Category: Manufacturers

Vespanomics

VespaUSA finally shifts into second gear and comes above the surface with their “Vespas are ecological” PR campaign thats been such a success in getting them press: Vespanomics. There is certainly some economy, and maybe ecology, in scooter-riding, but they’re glossing over an awful lot of math, science, and common sense to hype it to this level. Still, it’s nice to see them actually selling some scooters. More later.

Piaggio releases IPO prospectus

Vespa manufacturer Piaggio & C. SpA released a prospectus today outlining their initial public offering. Since we can’t read Italian OR “legalese,” we’ll accept Bloomberg’s synopsis that they plan to sell up to 158 million shares, at €2.3 to €3 each, to raise as much as €474 million (US$599 million). Piaggio Chairman Roberto Colannino’s IMMSI SpA holding company, who now holds 40% of the company, plans to increase their share to 49%. The IPO values Piaggio at about €1.16 billion.

Profit, lightning, and IPO approval:
a busy week for Piaggio

After reporting a first-quarter profit for the first time in years, and a lightning strike at their Pontedera factory last week. Piaggio’s IPO prospectus was approved by the Italian regulatory agency Consob today. Piaggio is expected to publish the prospectus in the next few days. The Australian has a good story outlining Piaggio’s recent history and return to profitability.

Rahul Bajaj elected to Rajya Sabha

Patriarch of the Bajaj family and former Bajaj Auto president, Rahul Bajaj was elected to the Rajya Sabha (Indian Congress) today, taking a seat left empty when Bharatiya Janata Party leader Pramod Mahajan was killed in a family dispute (Bajaj’s own recent family disputes were settled only slightly more discreetly). He had the support of several parties and won with 195 of 288 votes (with three abstaining). Bajaj is well-known as opposing “reservations,” an Indian-government plan to expand hiring and education admission quotas to include more lower-caste Indian citizens. Students and middle-class workers have taken to the streets recently to protest the quotas in recent weeks.

“This technology deserves to be tested under real power”

Another, more detailed review of the MP3 from the Independent.
Via Mad Man Maddox, who adds:

What intrigues me is that this might be a Thing (I hate to call it a scooter) that lets me ride to work all year long. I did that this year but i am crazy, The bike has power to drive heated lap covers, heated vests, and heated handle bars, plus LARGE and small wind screens designed for summer and winter conditions. And it has up to 110 liters of storage. My winter riding jacket and my full face helmet fit in my 45 liter top case now after I take out my mac book and lunch. I ride the Kymco 250 all over Chicago — I-57, I-55 — and it’s fine. I have never ridden it farther on the interstate than Cleveland. If the stability [of the MP3] is as good as I hope, this is a car replacement. Did not you quote an article in french talking about a 400cc upgrade?

Yes, the 400cc MP3 is due in December for Europe, and there are also rumors of an Aprilia version, but the US is only getting the 125cc version for now. Hopefully it will find success in Europe, because Piaggio, despite their PR and soundbites to the contrary, doesn’t seem too interested in us.

Lake Erie Loop 2006: POC Phil’s report

Lake Erie Loop entrants

Phil and the Pink BuddyHere’s Phil Waters’ report on this year’s Lake Erie Loop, a low-displacement motorcycle race around Lake Erie to benefit the Aluminum Cans for Burned Children Foundation:

Any scooter or bike 200cc or under can compete. Bikes over 200cc can participate in the non-timed “tourist class.” All proceeds go to help burned kids, so you can feel good about breaking the law and destroying your scooter or bike. There were 18 contestants this year. We proved that scooters posed a real threat, 5 scooters were entered and ALL of them completed the course with 2 of us taking home trophies.

Continue reading “Lake Erie Loop 2006: POC Phil’s report”

ScootRS develops new Vespa tubeless rims

ScootRS has introduced their third-generation tubeless rims for 10″-wheel Vespas. The new design improves on earlier designs for Lambretta scooters. As big fans of the convenience of the Vespa split-rim design, 2sb would ask: “Why tubeless?” ScootRS, of course, has an answer:

A rim that requires a tube, as all Vespa rims do, means your tire suddenly and dangerously blows out when punctured. On a tubeless rim, however, you merely have a slow air leak, as on a car. No blowout means no danger.

Vespa Chicago reopens in Roselle

2sb reader, Wezul, reports:

I just spoke with Sam [Tomaino]. Vespa Chicago has relocated to Roselle on Lake Street. Phone number is (630) 936-7980. Helpful? I hope so. Enjoy your ride!

Thanks, Wezul! Vespa Chicago‘s website has removed all references to West Suburban Auto Group, and lists only the Boutique address (557 W Diversey Pkwy.) so apparently, Tomaino has parted ways with WSAG but kept his Vespa dealership. Presumably, the boutique will stay open, with service and sales support from the Roselle location. We reported last month that Joliet-based MotoplexUSA and their Chicago location, Old Town Motocycle Shoppe, were to become Vespa dealers, but they have yet to return our emails to confirm or deny the rumor. It’s unclear whether that deal was Tomaino’s backup plan, or if Chicago may yet still have two Vespa franchises.

The Wall Street Journal on Piaggio’s “comeback”

After starting out with the obligatory (Jesus, make them stop) “Audrey Hepburn lead,” yesterday’s Wall Street Journal story (syndicated here because the WSJ won’t share) about Piaggio’s “comeback” goes on to say:

[In] 2003, the company, based outside of Pisa, found itself in such dire straits that it teetered on the brink of default. Years of revolving-door management and millions of euros squandered on ill-conceived expansion plans had saddled Piaggio with crushing debts and left it vulnerable to competition from cheaper Asian rivals.

The Journal credits Roberto Colaninno and his staff with turning the company around, and they are making progress. Piaggio’s back in the black, but many of the very changes the WSJ praises are the same actions that caused trouble in the past. How are these new Chinese joint ventures less risky than the ones that fell apart ten years ago? How is the current Asian competition less of a threat? Why is the purchase of Aprilia and Moto Guzzi any more promising than the other dozen mergers and acquisitions Piaggio’s fumbled before? Is Piaggio really leading an Italian manufacturing revival, or are they assembling mostly Asian-made components on an Italian assembly line? Does Piaggio finally have their act together, or are they just riding a lucky wave of nostalgia and high gas prices?

It’s certainly a bit of both. The management, both in the U.S. and worldwide offices, seems to be more focused and Piaggio definitely remains a worldwide technology (and style) leader. Their public offering, even though it’s likely to be delayed, will help stabilize the company, too. Still, they can’t let their guard down, the scooter industry is never smooth sailing, especially in Italy and the United States. Colaninno has been quoted several times lately calling North America Piaggio’s most critical growth market. U.S. sales, support, and supply have improved in the past year, but if they’re serious about conquering the U.S., there’s still a lot more work to do.