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A Benelli Revival?

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PostPosted: 21:05 - 19 Oct 2006    Post subject: A Benelli Revival? Reply with quote

From https://www.motorcycledaily.com

Since their purchase of Benelli last year, Chinese motorcycle/scooter manufacturer Qianjiang has made it clear that they plan to rapidly and aggressively expand Benelli's product line-up, moving into every market segment that they feel is or soon will be experiencing significant growth.

They've also made it clear that they have the money to back up these plans - the first steps are already underway, with a brand-new factory currently under construction (near the current Benelli factory in Pesaro, Italy) which is planned to have the capacity to manufacture more than 30,000 units per year. The current factory will soon house an expensive rapid-prototyping facility that will allow Benelli's engineers to hit the fast-forward button on new model development cycles, getting prototypes on the road for development purposes much more rapidly than was previously possible.

The three bikes Benelli showed at the recent Intermot show provide a preview of at least part of their expansion plans. First up is the 49X, a 49cc urban scooter which seems to have been developed in close co-ordination with the scooter experts at Qianjiang. Of course, most motorcycle enthusiasts won't get too excited about a 49cc scooter, but building small, inexpensive scooters can be an excellent base for a motorcycle brand. Cheaper bikes appeal to a wider market, making it easy to develop a dealer network and get the Benelli name out there among young people, many of whom will grow up to be prospective customers for the company's larger models. Not only that, but building a successful market base selling scooters allows a company more freedom to take risks with their larger models, since they always have a solid, profitable business (their scooters) to fall back on. In Europe, the Piaggio group has already shown the efficiency of this model, and few would argue Benelli's decision to follow their lead.

Next on the line is the BX concept, a 449cc motocross machine, which provides a visual mission statement to Benelli's stated plan to begin producing four-stroke MX machines (in both 250cc and 450cc capacity). The versatility of these bikes is a big benefit, as the same basic chassis and motor can be used to produce an MX racer, a more trail/enduro-focused machine, and even a Supermoto - a model that has worked well enough for KTM, apparently. Benelli's appeal in this market will likely be due more to their 'exotic' nature than their ability to build better MXers than the Japanese or KTM, but I would expect good sales all the same - especially considering that a tiny slice of the motocross/off-road market would go a long way towards meeting the 30,000 bikes/year goal.

Finally we have the Due, a 756cc naked parallel twin which is the first in a line of parallel twins whose motor is basically two cylinders chopped off Benelli's existing 1130cc triple. The mid-size market is growing worldwide, and the Due seems to be aimed at bikes like the Ducati Monster 695, new Kawasaki Z750 (expected soon), Yamaha FZ6 Fazer, and even the new BMW F800. As I said, this motor is expected to form the building block for a broad range of mid-size models; possibilities include a supermoto-style machine (a la KTM Duke and Ducati's forthcoming Hypermotard), a 'trailie' (Suzuki V-Strom 650, etc), mid-size sport-tourer, and possibly even a faired sportbike. By using the same basic architecture for a wide range of models, the Chinese-owned Italian manufacturer can minimize costs while maximizing market coverage.

Of course, Benelli will continue to produce their current line of 900cc and 1130cc triples, including the Tornado sportbike and TnT naked bike, along with the new Tre-K roadster. Other rumors say that a line of cruisers is coming, aimed at the (bigger is better) US market, and powered by a 2400cc V-Six motor built by joining two of the 1130cc triples to a common crank!

It almost seems impossible that one company could take on so many challenges in such a short period of time, and it is possible that Qianjiang and Benelli are "biting off more than they can chew". Then again, Qianjiang didn't become the largest scooter manufacturer in China (valued at over a billion dollars) by making bad business decisions, and from the evidence we've seen so far, they seem to have the resources (both financial and human) to back up their ambitions.

I'm yet to be convinced.
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TheShaggyDA
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PostPosted: 21:31 - 19 Oct 2006    Post subject: Reply with quote

Quote:
a 756cc naked parallel twin which is the first in a line of parallel twins whose motor is basically two cylinders chopped off Benelli's existing 1130cc triple.


That would be a single then Smile
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Kickstart
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PostPosted: 21:36 - 19 Oct 2006    Post subject: Reply with quote

Hi

Good luck to them. Quite fancy a Tornado in some ways.

However, not sure scooter market has recovered enough to help Benelli out. The crash in scooter sales killed Aprilia, left Benelli in a pretty poor condition leading to their demise and severely harmed Piaggio.

All the best

Keith
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irving
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PostPosted: 21:53 - 19 Oct 2006    Post subject: Reply with quote

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Kickstart
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PostPosted: 22:03 - 19 Oct 2006    Post subject: Reply with quote

irving wrote:
Piaggio own a lot of the other European manufacturers. Aprilia, Moto Guzzi, Derbi, Gilera, Vespa. They also have interests in other manufacturers. They are huge.


Huge but not that financially healthy. Their main source of funds was sales of scooters, a market that collapsed in Italy leaving then combined with Aprilia with hundreds of thousands of unsold bike. Since then they have been spending money buying Aprilia.

All the best

Keith
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irving
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PostPosted: 22:10 - 19 Oct 2006    Post subject: Reply with quote

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irving
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PostPosted: 22:13 - 19 Oct 2006    Post subject: Reply with quote

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Kickstart
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PostPosted: 22:17 - 19 Oct 2006    Post subject: Reply with quote

irving wrote:
The scooter market in Italy was hit by the new helmet laws recently introduced over there. It is recovering quickly now people are coming round to the new laws.


Takes a fair amount of time to make up for the losses they have taken. Benelli were trying to get out of making scooters altogether, but did it too late to avoid the crash and didn't manage to get someone else to buy the range.

irving wrote:
I sub contract for an Aprilia & Piaggio dealership and they are shifting the scooters out of the showroom. I am doing a lot of PDIs for scooters at the moment so someone is buying them.


UK sales are peanuts compared to the former Italian sales.

irving wrote:
Keith, Did you give Halfords what for with regards to them trying to sell your other half WD40 as brake cleaner? They need telling or a letter or something.


Afraid not.

All the best

Keith
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hazza
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PostPosted: 22:24 - 19 Oct 2006    Post subject: Reply with quote

Quote:
Quote:
a 756cc naked parallel twin which is the first in a line of parallel twins whose motor is basically two cylinders chopped off Benelli's existing 1130cc triple.


That would be a single then



i had to read it about 4 times but what he means is two cylinders cut off of the existing three cylinder engine
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irving
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PostPosted: 22:37 - 19 Oct 2006    Post subject: Reply with quote

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Kickstart
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PostPosted: 22:59 - 19 Oct 2006    Post subject: Reply with quote

irving wrote:
Piaggio closed the first quarter of 2006 with a 19.8% hike in turnover, to 374.2 million euros, which allowed profits of 10.2 million euros, compared to losses of 10,.9 million euros for the first quarter of last year. The group was also able to lower its indebtedness from 411.4 million euros at the end of last year to 397.7 million euros by the end of March.


Massive debt and small profits. To put that in perspective their profits for the first quarter were what Aprilia spent developing their first scooter 15 years ago.

irving wrote:
If you are interested I can get the actual UK & Italian scooter sales statistics from work. I think you will be suprised, the UK market is very far from peanuts.


Figures up to 2004 are on page 3.6.7 here. 2004 sales in Italy for motorcycles (not just scooters) were 421k. Which makes the UKs 106.4k look fairly pathetic.

All the best

Keith
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irving
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PostPosted: 23:18 - 19 Oct 2006    Post subject: Reply with quote

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Kickstart
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PostPosted: 23:38 - 19 Oct 2006    Post subject: Reply with quote

irving wrote:
Sorry, I thought it was 2006?


2004 was as close as I could find, and I cannot see UK figures going up by 300% or Italian figures dropping by 75% to become comparable.

hairychipsticks wrote:
Your original point was that the Uk sales of scooters are peanuts compared to Italy was it not? Ok, I will grab the actual Uk & Italian sales figures from work for you. You will see that although Italian sales are greater, UK sales are very far from peanuts by comparison. Will pm them to you when I get back from work, that is if you are interested of course. Very Happy


Please do. However looking at the MCIA webt site the figures do not look good. No full figures there, but they list the July sales to be 7.2% below 2005 July sales, with 1st quarter sales of scooters being 1% below last year.

All the best

Keith
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irving
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PostPosted: 23:45 - 19 Oct 2006    Post subject: Reply with quote

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Kickstart
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PostPosted: 23:58 - 19 Oct 2006    Post subject: Reply with quote

irving wrote:
Er, As I asked before - Your original point was that the Uk sales of scooters are peanuts compared to Italy was it not?


Well the original point was that Italian scooter sales dropped and gave the Italian makers (including Piaggio, and Benelli) major financial problems, but UK motorcycle sales running at about 25% of Italian sales is peanuts.

All the best

Keith
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