
82 Suzuki GS 1100
74 Yamaha RD 350 (My two stroke toy)
77 Kawasaki KZ 650B-1 (My putt around bike)
80 Indian Moped (My American Iron)
1
Long Gone
75 Suzuki GT550
74 GT 380
79 RD 400 Daytona Special
72 Honda CL 175
74 Honda QA 50
Tampa FL
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